WORLD TRADE
ORGANIZATIONWT/L/498
29 November 2002
(02-6583)
General Council
10-11 December 2002Original:  English
UNITED STATES - CARIBBEAN BASIN ECONOMIC RECOVERY ACT
Report of the Government of the United States
for the Year 2002
under the Decision of 15 November 19951
The following communication, dated 28 November 2002, 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) of
its obligations under paragraph 1 of Article I of the GATT 1994 to the extent necessary to permit the
United States Government to provide duty-free treatment to eligible products of the Caribbean Basincountries 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.  This
report covers calendar year 2002.  Trade data has been provided for calendar year 2001, the mostrecent year for which full-year data are 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 of these are receiving
                                                     
1 WT/L/104.
2 Prior to enactment of the United States-Caribbean Basin Trade Partnership Act (CBTPA) in 2000, the
products excluded from duty-free treatment were: textile and apparel articles which are subject to textileagreements; certain footwear which was not eligible for duty-free entry under the U.S. Generalized System ofPreferences in 1983; prepared tuna in airtight containers; petroleum and petroleum products; watches and watchparts if such products contain any material from c ountries not accorded MFN treatment; and certain leather
products (handbags, luggage, flat goods, work gloves, and leather-wearing apparel).  Many of these excluded
products became  eligible for preferential treatment under CBTPA, Title II of the Trade and Development Act of
2000, which amended the CBERA.   The Trade Act of 2002 further amended the CBERA.WT/L/498
Page 2
benefits. These countries and territories are: Antigua and Barbuda, Aruba, The Bahamas, Barbados,
Belize, British Virgin Islands, Costa Rica, Dominica, Dominican Republic, El Salvador, Grenada,
Guatemala, 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. CBERA Performance
4. The CBERA program 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 U.S. trade with the
CBERA countries and territories has mirrored the in crease in U.S. trade worldwide.  Since 1996, U.S.
imports from CBERA countries have consistently accounted for 1.8 percent of total U.S. imports.
6. U.S. 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 their pursuit of faster  economic growth prompted CBERA countries and
territories to seek diversification in their export profiles.  The encouragement of such diversification
of the Caribbean Basin economies was one of the intended goals of the United States in implementing
the CBERA program.
7. Light manufactures, principally printed circuit assemblies and apparel, but also medical
instruments and chemicals, account for an increasing share of U.S. imports from the region andconstitute 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 the
region’s economies.
8. The CBTPA, effective October 1, 2000, enhanced CBERA benefits by authorizing
preferential tariff treatment for certain qualifying apparel articles.  The CBTPA also extendedNAFTA-equivalent duty treatment to a number of  products previously excluded from the CBERA,
including certain tuna, petroleum products, certain footwear, and some watches and watch parts.  The
Trade Act of 2002, passed on August 6, 2002, further amended the CBERA to expand the type and
quantity of textile and apparel articles eligible for the preferential tariff treatment accorded to
designated beneficiary CBTPA countries.  Among other benefits, the Trade Act of 2002 expands the
duty-free treatment available for clothing made in beneficiary countries from U.S. and regional inputs,
and increases the quantity of clothing made from regional inputs that regional producers can shipduty-free to the United States annually.
9. 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 U.S. imports from the region in 1984,
to nearly 46 percent in 2001, valued at over US$9.5 billion.  Apparel has ranked as the leading
category of U.S. imports from the region since 1988.
10. U.S. imports under the CBERA program declined in 1999 and 2000 from their peak in 1998,
as leading import products became free of duty unde r MFN duty rates, and therefore no longer entered
under the program.  Imports under CBTPA did not enter the United States until December 2000 and
thus had a limited effect on import volumes in 2000.
11. While total U.S. imports (preferential and non-preferential imports combined) from CBERA
countries declined during 2001, imports in the preferential portion—those under CBERA includingWT/L/498
Page 3
CBTPA—rose sharply, as shown in Table 1, reflecti ng the expansion of CBERA benefits to include
certain types of apparel.  Total U.S. imports from CBERA beneficiary countries amounted to $20.7
billion in 2001.  Of this amount, $8.3 billion, or 40 percent, entered under CBERA (including
CBTPA) preferences.  In comparison, CBERA accounted for 13 percent of the total in 2000.
12. In 2001, the Dominican Republic continued to lead all countries in taking advantage of
CBERA, as they have done in virtually every year since the program became effective, accounting for
28 percent of U.S. imports under the CBERA provisi ons.  Honduras went from being fifth in exports
to the U.S. under the program with 9 percent of the share in 2000, to second in exports in 2001 with
20 percent of the share.  Costa Rica, El Salvador, Trinidad and Tobago, and Guatemala round out the
leading users of the program, accounting for a combined 42 percent of the share.
13. Statistical annexes are provided to present a detailed description of the trade aspects of the
CBI program for the most recent period.  Detailed information for previous years has been provided inprevious reports to the GATT Council or WTO General Council.
Table 1 provides summary information on U.S. imports for consumption under CBERA
provisions during the period 1984, 1988, 1992, 1994, 1998, 2000, and 2001.
Table 2  provides information on leading U.S. imports, by product, from CBERA countries
during 1984, 1988, 1992, 1994, 1998, 2000, and 2001.
Table 3  provides information on US trade with CBERA countries during 1980-2001.WT/L/498
Page 4 TABLE 1
U.S. Imports for Consumption under the CBERA Provisions, by Sources, 1984, 1988, 1992, 1994, 1998, 2000, and 20011
Source 1984 1988 1992 1994 1998 2000 2001
Value ( 1,000 dollars )
Dominican Republic 222,462 248,819 567,738 751,028 1,294,533 852,294 2,363,255
Honduras 60,198 57,608 112,512 139,838 236,073 252,149 1,670,845
Costa Rica 65,756 153,417 294,937 478,109 756,579 617,075 1,011,276El Salvador 71,986 22,485 27,249 41,126 50,206 71,565 1,008,274
Trinidad & Tobago 6,422 42,228 44,695 142,901 186,219 327,917 744,698
Guatemala 43,442 85,326 192,955 171,381 268,869  264,630 744,156Jamaica 44,737 42,215 48,156 69,316 102,178 89,459 195,206
Haiti 21,856 83,933 19,151 15,770 28,167 25,160 158,698Nicaragua
2- - 40,018 80,554 72,694 57,555 147,875
The Bahamas3- 12,013 93,324 45,062 34,914 74,451 75,811
Belize 4,621 19,180 23,733 13,112 19,706  32,360 48,519
Panama411,787 18,241 23,753 35,141 77,453 42,639 42,254
St. Kitts and Nevis 6,757 9,417 14,172 17,220 25,428 27,613 29,490Guyana
5- 131 1,202 13,100 24,617 17,143 23,769
Barbados 13,376 19,125 15,478 21,313 20,392 10,441 12,000
Grenada 2 120 1,081 768  8,242 16,702 7,265
St. Lucia 1,413 3,007 3,957 6,077 7,802 7,471 7,225Netherlands Antilles 2,504 2,917 2,964 3,214 2,775 3,624 6,043St. Vincent and Grenadines 55 9,990 165 1,299 3,532 1,947 2,223Antigua Barbuda 114 255 324 809 214 4 152Dominica 9 358 1,008 2,112 1,858 196 80
Aruba
6- - 10 12 1,779 128 22
British Virgin Islands 207 56 68  11 333 31 21Montserrat - 118 41 886 - - 0
        Total: 577,704 830,958 1,528,690 2,050,158 3,224,564 2,792,553 8,299,157
Refer to footnotes at end of table.WT/L/498
Page 5TABLE 1—CONTINUED
U.S. Imports for Consumption under the CBERA provisions, by sources, 1984, 1988, 1992, 1994, 1998, 2000, and 20011
Source 1984 1988 1992 1994 1998 2000 2001
Percent
Dominican Republic 38.51 29.94 37.14 36.63 40.15 30.52 28.48
Honduras 10.42 6.93 7.36 6.82  7.32 9.03 20.13
Costa Rica 11.38 18.46 19.29 23.32 23.46 22.10 12.18
El Salvador 12.46 2.71 1.78 2.01 1.56 2.56 12.15Trinidad & Tobago 1.11 5.08 2.92 6.97 5.78 11.74 8.97
Guatemala 7.52 10.27 12.62 8.36 8.34 9.48 8.97
Jamaica 7.74 5.08 3.15 3.38 3.17 3.20 2.35Haiti 3.78 10.10 1.25 .77 .87 .90 1.91
Nicaragua
2- - 2.62 3.93 2.25 2.06 1.78
The Bahamas3- 1.45 6.10 2.20 1.08 2.67 .91
Belize .80 2.31 1.55 .64 .61 1.16 .58Panama
42.04 2.20 1.55 1.71 2.40 1.53 .51
St Kitts and Nevis 1.17 1.13 .93 .84 .79 .99 .35Guyana
5- .02 .08 .64 .76 .61 .29
Barbados 2.32 2.30 1.01 1.04 .63 .37 .14
Grenada - .01  .07 .04 .26 .60 .09St Lucia .24 .36 .26 .30 .24 .27 .09Netherlands Antilles .43 .35 .19 .16 .09 .13 .07St Vincent and Grenadines .01 1.20 .01 .06 .11 .07 .03Antigua Barbuda  .02 .03 .02 .04 .01 - -
Dominica - .04 .07 .10 .06 .01 -
Aruba
6-. 0 0 - - . 0 6--
British Virgin Islands .04 .01 - - .01 - -Montserrat - .01 - .04 - - -
       Total: 100.00 100.00 100.00 100.00 100.00 100.00 100.0
1Beginning in the year 2000, data includes U.S. imports under the CBTPA.
2Nicaragua was designated as a CBERA beneficiary effective 13 November 1990 (Presidential Proclamation 6223, 8 November 1990).
3The Bahamas became a CBERA beneficiary effective 14 March 1985 (Presidential Proclamation 5308, 14 March 1985).
4Panama 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).
5Guyana was added to the list of CBERA beneficiaries on 24 November 1988 (Presidential Proclamation 5909, 18 November 1988).
6Upon independence from the Netherlands Antilles, Aruba was designated as a CBERA beneficiary, effective 1 January 1986 (Preside ntial 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/498
Page 6TABLE 2
Leading U.S. Imports for Consumption from CBERA Countries, 1999-2001
HTS Description 1999 2000 2001 Change 2001,
2000
             Value ( 1,000 dollars )
6110.20.20 Sweaters, pullovers and similar articles, knitted or
crocheted, of cotton, nesoi844,845 1,212,444 1,294,129 6.7
6109.10.00 T-shirts, singlets, tank tops and similar garments,
knitted or crocheted, of cotton1,233,736 1,242,870 1,152,243 -7.3
6203.42.40 Men's or boys' trousers and shorts, not bibs, not knitted
or crocheted, of cotton, not containing 15% or more byweight of down, etc1,025,045 1,063,228 1,038,036 -2.4
2710.00.05 Distillate and residual fuel oils (including blends)
derived from bituminous minerals, testing under
25 degrees A.P.I.410,458 943,734 695,083 -26.3
0803.00.20 Bananas, fresh or dried 557,368 588,172 659,165 12.1
9018.90.80 Instruments and appliances used in medical, surgical,
dental or veterinary sciences, nesi, and parts and
accessories thereof418,893 512,102 607,693 18.7
6204.62.40 Women's or girls' trousers, breeches and shorts, not
knitted or crocheted, of cotton, nesi519,981 595,107 529,201 -11.1
9801.00.10 U.S. goods returned without having been advanced in
value or improved in condition while abroad563,768 560,306 523,902 -6.5
2710.00.10 Distillate and residual fuel oils (including blends)
derived from bituminous minerals, testing 25 degreesA.P.I. or more324,729 627,922 518,717 -17.4
2711.11.00 Natural gas, liquefied      105,248 326,988 485,785 48.6
2814.10.00 Anhydrous ammonia 225,339 331,972 386,071 16.36107.11.00 Men's or boys' underpants and briefs, knitted or
crocheted, of cotton344,022 376,416 378,035 0.4
0901.11.00 Coffee, not roasted, not decaffeinated 559,410 701873 364,349 -48.1
2709.00.20 Petroleum oils and oils from bituminous materials,
crude, testing at 25 degrees A.P.I. or more72,910 216,351 338,984 56.7
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 crocheted370,798 333,419 316,308 -5.1WT/L/498
Page 7HTS Description 1999 2000 2001 Change 2001,
2000
Value ( 1,000 dollars ) Percent
6105.10.00 Men's or boys' shirts, knitted or crocheted, of cotton 342,390 337,115 315,877 -6.3
8542.13.80 Monolithic digital integrated circuits, metal oxide
(MOS) technology, nesoi54,598 185,162 315,754 70.5
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/c225,910 265,247 298,863 12.7
0306.13.00 Shrimps and prawns, cooked in shell or uncooked,
dried, salted or in brine, frozen275,830 292,545 287,856 -1.6
2905.11.20 Methanol (Methyl alcohol), other than imported only
for use in producing synthetic natural gas (SNG) or
for direct use as fuel92,494 222,620 281,988 26.7
                                                  Total of items shown: 8,567,773 10,935,594 10,788,040 -1.3
                                                                       All other: 10,796,990 11,225,481 9,890,827 -11.9
                                                 Total all commodities: 19,364,762 22,161,075 20,678,868 -6.7
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/498
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TABLE 3
U.S. Trade with CBERA Countries, 1980-2001
Year U.S. exports1Share of U.S. exports
to the worldU.S. imports2Share of U.S. imports
from the worldU.S. trade
balance
Million dollars Percent Million dollars Percent Million dollars
1980 5,930.2 2.7 10,193.9 4.2 -4,263.81981 6,293.3 2.7 9,711.5 3.7 -3,418.11982  6,131.9 2.9 7,029 3.3 -1,797.21983 5,666.7 2.8 8,930.2 3.5 -3,263.6
1984 6,111.3 2.8 8,781.7 2.7 -2,670.4
1985 5,827.7 2.7 6,774.2 2 -946.61986 6,114.3 2.8 6,128.7 1.7 -14.51987 6,731.2 2.8 6,099.1 1.5 632.11988 7,427.8 2.4 6,062.2 1.4 1,365.71989 8,786.6 2.5 6,895.8 1.5 1,890.8
1990 9,307.1 2.5 7,525.2 1.5 1,781.9
1991 9,885.5 2.5 8,229.4 1.7 1,656.21992 10,901.7 2.6 9,425.6 1.8 1,476.11993 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 2,320.2
1996 15,374.7 2.6 14,544.8 1.8 829.9
1997 17,807.9 2.8 16,572.4 1.9 1,235.41998 19,200.1 3 17,124.3 1.9 2,075.81999 19,029.6 3 19,364.8 1.9 -335.22000 20,727.9 2.9 22,161.1 1.8 -1,433.1
2001 20,117.1 3.0 20,678.9 1.8 -561.8
1 Domestic exports, f.a.s. basis.
2 Imports for consumption, customs value.
Source:  Compiled from official statistics of the US Department of Commerce.
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