…Ambassador Insanally urges at Washington forum

GUYANA’S ambassador to the United States, Riyad Insanally on Thursday called for the United States (U.S.) banks of correspondent relations (CBRs) to be restored.

Ambassador Insanally was at the time speaking at the 20th Annual Caribbean American Legislative Briefing held at the Institute of Caribbean Studies, Capitol Hill, under the theme, “US-Caribbean Relations: A Multisector Perspective.”

In his address the Guyanese envoy noted that the withdrawal of correspondent banks with the Caribbean as a result of de-risking remains a major challenge which threatens “the mutual benefit of the US-Caribbean relationship.”

“It would be remiss of me not to allude to one particular challenge that threatens the mutual benefit of the US-Caribbean relationship, that is, the withdrawal by US banks of correspondent banking relations (CBRs) with Caribbean banks because of ‘de-risking’ in the face of onerous regulations and heavy penalties to counter money laundering and terrorism financing.”

The Ambassador said while the current policy of less regulation in the US is encouraging, he believes that “it would be in the mutual interest of the US and the Caribbean for CBRs by US banks to be restored.” CARICOM has long argued that the withdrawal of correspondent banking services would exclude the Region from the global finance and trading system with grave consequences for maintenance of financial stability, economic growth, remittance flows and poverty alleviation.

Correspondent banking with global banks allows smaller banks access to the international payments system, facilitating money transfers through transactions such as wire transfers, check clearing, and currency exchange. Without these banking relationships, businesses are cut off from international trade and financing, families are unable to collect remittances from relatives working abroad, and foreign investors may be unwilling to invest, if there is a risk they will be unable to repatriate their profits.

In this vein, Ambassador Insanally believes that there is a role for the Caribbean Diaspora in helping to lobby for that change. Ambassador Insanally noted the collaboration which exists between the Caribbean and the Caribbean Basin Security Initiative (CBSI) and the Caribbean Energy Security Initiative (CESI). In fact, the diplomat posited that both initiatives “are still relevant.”

“They are excellent frameworks for closer cooperation between the US and the Caribbean,” he added while noting that “there is a clear understanding of the mutual benefit of a prosperous Caribbean Basin and there are encouraging signs that the US Administration will engage further with Caribbean partners to promote sustainable economic policies, private sector-led growth and job-creation.”

In this respect, utilising trade preference programmes and mechanisms such as the US-CARICOM Trade and Investment Council will also be of critical importance, said Ambassador Insanally. “As many of you know, the US has consistently enjoyed significant trade surpluses with CARICOM countries. The US is the primary trading partner of all CARICOM countries and enjoys a trade surplus with our Community of over $4B.

We, therefore, believe that it is essential that the Caribbean Basin Economic Recovery Act (CBERA) and the Caribbean Basin Trade Partnership Act (CBTPA), which govern trade relations between the US and the Caribbean, be continued after 2020.”

The Guyanese envoy notwithstanding the aforementioned, made it clear that there is little likelihood of any movement this year towards enacting the Bill for the extension of CBERA (HR 3849), given the focus on midterm elections. It is his belief that enactment of the legislation is likely to take place next year. “This should not, however, rule out lobbying efforts to build awareness of the issue, particularly in electoral districts with a strong Caribbean presence.”

The Ambassador also said that highlighting the importance of extending CBERA beyond 2020 is important. Additionally, he made note of the roles played by the US Congress, Congressman Eliot Engel and Congresswoman Ileana Ros-Lehtinen. He described the duo as the architects of United States-Caribbean Strategic Act of 2016 (HR 4939), noting that they have both campaigned for higher levels of funding for the region.

The HR 4939 represened a real boost for the relationship between the US and the Caribbean providing a platform for closer engagement between the US and the Caribbean region, in the areas of Security, Prosperity, Energy, Education, Health and Diplomacy.
The CBSI, the premier conduit for US security assistance to the Caribbean, will benefit from US$57.7M in the financial year 2019.

This sum, Ambassador Insanally reminded was approved through the Omnibus Spending Bill released by the US Congress on March 21, 2018. “We are grateful for this level of support.” With respect to Energy he said, HR 4939 envisages that the US will seek to increase the use of low cost, reliable sources of energy, including renewables and natural gas, to spur economic development that would, in turn, create new opportunities for exports, investments and public-private partnerships by globally competitive US energy firms. However, it will be up to Congress, Caribbean governments and, the Caribbean-American Diaspora, to help push this approach with the US private sector.

Meanwhile, the Guyanese Ambassador, who spoke on behalf of Foreign Affairs Minister, Carl Greenidge noted that Thursday’s meeting represented a key component of the celebration of National Caribbean American Heritage Month. At the forum which brought together members of the Caribbean American community, Members of Congress, US Government officials, representatives of the private sector, academia and civil society, to address common interests in the context of US-Caribbean relations, Insanally said there has been a number of disruptions and distractions at the level of the U.S. State Department and the CARICOM Caucus.

He said there were a number of consultations which gave rise to several recommendations in priority areas. The State Department he said in collaboration with USAID prepared a multi-year strategy which was presented to Congress on June 19, 2017. “There have, however, been a number of disruptions and distractions, for both the State Department and our Caucus, since then, which have affected follow-up action but which have also served to provide some useful context for what we hope to achieve together,” he stated.

Ambassador Insanally who expressed gratitude to the ICS for inviting him to present at the forum said there is a “scope for closer engagement with the CARICOM Caucus of Ambassadors in ensuring that we are always singing from the same hymn sheet.” He suggested that the CARICOM Caucus of Ambassadors pursue meetings at least once a quarter to develop a coherent, joint strategy of outreach.