Highlights of the US – Maltese partnership in 2007

November 2007

FinanceMalta has compiled a list of projects, some ongoing, that describe the excellent relationship between Malta and the USA, at the political, social and economic levels.

Commercial

• American firms in Malta enjoyed another successful year, achieving remarkable success as evident by the desire of numerous firms to expand current operations.  To date, 1 out of every 50 workers in Malta are employed by American firms.  Not only is employment growing, but also most American firms in Malta provide higher than average wages, employ state of the art labour practices and offer advanced training. American firms are also developing R&D facilities (Methode) and showcasing renewable technologies (Baxter’s photovoltaic system).  In addition, American high-tech firms like Microsoft, Oracle and IBM have also invested in Malta through their Vertical Strategic Alliance Agreements, contributing millions of dollars in free software and educational support to the Maltese.

• Trade between the United States and Malta is strong, and outside the Eurozone the United States is now the second largest market for Maltese goods.

• This year, the US Embassy co-sponsored a series of seminars with Amcham Malta focused on helping Malta develop alternative sources of business financing.  The effort is achieving solid results including potential discussion with American firms to work with firms in Malta to develop the Private Equity market and with the Malta Stock Exchange to explore dual listing in the United States.

Customs/Border Control

• This year the United States fully funded the construction of a $2.3 million warehouse to establish permanent offices for Malta’s Customs operations at the Freeport and to house a VACIS scanning system previously donated by the U.S.  This is part of a long-term partnership whereby the United States has helped Malta develop one of the top-rated Customs operations in Europe.  Other customs support this year has included providing a full range of new computers for customs officials, new hand held scanners, and on-going training for customs officers.
  

• In partnership with the Maltese, the United States funded a $2.7 million computer program that is a centrepiece of Malta's state-of-the-art border control system.  In recent months, at the request of the Maltese government, the United States helped Malta bring the system into compliance with Schengen requirements.  This important financial help enabled Malta to upgrade its system and successfully meet all European Union requirements to join Schengen effective November 1. 

Dual Taxation Agreement

• In 2007 several rounds of talks on the details of a proposed DTA between the United States and Malta were conducted.  While mutual agreement has been reached on many issues, further discussion is still required in certain areas of the agreement.  The next meeting is planned for January 2008 in Washington. 

Ship visits/Tourism: 

• In the past 12 months, 7 US Navy ships have visited Malta.  In addition to providing US service men and woman the opportunity to get to know Malta, these ship visits also made significant contributions during their stay.  American personnel spent an estimated $1.5 million in Malta as tourists, and the ships themselves generated another estimated $1.1 million in ship support costs, for a total benefit to Malta's economy of $2.6 million.  In addition, with each visit US service men and women carried out extensive community service projects, helping local charities with thousands of dollars worth of free labour. 

• American tourism is growing in Malta.  In 2006, the number of American tourists visiting Malta was up 27%, with the average American spending an estimated $300/day.  The numbers for 2007, while not complete, are expected to track even further growth.

Educational Programs: 

• This past year, the US Embassy worked closely with the University of Malta to develop Malta’s first-ever international joint degree Masters programme.  The Master program with James MadisonUniversity is significant for two reasons.  First, it will allow students from all over the world to obtain dual degrees, one from Malta and one from a prestigious American University.  Second, the Masters program is in Sustainable Environmental Technologies, which is fast becoming one of the most globally significant areas for innovation.  Negotiations are underway for joint degree programs with other major US universities in entrepreneurial and communications programs. 

• In 2007, the United States increased its valuable Fulbright Scholar program.  In the past 12 months, 8 different Fulbright scholars came to Malta, bringing invaluable expertise and curriculum sharing.  The impact of these Fulbrighters will be long term, since they helped among other things to establish a curriculum on occupational hygiene, to develop ways to implement existing intellectual property legislation, to develop a masters-level curriculum in social work and social policy, and to develop an undergraduate curriculum leading to a BSc in Community Nursing. 

• Prior to the end of the year, the US Embassy will sign the GLOBE program agreement between the Ministry of Education and NASA.  GLOBE is an international environmental science and education program that will link Maltese students, teachers and scientists to their international counterparts for hands-on study of the global environment.   

Resettlement of Refugees

• In 2007, the United States pledged to concretely help Malta with its irregular immigration issue by resettling to the United States hundreds of political refugees.   The program is currently underway, in collaboration with UNHCR.  To date, over 100 individuals have been identified for possible resettlement, some of whom could be leaving Malta before the end of the year.  The program will be ongoing, taking groups of up to 200 refugees at a time to the United States.

Search and Rescue Training Centre

• The United States financially supported the establishment of Malta’s Search and Rescue Training Centre.  In its first year of operation Malta has solidified that reputation with Naval officers from numerous Mediterranean, African, Middle Eastern and European countries -- ranging from Saudi Arabia, Kenya, Tunisia, Egypt, Morocco, Croatia, Greece, Cyprus, Albania, Cameroon and others -- coming to Malta at US Government expense for a four week training course on Search and Rescue and Maritime Counter-Narcotics Techniques. This remarkable program is not only establishing Malta as a regional centre of excellence for “Search and Rescue,” but also helping Malta build invaluable relationships between the AFM and navies from many nearby countries.  This has already paid tangible dividends by facilitating direct cooperation between these countries and Malta on stemming illegal migration and drug trafficking through the Mediterranean.  The US expects to continue to provide financial support and scholarships for the Search and Rescue Training Centre in the coming years.

Visa Waiver Program

• In October Malta sent a team at the Permanent Secretary level to U.S. Department of Homeland Security headquarters in Washington for a round of technical talks.  Once Malta introduces its biometric passport, currently scheduled for the end of 2007, Malta will be in the very top tier of countries best-positioned to be admitted to the visa waiver program, and one of only three countries that meet all the objective criteria for admission.  This puts Malta in a strong position for entrance into the Visa Waiver Program once the U.S. takes the political decision to add new countries to the program for the first time since 9/11.

New Embassy and Playground in Ta Qali:

Last but not least, the US Government has re-affirmed its long term interest in Malta by investing in a new embassy in Malta.

• Construction on the New Embassy Project will begin next spring, and the United States is committed to ensuring that the majority of the $80 million construction project is carried out by local subcontractors and workers, providing a strong impact on the local economy.  In September, the contract was finalized with a US contracting firm, and the process of awarding the majority of that $80 million to Maltese subcontractors has begun.

• The US Embassy will also be finding a $250,000 ultramodern adventure playground in Ta Qali National Park as part of its overall commitment to the beautification of the area through the Embassy Project.