Other countries, consisting of China and Venezuela, are especially excellent at these sorts of diplomatic efforts. The goodwill they have actually stimulated in the region through matthew wesley tate such activities should be a wake-up call for Washington that the Caribbean Basin can not be taken for granted. In the current environment the United States should compete for the Caribbean as undoubtedly we need to compete for all of Latin America, and I think that additional U.S. efforts in the Caribbean would be rewarded. So Mr. Chairman, Mr. Ranking Member, thank you again for the opportunity to join you. It is an advantage to do so, and I eagerly anticipate the concerns you may have.
Farnsworth follows:] [GRAPHIC( S) NOT AVAILABLE IN TIFF FORMAT] ---------- Mr. Duncan. Thank you, Eric. Next witness extremely well understood to the committee too, Sally Yearwood, you are recognized for 5 minutes. STATEMENT OF MS. SALLY YEARWOOD, EXECUTIVE DIRECTOR, CARIBBEAN- CENTRAL AMERICAN ACTION Ms. Yearwood. Thank you, Mr. Chairman, Ranking Member Sires. Thank you for holding this prompt hearing on the U.S.- Caribbean collaboration. Coming as it does in the wake of your house passage of H.R. 4939, we have an essential chance to assess and recalibrate the relationship. The Caribbean is the United States' third border. U.S. security interests in regional stability are intrinsically linked therefore, by extension, collaboration on crucial economic, political, and social advancement problems should be a diplomacy priority.
Russia, China, Canada, Taiwan, Venezuela, and the European Union all have a substantial presence. The Islamic Advancement Bank has actually developed significant ties with financing in some Caribbean countries, and other countries ranging from Qatar to Japan and Brazil have had a significant effect on how and where the nations of the Caribbean have actually turned to browse for trade and financing options (Trade credit may be used to finance a major part of a firm's working capital when). The United States remains the area's main trading partner, but there is no doubt that when it pertains to total engagement other nations are filling, and in many cases exploiting, a vacuum. What can be done to develop this more powerful partnership? I will speak with the areas of financial cooperation that our company believe could have an impact.
The 1983 Caribbean Basin Economic Recovery Act stays among the most generous nonreciprocal trade costs ever approved by the U.S. The Caribbean Basin stays a top 10 trading partner with a balance of trade surplus in favor of the U.S. It is likewise worth noting that the Caribbean is the only location of the world where U.S. ship operators and U.S. nationals remain considerable players in the international carriage of products by sea. When CBERA was passed, regional economies were quite oriented around farming and manufactured items. However, the world has actually altered. The economies today with some exceptions are mainly controlled by travel and tourist, the financial services sector and other service based industries.
With H.R. 4939, the U.S. Government can analyze what exists, where there are spaces, and advise possible locations for trade and cooperation which reflect today's reality. Reporter Banking and De-risking. While the technical issues behind this are under conversation amongst your colleagues in the Financial Providers Committee, and recently they sent out a letter to the OCC requesting clarity on the application of rules and compliance, this concern has actually been front and center for the countries of the Caribbean for a while. This is an international problem, however it is extensively acknowledged that the Caribbean has actually been disproportionately affected because of the size of the marketplaces and the perception of threat.
Federal government, international banks, associations, and the economic sector to help recognize solutions for the Caribbean. The CEO of the FIBA describes the scenario as follows: We are dealing with monetary inclusion in establishing countries and de- risking is then obstructing access to finance. This totals up to a de facto embargo on the region in the location of monetary services (How to finance an investment property). When international banks sever relationships with regional banks, there is a direct effect on economic development, trade, and remittances. As crucial, when the expenses of abiding by guidelines create a concern on the genuine banks and they close down, there is a danger that underground or less regulated organizations will take their place.
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While we can all concur that the banking neighborhood's ability to combat cash laundering and terrorist funding is a shared top priority, what we can refrain from doing is place unnecessary burdens on any private celebration. There exists a chance for all stakeholders to come together to craft a well balanced, risk-based approach between regulation and inclusion, where all parties recognize that they have a function in the problem as well as in the service. Travel and Tourist. Countless travelers move by air and sea between the Caribbean and the U.S. every year. Air and sea ports are a crucial part of the security apparatus every day.
extra control over its borders and produces a collaborative environment for handling terrorist watch lists in addition to trafficking of weapons, drugs, and other contraband. Pre-clearance centers in-region are an instrument for building a security partnership (What does nav stand for in finance). While the expense does not validate pre-clearance in every Caribbean nation, a strategic look at increasing pre-clearance presence through a hub and spoke system would be beneficial to shared partnership and security. Diplomatic Existence. Agent Engel has long required the establishment of a diplomatic presence in the countries of the Eastern Caribbean. There are nine member states of the Organization of Eastern Caribbean States, six of which are independent.
If there is no hunger for diplomatic existence in all of the countries of the Eastern Caribbean, I think that there should a minimum of be stronger recognition of the force that the OECS represents in the region, and at least one full Embassy ought to be established there. Security and Catastrophe Strength. CCAA has run how much does it cost to get out of a timeshare a Disaster Management Workshop Series with our partners from Tropical Shipping and other regional partners for practically twenty years. This event underscores the importance of public-private collaborations in disaster management. Formerly focused really much on natural catastrophes, we now take a look at more comprehensive dangers to the particular countries.
The area is vulnerable to variety of natural and other disasters and durability is vital. Any breakdown has trade, financial, and security implications for the broader area and for its partners outside the region. A multi-country strategy forged in cooperation with local partners should belong of the engagement. Time does not allow for the full variety of matters to be dealt with. Energy, for one, is a malachi financial regional concern and there I would advise continued U.S. engagement on the sustainable energy front, building on the Vice President's hallmark Caribbean Energy Security Effort. Additionally, Haiti stays a continuous obstacle and the current political crisis has implications for the area as a whole.