WORLD TRADE
ORGANIZATIONWT/L/549
4 December 2003
(03-6442)
General Council
15, 16 and 18 December 2003Original:  English
UNITED STATES – CARIBBEAN BASIN ECONOMIC RECOVERY ACT
Report of the Government of the United States
for the Year 2003 under the Decision of 15 November 19951
The following communication, dated 2 December 2003, 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 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.
This report covers calendar year 2003.  Trade data has been provided for calendar year 2002, the
most recent time period 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
benefits. These countries and territories are: Antigua and Barbuda, Aruba, The Bahamas, Barbados,
                                                     
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: tex tile and apparel articles which are subject to textile
agreements; certain footwear which was not eligible for duty free entry under the US 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 leatherwearing apparel).  Many of these excludedproducts 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/549
Page 2
Belize, British Virgin Islands, Costa Rica, Do minica, 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 US trade with the
CBERA countries and territories has mirrored the increase 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 aluminium 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 diversificationof 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 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 the
region’s economies.
8. The CBTPA, effective 1 October 2000, enhanced CBERA benefits by authorizing preferential
tariff treatment for certain qualifying apparel articles.  The CBTPA also extended NAFTA-
equivalent duty treatment to a number of product s 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 6 August 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 US and regional inputs, and
increases the quantity of clothing made from regional inputs that regional producers can ship duty-
free to the United States annually.
9. Apparel continues to 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 61 per cent in 2002, valued at over US$9.7 billion.  Apparel has ranked as the
leading category of US imports from the region since 1988.
10. Total US imports (preferential and non-pr eferential imports combined) from CBERA
countries remained steady during 2002.  However, imports in the preferential portion—those under
CBERA including CBTPA—rose sharply, as shown in Table 1, reflecting the expansion of CBERA
benefits to include certain types of apparel.  Total US imports from CBERA beneficiary countries
amounted to $21.3 billion in 2002.  Of this amount, $10 billion, or 47 per cent, entered under
CBERA (including CBTPA) preferences.  In comparison, CBERA accounted for 13 per cent of thetotal in 2000.WT/L/549
Page 3
11. In 2002, 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 almost 27 per cent of US imports under the CB ERA provisions.  Honduras continued to be the
second largest user with 20 per cent of the share, the same as 2001.  Costa Rica, El Salvador,
Trinidad and Tobago, and Guatemala round out the leading users of the program, accounting for acombined 43 per cent of the share.
12. 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
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, 1996, 2000, and 2002.
Table 2  provides information on leading US imports, by product, from CBERA countries
during 2000 – 2002.
Table 3  provides information on US trade with CBERA countries during 1980 through 2002.WT/L/549
Page 4TABLE 1
US Imports for Consumption under the CBERA Provisions, by Sources, 1984, 1988, 1992, 1996, 2000, and 20021
Source 1984 1988 1992 1996 2000 2002
Value ( 1,000 dollars )
Dominican Republic 222,462 248,819 567,738 932,413 852,294 2,679,273
Honduras 60,198 57,608 112,512 207,289 252,149 1,989,774
Trinidad & Tobago 6,422 42,228 44,695 184,895 327,917 1,167,358
Costa Rica 65,756 153,417 294,937 657,127 617,075 1,154,499
El Salvador 71,986 22,485 27,249 91,254 71,565 1,144,089
Guatemala 43,442 85,326 192,955 279,768  264,630 1,044,159
Nicaragua2- - 40,018 116,007 57,555 212,827
Jamaica 44,737 42,215 48,156 95,965 89,459 194,036
Haiti 21,856 83,933 19,151 30,223 25,160 176,509
The Bahamas3- 12,013 93,324 20,765 74,451 70,881
Belize 4,621 19,180 23,733 24,760  32,360 42,834
Panama411,787 18,241 23,753 51,352 42,639 41,551
St. Kitts and Nevis 6,757 9,417 14,172 19,241 27,613 27,305
Guyana5- 131 1,202 32,285 17,143 21,828
Barbados 13,376 19,125 15,478 23,089 10,441 12,357
St. Lucia 1,413 3,007 3,957 7,129 7,471 7,980
St. Vincent and Grenadines 55 9,990 165 3,580 1,947 5,514
Netherlands Antilles 2,504 2,917 2,964 4,357 3,624 3,089
Dominica 9 358 1,008 2,204 196 374
British Virgin Islands 207 56 68 631 31 66
Antigua Barbuda 114 255 324 1,615 4 43
Grenada 2 120 1,081  1,007 16,702                 37
Aruba6- - 10 138 128 23
Montserrat - 118 41 3,962 0 0
Total: 577,704 830,958 1,528,690 2,791,055 2,792,553 9,996,406
Refer to footnotes at end of table.WT/L/549
Page 5TABLE 1—CONTINUED
US Imports for Consumption under the CBERA provisions, by sources, 1984, 1988, 1992, 1996, 2000, and 20021
Source 1984 1988 1992 1996 2000 2002
Per cent
Dominican Republic 38.51 29.94 37.14 33.41 30.52 26.80
Honduras 10.42 6.93 7.36  7.43 9.03 19.90
Trinidad & Tobago 1.11 5.08 2.92 6.62 11.74 11.68
Costa Rica 11.38 18.46 19.29 23.54 22.10 11.55
El Salvador 12.46 2.71 1.78 3.27 2.56 11.45
Guatemala 7.52 10.27 12.62 10.02 9.48 10.45
Nicaragua2- - 2.62 4.16 2.06 2.13
Jamaica 7.74 5.08 3.15 3.44 3.20 1.94
Haiti 3.78 10.10 1.25 1.08 .90 1.77
The Bahamas3- 1.45 6.10 .74 2.67 .71
Belize .80 2.31 1.55 .89 1.16                 .43
Panama42.04 2.20 1.55 1.84 1.53 .42
St Kitts and Nevis 1.17 1.13 .93 .69 .99 .27
Guyana5- .02 .08 1.16 .61 .22
Barbados 2.32 2.30 1.01 .83 .37 .12
St Lucia .24 .36 .26 .26 .27 .08
St Vincent and Grenadines .01 1.20 .01 .13 .07 .06
Netherlands Antilles .43 .35 .19 .16 .13 .03
Dominica - .04 .07 .08 .01 -
British Virgin Islands .04 .01 - .02 - -
Antigua Barbuda  .02 .03 .02 .06 - -
Grenada - .01  .07 .04 .60 -
Aruba6- . 0 0--- -
Montserrat - .01 - .14 - 0.0
       Total: 100.00 100.00 100.00 100.00 100.00 100.0
Note:  Because of rounding, figures may not add to totals given.
Source:  Compiled from official statistics of the US Department of Commerce.
                                                     
1 Beginning in the year 2000, data includes US imports under the CBTPA.
2 Nicaragua was designated as a CBERA beneficiary effective 13 November 1990 (Presidential Proclamation 6223, 8 November 1990).
3 The Bahamas became a CBERA beneficiary effective 14 March 1985 (Presidential proclamation 5308, 14 March 1985).
4 Panama was suspended as a CBERA beneficiary on 9 April 1988 (Presidential Proclamation 5779, 23 March 1988).  It was reinstate d 17 March 1990 (Presidential Proclamation 6103,
28 February 1990).
5 Guyana was added to the list of CBERA beneficiaries on 24 November 1988 (Presidential Proclamation 5909, 18 November 1988).
6  Upon independence from the Netherlands Antilles, Aruba was designated as a CBERA beneficiary, effective 1 January 1986 (Presi dential Proclamation 5458, 11 April 1986).WT/L/549
Page 6TABLE 2
Leading US Imports for Consumption from CBERA Countries, 2000 - 2002
HTS Description 2000 2001 2002Change 2001-
2002
Value ( 1,000 dollars ) Per cent
6110.20.20 Sweaters, pullovers and similar articles, knitted or crocheted, of cotton, nesi 1,212,444 1,294,129 1,360,159 5.1
6109.10.00 Tshirts, singlets, tank tops and similar garments, knitted or crocheted, of cotton 1,242,870 1,152,243 1,265,181 9.8
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, etc1,063,228      1,038,036 1,104,575 6.4
2710.19.05 Distillate and residual fuel oil (inclu ding blends) derived from petroleum or oils
from bituminous minerals, testing under 25 degrees A.P.I.0 0 662,630 -
9018.90.80 Instruments and appliances used in medical, surgical, dental or veterinary
sciences, nesi, and parts and accessories thereof512,102 607,693 658,178 8.3
0803.00.20 Bananas, fresh or dried 588,172 659,165 622,440 -5.6
2709.00.20 Petroleum oils and oils from bituminous materials, crude, testing at 25 degrees
A.P.I. or more216,351 338,984 609,840 79.9
2711.11.00 Natural gas, liquefied 326,988 485,785 565,947 16.5
2710.19.10 Distillate and residual fuel oil (inclu ding blends) derived fr om petroleum oils or
oil of bituminous minerals, testing 25 degrees A.P.I. or more0 0 508,920 -
6204.62.40Women’s or girls’ trousers, breeches and shorts, not knitted or crocheted, o f
cotton, nesi 595,107 529,201 494,643 -6.2
6107.11.00 Men’s or boys’ underpants and briefs, knitted or crocheted, of cotton 376,416 378,035 466,815 23.5
8542.21.80 Electronic monolithic digital integrated circuits, nesi 0 0 439,655 -
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 crocheted333,419 316,308 395,460 25
0901.11.00 Coffee, not roasted, not decaffeinated 701,873 364,349 353,010 -3.1
2814.10.00 Anhydrous ammonia 331,972 386,071 312,255 -19.1
6203.43.40 Men's or boys' trousers, breeches & shorts, of synthetic fibers, con under 15% wt
down etc, cont under 36% wt wool, n/water resist, not k/c265,247 298,863 311,032 4.1
6108.21.00 Women’s or girl’s briefs and panties, knitted or crocheted of cotton 307,727 265,234 273,805 3.2
7113.19.50 Precious metal (o/than silver) articles of jewelry and parts thereof, whether or
not plated or clad with precious metal, nesi171,112 204,844 256,151 25
6105.10.00 Men's or boys' shirts, knitted or crocheted, of cotton 337,115 315,877 252,170 -20.2
2402.10.80 Cigars, cheroots and cigarillos containing tob acco, each valued 23 cents or over 239,401 228,557 244,519 7
                                     Total of items shown: 8,821,545 8,863,375 11,159,386 25.9
                                    Total all commodities: 22,161,075 20,678,868 21,254,828 2.8
Note:  Because of rounding, figures may not add to totals shown.   The abbreviation "nesi" stands for "not elsewhere specified o r otherwise included".
Source:  Complied from official statistics of the us department of commerce .WT/L/549
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TABLE 3
US Trade with CBERA Countries, 1980-2002
Year US exports7Share of US exports
to the world US imports8Share of US imports
from the worldUS trade
balance
Million dollars Per cent Million dollars Per cent Million 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 -1,797.2
1983 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 -946.6
1986 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 1,365.7
1989 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 1,656.2
1992 10,901.7 2.6 9,425.6 1.8 1,476.1
1993 11,941.9 2.7 10,094 1.8 1,847.9
1994 12,822 2.7 11,200.3 1.7 1,621.7
1995 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 1,235.4
1998 19,200.1 3 17,124.3 1.9 2,075.8
1999 19,029.6 3 19,364.8 1.9 -335.2
2000 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
2002 20,705.5 3.3 21,254.8 1.8 -552.3
Source:  Compiled from official statistics of the US Department of Commerce.
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7 Domestic exports, f.a.s. basis.
8 Imports for consumption, customs value.