Other nations, consisting of China and Venezuela, are particularly proficient at these sorts of diplomatic initiatives. The goodwill they have stimulated in the area through such activities must be a wake-up call for Washington that the Caribbean Basin can not be taken for given. In the current environment the United States should compete for the Caribbean as undoubtedly we need to compete for all of Latin America, and how to get rid of a timeshare legally 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 an advantage to do so, and I eagerly anticipate the concerns you might have.
Farnsworth follows:] [GRAPHIC( S) NOT READILY AVAILABLE IN TIFF FORMAT] ---------- Mr. Duncan. Thank you, Eric. Next witness extremely well known 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 performs in the wake of your home passage of H.R. 4939, we have an important chance to evaluate and recalibrate the relationship. The Caribbean is the United States' 3rd border. U.S. security interests in local stability are intrinsically linked therefore, by extension, cooperation on vital financial, political, and social development concerns should be a foreign policy concern.
Russia, China, Canada, Taiwan, Venezuela, and the European Union all have a considerable existence. The Islamic Advancement Bank has developed considerable ties with financing in some Caribbean countries, and other nations varying from Qatar to Japan and Brazil have actually had a significant effect on how and where the countries of the Caribbean have actually relied on search for trade and funding alternatives (What is a note in finance). The United States remains the area's main trading partner, however there is no doubt that when it concerns overall engagement other nations are filling, and in some cases exploiting, a vacuum. What can be done to build this more powerful partnership? I will speak to the areas of financial cooperation that our company believe might have an impact.
The 1983 Caribbean Basin Economic Healing Act remains among the most generous nonreciprocal trade expenses ever approved by holly viloria 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 wesley financial group reviews 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 worldwide carriage of products by sea. When CBERA was passed, regional economies were really much oriented around agricultural and manufactured products. However, the world has altered. The economies today with some exceptions are mainly dominated 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 gaps, and advise prospective areas for trade and cooperation which reflect today's reality. Correspondent Banking and De-risking. While the technical concerns behind this are under discussion among your colleagues in the Financial Providers Committee, and just recently they sent out a letter to the OCC requesting clarity on the application of guidelines and compliance, this problem has been front and center for the countries of the Caribbean for a while. This is a global issue, however it is widely acknowledged that the Caribbean has actually been disproportionately impacted because of the size of the marketplaces and the perception of threat.
Federal government, international financial organizations, associations, and the economic sector to help determine solutions for the Caribbean. The CEO of the FIBA explains the scenario as follows: We are dealing with monetary inclusion in establishing 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 financial services (What does ear stand for in finance). When international banks sever relationships with local banks, there is a direct effect on economic development, trade, and remittances. As essential, when the costs of adhering to guidelines create a problem on the legitimate banks and they close down, there is a risk that underground or less regulated organizations will take their place.
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While we can all concur that the banking neighborhood's capability to fight cash laundering and terrorist funding is a shared top priority, what we can refrain from doing is place undue burdens on any private party. There exists a chance for all stakeholders to come together to craft a well balanced, risk-based method between policy and inclusion, where all celebrations acknowledge that they have a role in the issue in addition to in the option. Travel and Tourist. Millions of travelers move by air and sea in between the Caribbean and the U.S. every year. Air and sea ports are a critical part of the security apparatus every day.
additional control over its borders and develops a collaborative environment for handling terrorist watch lists as well as trafficking of weapons, drugs, and other contraband. Pre-clearance facilities in-region are an instrument for developing a security collaboration (What is a swap in finance). While the cost does not justify pre-clearance in every Caribbean nation, a strategic appearance at increasing pre-clearance presence through a center and spoke system would be helpful to shared partnership and security. Diplomatic Existence. Representative Engel has actually long required the establishment of a diplomatic presence in the nations 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 nations of the Eastern Caribbean, I think that there must a minimum of be stronger recognition of the force that the OECS represents in the area, and at least one full Embassy needs to be developed there. Security and Catastrophe Strength. CCAA has actually run a Catastrophe Management Workshop Series with our partners from Tropical Shipping and other regional partners for almost two years. This event underscores the significance of public-private collaborations in catastrophe management. Previously focused quite on natural disasters, we now take a look at wider dangers to the specific countries.
The area is susceptible to series of natural and other catastrophes and strength is important. Any breakdown has trade, financial, and security implications for the more comprehensive area and for its partners outside the region. A multi-country technique created in partnership with local partners need to belong of the engagement. Time does not permit for the full variety of matters to be addressed. Energy, for one, is a regional top priority and there I would advise ongoing U.S. engagement on the sustainable energy front, structure on the Vice President's trademark Caribbean Energy Security Initiative. In addition, Haiti stays a continuous challenge and the present political crisis has ramifications for the area as a whole.