version 2 - 9/11
THE STRATEGIC IMPORTANCE OF BERMUDA TO THE U.S.

-- Comments of U.S. Consul General to Bermuda --
Mr. Gregory W. Slayton
September 25 & 26, 2007

Thank you for inviting me to speak to you today.  I’m honored to be here and to share the stage with Bermuda’s esteemed Deputy Premier and Finance Minister, the Hon. Paula Cox

BERMUDA AND THE UNITED STATES:  CLOSE & GETTING CLOSER

• The US is Bermuda’s closest geographical neighbor and partner. 
• We share a common language.
• Share a similar culture and values (Thanksgiving, July 4^th, Christmas, growing respect for education, free enterprise, the rule of law and hard work)
• Mutually beneficial relationship that is already 230 years old. 
• Good bilateral relations – 2 back-to-back state visits.
• Effective government-to-government partnerships (Coast Guard, IRS, INS, DHS, Treasury, Police)
• State Department exchange programs – VolVis, US Patent & Trademark Office training…
• Premier Brown a graduate of Howard University; many if not most Bermuda leaders are U.S. graduates.

TWO COUNTRIES CLOSELY BOUND ECONOMICALLY

• 75% of all visitors to the island are American.
• 80% of Bermuda imports originate in the US.
• Many re/insurance companies based in Bermuda are American-owned.
• Home to an estimated $100B+ in U.S. assets in the reinsurance sector alone.
• The US is a major beneficiary of Bermuda’s thriving international insurance industry.  For example:
  -  Bermuda-based re/insurance companies paid billions in claims to help rebuild coastal areas in the US destroyed by the hurricanes of 2004 and 2005.
  -  After the terrorist attacks of 9/11, Bermuda-based insurers and reinsurers paid over $2 billion in total insured losses.  
  -  In 2002 nine new Bermuda reinsurers were created to provide coverage to US commercial interests needing insurance coverage to build or rebuild in the wake of September 11.

BERMUDA: AN ECONOMIC POWERHOUSE GLOBALY

• Highest GDP/capita in the world.
• Virtually zero unemployment.
• Widely-respected and effective yet “light touch” regulatory system.
• A magnet for international business for many reasons:  
  -  Proximity to the US and the ease of travel via the US Preclearance facility at the Bermuda airport. 
  -  A superior infrastructure in place to serve international companies, including a large support system of skilled professionals in critical fields – business, accounting, law.
  -  A tax system which promotes the even-handed regulation of both onshore and offshore companies.
  -  A modern regulatory framework that supports Bermuda’s reputation as a first-rate financial center, especially in terms of money-laundering regulations. (Although Cayman has stricter regulations in place, implementation is erratic.)
  -  A judicial system grounded on UK law, with recourse to the Privy Council.
  -  Close partnership with the US Government, including the police, IRS, SEC…
  

BERMUDA AND THE RULE OF LAW

• Strong democratic traditions.
• Very low crime rate.
• Very low terrorist threat.
• Functioning judicial system based on British law with final appeal to the Privy Council.

BERMUDA: A GREAT PLACE TO LIVE AND/OR DO BUSINESS

• Strong democratic traditions.
• Housing, health care, education and infrastructure are all US/UK standards.
• People are generally warm and friendly.
• There is a large expat community (an estimated 8,000 Americans, of whom an estimated 2,000 are traditional businessmen)
• Great weather, beaches, water sports, golf, tennis
• Close to Eastern U.S. with daily nonstop flights to New York, Boston, Philly, DC, Atlanta, Miami and Toronto/London.
• Respectable arts world – 2 art museums, a number of dance troops, and concerts and events year-round, including the Bermuda Festival.

CONSULATE:  NEW ECONOMIC/COMMERCIAL SPECIALIST

• The American Consulate stands ready to assist American companies seeking to do business in Bermuda. 
• Earlier this year we created the position of Economic/Commercial Specialist. 
• Initial tasks included the preparation of the Investment Climate Report and the Country Commercial Guide, important diplomatic tools used in posts around the world. 
• For the first time, businessmen have a quick reference guide on how to do business in Bermuda.  (Copies are available for those interested.)

The American Consulate stands ready to employ the diplomatic tools it has available to support American business. CHECK OUR WEBSITE: http://hamilton.usconsulate.gov