Maritime Security

Overview: US-Caribbean Trade Relations
The Caribbean, as a result of its geographic proximity, has developed strong cultural, economic, political and social ties with the United States. In terms of trade relations, approximately 51% and 32% of the region’s exports and imports are destined to and originate from the United States respectively. The Caribbean Basin is also a major player in terms of water-borne trade, with well over 1.6 million containers moved throughout the region in a year.  In 2006, the Caribbean accounted for approximately 47% of the total amount containers moved throughout the Caribbean Basin and of this amount, 75% was destined for North America. A portion of this amount is particularly due to goods that are transshipped through the region especially between North and South America. This highlights another major role that the region plays in international trade. On a yearly basis, over 12 million TEU’s are transshipped throughout the region originating from and destined to worldwide locations. The United States is also one the main sources of tourists to the Caribbean accounting for over two million visitors to the region in 2007.

The economic ties that have developed over time and the increased volume of containers that are moved between ports makes the Caribbean a soft target for illegal activities originating from within and outside the region. In regards to the transshipment of goods through the region, opportunities abound for container switching, double/triple handling and diversion through a number of ports in the region, particularly the smaller ports.  As such, the geographic proximity of the Caribbean to the United States and potential threat that exists have been major influences on the latter’s foreign policy towards the region. Thus, among global initiatives created to secure its borders and protect national interests, the United States had also developed several other initiatives specific to the region.

Impact of US Maritime Legislations on the Caribbean
Compliance with US maritime security legislations has been problematic for the Caribbean. Not only do these legislations stretch the capacity of regional governments to implement and administer these requirements but they also divert funds from needed areas of development. Similarly, local businesses may be affected due to the incurred expenses of updating technology and training employees. While the costs of implementation may be a burden in the short-run, we recognize that through compliance the region would be able to modernize its technology and increase port security which may reduce costs in the long-run.

Despite these potential benefits, the region faces the challenge of implementing the requirements of these legislations today. Non-compliance is unaffordable as it may result in the interruption of trade with the US- the region’s largest trading partner- and therefore be detrimental to the development of these small economies.

Recommendations
CCAA recognizes the challenge of compliance with maritime security legislations and advocates additional support from the United States for the region so that it may fulfill these mandates on maritime security. This would not be a new endeavor for the United States as it has supported the region in this manner before. For example, the United States had provided support to some of the countries in the region through the Customs-Trade Partnership against Terrorism (C-TPAT), Americas Counter Smuggling Initiative (ACSI), the Container Screening Initiative (CSI) and the Megaports Initiative.

We advocate for an approach acknowledging a shared responsibility for maritime security between the United States and the Caribbean and suggest that:

• The United States considers the development challenges faced by the region and that it is unable to afford the costs of implementing the requirements of US maritime legislations. The United States should also acknowledge the Caribbean’s dependence on its market and the region’s role as a major transshipment point not only for security concerns, but also the threat to development and stability that may result due to the interruption of trade.
• Assistance to the Caribbean should be on a regional scale and not to specific countries in the region.
• The US supports a minimum standard of compliance with its maritime legislations in the region and assists with infrastructural and technological development at regional ports.
• Along with the assistance from the United States, the region should standardize maritime security legislations in compliance with international law.

CCAA acknowledges the importance of maritime security and will continue to attend to these and other related issues in collaboration with United States and regional governments and businesses. We have also addressed maritime security at our annual Miami Conference on the Caribbean Basin where major the concerns of the region are brought to the fore and the discussants, which include the private sector and governments, brainstorm for solutions for the region. In this capacity, CCAA acts as facilitator of development through dialogue and provides a medium through which governments and businesses can work together.

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