Cayman Islands – United States relations are bilateral relations between the Cayman Islands, an

overseas territory A territory is an area of land, sea, or space, particularly belonging or connected to a country, person, or animal. In international politics, a territory is usually either the total area from which a state may extract power resources or an ...

of the

United Kingdom of Great Britain and Northern Ireland The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...

, and the

United States of America The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territo ...

Overview

Although the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...

is responsible for the Cayman Islands' defence and external affairs, important bilateral issues are often resolved by negotiations between the Cayman Government and foreign governments, including the United States. Despite close historic and political links to the U.K. and

Jamaica Jamaica (; ) is an island country situated in the Caribbean Sea. Spanning in area, it is the third-largest island of the Greater Antilles and the Caribbean (after Cuba and Hispaniola). Jamaica lies about south of Cuba, and west of His ...

, geography and the rise of tourism and

international finance International finance (also referred to as international monetary economics or international macroeconomics) is the branch of financial economics broadly concerned with monetary and macroeconomic interrelations between two or more countries. Inter ...

in the Cayman Islands' economy has made the United States its most important foreign economic partner. Following a decline in tourists from the United States after the September 11, 2001 attacks, over 200,000 U.S. citizens travelled by air to the Cayman Islands in 2004; 4,761 Americans were resident there as of 2005. For U.S. and other foreign investors and businesses, the Cayman Islands' main appeal as a financial centre is the absence of all major

direct tax Although the actual definitions vary between jurisdictions, in general, a direct tax or income tax is a tax imposed upon a person or property as distinct from a tax imposed upon a transaction, which is described as an indirect tax. There is a di ...

es, free capital movement, minimal government regulations, and a well-developed financial infrastructure. With the rise in international

narcotics trafficking The illegal drug trade or drug trafficking is a global black market dedicated to the cultivation, manufacture, distribution and sale of prohibited drugs. Most jurisdictions prohibit trade, except under license, of many types of drugs through ...

, the Cayman Government entered into the Narcotics Agreement of 1984 and the

Mutual Legal Assistance Treaty A mutual legal assistance treaty (MLAT) is an agreement between two or more countries for the purpose of gathering and exchanging information in an effort to enforce public or criminal laws. A mutual legal assistance request is commonly used to fo ...

of 1986 with the United States in order to reduce the use of its facilities for money laundering operations. In June 2000, the Cayman Islands was listed by multilateral organisations as a tax haven and a non-cooperative territory in fighting money laundering. The country's swift response in enacting laws limiting banking secrecy, introducing requirements for customer identification and record keeping, and for banks to cooperate with foreign investigators led to its removal from the list of non-cooperative territories in June 2001.

U.S. representation

The United States does not maintain diplomatic offices in the Cayman Islands. Diplomatic relations are conducted through the

U.S. Embassy The United States has the second most Diplomatic mission, diplomatic missions of any country in the world List of diplomatic missions of China, after Mainland China, including 166 of the 193 member countries of the United Nations, as well as obse ...

London London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...

and the British Embassy in

Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, ...

The Cayman Islands are, however, part of the

consular A consul is an official representative of the government of one state in the territory of another, normally acting to assist and protect the citizens of the consul's own country, as well as to facilitate trade and friendship between the people ...

district administered by the U.S. Embassy in Kingston, Jamaica. There also is a U.S. Consular Agency in George Town on

Grand Cayman Grand Cayman is the largest of the three Cayman Islands and the location of the territory's capital, George Town. In relation to the other two Cayman Islands, it is approximately 75 miles (121 km) southwest of Little Cayman and 90 miles (1 ...

to assist in providing services for American citizens.

References

{{DEFAULTSORT:Cayman Islands–United States relations Bilateral relations of the United States

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...

United States–Caribbean relations United Kingdom–United States relations