Prime Minister Lawrence Gonzi will be meeting United States President George Bush in Washington today.

Relations between Malta and the USA have been on solid ground for the past few years, and today’s visit to the White House is a chance for both countries to further strengthen these ties.

However, the meeting should be much more than an occasion to re-affirm the level of friendship that exists between the most powerful state in the world and a tiny country in the middle of the Mediterranean.

Having good bilateral relations at the political level with the United States is important, but they should serve as a platform from which the government can promote Malta as an ideal location for more American investment.

Such investment would help the country to increase levels of foreign direct investment and, at the same time, give a much-needed boost to the economy – which is not performing as many would like it to. It could also encourage other countries to follow suit and invest here.

Malta is losing its competitive edge. Only last week, we saw the country slide down three places in the world rankings of the World Economic Forum’s global competitiveness index. This was mainly due to fears of an impending recession, the country’s general macroeconomic standing and a dismal level of business confidence. This position could be weakened further as the growing economies of Asian countries such as China and India “force” companies to relocate their business.

Malta, therefore, needs all the help it can get from the United States. More investment from America would mean new jobs and an economic boost that industry would welcome with open arms. The Maltese government must also do its utmost to reach an agreement on double taxation.

A Department of Information statement released on the occasion of the Prime Minister’s visit to Washington says that the US’s commercial presence in Malta has expanded in recent years. It lists nine US companies that have set up shop in Malta, adding that in 2003 the government reached a cooperation agreement with multinational software giant Microsoft to establish Malta as a regional information communication technology hub.

This investment is welcomed, but is it enough? What is Malta doing to attract more American investment to the island? What areas remain untapped? Is Malta Enterprise focusing on attracting investment from the US?

The Prime Minister’s visit to the United States, apart from serving to strengthen the political ties between the two countries, should also be an occasion to promote all that Malta has to offer in terms of investment. During a breakfast meeting with US businessmen tomorrow, Dr Gonzi should take the opportunity to tell them what Malta has to offer to US companies.

First, Malta’s strategic geographical position offers businesses a base linking Europe and North Africa. Second, the country’s membership of the European Union opens doors for US businesses to gain access to the EU’s internal market. Third, Malta has an efficient and flexible workforce, a growing services, financial and IT industry, and a safe environment. All these factors make Malta an ideal base for investment.

On a political level, the United States has been of help to Malta in recent years. It has made valid contributions to Malta in the form of equipment donated to the Armed Forces of Malta and the Customs Department. No doubt, the US has also appreciated Malta’s strong position against international terrorism.

In 2003, in a return letter presented to Malta’s ambassador to the US, John Lowell, President Bush said that the US was fortunate to have friends like Malta and confirmed the good relations that existed between the two countries, commending Malta’s efforts to combat international terrorism.

This all goes to demonstrate the strong ties that already exist. The Prime Minister’s visit to the United States will hopefully serve to improve relations between the two countries and encourage more American entrepreneurs to invest in Malta.