Source: Caribbean Life
When the Trump administration recently suspended visa access for citizens of Dominica and Antigua, officials cited the United States’ alleged discomfort with the sale of national passports and citizenship to foreigners as one of the main reasons for the action.
They expressed concerns about the capacity of local due diligence systems to adequately scrutinise the backgrounds of applicants from countries such as China, Eastern Europe, Russia, Nigeria, and certain parts of Asia. Regional officials in Eastern Caribbean states that operate Citizenship by Investment (CIP) programs rejected this claim, stating that they collaborate with international security agencies, including Interpol and others, and comply with all directives issued by Western nations, including the United States, relating to the programs.
Despite disruptions to what had previously been relatively smooth visa processing for citizens of Dominica and Antigua, the new government in St. Vincent and the Grenadines has announced that it is preparing to launch its own CIP program in the new year, notwithstanding heightened scrutiny and the possibility of future U.S. visa restrictions.
Under the leadership of recently defeated Prime Minister Ralph Gonsalves and his Unity Labour Party (ULP), the federation had, for more than a decade, been the lone holdout among the main Organisation of Eastern Caribbean States (OECS) countries without a so-called “golden passport” program. Officials had observed Grenada, Antigua and Barbuda, St. Kitts and Nevis, St. Lucia, and Dominica earn hundreds of millions of dollars by selling passports and citizenship to foreigners for as little as US$100,000, often linked to investments in development sectors. Nevertheless, the ULP resisted introducing any CIP or similar initiative, labelling it unsustainable.
REUTERS/Andres Martinez Casares
Announcing his plans during Christmas week, the new Prime Minister, Dr. Godwin Friday, described the CIP as a critical economic pillar for the federation’s future, as it faces nearly US$1 billion in public debt accumulated during the ULP’s 26 years in office.
“We cannot borrow much more,” the Prime Minister told citizens, adding, “CBI has been part of our party’s platform for 10 to 15 years. An economic citizenship program previously existed when the NDP was in government years ago.” When asked about potentially offending the United States through the golden passport initiative, he said, “I do not believe these developments are a death knell for such programs. Demand remains high among high-net-worth individuals, whose interests often receive priority in global affairs.”
He further stated that, as one of the last countries in the region to implement such a program, the federation now has the opportunity to adopt international best practices as his Cabinet prepares for a significant shift in domestic and foreign policy.
Governments in CIP-participating countries continue to argue that these programs are essential, citing revenue losses from global free trade, duty-free trade within the CARICOM bloc, and the collapse of banana and sugar export regimes to the United States in recent decades.