The Islands is a self-governing British Overseas Territory, which is the largest by population in the western Caribbean Sea. The territory consists of the three islands of Grand Cayman, Cayman Brac, and Little Cayman, located between Jamaica and the Yucatán Peninsula, bordering Cuba to the South, and Honduras to the north. The capital city, George Town located on Grand Cayman, is the most populated of the three islands. The territory is acid to be a part of the geographic Western Caribbean Zone and the Greater Antilles. It is a major global offshore financial center for international businesses and wealthy persons, due to its taxation policy of not levying taxes on income earned or kept within the territory. Having a GDP per capita of $91,392, it has the highest standard of living in the Caribbean region. Given its status as an overseas territory of the UK, the Islands has no separate representation in the UN and most international organizations. However, it can participate in some international organizations, being an associate member of Caricom, UNESCO, and a member of Interpol.
If you are interested in learning about the foreign relations of the Islands, this article offers information on the foreign diplomatic relations of the Cayman Islands and other bilateral relations.
About the country
According to the Economic and statistics office of the Islands, the country has a population of over 78,000 people of mixed African and European ancestry. Reports have shown that expats from more than 130 countries and territories live on the Islands. Its economy relies greatly on financial services and tourism, accounting for up to 60 percent of the GDP. The low tax rates make it a haven for corporations, with over 100,000 companies incorporated and operating here. Caymanians have the highest standard of living in the region, and the 10th-highest GDP per capita in the world. The primary source of income is indirect taxation as there is no income tax, capital gains, or corporation tax. The three islands offer scuba diving and are home to many snorkeling locations for tourists to swim with stingrays.
Diplomatic relations of the country
Foreign matters are managed by the UK since the countries are overseas territories of the Kingdom. Although the Islands’ most important relations used to be with Great Britain and Jamaica, with the influence of economic dependence over the years, it has also formed a relationship with the United States. To address the criticism, it faces as regards the use of its territory for narcotics trafficking and money laundering, the government of the territory signed the Narcotics Agreement of 1984 and the Mutual Legal Assistance Treaty of 1986 with the US. Recently, it has increased its fight against money laundering by limiting banking secrecy and introducing customer identification and record-keeping requirements. Although it is under the territory of the UK, the government of the United Kingdom must consult with the government of the Islands regarding affairs limited to the United Kingdom such as defense, internal security, and civil aviation.
International organizations it belongs to
Due to their status as British Overseas Territories inside the United Kingdom, they are not represented in the United Nations or many other international organizations and are not eligible for consular relations with any other countries. On the other hand, it can take part in some international organizations’ operations. The participation of the Islands in any of the several international organizations is strictly contingent on the participation of the United Kingdom. On the other hand, it is a member of several other international organizations such as CARICOM, the Caribbean Development Bank, Interpol, the Organization of Eastern Caribbean States, UNESCO, and so on.
