REPORT ON OFF-SHORE FINANCIAL SERVICES RAISED AT OAS

Raising anew concerns over attacks on their "off-shore financial services," Caribbean countries took their case to the Organization of American States (OAS) today for the first time. Delegates complained of threats to their economies after the Organization of Economic Cooperation and Development (OECD) issued a report naming some Caribbean countries among those deemed "uncooperative" in the fight against money-laundering and tax-evasion.

Barbadian Ambassador Sir Courtney Blackman introduced the matter on the agenda of today's Permanent Council meeting, calling the OECD action a serious threat to sovereignty and national economic interest.

Blackman argued before the OAS member country ambassadors that the real purpose behind the OECD action "is to forestall competition for the expanding business of international financial services which the 'death of distance' has now brought within the competitive reach of diligent, disciplined and responsible jurisdictions such as Barbados."

That argument found support from several Caribbean delegations that addressed the issue. They saw similar threats to the entire subregion's economies.

The Barbadian Ambassador, to whom the hemispheric Council later said farewell as he ended his tour of duty, described the effect of the OECD report as abrogating extensive double-taxation agreements and disrupting financial transactions with the international community. He said the net effect "would be analogous to the neuron bombing of our island… the OECD sanctions are designed to kill our economies…."

While applauding Ambassador Blackman for raising the issue, the ambassadors of the United States, Canada and Mexico--member countries of the OECD--responded to the presentation, with the U.S. envoy to the OAS, Luis Lauredo, insisting the report was never targeted against small countries nor at individual countries or regions. He said the U.S. government supports the OECD offer to hold bilateral consultations with countries that have grievances. "We understand the point of view of the Caribbean nations and there is a vehicle for consultation to try to resolve this. It is not within the power definition of the Charter or our responsibility within the OAS."

Canadian Ambassador Peter Boehm called the discussion "very useful," although noting that "it's difficult on financial and economic issues for the OAS to act." He stressed that Canada has always supported Caribbean interests and would continue to push for consultation to resolve the issue with the OECD.

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