WORLD TRADE
ORGANIZATIONWT/L/417
18 September 2001
(01-4397)
General Council
10 October 2001Original:  English
UNITED STATES - CARIBBEAN BASIN ECONOMIC RECOVERY ACT
Report of the Government of the United States
under the Decision of 15 November 19951
The following communication, dated 10 September 2001, has been received from the
Permanent Mission of the United States.
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1. Introduction
1. On 15 November 1995, the United States was granted a renewal of the waiver (WT/L/104)
from its obligations under paragraph 1 of Article I of the GATT 1994 to the extent necessary to permitthe United States Government to provide duty-free treatment to eligible products of the Caribbean
Basin countries and territories as authorized by the provisions of Caribbean Basin Economic
Recovery Act (CBERA) without being required to extend the same duty-free treatment to like
products of any other Member.  This waiver was extended until 31 December 2005.
2. Under the terms of this waiver, the United States is required to submit to the General Council
an annual report on the implementation of the trad e-related provisions of the CBERA with a view to
facilitating the annual review provided for in paragraph 4 of Article IX of the WTO Agreement.  Thisreport covers calendar year 2001.  Trade data has been provided for calendar year 2000, the most
recent year for which full-year data is available.
2. Duty-free Treatment under the CBERA
3. Section 211 of the CBERA allows the President of the United States to eliminate duties on all
products, with certain exceptions
2 from those Caribbean countries and territories that he designates as
beneficiaries.  There are 28 countries or territories eligible for CBERA benefits.  Presently,
24 countries and territories have requested to receive CBERA benefits; all are receiving benefits.
These countries and territories are:   Antigua a nd Barbuda, Aruba, The Bahamas, Barbados, Belize,
British Virgin Islands, Costa Rica, Dominica, Dominican Republic, El Salvador, Grenada, Guatemala,
                                                     
1 WT/L/104.
2 The products excluded from duty-free treatment are:   textile and apparel articles which are subject to
textile agreements;  certain footwear which was not eligible for duty-free entry under the US Generalized
System of Preferences in 1983;  prepared tuna in airtight containers;  petroleum and petroleum products;watches and watch parts if such products contain any ma terial from countries not accorded MFN treatment; and
certain leather products (handbags, luggage, flat goods, work gloves, and leather-wearing apparel).  Many ofthese excluded products are now eligible for preferen tial treatment under the United States – Caribbean Basin
Trade Partnership Act (CBTPA), Title II of the Trade and Development Act of 2000, which amended the
CBERA.  The United States is analyzing what kind of  waiver is required for these additional preferences.WT/L/417
Page 2
Guyana, Haiti, Honduras, Jamaica, Montserrat, Netherlands Antilles, Nicaragua, Panama, St. Kitts
and Nevis, St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago. There has been no
change in the list of beneficiaries since 1990.
3. CBI Performance
4. The CBI programme has helped beneficiaries diversify their exports.  On a region-wide basis,
this export diversification has led to a more balanced production and export base and has resulted in a
reduction in the region's vulnerability to fluctuations in markets for traditional products.
5. Since 1983, the year prior to the implementation of the CBI, total CBI country non-petroleum
exports to the United States have more than tripled.  The generally steady rise in US trade with the
CBERA countries and territories has mirrored the in crease in US trade worldwide.  Since 1996, US
imports from CBERA countries have consistently accounted for 1.8 per cent of total US imports.
6. US imports from CBERA countries and territories traditionally have consisted of agricultural
products, raw materials, and their derivatives-namely, petroleum products, sugar cane, coffee, cocoa,
bananas, and aluminum ores and concentrates.  The deterioration in the terms of trade for these export
items and a quest for economic growth prompt ed CBERA countries and territories to seek
diversification in their export profile.  The encouragement of such diversification of the Caribbean
Basin economies was one of the intended goals of the United States in implementing the CBERAprogramme.
7. Light manufactures, principally printed circuit assemblies and apparel, but also medical
instruments and chemicals, account for an increasing share of US imports from the region and
constitute the fastest growing sectors for new in vestment in CBERA countries and territories.
However, traditional agricultural and raw material products continue to play a significant role in theregion’s economies.
8. While generally not eligible for CBERA tariff preferences, apparel constitutes one of the
fastest growing categories of imports from the CBERA countries and territories-growing from just
5.5 per cent of total US imports from the region in 1984, to nearly 43 per cent in 2000, valued at over
US$9.6 billion.  Apparel has ranked as the leading category of US imports from the region since1988.
9. In 2000, the Dominican Republic and Costa Rica continued to lead all countries in taking
advantage of CBERA, as they have done virtually each year since the program became effective.  The
combined share of these two countries' CBERA e xports to the United States dropped to 52.6 per cent
of total CBERA trade in 2000, down from 57.0 per cent in 1999.  By contrast, Guatemala and
Trinidad and Tobago (third and fourth in exports ) have increased their total CBERA exports, moving
from a combined 19.0 per cent share of total CBERA trade in 1999 to just over 22.0 per cent in 2000.
10. Statistical annexes are provided to present a detailed description of the trade aspects of the
CBI programme for the most recent period.  Detailed information for previous years has been
provided in previous reports to the GATT Council or WTO General Council.
Table 1 provides summary information on US imports for consumption under CBERA
provisions during the period  1984, 1988, 1992, 1994, 1998, and 2000.
Table 2  provides information on leading US imports, by product, from CBERA countries
during 1984, 1988, 1992, 1994, 1998, and 2000.
Table 3  provides information on US trade with CBERA countries during 1980-2000.
Table 4  provides summary information on the duty treatment of US imports from CBERA
countries during 1984, 1992 , 1998, 1999 and 2000.WT/L/417
Page 3TABLE 1
US Imports for Consumption under CBERA Provisions , by Sources, 1984, 1988, 1992, 1994, 1998, and 2000
Source 1984 1988 1992 1994 1998 2000
Value ( 1,000 dollars )
Dominican Republic 222,462 248,819 567,738 751,028 1,294,533 852294
Costa Rica 65,756 153,417 294,937 478,109 756,579 617075
Trinidad & Tobago 6,422 42,228 44,695 142,901 186,219 327917Guatemala 43,442 85,326 192,955 171,381 268,869  264630Honduras 60,198 57,608 112,512 139,838 236,073 252149
Jamaica 44,737 42,215 48,156 69,316 102,178 89459
The Bahamas
1- 12,013 93,324 45,062 34,914 74451
El Salvador 71,986 22,485 27,249 41,126 50,206 71565Nicaragua
2- - 40,018 80,554 72,694 57555
Panama311,787 18,241 23,753 35,141 77,453 42639
Belize 4,621 19,180 23,733 13,112 19,706  32360
St. Kitts and Nevis 6757 9,417 14,172 17,220 25,428 27613
Haiti 21,856 83,933 19,151 15,770 28,167 25160Guyana
4- 131 1,202 13,100 24,617 17143
Grenada 2 120 1,081 768  8,242 16702Barbados 13,376 19,125 15,478 21,313 20,392 10441
St. Lucia 1,413 3,007 3,957 6,077 7,802 7471
Netherlands Antilles 2, 504 2,917 2,964 3,214 2,775 3624
St. Vincent and  Grenadines 55 9,990 165 1,299 3,532 1947Dominica 9 358 1,008 2,112 1,858 196Aruba
5- - 10 12 1,779 128
British  Virgin Islands 207 56 68  11 333 31
Antigua Barbuda 114 255 324 809 214 4
Montserrat - 118 41 886 - -
        Total: 577704 830,958 1,528,690 2,050,158 3,224,564 2792553
See footnotes at end of table.WT/L/417
Page 4TABLE 1—CONTINUED
U.S. imports for consumption under CBERA provisions , by sources, 1984, 1988, 1992, 1994, 1998, and 2000
Source 1984 1988 1992 1994 1998 2000
Per cent
Dominican Republic 38.51 29.94 37.14 36.63 40.15 30.52
Costa Rica 11.38 18.46 19.29 23.32 23.46 22.10
Trinidad & Tobago 1.11 5.08 2.92 6.97 5.78 11.74
Guatemala 7.52 10.27 12.62 8.36 8.34 9.48
Honduras 10.42 6.93 7.36 6.82  7.32 9.03
Jamaica 7.74 5.08 3.15 3.38 3.17 3.20
The Bahamas1- 1.45 6.10 2.20 1.08 2.67
El Salvador 12.46 2.71 1.78 2.01 1.56 2.56Nicaragua
2- - 2.62 3.93 2.25 2.06
Panama32.04 2.20 1.55 1.71 2.40 1.53
Belize .80 2.31 1.55 .64 .61 1.16
St Kitts and Nevis 1.17 1.13 .93 .84 .79 .99
Haiti 3.78 10.10 1.25 .77 .87 .90Guyana
4- .02 .08 .64 .76 .61
Grenada - .01  .07 .04 .26 .60Barbados 2.32 2.30 1.01 1.04 .63 .37
St Lucia .24 .36 .26 .30 .24 .27
Netherlands Antilles .43 .35 .19 .16 .09 .13St Vincent and  Grenadines .01 1.20 .01 .06 .11 .07Dominica - .04 .07 .10 .06 .01Aruba
5-. 0 0 - -. 0 6 -
British  Virgin Islands .04 .01 - - .01 -
Antigua Barbuda  .02 .03 .02 .04 .01 -
Montserrat - .01 - .04 - -
       Total: 100.00 100.00 100.00 100.00 100.00 100.00
1The Bahamas became a CBERA beneficiary effective 14 March 1985 (Presidential Proclamation 5308, 14 March 1985).
2Nicaragua was designated as a CBERA beneficiary effective 13 November 1990 (Presidential Proclamation 6223, 8 November 1990).
3Panama was suspended as a CBERA beneficiary on 9 April 1988 (Presidential Proclamation 5779, 23 March 1988).  It was reinstated  on 17 March 1990 (Presidential
Proclamation 6103,28 February 1990).
4Guyana was added to the list of CBERA beneficiaries on 24 November 1988 (Presidential Proclamation 5909, 18 November 1988).
5Upon becoming independent of the Netherlands Antilles, Aruba was designated as a CBERA beneficiary, effective 1 January 1986 (P residential Proclamation 5458,
11 April 1986).
Note:  Because of rounding, figures may not add to totals given.
Source:  Compiled from official statistics of the U.S. Department of Commerce.WT/L/417
Page 5TABLE 2
Leading US Imports for Consumption from CBERA Countries, 1998-2000
HTS Description 1998 1999 Change 1998,
19992000 Change 2000,
1999Change 2000,
1998
Value ( 1,000 dollars ) Per cent Value Per cent
6109.10.00 T-shirts, singlets, tank tops and similar garments,
knitted or crocheted, of cotton1101146 1233736  12.0 1242870  .7  12.9
6110.20.20 Sweaters, pullovers and similar articles, knitted or
crocheted, of cotton, nesoi514,424 844,845  64.2 1,212,444  43.5  135.7
6203.42.40 Men's or boys' trousers and shorts, not bibs, not
knitted or crocheted, of cotton, not containing 15% or
more by weight of down, etc991,589 1,025,045  3.4 1,063,228  3.7  7.2
2710.00.05 Distillate and residual fuel oils (including blends)
derived from bituminous minerals, testing under25 degrees A.P.I.442,167 410,458  -7.2 943,734  129.9  113.4
8473.30.10 PTS ADP MCH, NT INCPTNG CRT,PRT CRT
ASSEM.;NESI347,291 1,465,993  322.1 828,986  -43.5  138.7
0901.11.00 Coffee, not roasted, not decaffeinated 717,453 559,410  -22.0 701873  25.5  -2.2
2710.00.10 Distillate and residual fuel oils (including blends)
derived from bituminous minerals, testing 25 degreesA.P.I. or more100,409 324,729  223.4 627922  93.4  525.4
6204.62.40 Women's or girls' trousers, breeches and shorts, not
knitted or crocheted, of cotton, nesi536,714 519,981  -3.1 595107  14.4  10.9
0803.00.20 Bananas, fresh or dried 599,821 557,368  -7.1 588,172  5.5  -1.9
9801.00.10 U.S. goods returned without having been advanced in
value or improved in condition while abroad434,192 563,768  29.8 560306  -.6  29.0
9018.90.80 Instruments and appliances used in medical, surgical,
dental or veterinary sciences, nesi, and parts and
accessories thereof374,180 418,893  11.9 512102  22.3  36.9
6107.11.00 Men's or boys' underpants and briefs, knitted or
crocheted, of cotton268,404 344,022  28.2 376,416  9.4  40.2
6105.10.00 Men's or boys' shirts, knitted or crocheted,  of cotton 384,719 342,390  -11.0 337,115  -1.5  -12.4
6212.10.90 Brassieres, not containing lace, net or embroidery,
containing under 70% by wt of silk or silk waste,
whether or not knitted or crocheted354,909 370,798  4.5 333,419  -10.1  -6.1WT/L/417
Page 6 TABLE 2 CONTINUED
Leading US Imports for Consumption from CBERA Countries, 1998-2000
HTS Description 1998 1999 Change 1998,
19992000 Change 2000,
1999Change 2000,
1998
Value ( 1,000 dollars ) Per cent Value Per cent
2814.10.00 Anhydrous ammonia 223,901 225,339  0.6 331,972  47.3  48.3
6205.20.20 Men's or boys' shirts, not knitted or crocheted, o f
cotton, nesi435,714 385,831  -11.4 329,663  -14.6  -24.3
2711.11.00 Natural gas, liquefied - 105,248 - 326,988  210.7 -
6108.21.00 Women's or girls' briefs and panties, knitted or
crocheted, of cotton271,094 321,102  18.4 307,727  -4.2  13.5
0306.13.00 Shrimps and prawns, cooked in shell or uncooked,
dried, salted or in brine, frozen289,766 275,830  -4.8 292,545  6.1  1.0
6203.43.40 Men's or boys' trousers, breeches & shorts, o f
synthetic fibers, con under 15% wt down etc, cont
under 36% wt wool, n/water resist, not k/c230,147 225,910  -1.8 265,247  17.4  15.3
 Total of items shown  8618041 10520697  22.1 11777836  11.9  36.7
 Total all commodities 17,124,281 19364762  13.1 22161075  14.4  29.4
Note:  Because of rounding, figures may not add to totals shown.  The abbreviation "nesoi" stands for "not elsewhere specified or otherwise included".
Source:  Complied from official statistics of the US Department of Commerce.WT/L/417
Page 7
TABLE 3
US Trade with CBERA Countries, 1980-2000
Year US exports1Share of US
exports to the
worldUS imports2Share of US
imports from the
worldUS trade balance
Million dollars Per cen tMillion dollars Per cen tMillion dollars
1980 5,930.2 2.7 10,193.9 4.2 -4,263.8
1981 6,293.3 2.7 9,711.5 3.7 -3,418.1
1982  6,131.9 2.9 7,029 3.3 -1,797.21983 5,666.7 2.8 8,930.2 3.5 -3,263.61984 6,111.3 2.8 8,781.7 2.7 -2,670.41985 5,827.7 2.7 6,774.2 2 -946.61986 6,114.3 2.8 6,128.7 1.7 -14.5
1987 6,731.2 2.8 6,099.1 1.5 632.1
1988 7,427.8 2.4 6,062.2 1.4 1,365.71989 8,786.6 2.5 6,895.8 1.5 1,890.81990 9,307.1 2.5 7,525.2 1.5 1,781.91991 9,885.5 2.5 8,229.4 1.7 1,656.2
1992 10,901.7 2.6 9,425.6 1.8 1,476.1
1993 11,941.9 2.7 10,094 1.8 1,847.91994 12,822 2.7 11,200.3 1.7 1,621.71995 14,870.3 2.7 12,550.1 1.7 2,320.21996 15,374.7 2.6 14,544.8 1.8 829.91997 17,807.9 2.8 16,572.4 1.9 1,235.4
1998 19,200.1 3 17,124.3 1.9 2,075.8
1999 19,029.6 3 19,364.8 1.9 -335.22000 20,727.9 2.9 22,161.1 1.8 -1,433.1
1 Domestic exports, f.a.s. basis.
2 Imports for consumption, customs value.
Source:  Compiled from official statistics of the US Department of Commerce.WT/L/417
Page 8
TABLE 4
US Imports for Consumption from CBERA Countries, by Duty Treatment, 1984, 1992 , 1998, 1999 and 2000
Item 198411992 1998 1999 2000
Value (1,000 dollars,  customs  value)
          Total imports 86,492,351 9,425,616 17,124,281 19,269,025 22,057,117
Dutiable value24,567,416 3,269,148 5,384,147 5,744,455 7,789,235
     Production sharing3-4 863,225 2,670,309 2,727,583 2,810,910
    CBERA reduced duty5-5 29,418  63,930 71,511 54,511
    Other dutiable 4,567,416 2,376,505 2,649,908 2,945,362 4,912,155
Duty-free value64,081,819 6,156,467 11,740,134 13,524,570 14,267,882
    Col. 1-general72,170,537 2,097,079 3,864,752  5,948,811 6,640,928
    Production sharing8587,560 1,777,260 4,525,187 4,849,533 4,633,704
    CBERA9575,994 1,498,556 3,096,758 2,562,986 2,578,707
    CBTPA10-10 -10 -10 -10 157,004
    GSP11592,249 340,666 195,407 94,903 202,062
    Other duty free12155,479 442,904 58,031 68,337 67,137
Per cent of total
        Total imports 100 100 100 100 100
Dutiable value252.8 34.7 31.4 29.8 35.3
     Production sharing3-4  9.2 15.6 14.2 12.7
     CBERA reduced duty5-5 0.3 0.4 0.4 0.2
     Other dutiable 52.8  25.2 15.5 15.3 22.3
Duty-free value647.2 65.3 68.6 70.2 64.7
     Col. 1-general725.1 22.2 22.6 30.9 30.1
     Production sharing86.8 18.9 26.4 25.2 21
     CBERA96.7 15.9 18.1 13.3 11.7
     CBTPA10-10 -10 -10 -10 0.7
     GSP116.8 3.6 1.1 0.5 0.9
     Other duty free121.8 4.7 0.3 0.4 0.3
1 Nicaragua and Guyana, currently covered by CBERA, were not beneficiaries and therefore were excluded from the data for 1984.
2 Dutiable value excludes the US content entering under HTS subheading 9802.00.80 and subheading 9802.00.60, and misreported imp orts.
3 Value of Caribbean Basin-origin value added, under HTS subheading 9802.00.80 and subheading 9802.00.60, excluding items entered
under CBERA or GSP provisions.
4 Not available, included in "Other dutiable".
5 Presidential Proclamation 6428 of 1 May 1992 first implemented reduced duties for certain products of  beneficiary countries un der
CBERA.
6Calculated as total imports less dutiable value.
7Value of imports which have a col. 1-general duty rate of free.
8 Value of non-dutiable exported and returned US-origin products or components, under HTS subheading 9802.00.80 and
subheading 9802.00.60, excluding items entered under CBERA or GSP provisions.
    9Reduced by the value of unconditionally duty-free imports and ineligible items that were misreported as entering under the CBER A programme and
the value of reduced-duty items (handbags, luggage, flat goods, wo rk gloves, and leather wearing apparel) reported separately a bove as dutiable.
    10CBTPA - Presidential Proclamation 7351 Programme first implemented 2 October 2000.
    11 Reduced by the value of unconditionally duty-free imports and ineligible items that were misreported as entering under the GSP  programme.
    12Calculated as a remainder, and represents imports entering free of duty under column 1-special.
Note:  This is the only table in this chapter with adjusted data.  The adjusted data differ from their counterparts in the othe r tables, which contain data
based on unadjusted, reported entries. Virgin Islands data have been excluded from this table.
Note.  Because of rounding, figures may not add to the totals shown.
Source:  Compiled from official statistics of the U.S. Department of Commerce.
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