And so who will fill that space? Who would best be to fill that? And what I desire you to think about, I am being a bit jaded here. I think I would like to see an American company been available in there and fill that space. How would you see that taking place and what would you suggest? We will start with you, Ms. Yearwood. Ms. Yearwood. Thank you, Mr. Yoho. I think that the U.S. is well put to fill the space in the event that Venezuela is no longer able to provide through the Petrocaribe program. I believe the surplus gas, I think the development of clean and renewable energy, the area is really at a crossroads in regards to transitioning to tidy and sustainable energy whether its solar or wind.
One of the problems, for example, is OPEC has a big amount of financial investment in the Caribbean in the energy location. But there are two problems. The size of the marketplaces in the smaller sized countries of the Caribbean don't necessarily allow them to get OPEC financing or actually have the ability to put together an excellent plan for OPEC financing, and the 2nd point is absence of expediency studies (Trade credit may be used to finance a major part of a firm's working capital when). Which of the following can be described as involving direct finance. OPEC doesn't make grants and it doesn't do feasibility studies therefore there is a lot of legwork that needs to be carried out in order bring some of this new innovation into the space.
Yoho. Is there any personal partnerships, private-public collaborations or NGOs that you would advise that would be finest fit, you know, with the oil business and, you understand, among our think tanks up here? Ms. Yearwood. I would recommend Eric. No. Mr. Yoho. You need to like that. Is that a segue you wish to-- Ms. Yearwood. No, I think there are a lot of entities in the U.S. that are dealing with energy in the Caribbean. Mr. Yoho. Okay. And I think my issue is we can't fret about what occurred in the past over the last 20 or 30 years.
And I know our feelings are we don't want to tell you how to live, we just desire to be great trading partners with you, however assist become strong trading partners where we develop a financial base in your nations. And with the impact of China, all my life China was type of a teen, but in the last, state ten years, I have actually seen them grow into adolescence and they have a lot of cash and they are starting to feel the impacts of their testosterone. And we have seen that in the South China Sea, however we have seen the financial investments they have actually done in the Caribbean, you understand, in the Bahamas-- I think it was $3 \ 1/2 \ billion-- and what they have done in Panama and Honduras and all that.
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I just think there are better partners that we can have and I think timeshare cancellation attorney that would come from the great ol' U.S. of A. And so policies that you would assist direct us, you understand, whether it is ag, energy, just product trade, what would you recommend, Mr. Farnsworth? Mr. Farnsworth. Well, Mr. Yoho, thank you for the concern. And let me make a fast footnote on the China issue, first, if I can. You know, China's engagement in the Caribbean-- and Ambassador Bernal is the real specialist on this. I Check out here don't wish to step on your toes. But it is different in the Caribbean than it is in South America, for instance, where it is much more industrial, it is a lot more products based.
You still have the political competition with Taiwan in parts of the Caribbean and Central America, et cetera, et cetera, so we need to keep in mind that part of the aspect too. In terms of the energy relationship, among the important things we are gaining from the reforms in Mexico is it is wesleyfinancialgroup not just oil and gas drilling, for instance. Everybody concentrates on that in the majors in the deepwater in the Gulf of Mexico and when is the next quote round and all that. However what it is even more impactful in Mexico is the power grid, the electricity, and when that gets released up the expense of electrical power comes down which is really helpful for the customer.
Therefore if you can bring that cost to the customer, initially of all, you have more non reusable earnings to invest in other things, but also it ends up being a far more competitive industrial platform to begin to produce and so that begins to bring investment, which right now is more restricted because again on the size of the economy. So if there is one element that could really be focused on, you know, it is not let's continue to import dirty diesel fuel and some of the really unclean pollutants that Venezuela is supplying - How to finance a home addition. Let's assist convert the Caribbean to a clean energy power grid that can be utilized much more efficiently that where the cost of electrical energy can come down and make the whole region a far more competitive efficient platform which will help their economies long term.
Mr. Yoho. And I appreciate it. And I am out of time, but I anticipate dealing with you in the future so that we can draft legislation to assist bolster the presence of America there, and I believe everyone wins because situation. And I yield back, Mr. Chairman. Mr. Duncan. Thank you. We are then joined by Ambassador Bernal. Thanks for coming. I am sorry about the DC traffic and probably intensified by the DC heat. But we are going to go ahead and acknowledge you for 5 minutes for an opening declaration. DECLARATION OF HIS EXCELLENCY RICHARD BERNAL, PRO-VICE CHANCELLOR FOR GLOBAL AFFAIRS, UNIVERSITY OF THE WEST INDIES IN JAMAICA Mr.
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Thank you, Mr. Chairman, my apologies for being late. I left my house at 3 o'clock a. m. this early morning. I was going well until the Falun Gong had a demonstration on Constitution Avenue. I will very quickly summarize my spoken declaration which is that I think this is an essential time for the U.S. to re- examine its policy toward the Caribbean and to take a brand-new vibrant effort in the Caribbean; because, the Caribbean has actually been having a really hard time given that the global financial crisis; a mix of long term structural institutional aspects in addition to some brief term cyclical aspects, such as oil prices.
and for Jamaica because the U.S. is the main and biggest trading partner and main source of investment and travelers. It is in the interest of the U.S. to have a flourishing, tranquil, and democratic Caribbean. Because regard I focus on the financial problems, since I believe the financial issues strike all the other issues which are essential such as governance, democracy, anti-narcotics projects. I have actually identified 6 issues which I think need to be dealt with. The first problem which I think requirements to be resolved is the debt circumstance. The Caribbean nations have become a few of the most extremely indebted nations in the world.