Bermuda should not be fearful of the new Obama administration in the US despite the threats of tax law changes and protectionism that could be harmful to the Island's economy, according to BIBA chief executive officer Cheryl Packwood.

Instead, Bermuda should "embrace the change" in the US and do its utmost to demonstrate the Island's role in the US economy, Ms Packwood wrote in BIBA's annual report, distributed to members and guests at its annual general meeting yesterday.

President Obama promised to "shut down the tax havens" during his election campaign and has co-sponsored the Stop Tax havens Abuse bill which names the Island on its list of tax havens.

"While alarmist rhetoric and scare tactics about Bermuda's prosperity may be fashionable in some circles on our Island, I would suggest that what Bermudians need to do is embrace the change taking place some 650 miles to the west of our shores," Ms Packwood wrote.

"Bermuda has always been hospitable to international business. However, prudent decisions must be made to continue this relationship in a manner which is beneficial to all of us. Most of the issues pertaining to our economy, including labour, tax rollover incentive, perceived xenophobia and others, can be resolved through our own decisions individually and collectively by ourselves and our own Government.

"Instead of being fearful, let us get to work as our own best advocates to America on our role in their economy and our importance as a long-time ally."

Ms Packwood added that President Obama's priorities would be the economy, the wars in Iraq and Afghanistan and the struggling auto industry.

"There are many of us who are concerned that President Obama will proceed with an aggressive change in tax policy, a more protectionist trade agenda and a 're-regulation' of the financial services industry, each of which could be harmful to Bermuda's economy," the BIBA CEO continued.

"While those concerns, given the rhetoric in recent presidential and congressional elections, have some foundation, there is ample evidence to suggest that President Obama may not be quite as strident and those fears may not be well founded."

What had become clear was that the president was a "studied and reasoned person" not prone to making rash and reactive decisions, she added.