G/C/W/765  
 
27 June 2019 
(19-4353) Page: 1/7 
Council for Trade in Goods  Original: English  
 
REQUEST FOR A WAIVER  
CARIBB EAN BASIN ECONOMIC R ECOVERY ACT  (CBERA AS AMENDED)  
The following communication, dated  27 June 2019, is being circulated at the request of the 
Delegation of  the United States . 
 
_______________  
 
 
SPECIAL UNITED STATE S TRADE ARRANGEMENTS  FOR COUNTRIES OF  
CENTRAL AMERICA AND THE CARIBBEAN  
Pursuant to Article  IX:3 of the Marrakesh Agreement Establishing the World Trade Organization 
(WTO  Agreement), the United Sta tes hereby requests Members to extend the existing waiver of 
US obligations under paragraph  1 of Article  I of the General Agreement on Tariffs and Trade  1994 
(GATT  1994) and paragraphs  1 and 2 of Article  XIII of the GATT  1994 to permit the United States 
to provide duty -free treatment to eligible products originating in beneficiary Central American and 
Caribbean countries and territories ( "beneficiary countries ") designated pursuant to the provisions 
of the Caribbean Basin Economic Recovery Act of 1983, as a mended by the Caribbean Basin 
Economic Recovery Expansion Act of 1990 (CBERA).1 The United States requests Members to 
extend the waiver through 30 September  2025,  to the extent necessary to permit the United 
States to provide preferential tariff treatment to eligible products originating in beneficiary 
countries designated pursuant to the provisions of the CBERA, as amended by the United 
States -Caribbean Basin Trade Partnership Act, the Haitian Hemispheric Opportunity through 
Partnership Encouragement Act of 2006 ( "HOPE  Act"), the Haitian Hemispheric Opportunity 
through Partnership Encouragement Act of 2008 ( "HOPE  II"), the Haiti Economic Lift Program Act 
of 2010 ( "HELP Act") ("CBERA as amended "), and the Trade Preferences Extension Act of 2015.  
 
1  DESCRIPTIO N OF THE MEASURE  
The United States -Caribbean Basin Trade Partnership Act (CBTPA), enacted as Title  II of the Trade 
and Development Act of 2000 (Public Law  106-200), and amended by section  3107 of the Trade 
Act of 2002 (Public Law  107-210), section  1558 of the Miscellaneous Trade and Technical 
Corrections Act of 2004 (Public Law  108-429), and section  15408 of the Food, Conservation, and 
Energy Act of 2008, amends the CBERA2 by providing for preferential tariff treatment for additional 
products that originate  in a country the President has designated as eligible to receive 
CBTPA  benefits.3 Further, the Haitian Hemispheric Opportunity through Partnership 
                                                
1 See Caribbean Basin Economic Recovery Act, Renewal of Waiver, Decision of 5 May 2015 (WT/L/ 950). 
2 The original CBERA  program is described in more detail in the Request for Renewal of Waiver (G/L/25) 
which was included in the previously submitted information on the CBERA programme in 
document  G/C/W/508/Add.1.  
3 In accordance with Section  212(b) of the CBERA as amended (19 U.S.C.  § 2702 (b)), "Central America 
and the Caribbean"  refers to the following countries or any successor political entities of these countries: 
Anguilla, Antigua and Barbuda, The Bahamas, Barbados, Belize, British Virgin Islands, Cayman Islands, Costa 
Rica, Dominica, Dominican Republic, El S alvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, 
Montserrat, Netherlands Antilles, Nicaragua, Panama, Saint Lucia, Saint Vincent and the Grenadines, Saint 
Kitts and Nevis, Turks and Caicos Isl ands, and Trinidad and Tobago.  
The President has d esignated the following Central American and Caribbean countries as both CBERA 
and CBTPA beneficiary countries: Antigua and Barbuda, Aruba, The Bahamas, Barbados, Belize, British Virgin 
Islands, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint G/C/W/765  
 
- 2 - 
 
  Encouragement Act of 2006 (HOPE  Act), as amended by the Haitian Hemispheric Opportunity 
through Partnership Encouragement Act of 2008 (HOPE  II) enacted as Title  VI, Subtitle  D, Part  I of 
the Food, Conservation, and Energy Act of 2008 (P.L.  110-246) ( "HOPE Act as amended ") and the 
Haiti Economic Lift Program Act of 2010 (HELP Act) amend CBERA to make Haiti eligib le for 
additional trade benefits. The text of the CBERA as amended is attached at Annex  I. 
 
Specifically, section  213(b)(2) of the CBERA as amended (19  U.S.C.  § 2703 (b)(2)) provides for 
duty-free treatment for apparel assembled in eligible beneficiary countries from: (1)  fabrics formed 
in the United States from US  yarns and cut, dyed, and finished in the United States; 
(2) components knit -to-shape in the United States from US  yarns; (3)  fabrics formed in the United 
States from US  yarns and dyed and fini shed in the United States, but cut in the region, and sewn 
with US  thread; and (4)  a combination of fabrics formed in the United States from US  yarns and 
dyed and finished in the United States, but cut in the region, and components knit -to-shape in the 
United States from US  yarns, and sewn with US  thread. Subject to a quantitative limit, the CBERA 
as amended also provides for duty -free treatment for certain knit apparel cut and assembled in 
eligible beneficiary countries from fabrics formed in the region or  the United States from US  yarns, 
or apparel (other than socks) knit -to-shape in eligible beneficiary countries from US  yarns. There 
is a sep arate quantitative limit for t -shirts (other than underwear) made in eligible beneficiary 
countries from fabric for med in the region from US  yarns. In addition, the CBERA as amended 
provides for duty -free treatment for: (1)  certain brassieres; (2) apparel made from fabrics or 
yarns from third party sources, if those inputs are determined to be in "short supply " in the United 
States; (3)  certain textile luggage; and (4)  hand-loomed, handmade, or folklore textiles or 
apparel.  
 
In addition, section  213(b)(3) of the CBERA as amended (19 U.S.C.  § 2703 (b)(3)) provides tariff 
treatment equivalent to that extended to Mexico un der the North American Free Trade Agreement 
for certain non -textile and apparel products4, and duty -free treatment for four  rubber footwear 
items.5 Section  213(a)(6) of the CBERA as amended (19 U.S.C.  § 2703 (a)(6)) also provides for 
duty-free treatment of  certain beverages produced in Canada from rum produced in 
CBERA  beneficiary countries.  
 
The HOPE  Act as amended (Section  213a of the CBERA) provides for apparel imports from Haiti to 
enter the United States duty -free if the "applicable percentage " of the value of inputs and/or costs 
of processing is met from any combination of Haiti, United States, US  FTA or regional preference 
program partner countries. The HOPE  Act as amended also provides duty -free treatment for 
certain apparel articles if impor ted directly from Haiti or the Dominican Republic, provided that 
Haiti and the Dominican Republic develop procedures to prevent transhipment. The HOPE  Act as 
amended also removes duties for three  years on a specified quantity of woven apparel imports 
from Haiti made from fabric produced anywhere in the world. Additionally, the Act allows duty -free 
treatment for any apparel article classifiable under heading  6212.10 of the HTS (certain 
brassieres), if the article is both cut and sewn or otherwise assembled i n Haiti or the United 
States , or both without regard to the source of the fabric or components from which the article is 
made. Finally, the HOPE  Act as amended allows automotive wire harnesses imported from Haiti 
that contain at least 50  per cent by value of materials produced in Haiti, the United States, or 
US-FTA partner or regional preference program beneficiary countries to qualify for duty -free 
treatment.  The HOPE  Act as amended also establishes an International Labor Organization 
monitoring program, a nd requires the President to establish cert ain procedures to monitor Haiti 's 
and individual producers ' compliance with the eligibility crite ria. 
                                                                                                                                                  
Vincent and the Grenadines, and Trinidad and Tobago. Sections  212 and 213(b)(5)(B) of the amended CBERA 
(19 U.S.C.  §§ 2702, 2703  (b)(5)(B)) describe the eligibility criteria countries must meet to be designated as a 
CBER A or CBTPA beneficiary c ountry.  
To be eligible for the enhanced benefits of the CBTPA, however, CBTPA beneficiary countries must 
implement and follow (or be making substantial progress toward implementing and following) certain customs 
procedures and requi rements, as described in section  213(b)(4) of the CBERA as amended 
(19 U.S.C.  § 2703 (b)(4)). The following beneficiary countries are currently eligible for the enhanced benefits 
of the CBTPA: Barbados, Belize, Guyana, Haiti, Jamaica, Saint Lucia, and Trin idad and Tobago.  
The Haiti Economic Lift Program Act of 2010 (" HELP Act ") (P.L. 111-171) extended the enhanced 
benefits of the CBTPA until 30  September  2020.  
4 These products are certain: (1)  footwear; (2)  canned tuna; (3)  petroleum products; (4)  watches a nd 
watch parts; and (5)  handbags, luggage, flat goods, work gloves and leather wearing apparel.  
5 With respect to footwear, note that section  1558 of the Miscellaneous Trade and Tariff Act of 2004 
amended section  213(b) of the CBERA to reduce the number of  footwear items that are ineligible to receive 
duty-free treatment.  G/C/W/765  
 
- 3 - 
 
   
In May  2010, the President signed the HELP  Act. The HELP  Act further expanded existing 
preferences for apparel  and established new preferences for certain non -apparel textile goods. The 
HELP Act expanded and extended current preference programs under the HOPE and HOPE  II Acts, 
and established new preferences providing unlimited duty -free treatment for certain knit  apparel 
and certain non -apparel textiles wholly assembled or knit -to-shape in Haiti, using fabric  or 
components from any source.  
 
Under section  212(e) of the CBERA as amended (19  U.S.C.  § 2702 (e)), the President may, in 
certain circumstances, withdraw or  suspend the designation of any country as a beneficiary 
country, and may also withdraw, suspend, or limit the application of preferential treatment to any 
article of any beneficiary country. The CBERA as amended does not alter the benefits the United 
States provides under its Generalized System of Preferences (GSP) program to other developing 
countries.  
 
Benefits provided under the original CBERA are permanent. The benefits added by the CBTPA are 
available through 30  September  2020, or until the Free Trade  Area of the Americas (FTAA) or 
other free trade agreement between the United States and the beneficiary country enters into 
force, whichever occurs first.6 Additionally, certain benefits authorized by the HOPE  Act as 
amended are available to Haiti through  30 September  2025. 
 
2  SPECIFIC POLICY OBJE CTIVES OF THE MEASUR E 
The CBERA as amended is intended to help Caribbean Basin countries develop their economies and 
diversify their exports. The CBERA as amended furthers these goals by creating opportunities to 
expand trade between the United States and beneficiary countries, thus promoting economic 
opportunity and growth in the region. The CBERA as amended is further intended to provide more 
stability, strengthen security, decrease illegal immigration, and improve  regional cooperation in 
efforts to fight drug trafficking. The CBERA as amended is also designed to help stabilize the 
region 's economies in the wake of devastating hurricanes in 1998, 2004 , 2008, and 2017 . 
 
3  CIRCUMSTANCES JUSTIF YING THE WAIVER  
The United States is committed to working in partnership with our close neighbours in the 
Caribbean Basin to improve livelihoods and expand economic opportunities through greater 
economic integration. In this effort, the Caribbean Basin countries have undertaken to s trengthen 
their policy orientation to promote economic growth and to diversify exports. The CBERA as 
amended provides a vital US  contribution to the efforts in this partnership to achieve  greater 
economic integration.  
 
The United States is concerned that c onditions of poverty and instability remain high in our 
neighbours  in the Caribbean Basin, particularly in Haiti. Economic prospects for these small 
countries are further complicated by susceptibility to natural disasters, such as the major 
hurricanes that  have affected the Caribbean Basin in recent years. In response, the recent 
extension and expansion of benefits under the CBERA as amended by CBTPA and the HOPE, 
HOPE  II, and HELP  Acts is intended to further expand economic opportunities and contribute 
towards a more stable and prosperous region.  
 
We note that our neighbour, Haiti, is the most impoverished country in the Western Hemisphere 
and one of the most susceptible to economic and political instability. On 12  January  2010, a 
massive earthquake struck Haiti, causing catastrophic damage inside and around the capital city of 
Port-au-Prince. The earthquake killed approximately 100, 000 people, displaced more than 
                                                
6 Under section  201(a)(3)(B) of the Dominican Republic -Central America -United States Free Trade 
Implementation Act, three  exceptions apply to withdrawal of CBERA/CBTPA beneficiary status; the United 
States will continue to treat CAFTA -DR countries as beneficiary countries: (1)  to preclude the International 
Trade Commission from cumulating CBERA  imports in antidumping and countervailing duty investigations 
according to section  771(7)(G)(ii)( III) of the Tariff Act of 1930 (19 U.S.C.  1677(7)(G)(ii)(III)); (2)  to 
implement duty free treatment for certain ethyl alcohol provided under paragraph  12 of Appendix  I of the 
General Notes to the Schedule of the United States to Annex  3.3 of the Agreement ; and (3)  for purposes of 
taxpayer deductions for business trips to CBERA  countries. Additionally, current CBERA and CBTPA  beneficiary 
countries will be able to continue to count inputs from the former beneficiaries toward qualifying for benefits 
under CBE RA and CBTPA.  G/C/W/765  
 
- 4 - 
 
  1.5 million, and affected more than 3  million. A cholera epidemic that broke out in October  2010 
further challenged the post -earthquake environment. The United States worked to respond to the 
humanitarian emergency following the earthquake, support recovery initiatives, and establish the 
foundation for reconstruction and longer -term development. An important element of the overall 
strategy is job creation and a long -term view to strengthen the capacity of Haiti's government 
institutions, as well as the institutions of the sm aller economies in the region.  
 
The United States is committed to a strate gy that will reinforce economic growth, security, good 
governance, and leadership in creating a climate where investors will be willing to take risks and 
bring jobs to Haiti and the Caribbean Basin region. In this light, the issuance of a waiver to allow 
Haiti and the region extended benefits under CBERA as amended is a critical step in enhancing 
prospects for a stable future.  
 
4  CONCLUSION  
Pursuant to Article  IX:3 of the WTO  Agreement, the United States requests Members to extend the 
existing waiver of US  obligations under paragraph  1 of Article  I of the GATT  1994 and 
paragraphs  1 and 2 of Article  XIII of the GATT  1994 to permit the United States to provide 
duty-free treatment to eligible products originating in beneficiary countries designated pursuant to 
the provisions of the CBERA. The United States requests Members to extend the waiver through 
30 September  2025, to the extent necessary to permit the United States to provide preferential 
tariff treatment to eligible products originating in beneficiary count ries designated pursuant to the 
provisions of the CBERA as amended. A draft waiver decision is attached for consideration.  
 
The United States requests the Council for Trade in Goods to give this application for a waiver 
expeditious and favourable considera tion. In the meantime, the United States will promptly enter 
into consultations, on request, with any interested Member with respect to any difficulty or matter 
that may arise as a result of the preferential treatment provided under the CBERA as amended.  
 G/C/W/765  
 
- 5 - 
 
  UNITED STATES – CARI BBEAN BASIN ECONOMIC  RECOVERY ACT  
RENEWAL OF WAIVER  
Draft Decision of … 201 97 
The General Council,  
 
 Conducting  the function of the Ministerial Conference in the interval between meetings 
pursuant to paragraph  2 of Article  IV of the WTO  Agreement;  
 
Having regard to  paragraphs  1, 3 and 4 of Article  IX of the Marrakesh Agreement 
Establishing the World Trade Organizat ion (the "WTO Agreement"), the Guiding Principles to be 
followed in considering applications for waivers adopted on 1  November  1956 (BISD  5S/25), and 
the Understanding in Respect to Waivers of Obligations under the General Agreement on Tariffs 
and Trade  1994 (the "Understanding");  
 
Taking note of the request of the United States, pursuant to paragraph  3 of Article  IX of the 
WTO Agreement, to extend the existing waiver8 of its obligations under paragraph  1 of Article  I of 
the General Agreement on Tariffs and  Trade 1994 (GATT  1994) and paragraphs  1 and 2 of 
Article  XIII of the GATT  1994 to permit the United States to provide duty -free treatment to eligible 
products originating in beneficiary Central American and Caribbean countries and territories 
("beneficiar y countries ") designated pursuant to the provisions of the Caribbean Basin Economic 
Recovery Act of 1983, as amended by the Caribbean Basin Economic Recovery Expansion Act of 
1990 (CBERA), by extending the waiver through 30  September  2025 to the extent nec essary for 
the United States to provide preferential tariff treatment to eligible products originating in 
beneficiary countries designated pursuant to the provisions of the CBERA, as amended by the 
United States -Caribbean Basin Trade Partnership Act, the H aitian Hemispheric Opportunity through 
Partnership Encouragement Act of 2006, the Haitian Hemispheric Opportunity through Partnership 
Encouragement Act of 2008, the Haitian Economic Lift Program Act of 2010 ( "CBERA as amended ") 
and the Trade Preferences Ex tension Act of 2015;  
 
Bearing in mind  the Ministerial Decision on Measures in Favour of Least -Developed 
Countries, adopted in Marrakesh on 15  April 1994;  
 
Bearing in mind  also the 1979  Decision on Differential and More Favourable Treatment, 
Reciprocity and  Fuller Participation of Developing Countries and the 1994  Decision on Measures in 
Favour of Least -Developed Countries;  
 
Bearing in mind  also that the CONTRACTING PARTIES of the GATT  1947 granted the United 
States a waiver of obligations under paragraph  1 of Article  I on 15 February  19859, for the period 
from 1  January  1984 through 30  September  1995, and that Members extended the waiver on  
15 November  199510 in respect of paragraph  1 of Article  I of the GATT  1994 through 
30 September  2005, on 29  May 200911 through 31  December  2014, and that Members extended 
the waiver in respect of paragraph  1 of Article  I of the GATT  1994 and expanded the wa iver to 
cover paragraphs  1 and 2 of Article  XIII of the GATT  1994 on 5  May 2015 through 
31 December  2019, to the extent necessary for the United States to provide duty -free treatment 
for imports of eligible products originating in beneficiary countries des ignated pursuant to the 
provisions of the CBERA;  
 
Considering  that the United States -Caribbean Basin Trade Partnership Act (CBTPA), the 
Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006, the Haitian 
                                                
7 Adopted in accordance with the Decision -Making Procedures under Article  IX of the WTO  Agreement 
agreed by the General Council in November  1995 (WT/L/93).  
8 Document  WT/L/753.  
9 (BISD  31S/20).  
10 WT/L/104.  
11 WT/L/753.  G/C/W/765  
 
- 6 - 
 
  Hemispheric Opportunity throu gh Partnership Encouragement Act of 2008, and the Haitian 
Economic Lift Program Act of 2010 expand the preferences the United States extends under the 
CBERA;  
 
Considering  further the exceptional situation of the CBERA and CBTPA  beneficiary countries, 
and t he stated objective of the CBERA as amended to assist the trade and economic development 
and recovery of Caribbean Basin countries by encouraging the expansion of productive capacity in 
those countries in response to more liberal access and to new trading opportunities;  
 
Considering  further that the preferential treatment provided for under the CBERA as 
amended is designed to promote the expansion of trade and economic development of beneficiary 
countries in a manner consistent with the objectives expressed  in paragraphs  1, 2, and 3 of the 
Preamble to the WTO  Agreement;  
 
Considering  further that the preferential treatment provided under the CBERA as amended 
will not alter benefits provided under the US  Generalized System of Preferences to other 
developing co untries;  
 
Considering , moreover, that the duty -free treatment provided under CBERA should not 
prejudice the interests of other Members not benefiting from such treatment, and that it is 
expected that the extension of such duty -free treatment will not cause  a significant diversion of 
United States imports of products eligible under CBERA originating in Members who are not 
beneficiary countries;  
 
Considering that the duty -free treatment provided under CBERA by the United States 
Government shall not constitute  an impediment to the reduction or elimination of tariffs and other 
restrictions to trade on a most -favoured -nation basis;  
 
Noting  the assurances given by the United States that it will promptly enter into 
consultations, on request, with any interested Mem ber with respect to any difficulty or matter that 
may arise as a result of the preferential treatment provided under the CBERA as amended;  
 
Decides , in view of these exceptional circumstances, as follows:  
 
1. Subject to the terms and conditions set out her eunder, paragraph  1 of Article  I and 
paragraphs  1 and 2 of Article  XIII of the GATT  1994 shall be waived through 3 0 September  2025, 
to the extent necessary to permit the United States to provide preferential tariff treatment to 
eligible products originatin g in beneficiary countries designated pursuant to the provisions of the 
CBERA as amended.  
 
2. The United States shall submit to the General Council an annual report on the 
implementation of the trade -related provisions of the CBERA with a view to facilitat ing the annual 
review provided for in paragraph  4 of Article  IX of the WTO  Agreement. The United States shall 
promptly notify the General Council of any trade -related measure taken under CBERA, in 
particular, any changes in the designation of beneficiary c ountries, as well as any modification 
being considered in the list of eligible products and the duty -free treatment thereof, and shall 
furnish it with all the information it may deem appropriate relating to such action. The United 
States shall consult with  regard to any modification being considered in the list of eligible products.  
 
3. Such duty -free treatment shall be designed to facilitate and promote the trade of beneficiary 
countries and not to raise barriers to or create undue difficulties for the tra de of any other 
Members.  
 
4. The United States shall promptly enter into consultations, on request, with any interested 
Member with respect to any difficulty or matter that may arise as a result of the preferential 
treatment provided under the CBERA as ame nded. If a Member considers that any benefit accruing 
to it under the GATT  1994 may be or is being impaired unduly as a result of such implementation, 
such consultation shall examine the possibility of action for a satisfactory resolution of the matter.  
 
5. This Decision does not affect Members ' rights as set forth in the Understanding in Respect of 
Waivers of Obligations under the GATT  1994.  
 G/C/W/765  
 
- 7 - 
 
   
ANNEX  I 
 
PUBLIC LAW 114 -27 
 
Trade Preferences Extension Act of 2015  
 
TITLE  III--EXTENSION OF PREFERENTIAL DUTY TREATMENT PROGRAM FOR HAITI  
 
SEC. 301. EXTENSION OF PREFERENTIAL DUTY TREATMENT PROGRAM FOR HAITI.  
 
Section  213A of the Caribbean Basin Economic Recovery Act (19 U.S.C.  2703a) is amended as 
follows:  
 
(1) Subsection  (b) is amended as follows:  
 (A) Paragraph  (1) is amended -- 
 (i) <<NOTE: Time periods.>> in subparagraph (B)(v)(I), by amending item  (cc) to 
read as follows:  
 
"(cc) 60 percent or more during the 1 -year period beginning on December  20, 2017, 
and each of the 7  succeeding 1 -year periods."; and  
 
(ii) in subparagraph (C) -- 
(I) in the table, by striking "succeeding 11  1-year periods " and inserting 
"16 succeeding 1 -year periods "; and  
 
(II) by striking "December  19, 2018 " and inserting "December  19, 2025 ". 
 
  (B) Paragraph  (2) is amended -- 
 (i) in subparagraph  (A)(ii), by striking "11 succeeding 1 -year periods " and 
inserting "16 succeeding 1 -year periods "; and  
 
 (ii) in subparagraph  (B)(iii), by striking "11 succeeding 1 -year periods " and 
  inserting "16 succeeding 1 -year periods ". 
 
(2) Subsection  (h) is amended by striking "September  30, 2020 " and inserting "September  30, 
2025". 
 
__________