Monthly Newsletter

The impact of both the Western Hemisphere Travel Initiative and global market instability, the development of a joint maritime base in Inagua and easier access to US based tertiary institutions were among matters discussed by Bahamian Prime Minister Hubert Ingraham and US President George Bush in meetings held at the White House last week.

Prime Minister Ingraham and President Bush took part in a bilateral meeting that Mr Ingraham described as warm, friendly and constructive.

The Prime Minister subsequently participated in a joint meeting with the President and members of his Cabinet, together with Barbados Prime Minister David Thompson and Belize Prime Minister Dean Barrow.

This was the Prime Minister’s fourth visit to the White House. He previously visited the White House twice under the Clinton administration, and again last June when Caricom Heads met with President Bush.

Mr Ingraham indicated that for The Bahamas, as with many Caricom countries, America is its largest trading partner and largest tourism market, with eight out of every 10 persons visiting The Bahamas coming from the United States.

The Prime Minister pointed out that while all were aware that “the train had left the station” with regard to the Western Hemisphere Travel Initiative, it needed to be said that the initiative had negatively impacted visitor arrivals to The Bahamas and the Caribbean as a whole.

Nevertheless, it was expressed during the meetings that as US passports continued to be issued at record levels, the problem was correcting itself.

However, it was noted that the flexibility granted to cruise ship passengers and to land passengers returning to the US from Canada and Mexico had not been extended to The Bahamas and the Caribbean, creating a disincentive for air travellers to The Bahamas and the region.

The Prime Ministers also discussed with President Bush the global economic situation, and particularly that of the United States, noting their understandable concern with any downturn in the US economy.

Mr Ingraham observed that instability in global financial markets could be expected to have a detrimental impact on capital and investment, and hence could be expected to impede foreign direct investment flows into the Bahamian economy.

He indicated however, that he was encouraged by steps being taken by the US to restore a measure of stability to the financial markets, adding that the region will continue to monitor those developments closely, while doing its part to ensure that its financial systems lend to improvements in the global economic situation.

Mr Ingraham also drew President Bush's attention to the fact that the spiralling cost of fuel is seriously impacting the economies of the region, dramatically increasing the cost of food and utilities, and hence the cost of living for people in the region.

Ingraham also noted that the impact of increased fuel costs on the cost of travel is translating into reduced leisure and business travel, with consequential impact upon hotel and tourism sectors around the Caribbean.

In these contexts, the President was told that the development of alternative sources of energy is an urgent consideration.

Additionally, Ingraham relayed an interest in pursuing technical and scientific assistance to explore such possibilities, and indicated a desire for foreign direct investment that would enable the economic exploitation of sources of renewable energy.

On the issue of border security, Ingraham took the occasion to state that Caricom countries understand the security concerns of the United States of America. He pointed out that The Bahamas, as the third border of the continental United States, had a considerable burden placed upon it with respect to migration, alien smuggling and narcotics trafficking.

Acknowledging the continuing cooperation between many agencies of the US Government (Coast Guard, Southern Command, DEA) in combating both narcotics traffic and smuggling of undocumented persons, Mr Ingraham noted the continued interest of The Bahamas in the development of a joint maritime base at Inagua, which would be used by both the US Coast Guard and the Royal Bahamas Defence Force.

Additionally, the Prime Minister informed President Bush that the development of human resources on an ongoing basis remains a priority for The Bahamas.

Regarding educational opportunities for Bahamians, Mr Ingraham raised with the President the interest of The Bahamas (and other Caribbean countries) in achieving greater/easier access to US tertiary education in US state-owned institutions at reduced costs (e.g. in-state fees).

He pointed out that The Bahamas was also pursuing this initiative directly with the State of Florida.

On the matter of regional trade, the Prime Ministers discussed with the President the interest of each of the countries in winning support for the extension of the Caribbean Basin Initiative (CBI) beyond the September 30th, 2008 expiration date. The President indicated his support for such an outcome.

President Bush was advised that Heads of Government of the Caribbean Community will meet in Trinidad and Tobago in April to discuss a number of security issues affecting the region, and to establish a framework for individual and joint member State responses.

President Bush and the Prime Ministers referred to the strong democratic traditions of the US and the countries of the Caribbean, and re-affirmed the interest of all in the promotion of democracy and respect for human rights.