Other countries, consisting of China and Venezuela, are especially proficient at these sorts of diplomatic efforts. The goodwill they have actually engendered in the area through such activities ought to be a wake-up call for Washington that the Caribbean Basin can not be considered approved. In the current environment the United States must contend for the Caribbean as undoubtedly we need to compete for all of Latin America, and I think that extra U.S. timeshare maintenance fees increase 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 a privilege to do so, and I eagerly anticipate the concerns you might have.
Farnsworth follows:] [GRAPHIC( S) NOT OFFERED IN TIFF FORMAT] ---------- Mr. Duncan. Thank you, Eric. Next witness very well understood 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 partnership. Coming as it carries out in the wake of your home passage of H.R. 4939, we have a crucial opportunity to evaluate and recalibrate the relationship. The Caribbean is the United States' third border. U.S. security interests in regional stability are fundamentally connected and so, by extension, cooperation on critical financial, political, and social development issues need to be a diplomacy concern.
Russia, China, Canada, Taiwan, Venezuela, and the European Union all have a considerable existence. The Islamic Development Bank has actually established considerable ties with financing in some Caribbean countries, and other countries ranging from Qatar to Japan and Brazil have had a considerable effect on how and where the nations of the Caribbean have relied on search for trade and funding alternatives (What does finance a car mean). The United States stays the area's primary trading partner, however there is no doubt that when it concerns general engagement other countries are filling, and sometimes exploiting, a vacuum. What can be done to develop this more powerful partnership? I will speak to the locations of economic cooperation that we think could have an impact.
The 1983 Caribbean Basin Economic Healing Act remains one of the most generous nonreciprocal trade bills ever given by the U.S. The Caribbean Basin remains a top ten trading partner with a balance of trade surplus in favor of the U.S. It is also worth keeping in mind that the Caribbean is the only location of the world where U.S. ship operators and U.S. nationals stay substantial players in the international carriage of products by sea. When CBERA was passed, local economies were quite oriented around farming and manufactured items. However, the world has changed. The economies today with some exceptions are mainly dominated by travel and tourism, the monetary services sector and other service based industries.
With H.R. 4939, the U.S. Federal government can examine what exists, where there are gaps, and advise prospective areas for trade and cooperation which reflect today's truth. 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 asking for clarity on the application of guidelines and compliance, this concern has been front and center for the nations of the Caribbean for a while. This is a global problem, but it is widely acknowledged that the Caribbean has actually been disproportionately impacted because of the size of the marketplaces and the understanding of risk.
Federal government, global banks, associations, and the private sector to help identify options for the Caribbean. The CEO of the FIBA describes the scenario as follows: We are working on monetary addition in developing countries and de- running the risk of is then blocking access to finance. This amounts to a de facto embargo on the area in the area of financial services (What do you need to finance a car). When international banks sever relationships with regional banks, there is a direct impact on financial development, trade, and remittances. As crucial, when the costs of complying with regulations produce a concern on the genuine banks and they shut down, there is a hazard that underground or less regulated institutions will take their location.
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While we can all concur that the banking community's ability to combat cash laundering and terrorist financing is a shared top priority, what we can not do is location unnecessary problems on any specific celebration. There exists an opportunity for all stakeholders to come together to craft a well balanced, risk-based method in between policy and inclusion, where all parties recognize that they have a function in the problem along with in the service. Travel and Tourism. Millions here of 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 device every day.
extra control over its borders and develops a collaborative 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 collaboration (What is a swap in finance). While the cost 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 Presence. Representative Engel has actually long required the facility of a diplomatic presence in the nations of the Eastern Caribbean. There are nine member states of the Company of Eastern Caribbean States, 6 of which are independent.
If there is no cravings for diplomatic existence in all of the nations of the Eastern Caribbean, I believe that there should at least be more powerful acknowledgment of the force that the OECS represents in the region, and a minimum of one complete Embassy must be developed there. Security and Catastrophe Strength. CCAA has actually run a Disaster Management Workshop Series with our partners from Tropical Shipping and other regional partners for almost twenty years. This event underscores the significance of public-private partnerships in catastrophe management. Formerly focused quite on natural disasters, we now take a look at broader threats to the specific countries.
The area is susceptible to range of natural and other disasters and durability is important. Any breakdown has trade, economic, and security ramifications for the more comprehensive area and for its partners outside the area. A multi-country method forged in collaboration with regional partners should belong of the engagement. Time does not enable the complete variety of matters to be resolved. Energy, for one, is a regional priority and there I would prompt continued U.S. engagement on the sustainable energy front, structure on the Vice President's hallmark Caribbean Energy Security Initiative. Additionally, Haiti dump your timeshare stays an ongoing obstacle and the present political crisis has implications for the area as a whole.