Other countries, consisting of China and Venezuela, are particularly proficient at these sorts of diplomatic propel financial services llc complaints initiatives. The goodwill they have actually stimulated in the area through such activities wesley dale smith should be a wake-up call for Washington that the Caribbean Basin can not be considered given. In the current environment the United States should contend for the Caribbean as indeed we need to contend for all of Latin America, and I think that extra U.S. efforts in the Caribbean would be rewarded. So Mr. Chairman, Mr. Ranking Member, thank you again for the opportunity to join you. It is a privilege to do so, and I look forward to the questions you may have.
Farnsworth follows:] [GRAPHIC( S) NOT READILY AVAILABLE IN TIFF FORMAT] ---------- Mr. Duncan. Thank you, Eric. Next witness effectively known to the committee also, Sally Yearwood, you are acknowledged 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 carries out in the wake of the Home passage of H.R. 4939, we have an essential chance to examine and recalibrate the relationship. The Caribbean is the United States' 3rd border. U.S. security interests in regional stability are inherently linked and so, by extension, collaboration on important economic, political, and social advancement problems must be a diplomacy priority.
Russia, China, Canada, Taiwan, Venezuela, and the European Union all have a substantial presence. The Islamic Development Bank has developed significant ties with financing in some Caribbean nations, and other nations ranging from Qatar to Japan and Brazil have actually had a substantial influence on how and where the countries of the Caribbean have turned to look for trade and funding options (How long can you finance a camper). The United States remains the region's primary trading partner, but there is no doubt that when it concerns total engagement other countries are filling, and in many cases making use of, a vacuum. What can be done to develop this more powerful collaboration? I will speak to the locations of economic cooperation that we think could have an impact.
The 1983 Caribbean Basin Economic Healing Act remains among the most generous nonreciprocal trade expenses ever given by the U.S. The Caribbean Basin stays a top 10 trading partner with a balance of trade surplus in favor of the U.S. It is likewise worth keeping in mind that the Caribbean is the only location of the world where U.S. ship operators and U.S. nationals remain substantial players in the global carriage of products by sea. When CBERA was passed, regional economies were quite oriented around farming and manufactured products. However, the world has actually altered. The economies today with some exceptions are largely dominated by travel and tourist, the monetary services sector and other service based industries.
With H.R. 4939, the U.S. Federal government can analyze what exists, where there are gaps, and recommend prospective areas for trade and cooperation which reflect today's reality. Reporter Banking and De-risking. While the technical concerns behind this are under conversation among your colleagues in the Financial Services Committee, and recently they sent a letter to the OCC asking for clearness 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 worldwide issue, however it is widely acknowledged that the Caribbean has actually been disproportionately affected because of the size of the markets and the perception of risk.
Federal government, worldwide financial organizations, associations, and the economic sector to assist determine solutions for the Caribbean. The CEO of the FIBA describes the situation as follows: We are working on financial inclusion in developing nations and de- risking is then blocking access to finance. This totals up to a de facto embargo on the region in the location of monetary services (How old of an rv can you finance). When worldwide banks sever relationships with regional banks, there is a direct influence on economic development, trade, and remittances. As essential, when the costs of abiding by policies develop a concern on the legitimate banks and they close down, there is a risk that underground or less regulated organizations will take their location.
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While we can all concur that the banking community's ability to fight cash laundering and terrorist funding is a shared priority, what we can not do is location undue burdens on any specific celebration. There exists a chance for all stakeholders to come together to craft a balanced, risk-based technique in between policy and inclusion, where all parties recognize that they have a role in the issue along with in the service. 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 an important part of the security apparatus every day.
extra control over its borders and creates a collective environment for managing terrorist watch lists in addition to trafficking of guns, drugs, and other contraband. Pre-clearance facilities in-region are an instrument for constructing a security partnership (How old of an rv can you finance). While the expense does not validate pre-clearance in every Caribbean nation, a strategic take a look at increasing pre-clearance existence through a center and spoke system would be useful to shared cooperation and security. Diplomatic Existence. Agent 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 hunger for diplomatic existence in all of the countries of the Eastern Caribbean, I think that there must at least be stronger acknowledgment of the force that the OECS represents in the area, and at least one complete Embassy needs to be established there. Security and Catastrophe Durability. CCAA has run a Disaster Management Workshop Series with our partners from Tropical Shipping and other local partners for almost 2 decades. This event underscores the value of public-private collaborations in disaster management. Formerly focused very much on natural catastrophes, we now take a look at broader risks to the specific nations.
The area is susceptible to variety of natural and other disasters and resilience is critical. Any breakdown has trade, economic, and security implications for the more comprehensive region and for its partners outside the area. A multi-country strategy forged in cooperation with regional partners need to belong of the engagement. Time does not permit for the complete series of matters to be addressed. Energy, for one, is a regional concern and there I would advise continued U.S. engagement on the sustainable energy front, building on the Vice President's hallmark Caribbean Energy Security Effort. In addition, Haiti stays an ongoing obstacle and the current political crisis has Additional reading implications for the area as a whole.