…CARICOM SG lobbies Sweden on blacklisting of Caribbean countries

SECRETARY-GENERAL of the Caribbean Community (CARICOM), Ambassador Irwin LaRocque, has urged Sweden to use its position in two major international organisations to highlight the unfair labelling of some of the Community’s member states as “non-cooperative tax jurisdictions.”

Speaking at the CARICOM Secretariat’s Turkeyen, Guyana headquarters during the accreditation ceremony of Sweden’s new Ambassador to the Community, Elizabeth Ekulund, the secretary-general said, “As we seek to diversify our economies and build our services sector, some of our member states, engaged in financial services, have been labelled as “non-cooperative tax jurisdictions.” This is despite the fact that the countries in question are not so designated by the relevant global authorities, such as the Financial Action Task Force and the OECD Global Forum.

“As a member of the EU and the OECD, Sweden can assist in encouraging these bodies to be guided by the informed position of the relevant global regulatory authorities and desist from their unnecessary, seemingly punitive actions,” he added.

The secretary-general called attention to the decision earlier this year by the European Union Council to screen some CARICOM member states to determine whether they were co-operative tax jurisdictions, using new criteria. “The stated criteria go beyond the generally accepted international tax transparency and accountability standards which our countries have been meeting over the past several years,” he pointed out.

It was extremely onerous for small countries to address different international initiatives which dealt with the same, similar or related subject matter, yet stipulated different sets of criteria, he observed. “There appears almost to be a predisposition to blacklisting our countries,” Ambassador LaRocque stated. He said a major consequence of this blacklisting was the “de-risking” strategies being employed by certain international banks which had resulted in the withdrawal of crucial correspondent banking relationships.

“This particularly affects our indigenous banks and other financial services entities and could lead to the disconnection of our small economies from the global economy and international trade. Its socio-economic impact would be disastrous, given that remittances which are the main source of income for many of our poorest citizens will be affected,” the secretary-general said.

Development finance
Meanwhile, LaRocque believes that a new model for development finance needs to be considered, stating that GDP per capita should not be the principal measurement used in determining the development status of a country. “We will continue to advocate for the use of a more accurate and realistic measure of development, which considers vulnerability, including exposure to natural disasters and other exogenous shocks,” he said. “In the interest of realising our economic aspirations as a Community, we believe that a new paradigm in development finance needs to be considered,” he added.

Ambassador LaRocque recalled two interactions between the Community’s Foreign Ministers and the Swedish Foreign Minister, Her Excellency Margot Wallström, which addressed issues of mutual interest, including Climate Change, Renewable Energy, Oceans, Trade in Small Arms and Gender Equality. Some of these are reflected in the MoU.

The secretary-general welcomed Sweden’s efforts as a non-permanent member of the United Nations Security Council to raise awareness in that forum of the importance of the conservation and sustainable use of marine resources. This, he said, was one of the priority areas of our Region and the Community looks forward to Sweden’s continued support for UN Sustainable Development Goal 14, which seeks to “conserve and sustainably use the oceans, seas and marine resources for sustainable development.”

He pointed out that “our countries are vulnerable to economic and environmental shocks compounded by the effects of climate change. Therefore, global agreements on sustainable development and climate change are of special significance for the Community.”

“Most of our member states bear a heavy debt burden, brought on in large measure by reconstruction after major climatic events, in a Region designated as the “most natural disaster-prone in the world,” he added. Ambassador Ekulund stated that the UN was central to Sweden’s foreign policy and the UN’s Agenda 2030 was a top priority. She listed humanitarian actions, poverty reduction, sustainable development and Climate Change as areas of interest for her county.