HILARY CLINTON SUPPORTS CARIBBEAN IN DISPUTE WITH OECD BASSETERRE, ST. KITTS
United States Senator, Hon. Hilary Rodham Clinton, has expressed concern that the OECD harmful tax initiative "may impose significant economic damage on many of our neighbors in the Caribbean."
In a letter to the newly-appointed United States Treasury Secretary in the Bush Administration, the Honourable Paul H. O’Neill, copies of which were circulated to St. Kitts and Nevis Prime Minister Dr. the Hon. Denzil L. Douglas, the Prime Minister of Jamaica, the CARICOM Secretary General and several Congressmen and regional financial institutions, the former First Lady said that the OECD of which the United States is a member "is threatening many of these nations with financial protectionism and that are attractive to foreign investors." "This is a fundamental violation of sovereignty.
Perhaps more importantly, however, the OECD’s attack on international tax competition undermines the ability of these nations to develop and/or maintain financial services industries," said Mrs. Clinton. She continued: "As you surely realise, the Caribbean has been subject to grave economic pressures because it is increasingly difficult for the region to prosper while relying on basic commodities such as sugar and bananas." Mrs. Clinton added that if the OECD campaign against these nations causes substantial damage to their financial services industries, this will be yet another devastating blow to the region, adding: "this would cause significant economic hardship and cause poverty rates to climb even higher."
The United States former First Lady is of the view that wealthy nations of the world should not be trying to penalise developing nations for enacting tax policies that are attractive to investors, pointing out that "OECD countries control the vast majority of the world’s capital and have benefitted for centuries from exploitive relationships with the less developed world." "For the industrialised world to suddenly threaten severe penalties on these nations because they now are becoming effective competitors is both morally objectionable and economically misguided," Mrs. Clinton told the new United Treasury Secretary, adding: "I hope you will re-examine American support for the OECD’s anti-tax competition campaign."
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