WORLD TRADE  
ORGANIZATION  WT/L/593 
3 December 2004 
 (04-5278) 
General Council 
13-14 December 2004 Original:   English 
 
 
 
UNITED  STATES  – CARIBBEAN  BASIN  ECONOMIC  RECOVERY  ACT 
 
Report of the Government of the United States for the Year 2004  
under the Decision of 15 November 19951 
 
  The following communication, dated 1 December 2004, is being circulated at the request of 
the Delegation of the United States.  
_______________ 
 
 
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 treatme nt 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 trade- 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 2004.  Trade data has been provided for calendar year 2003, 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 terr itories eligible for CBERA benefits.  Presently, 
24 countries and territories have requested to r eceive CBERA benefits; all of these are receiving 
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, 
                                                      
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 fo r 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 material from countries not accorded MFN treatment; and certain leather 
products (handbags, luggage, flat goods, work gloves, and leatherwearing apparel).  Many of these excluded products became  eligible for preferential treatme nt 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/593 
Page 2  
 
 Guatemala, Guyana, Haiti, Honduras, Jamaica, Mont serrat, Netherlands Antilles, Nicaragua, Panama, 
St. Kitts and Nevis, St. Lucia, St. Vincent and th e 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 producti on 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 CBERA, total non-petroleum exports 
from these Caribbean Basin countries to the United St ates have more than tripled.  The generally 
steady rise in US trade with the CBERA countries a nd territories has mirrored the increase in US trade 
worldwide.  Since 1996, US imports from CBERA countries have consistently accounted for just 
under 2 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;  name ly, petroleum products, suga r cane, coffee, cocoa, 
bananas, and aluminium ores and concentrates.  Th e deterioration in the terms of trade for these 
export items and their pursuit of faster economic gr owth prompted CBERA countries and territories to 
seek diversification in their export profiles.  Th e 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, acc ount for an increasing share of US imports from the region and 
constitute the fastest growing sectors for new i nvestment in CBERA countries and territories.  
However, traditional agricultural and raw material pr oducts 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 article s.  The CBTPA also extended NAFTA-equivalent 
duty treatment to a number of products previously excluded from the CBERA, including certain tuna, 
petroleum products, certain footwear, and some watc hes 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 constitute one of the f astest 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 40 per cent in  2003, valued at 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 increased to $24.5 billion in 2003.  Of th is amount, $10.4 billion, or 42 per cent, entered 
under CBERA (including CBTPA) preferences.  In comparison, CBERA accounted for 13 per cent of 
the total in 2000. 
11. In 2003, 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  WT/L/593 
 Page 3 
 
 
 25 per cent of US imports under the CBERA provisi ons.  Honduras continued to be the second largest 
user with 21 per cent of the share.  Trinidad a nd Tobago, El Salvador, Guatemala, and Costa Rica 
round out the leading users of the program, accoun ting for a combined 46 per cent of the share. 
12. Statistical annexes are provided to present a detailed description of the trade aspects of the 
CBERA program for the most recent period.  De tailed information for previous years has been 
provided in previous reports to th e 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, 2002 and 2003. 
 
Table 2  provides information on leading US imports, by product, from CBERA countries during 2000 
– 2003. 
 Table 3  provides information on US trade with CBERA countries during 1980 through 2003. 
  
 WT/L/593 
Page 4 TABLE 1 
US Imports for Consumption under the CBERA Provisions, by Sources, 1984, 1988, 1992, 1996, 2000, 2002 and 20031 
 
Source 1984 1988 1992 1996 2000 2002 2003 
  Value ( 1,000 dollars )       
Dominican Republic  222,462 248,819 567,738 932,413 852,294 2,679,273  2,614,666
Honduras  60,198 57,608 112,512 207,289 252,149 1,989,774 2,175,091
Trinidad & Tobago  6,422 42,228 44,695 184,895 327,917 1,167,358 1,410,510
El Salvador  71,986 22,485 27,249  91,254 71,565 1,144,089 1,185,146
Guatemala  43,442 85,326 192,955 279,768 264,630 1,044,159 1,088,025
Costa Rica  65,756 153,417 294,937 657,127 617,075 1,154,499 1,082,988
Nicaragua2  - - 40,018 116,007 57,555 212,827 249,000
Haiti  21,856 83,933 19,151 30,223 25,160 176,509 210,688
Jamaica  44,737 42,215 48,156  95,965 89,459 194,036 178,929
The Bahamas3 - 12,013 93,324 20,765  74,451 70,881 87,996
Belize  4,621 19,180 23,733 24,760 32,360 42,834 40,745
Panama 4 11,787 18,241 23,753 51 ,352 42,639 41,551 40,726
St. Kitts and Nevis  6,757 9,417 14 ,172 19,241 27,613 27,305 25,713
Guyana5  - 131 1,202 32,285 17,143 21,828 16,668
Barbados  13,376 19,125 15, 478 23,089 10,441 12,357 6,951
St. Lucia   1,413 3,007 3,957 7,129 7,471 7,980 5,288
Netherlands Antilles  2,504 2,917 2,964 4,357 3,624 3,089 2,714
St. Vincent and Grenadines 55 9,990 165 3,580 1,947 5,514 2,536
Dominica   9 358 1,008 2,204 196 374 2,528
British Virgin Islands  207 56 68 631 31 66 229
Aruba6 - - 10 138 128 23 69
Antigua Barbuda  114 255 324 1,615 4 43 60
Grenada   2 120 1,081  1,007 16,702                 37 3
Montserrat   - 118 41 3,962 0 0 0
        Total:   577,704 830,958 1,528,690 2,791,055 2,792,553 9,996,406 10,427,270
 
Refer to footnotes at end of table. 
  
  WT/L/593
 Page 5TABLE 1—CONTINUED 
US Imports for Consumption under the CBERA provisions, by sources, 1984, 1988, 1992, 1996, 2000, 2002 and 20031 
 
Source 1984 1988 1992 1996 2000 2002 2003 
  Per cent       
Dominican Republic  38.51 29.94 37.14 33.41 30.52 26.80 25.0
Honduras  10.42 6.93 7.36  7.43 9.03 19.90 21.0
Trinidad & Tobago  1.11 5.08 2.92 6.62 11.74 11.68 13.5
El Salvador  12.46 2.71 1.78 3.27 2.56 11.45 11.4
Guatemala  7.52 10.27 12.62 10.02 9.48 10.45 10.4
Costa Rica  11.38 18.46 19.29 23.54 22.10 11.55 10.4
Nicaragua2  - - 2.62 4.16 2.06 2.13 2.4
Haiti  3.78 10.10 1.25 1.08 .90 1.77 2.02
Jamaica  7.74 5.08 3.15 3.44 3.20 1.94 1.72
The Bahamas3 - 1.45 6.10 .74 2.67 .71 .84
Belize  .80 2.31 1.55 .89 1.16                  .43 .39
Panama4  2.04 2.20 1.55 1.84 1.53 .42 .39
St Kitts and Nevis  1.17 1.13 .93 .69 .99 .27 .25
Guyana5  - .02 .08 1.16 .61 .22 .16
Barbados  2.32 2.30 1.01 .83 .37 .12 .07
St Lucia   .24 .36 .26 .26 .27 .08 .05
Netherlands Antilles  .43 .35 .19 .16 .13 .03 .03
St Vincent and Grenadines .01 1.20 .01 .13 .07 .06 .02
Dominica   - .04 .07 .08 .01 - .02
British Virgin Islands  .04 .01 - .02 - - -
Aruba6 -. 0 0 --- - -
Antigua Barbuda   .02 .03 .02 .06 - - -
Grenada   - .01  .07 .04 .60 - -
Montserrat   - .01 - .14 - - -
       Total:   100.00 100.00 100.00 100.00 100.00 100.00 100.00
Note :  Because of rounding, figures may not add to totals given. 
Source :  Compiled from official statistics of  the US International Trade Commission. 
                                                      
1 Beginning in the year 2000, data includes U.S. imports under the CBTPA. 
2 Nicaragua was designated as a CBERA bene ficiary effective 13 November 1990 (Preside ntial 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 CBE RA beneficiary on 9 April 1988 (Presidential Procla mation 5779, 23 March 1988) .  It was reinstate d 17 March 1990 (Presiden tial 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, effectiv e 1 January 1986 (Presi dential Proclamation 5458, 11 April 1986).  
 WT/L/593 
Page 6 Table 2 
Leading US Imports for Consumption from CBERA Countries, 2001 - 2003  
 
HTS Description 2001 2002 2003 Change 2002-
2003 
    Value ( 1,000 dollars )  Per cent 
  
2711.11.00 Natural gas, liquefied 485,785 565,947 1,754,541 210
6110.20.20  Sweaters, pullovers and simila r articles, knitted or croche ted, of cotton, nesi 1,294,129 1,360,159 1,545,614 13.6
6109.10.00  Tshirts, singlets, tank tops and similar garments, knitted or crocheted, of cotton 1,152,243 1,265,181 1,355,663 7.2
6203.42.40  Men's or boys' trousers and shorts, not bi bs, not knitted or crocheted, of cotton, not containing 
15% or more by weight of down, etc     1,038,036 1,104,575 1,091,610 -1.2
9018.90.80  Instruments and appliances used in medical, surgical, dental or veterinary sciences, nesi, an d 
parts and accessories thereof 607,693 658,178 829,763 26.1
2709.00.20  Petroleum oils and oils from bituminous materials, crude, testing at 25 degrees A.P.I. or more 338,984 609,840 762,378 25
2710.19.05 Distillate and residual fuel oil (including blends) derived from petroleum or oils fro m 
bituminous minerals, testing under 25 degrees A.P.I. 0 662,630 741,829 12
2814.10.00  Anhydrous ammonia  386,071 312,255 689,369 121
0803.00.20  Bananas, fresh or dried  659,165 622,440 636,071 2.2
8542.21.80 Electronic monolithic digital integrated circuits, nesi 0 439,655 615,180 40
2710.19.10 Distillate and residual fuel oil (including blends) derived from petroleum oils or oil o f 
bituminous minerals, testing 25 degrees A.P.I. or more 0 508,920 562,000 10.4
6204.62.40 Women’s or gi rls’ trousers, breeches and shorts, not knitted or cr ocheted, of cotton, nesi  529,201 494,643 499,596 0.6
0901.11.00  Coffee, not roasted, not decaffeinated  364,349 353,010 419,700 18.9
6203.43.40  Men's or boys' trousers, breeches & shor ts, of synthetic fibers, con under 15% wt down etc, 
cont under 36% wt wool, n/water resist, not k/c 298,863 311,032 370,639 19.2
2710.11.25 Napthas (exc. motor fule/mtr fuel blend stock) fr petroleum oils and bitumen minerals (o/than
crude) or preps 70%+ by wt. fr petroleum oils 0 176,679 348,238 97.1
2905.11.20 Methanol (Methyl alcohol), other than imported only for use in producing synthetic natural 
gas (SNG) or for direct use as fuel 281,988 219,876 340,027 54.6
6212.10.90  Brassieres, not containing lace, net or embroidery, containing under 70% by wt of silk or sil k 
waste, whether or not knitted or crocheted  316,308 395,460 296,133 -25.1
6105.10.00  Men's or boys' shirts, knitted or cr ocheted, of cotton  315,877 252,170 252,911 0.3
2402.10.80 Cigars, cheroots and cigarillos containing tobacco, each valued 23 cents or over 228,557 244,519 252,197 3.1
                                       Total of items shown: 8,297,249 10,557,169 13,363,459 31.7
                                      Total all commodities:  20,678,868 21,254,828 24,499,559 15.4
 
 Note :  Because of rounding, figures may not add to totals shown.  The abbreviation "nesi" stands for "not elsewhere specified or ot herwise included". 
 Source :  Complied from official statistics of the US International Trade Commission. 
  WT/L/593 
 Page 7 
 
 
 TABLE 3 
 
US Trade with CBERA Countries, 1980-2003  
 
Year US exports7 Share of US exports
to the world US imports8 Share of US imports 
from the world US 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
2003 22,183.6 3.4 24,499.6 1.9 -2,316
 
Source :  Compiled from official statistics of the US International Trade Commission. 
 
__________ 
 
 
                                                      
 7 Domestic exports, f.a.s. basis. 
 8 Imports for consumption, customs value.