Other nations, consisting of China and Venezuela, are particularly excellent at these sorts of diplomatic efforts. The goodwill they have actually stimulated in the region through such activities should be a wake-up call for Washington that the Caribbean Basin can not be considered approved. In the current environment the United States need to contend for the Caribbean as undoubtedly we need to compete for all of Latin America, and I believe that additional 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 an advantage to do so, and I anticipate the concerns llc cancellation you might have.
Farnsworth follows:] [GRAPHIC( S) NOT READILY AVAILABLE IN TIFF FORMAT] ---------- Mr. Duncan. Thank you, Eric. Next witness effectively known to the committee as well, 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 timely hearing on the U.S.- Caribbean partnership. Coming as it performs in the wake of your house passage of H.R. 4939, we have an important opportunity to assess and recalibrate the relationship. The Caribbean is the United States' 3rd border. U.S. security interests in local stability are fundamentally connected and so, by extension, collaboration on critical financial, political, and social development problems must be a foreign policy top priority.
Russia, China, Canada, Taiwan, Venezuela, and the European Union all have a significant existence. The Islamic Advancement Bank has actually established significant ties with financing in some Caribbean countries, and other countries ranging from Qatar to Japan and Brazil have actually had a substantial influence on how and where the nations of the Caribbean have actually turned to browse for trade and funding options (What is a finance charge on a credit card). The United States remains floating timeshare the region's main trading partner, but there is no doubt that when it comes to general engagement other countries are filling, and in some cases making use of, a vacuum. What can be done to build this stronger partnership? I will talk to the areas of financial cooperation that our company believe could have an impact.
The 1983 Caribbean Basin Economic Recovery Act stays one of the most generous nonreciprocal trade expenses ever approved by the U.S. The Caribbean Basin stays a top ten 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 stay significant gamers in the global carriage of products by sea. When CBERA was passed, regional economies were quite oriented around agricultural and manufactured items. However, the world has actually altered. The economies today with some exceptions are mainly controlled 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 possible areas for trade and cooperation which show today's truth. Reporter Banking and De-risking. While the technical issues behind this are under conversation amongst your colleagues in the Financial Solutions Committee, and recently they sent out a letter to the OCC asking for 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 marketplaces and the understanding of risk.
Government, international banks, associations, and the private sector to assist identify solutions for the Caribbean. The CEO of the FIBA describes the scenario as follows: We are dealing with financial inclusion in establishing nations and de- running the risk of is then blocking access to fund. This amounts to a de facto embargo on the region in the area of monetary services (What jobs can i get with a finance degree). When international banks sever relationships with regional banks, there is a direct effect on financial development, trade, and remittances. As important, when the expenses of adhering to regulations develop a concern on the legitimate banks and they shut down, there is a danger 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 cash laundering and terrorist financing is a shared concern, what we can refrain from doing is place undue concerns on any specific celebration. There exists a chance for all stakeholders to come together to craft a well balanced, risk-based technique in between regulation and addition, where all celebrations acknowledge that they have a function in the issue as well as in the service. Travel and Tourism. Millions of tourists move by air and sea between the Caribbean and the U.S. every year. Air and sea ports are a vital part of the security device every day.
extra control over its borders and produces a collaborative environment for managing terrorist watch lists in addition to trafficking of weapons, drugs, timeshare fees and other contraband. Pre-clearance centers in-region are an instrument for constructing a security collaboration (How to finance building a home). While the expense does not validate pre-clearance in every Caribbean country, a tactical appearance at increasing pre-clearance presence through a center and spoke system would be useful to shared partnership and security. Diplomatic Existence. Representative Engel has long called for 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, 6 of which are independent.
If there is no appetite for diplomatic presence in all of the countries of the Eastern Caribbean, I think that there ought to a minimum of be more powerful recognition of the force that the OECS represents in the region, and at least one full Embassy ought to be developed there. Security and Catastrophe Durability. CCAA has run a Disaster Management Workshop Series with our partners from Tropical Shipping and other local partners for practically 2 years. This occasion underscores the value of public-private partnerships in catastrophe management. Formerly focused extremely much on natural catastrophes, we now look at wider dangers to the specific countries.
The region is vulnerable to series of natural and other catastrophes and resilience is important. Any breakdown has trade, financial, and security implications for the wider region and for its partners outside the region. A multi-country strategy created in collaboration with regional partners need to be a part of the engagement. Time does not allow for the full range of matters to be addressed. Energy, for one, is a regional priority and there I would advise ongoing U.S. engagement on the sustainable energy front, building on the Vice President's trademark Caribbean Energy Security Initiative. Furthermore, Haiti remains an ongoing obstacle and the existing political crisis has implications for the area as a whole.