In an address to reporters, State Secretary of the Netherlands Antilles, Alex Rosaria said that the agreement underlines his government's commitment to principles of transparency and high international standards regarding the global financial markets, a policy that it has followed since the year 2000.

The TIEA follows the signing of a similar agreement with the government of Australia last month, which will provide for full exchange of information on criminal and civil tax matters between the two governments.

"These tax information agreements are important instruments to counter the abuse of the financial system such as tax fraud, money laundering and the financing of terrorism,” Rosaria stated.

From March 22, 2007, the agreement allows taxpayers in the United States to claim a deduction on convention expenses paid in the five islands making up the Netherlands Antilles. These include Curacao, Saint Maarten, Bonaire, Saba and Saint Eustatius. Taxpayers in the Netherlands Antilles have reciprocal rights for conventions held in the United States.

The treaty will also allow the Netherlands Antilles to take advantage of the Caribbean Basin Trade Partnership Act, allowing goods to be imported into the US from the islands tariff-free.

The Netherlands Antilles have tended to move away from tax treaty arrangements during recent years, letting a number of treaties with prominent countries lapse. However, Rosario has previously stressed that jurisdiction is now pursuing a policy of becoming a "committed neighbour" in the Caribbean region, and the government has reportedly expressed and interest in kickstarting negotiations with Jamaica towards the conclusion of a bilateral double taxation avoidance treaty.

The Netherlands Antilles is also currently in talks with the governments of Barbados and Trinidad & Tobago towards the creation of double tax treaties, while talks towards similar agreements with nordic countries were due to start in February.