To withhold foreign assistance to Caribbean Basin Initiative countries that support membership for the Government of Cuba into the Caribbean Community (CARICOM) or the Central American Common Market (CACM), and for other purposes.

Summary: Directs the President to withhold foreign assistance funds (other than humanitarian assistance) to any Caribbean Basin Initiative (CBI) country that uses its voice or vote in the Caribbean Community (CARICOM) or the Central American Common Market (CACM) to support provisional or permanent membership for Cuba in CARICOM or CACM. 
Directs the President to deny temporary or permanent tariff treatment of products of a CBI country that is equivalent to treatment provided to products of a North American Free Trade Agreement (NAFTA) country if such CBI country:  (1) uses its voice or vote to support provisional or permanent membership for Cuba in CARICOM or CACM; or (2) enters into negotiations for a free trade area agreement with Cuba.

SECTION 1. FINDINGS AND DECLARATION OF POLICY.

    (a) Findings.--The Congress makes the following findings:
            (1)(A) With increasing regional integration, the value of 
        Caribbean trade for the United States is well established.
            (B) Collectively, it is estimated that the 24 countries of 
        the Caribbean Basin represent a market of more than 50,000,000 
        people that has become the tenth largest destination for United 
        States goods and services.
            (2) Although the expansion of democracy throughout most of 
        the Western Hemisphere has brought economic liberalization and 
        reform, assistance is still required to continue the reforms 
        and to diversify and stimulate investment in the Caribbean 
        Basin region.
            (3) While progress has been made by many of the Caribbean 
        Basin countries in areas that coincide with the security, 
        economic, and humanitarian interests of the United States, much 
        more needs to be done.
            (4)(A) The Castro regime in Cuba is not a democratically 
        elected government. It systemically violates the individual 
        civil liberties and human rights of its citizens, does not have 
        a market-oriented economy, and has made it abundantly clear 
        that it will not engage in any substantive reforms that would 
        lead to a democracy and market economy for Cuba.
            (B) The totalitarian nature of the Castro regime has 
        deprived the Cuban people of any peaceful means to improve 
        their condition and has led thousands of Cuban citizens to risk 
        or lose their lives in dangerous attempts to escape from Cuba 
        to freedom.
            (5) Since the beginning of the Castro regime, it has been 
        the policy of the United States to isolate and sanction this 
        totalitarian regime.
    (b) Declaration of Policy.--The Congress declares the following:
            (1) United States trade policy must be consistent with 
        United States foreign policy and recipients of foreign 
        assistance must be held accountable for decisions that run 
        contrary, or could endanger, United States interests and 
        objectives in the Western Hemisphere.
            (2) Safeguard mechanisms must be established to ensure that 
        United States foreign assistance or United States trade 
        agreements with other countries are not used in any way to 
        benefit the Castro regime.

SEC. 2. WITHHOLDING OF UNITED STATES ASSISTANCE TO CARIBBEAN BASIN 
              INITIATIVE COUNTRIES THAT OFFER SUPPORT FOR MEMBERSHIP 
              FOR THE GOVERNMENT OF CUBA INTO CARICOM OR CACM.

    Beginning 90 days after the date of the enactment of this Act, the 
President shall withhold assistance under the Foreign Assistance Act of 
1961 (22 U.S.C. 2151 et seq.) (other than humanitarian assistance) to 
any Caribbean Basin Initiative country that uses its voice or vote in 
the Caribbean Community (CARICOM) or the Central American Common Market 
(CACM) to support provisional, permanent, or any other form of 
membership for the Government of Cuba into CARICOM or CACM.

SEC. 3. PROHIBITION ON PROVISION OF CERTAIN TARIFF TREATMENT TO 
              CARIBBEAN BASIN INITIATIVE COUNTRIES THAT OFFER 
              MEMBERSHIP FOR THE GOVERNMENT OF CUBA INTO CARICOM OR 
              CACM OR THAT NEGOTIATE A FREE TRADE AREA AGREEMENT WITH 
              CUBA.

    Beginning 90 days after the date of the enactment of this Act, the 
President shall deny temporary or permanent tariff treatment to 
products of a Caribbean Basin Initiative country that is equivalent to 
treatment provided to products of a NAFTA country if such Caribbean 
Basin Initiative country--
            (1) uses its voice or vote in CARICOM or CACM to support 
        provisional, permanent, or any other form of membership for the 
        Government of Cuba into CARICOM or CACM; or
            (2) enters into negotiations with the Government of Cuba 
        toward a free trade area agreement with Cuba.

SEC. 4. DEFINITIONS.

    As used in this Act:
            (1) CACM.--The term ``CACM'' means the Central American 
        Common Market established by the 1960 General Treaty on Central 
        American Economic Integration.
            (2) Caribbean basin initiative country.--The term 
        ``Caribbean Basin Initiative country'' means a country 
        designated as a beneficiary country under section 212 of the 
        Caribbean Basin Economic Recovery Act for purposes of title II 
        of such Act.
            (3) CARICOM.--The term ``CARICOM'' means the Caribbean 
        Community established by the 1973 Treaty of Chaguaramas.
            (4) Government of cuba.--The term ``Government of Cuba''--
                    (A) includes any agency or instrumentality of the 
                Government of Cuba, and the government of any political 
                subdivision of Cuba; and
                    (B) does not include--
                            (i) a transition government in Cuba, as 
                        described in section 205 of the Cuban Liberty 
                        and Democratic Solidarity (LIBERTAD) Act of 
                        1996; or
                            (ii) a democratically elected government in 
                        Cuba, as described in section 206 of such Act.
            (5) NAFTA country.--The term ``NAFTA country'' has the 
        meaning given such term in section 2 of the North American Free 
        Trade Agreement Implementation Act.