May 2013 Financial News

Our ties are strong. Exclusive interview with US VP Biden who arrives in T&T today

May 27, 2013

US, T&T to strengthen ties

US Vice-President Joe Biden, who arrives in Trinidad and Tobago today, granted an exclusive question-and-answer interview to the Express.

The questions were posed by political editor Ria Taitt.
Biden did not respond to questions dealing with the extradition of businessmen and UNC financiers Ishwar Galbaransingh and Steve Ferguson; the matter of deportees to Trinidad and Tobago and the Caribbean; and the problem being experienced in the US market by Caribbean rum producers.
He did address these other questions as follows:

Q This trip is the highest official visit by a US official since the visit by American President Barack Obama in 2009. Why is this visit important to the US and what do you hope to achieve?

A The people of the United States and the Caribbean share a long history of friendship and common values. And that includes a number of things: a commitment to free and open democratic institutions; respect for human rights, and a desire for open markets. Our ties are strong and deep. The large Caribbean Diaspora—some 3.6 million residents in the United States who were born in the Caribbean—bring with them a vibrant culture that truly enriches all of us. I want to use this visit to discuss what we can do to strengthen our co-operation on a number of issues, including sustainable energy, economic growth, and security.

In Prime Minister Kamla Persad-Bissessar’s recent visit to Washington, Deputy Secretary of State William Burns raised the issue of the US Foreign Account Tax Compliance Act (FATCA), which was enacted in Congress in 2010 and is part of the US effort to combat tax evasion by US citizens holding overseas investments. Why is this important for Trinidad and Tobago, which is not known to be a Caribbean tax haven? Is the US government concerned that there might be US nationals or US residents who are using Trinidad and Tobago residence to avoid US taxes?

The purpose of FATCA is to address concerns with offshore tax evasion. It was not targeted at Trinidad and Tobago or any particular jurisdiction. It can be applied broadly.
If we work together to detect, deter and discourage offshore tax abuses through increased transparency and enhanced reporting, we will help build a stronger, more stable, and more accountable global financial system. That’s our goal.
Many jurisdictions in the region are engaged with the United States to implement FATCA, which shows a real commitment across the region to prevent tax evasion through foreign accounts. We welcome your engagement.

The US government has been seeking a Status of Forces Agreement (SOFA) with Trinidad and Tobago and has been seeking to have the Trinidad and Tobago Government pass the necessary legislation. Why is this legislation needed? What is the value of such an agreement in the absence of a base in Trinidad and Tobago?

We value our strong partnership with Trinidad and Tobago, which is supported by agreements we’ve had in place for years. Status of Forces Agreements (SOFA) are international agreements clarifying cooperation with US armed forces deployed to a partner’s country. Such agreements are important so that we develop a shared understanding of how armed forces will interact with a host nation’s government, even in the absence of a base. These agreements not only strengthen, they promote our already well developed cooperation. We were pleased that the Government of Trinidad and Tobago ratified the SOFA on May 22.

We in the Caribbean were very encouraged by President Obama’s statement at the Fifth Summit of the Americas in Port of Spain in 2009 when he said that the problem of the illegal drug trade in the Caribbean would not simply be solved by law enforcement in the region, but that the United States had a responsibility to “take aggressive action to reduce our (US) demand for drugs, and to stop the flow of guns and bulk cash south across our borders”. On the other end Caribbean nations have agreed to take responsibility for securing their waters. Are you satisfied that both sides have met their commitments?

Through the Caribbean Basin Security Initiative (CBSI), the United States and the nations of the Caribbean partner together to combat drug trade and other transnational crime that threaten our regional security and the safety of both US and Caribbean citizens.

We’ve committed more than $203 million to CBSI since President Obama announced it at the 5th Summit of the Americas in Trinidad and Tobago. To us, the CBSI is a shared responsibility, not a one-way assistance programme; each of our countries has a vital stake in its success. To date, we have seen real progress–from decreases in homicide rates to increases in arrests and prosecution rates, including an improved capacity to detect drug traffickers.

The United States recognises our shared responsibility to reduce demand for illicit drugs and, over the last three years, we’ve spent more than $31 billion on domestic demand reduction. Our 2013 National Drug Control Strategy outlines innovative policies and recognises that substance use disorders are not just a criminal justice issue, but also a major public health concern. Our administration has requested more than $10.7 billion to support drug education programmes and expand access to treatment for people with substance use disorders for fiscal year 2014. The rate of overall drug use in America has dropped by roughly one-third over the past three decades. More recently, the number of current cocaine users has dropped by 44 per cent and methamphetamine use has been cut by 40 per cent from 2006 to 2011.

Trinidad and Tobago, in particular, has given undertakings in the past to increasing the scope of security arrangements in the wider Caribbean, via the use of sophisticated radar systems, offshore patrol vessels etc. Is the United States satisfied that there has been adequate progress in that area and in what areas can this be improved?

We appreciate the efforts of partners, including Trinidad and Tobago, to promote maritime and air domain awareness and security. Through CBSI, the US supports programmes and institutions like Caricom’s Implementation Agency for Crime and Security that encourage operational readiness, information sharing, and collaboration throughout the region. We’re making great strides, but we know there is still work to do. In partnership with Trinidad and Tobago and other partners, we’re working on additional programmes to improve regional collaboration. That includes things like Tradewinds, a military exercise conducted in St Lucia this year that includes more than 260 members from 14 countries. We applaud Trinidad and Tobago and all of our Caribbean partners in their efforts to increase our security co-operation and look forward to continuing our work in this area.


Source:
By Ria Taitt
Trinidad Express
Monday May 27, 2013

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