Other countries, consisting of China and Venezuela, are particularly good at these sorts of diplomatic initiatives. The goodwill they have actually stimulated in the region through such activities must be a wake-up call for Washington that the Caribbean Basin can not be taken for granted. In the present environment the United States must compete for the Caribbean as certainly we need to compete for all of Latin America, and I believe that extra U.S. efforts in the Caribbean would be rewarded. So Mr. Chairman, Mr. Ranking Member, thank you once again for the chance to join you. It is a privilege to do so, and I eagerly anticipate the questions you may have.
Farnsworth follows:] [GRAPHIC( S) NOT READILY AVAILABLE IN TIFF FORMAT] ---------- Mr. Duncan. Thank you, Eric. Next witness very well known to the committee also, Sally Yearwood, you are acknowledged for 5 minutes. DECLARATION OF MS. SALLY YEARWOOD, EXECUTIVE DIRECTOR, CARIBBEAN- CENTRAL AMERICAN ACTION Ms. Yearwood. Thank you, Mr. Chairman, Ranking Member Sires. Thank you for holding this timely 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 important chance to evaluate and recalibrate the relationship. The Caribbean is the United when does chuck learn to fight States' 3rd border. U.S. security interests in regional stability are inherently linked therefore, by extension, collaboration on crucial financial, political, and social development issues need to be a diplomacy concern.
Russia, China, Canada, Taiwan, Venezuela, and the European Union all have a substantial existence. The Islamic Advancement Bank has actually established considerable ties with financing in some Caribbean nations, and other nations varying from Qatar to Japan and Brazil have had a considerable effect on how and where the nations of the Caribbean have actually relied on browse for trade and funding alternatives (Trade credit may be used to finance a major part of a firm's working capital when). The United States stays the region's main trading partner, but there is no doubt that when it concerns general engagement other nations are filling, and in some cases exploiting, a vacuum. What can be done to construct this stronger partnership? I will speak with the locations 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 wesley com a leading 10 trading partner with a balance of trade surplus in favor of the U.S. It is also worth noting that the Caribbean is the only location of the world where U.S. ship operators and U.S. nationals remain significant gamers in the international carriage of goods by sea. When CBERA was passed, regional economies were quite oriented around agricultural and manufactured items. Nevertheless, the world has altered. The economies today with some exceptions are largely dominated by travel and tourism, the monetary services sector and other service based markets.
With H.R. 4939, the U.S. Government can examine what exists, where there are spaces, and advise potential locations for trade and cooperation which reflect today's reality. Correspondent Banking and De-risking. While the technical issues behind this are under conversation amongst your coworkers in the Financial Solutions Committee, and just recently they sent a letter to the OCC requesting clarity on the application of guidelines and compliance, this concern has actually been front and center for the countries of the Caribbean for a while. This is a worldwide problem, but it is extensively acknowledged that the Caribbean has actually been disproportionately affected due to the fact that of the size of the marketplaces and the perception of risk.
Federal government, global banks, associations, and the economic sector to assist recognize solutions for the Caribbean. The CEO of the FIBA describes the circumstance as follows: We are working on financial addition in developing nations and de- risking is then obstructing access to finance. This totals up to a de facto embargo on the area in the area of financial services (How to finance a franchise with no money). When global banks sever relationships with regional banks, there is a direct influence on economic development, trade, and remittances. As essential, when the costs of complying with regulations develop a problem on the genuine banks and they close down, there is a threat that underground or less regulated organizations will take their location.
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While we can all agree that the banking community's ability to fight money laundering and terrorist financing is a shared concern, what we can refrain from doing is location excessive burdens on any specific celebration. There exists a chance for all stakeholders to come together to craft a well balanced, risk-based technique between regulation and addition, where all celebrations acknowledge that they have a role in the issue in addition to in the service. Travel and Tourism. Countless travelers move by air and sea in 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 collective environment for handling terrorist watch lists along with trafficking of weapons, drugs, and other contraband. Pre-clearance centers in-region are an instrument for developing a security collaboration (What credit score is needed to finance a car). While the cost does not validate pre-clearance in every Caribbean nation, a strategic appearance at increasing pre-clearance presence through a hub and spoke system would be useful to shared partnership and security. Diplomatic Presence. Agent Engel has long called for the facility of a diplomatic existence 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 presence in all of the nations of the Eastern Caribbean, I believe that there ought to a minimum of be more powerful recognition of the force that the OECS represents in the area, and a minimum of one complete Embassy ought to be developed there. Security and Catastrophe Strength. CCAA has run a Catastrophe Management Workshop get out of a timeshare Series with our partners from Tropical Shipping and other local partners for nearly 20 years. This occasion highlights the importance of public-private collaborations in catastrophe management. Formerly focused very much on natural catastrophes, we now look at broader risks to the specific nations.
The area is vulnerable to series of natural and other disasters and durability is vital. Any breakdown has trade, economic, and security ramifications for the more comprehensive area and for its partners outside the area. A multi-country strategy forged in collaboration with local partners ought to belong of the engagement. Time does not permit the complete variety of matters to be dealt with. Energy, for one, is a local priority and there I would prompt continued U.S. engagement on the sustainable energy front, structure on the Vice President's trademark Caribbean Energy Security Initiative. Furthermore, Haiti remains a continuous challenge and the current political crisis has ramifications for the area as a whole.