Other nations, including China and Venezuela, are especially proficient at these sorts of diplomatic initiatives. The goodwill they have actually engendered in the area through such activities need to be a wake-up call for Washington that the Caribbean Basin can not be considered granted. In the current environment the United States need to contend for the Caribbean as indeed we need to contend 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 once again for the opportunity to join you. It is an advantage to do so, and I eagerly anticipate the questions you may have.
Farnsworth follows:] [GRAPHIC( S) NOT AVAILABLE IN TIFF FORMAT] ---------- Mr. Duncan. Thank you, Eric. Next witness really well understood to the committee as well, 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 carries out in the wake of your home passage of H.R. 4939, we have an important opportunity to evaluate and recalibrate the relationship. The Caribbean is the United States' third border. U.S. security interests in local stability are fundamentally connected and so, by extension, collaboration on important Click to find out more financial, political, and social development concerns need to be a diplomacy priority.
Russia, China, Canada, Taiwan, Venezuela, and the European Union all have a considerable existence. The Islamic Development Bank has actually developed significant ties with funding in some Caribbean countries, and other countries varying from Qatar to Japan and Brazil have actually had a significant impact on how and where the countries of the Caribbean have relied on search for trade and financing alternatives (What does nav stand for in finance). The United States remains the region's primary trading partner, however there is no doubt that when it concerns overall engagement other countries are filling, and in many cases making use of, a vacuum. What can be done to build this more powerful collaboration? I will talk to the locations of economic cooperation that our company believe might have an impact.
The 1983 Caribbean Basin Economic Healing Act remains one of the most generous nonreciprocal trade costs ever given by the U.S. The Caribbean Basin remains 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 stay significant gamers in the global carriage of goods by sea. When CBERA was passed, regional economies were quite oriented around farming and manufactured items. However, the world has changed. The economies today with some exceptions are mostly dominated by travel and tourism, the financial services sector and other service based industries.
With H.R. 4939, the U.S. Government can analyze what exists, where there are gaps, and recommend potential locations for trade and cooperation which reflect today's reality. Reporter Banking and De-risking. While the technical concerns behind this are under discussion among your colleagues in the Financial Solutions Committee, and recently they sent out a letter to the OCC requesting clearness 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, but it is commonly acknowledged that the Caribbean has been disproportionately impacted due to the fact that of the size of the markets and the perception of risk.
Federal wesley financial government, global banks, associations, and the private sector to assist recognize options for the Caribbean. The CEO of the FIBA describes the circumstance as follows: We are working on financial inclusion 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 location of monetary services (Trade credit may be used to finance a major part of a firm's working capital when). When international banks sever relationships with local banks, there is a direct impact on financial growth, trade, and remittances. As essential, when the costs of abiding by policies produce a concern on the legitimate banks and they shut down, there is a danger that underground or less regulated institutions will take their location.
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While we can all agree that the banking community's capability to combat money laundering and terrorist financing is a shared top priority, what we can refrain from doing is place undue burdens on any individual celebration. There exists an opportunity for all stakeholders to come together to craft a balanced, risk-based approach between regulation and inclusion, where all parties recognize that they have a role in the issue as well as in the solution. Travel and Tourist. Countless travelers move by air and sea between the Caribbean and the U.S. every year. Air and sea ports are an important part of the security device every day.
additional control over its borders and produces a collective environment for managing terrorist watch lists along with trafficking of guns, drugs, and other contraband. Pre-clearance centers in-region are an instrument for constructing a security partnership (Which of the following approaches is most suitable for auditing the finance and investment cycle?). While the expense does not justify pre-clearance in every Caribbean nation, a strategic appearance at increasing pre-clearance presence through a hub and spoke system would be helpful to shared cooperation and security. Diplomatic Presence. Agent Engel has actually long called for the establishment of a diplomatic presence in the nations of the Eastern Caribbean. There are 9 member states of the Organization of Eastern Caribbean States, 6 of which are independent.
If there is no cravings for diplomatic presence in all of the nations of the Eastern Caribbean, I think that there need to a minimum of be stronger recognition of the force that the OECS represents in the area, and at least one full https://60389828b634d.site123.me/#section-612212a26e2c6 Embassy should be developed there. Security and Catastrophe Resilience. CCAA has actually run a Disaster Management Workshop Series with our partners from Tropical Shipping and other regional partners for practically twenty years. This event highlights the value of public-private collaborations in catastrophe management. Previously focused quite on natural catastrophes, we now look at more comprehensive hazards to the particular nations.
The region is vulnerable to range of natural and other catastrophes and resilience is vital. Any breakdown has trade, financial, and security implications for the wider region and for its partners outside the region. A multi-country method created in cooperation with local partners should belong of the engagement. Time does not permit for the full range of matters to be addressed. Energy, for one, is a local priority and there I would advise ongoing U.S. engagement on the sustainable energy front, building on the Vice President's hallmark Caribbean Energy Security Initiative. In addition, Haiti stays a continuous challenge and the present political crisis has ramifications for the region as a whole.
