G/C/W/826  
 
21 March  2023 
(23-2046) Page: 1/4 
Council for Trade in Goods  Original: English  
 
CARIBCAN  
REQUEST FOR A WAIVER  
The following communication, dated 21  March  2023, is being circulated at the request of the 
Delegation of Canada.  
 
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1  REQUEST  
By action of the CONTRACTING PARTIES of the GATT  1947 on 28 November  1986 (L/6102), Canada 
was granted a waiver of its obligations under paragraph  1 of Article  I of the General Agreement, 
with respect to the establishment of duty -free treatment to imports of eligible products into Canada 
from beneficiary Commonw ealth Caribbean countries, as provided in Section  41 of the Customs 
Tariff, S.C., 1997 c.  36, in accordance with the CARIBCAN  initiative (hereinafter referred to as 
"CARIBCAN"). This waiver was initially granted for the period 15  June 1986 until 15  June 1998. 
Paragraph  2 of the Understanding in Respect of Waivers of Obligations Under the General Agreement 
on Tariffs and Trade  1994 provides that any waiver in effect on the date of entry into force of the 
World Trade Organization (WTO) Agreement shall termina te, unless extended in accordance with 
the procedures set out in the Understanding and those of Article  IX of the WTO  Agreement, on the 
date of its expiry or two  years from the date of entry into force of the WTO  Agreement, whichever 
is earlier. Pursuant t o the Understanding and the WTO  Agreement, the CARIBCAN  waiver granted to 
Canada by the Decision of 28  November  1986 expired on 31  December  1996.  
 
The original waiver was renewed by a Decision of the General Council of 14  October  1996 until 
31 December  2006. On 15  December  2006, the WTO renewed the CARIBCAN  waiver until 
31 December  2011. On 30  November  2011, the WTO renewed the CARIBCAN  waiver until 
31 December  2013. On 28  July 2015, the WTO renewed the CARIBCAN  waiver until 
31 December  2023. Canada request s that Members renew the waiver until 31  December  2033, in 
order that Canada can continue to extend duty -free treatment to imports of Commonwealth 
Caribbean nations. This request is made in accordance with the Guiding Principles to be followed in 
consideri ng applications for waivers adopted on 1  November  1956; the Understanding in Respect of 
Waivers of Obligations under the General Agreement on Tariffs and Trade  1994; and paragraphs  3 
and 4 of Article  IX of the Marrakesh Agreement Establishing the WTO. The circumstances justifying 
the renewal of the waiver and the policy objectives underlying CARIBCAN are described below.  
 
2  BACKGROUND  
Canadian foreign policy has long recognized a special relationship between Canada and the 
Commonwealth Caribbean, stemming, in the first instance, from trade and commercial ties which 
predate Canada's Confederation and continue to the present day by joint membership in the 
Commonwealth and similar democratic institutions. In 1986, in recognition of this special 
relationship, Canada responded positively to the request of the Commonwealth Caribbean to institute 
a package of trade and development assistance me asures to assist them in meeting their economic 
development goals. The cornerstone of CARIBCAN, as these measures are known, was the extension, 
beginning on 15  June 1986, of preferential, one -way duty -free trade for most imports originating 
within Commonwe alth Caribbean countries.  
 G/C/W/826  
 
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  The considerations that led the CONTRACTING PARTIES to the GATT in 1986 to grant the 
Government of Canada a waiver from its obligations under paragraph  1 of Article  I of the General 
Agreement remain relevant to the present reques t to renew the waiver. In particular:  
 
1. The objective of granting preferential tariff treatment under CARIBCAN continues to be the 
enhancement of the Commonwealth Caribbean's existing trade and export earnings to promote 
economic development as well as n ew investment opportunities and encourage enhanced economic 
integration and co -operation within the region.  
 
2. The duty -free treatment provided under CARIBCAN has been shown to address the trade, 
financial and development needs of the beneficiaries while not raising barriers for the trade of any 
other WTO  contracting parties. Between 1986 and today, no contracting party to the GATT or a 
member of its successor, the WTO, has requested consultations with Canada with respect to any 
difficulty or matter arisin g from the implementation of the provisions of CARIBCAN.  
 
3. There is no evidence that there has been any diversion of Canada's imports of products, which 
would be eligible for duty -free treatment under CARIBCAN, that originate in WTO  Members who are 
not beneficiaries.  
 
4. CARIBCAN is not an impediment to the reduction of tariffs and other restrictions on trade on 
a most -favoured -nation basis. Moreover, CARIBCAN has not prevented the further reduction of 
Canadian General Preferential Tariff rates available to developing countries.  
 
3  COVERAGE  
Product and country coverage is specified in the enabling legislation Section  41 of the Customs Tariff , 
S.C., 1997 c.  36. 
 
The duty -free treatment is provided in respect of all products, except:  
 
• products of HS  Chapters  50 to 65 inclusive;  
 
• products subject to MFN  rates of duty which are more than thirty -five per cent (35%).  
 
To qualify for the duty -free tariff treatment accorded to Commonwealth Caribbean countries, at least 
60 per cent of the ex -factory price of the g oods as packed for shipment to Canada must originate in 
one or more beneficiary countries or Canada. The 60  per cent qualifying content may be cumulated 
from various CARIBCAN  beneficiary countries or Canada. The goods must be finished in the 
beneficiary co untry in the form in which they are imported into Canada.  
 
The list of countries eligible to receive the duty -free benefits accorded under CARIBCAN contains the 
following countries: Anguilla, Antigua and Barbuda, Bahamas, Barbados, Belize, Bermuda, the Bri tish 
Virgin Islands, the Cayman Islands, Dominica, Grenada, Guyana, Jamaica, Montserrat, St  Kitts and 
Nevis, St  Lucia, St  Vincent and the Grenadines, Trinidad and Tobago, and the Turks and Caicos 
Islands.  
 
In light of the continuing relevance of these cons iderations and taking into account information 
pertaining to coverage, Canada requests that the Members of the WTO approve its application for a 
waiver renewal.  
 
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 G/C/W/826  
 
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  CARIBCAN  
 
Draft Decision of … 20 231 
 
 
 The General Council,  
 
 Having regard  to paragraphs  3 and 4 of Article  IX of the Marrakesh Agreement Establishing 
the World Trade Organization (hereinafter "WTO Agreement");  
 
 Conducting  the function of the Ministerial Conference in the interval between meetings 
pursuant to paragraph  2 of Article  IV of the WTO  Agreement;  
 
 Taking note  of the request of the Government of Canada for a renewal of the waiver from its 
obligations under paragraph  1 of Article  I of the General Agreement2 for provision of unilateral 
duty-free treatment for impo rts of eligible products originating in beneficiary Caribbean countries as 
provided for in Section  41 of the Customs Tariff , S.C., 1997 c.  36, in accordance with the 
CARIBCAN  initiative (hereinafter referred to as "CARIBCAN"); such waiver having been initi ally 
granted by the CONTRACTING PARTIES of the GATT  1947 on 28  November  1986 for the period from 
15 June 1986 until 31  December  1996, renewed by the General Council on 14  October  1996 for a 
period from 1  January  1997 until 31  December  2006, on 15  December  2006 for a period from 
1 January  2007 until 31  December  2011, on 30  November  2011 for a period from 1  January  2012 
until 31  December  2013, and on 28  July 2015 until 31  December  2023;  
 
 Bearing in mind  the 1979  Decision on Differential and More Favourable T reatment, Reciprocity 
and Fuller Participation of Developing Countries;  
 
 Considering  that the objective of granting preferential tariff treatment under CARIBCAN is to 
enhance the Commonwealth Caribbean's existing trade and export earnings to promote econo mic 
development as well as new investment opportunities and encourage enhanced economic integration 
and co -operation within the region;  
 
 Considering  also that the duty -free treatment provided under CARIBCAN is designed to 
promote the expansion of trade an d economic development of beneficiaries in a manner consistent 
with the objectives of the GATT  1994 and with the trade, financial and development needs of the 
beneficiaries, and not to raise barriers or to create difficulties for the trade of other Members ; 
 
 Considering , moreover, that the duty -free treatment provided under CARIBCAN should not 
prejudice the interests of other Members not benefitting from such treatment and that it is expected 
that the extension of such duty -free treatment will not cause a significant diversion of Canada's 
imports of products eligible for duty -free treatment under CARIBCAN originating in Members who 
are not beneficiaries;  
 
 Having regard  to the assurances that the Government of Canada does not envisage the 
introduction of an y discriminatory non -tariff measure, in pursuance of CARIBCAN, which would 
adversely affect the trade of Members who are not beneficiary countries;  
 
 Considering  that the duty -free treatment provided under CARIBCAN  by the Government of 
Canada shall not constitute an impediment to the reduction or elimination of tariffs and other 
restrictions to trade on a most -favoured -nation basis;  
 
 Considering , furthermore, that the duty -free treatment provided under CARIBCAN by the 
Government of Canada shall not adversely affect the maintenance, operation and improvement of 
the General Preferential Tariff (GPT) of Canada;  
 
 Noting , furthermore, the assurances given by the Government of Ca nada that it will, upon 
request, promptly enter into consultations with any Members on matters falling under the provisions 
of the GATT  1994 and related to the applications of this Decision;  
 
1 Adopted in accordance with the Decision -Making Procedures under Articles  IX and XII of the 
WTO Agreement agreed by the General Council (WT/L/93).  
2 G/C/W/710.  G/C/W/826  
 
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   Having regard  to the Guiding Principles to be followed in consid ering applications for waivers 
adopted on 1  November  1956, the Understanding in Respect of Waivers of Obligations under the 
General Agreement on Tariffs and Trade  1994, and paragraphs  3 and 4 of Article  IX of the 
WTO Agreement;  
 
 Decides , in view of the ex ceptional circumstances set out above, that:  
 
1. Subject to the terms and conditions set out hereunder, the provisions of paragraph  1 of 
Article  I of the GATT  1994 shall be waived until 31  December  2033, to the extent necessary to permit 
the Government of Canada to provide duty -free treatment to eligible imports of Commonwealth 
Caribbean countries benefiting from the provision of CARIBCAN, without being required to extend 
the same duty -free treatment to like products of any other Member.  
 
2. Such duty -free treatment shall be designed not to raise barriers or create undue difficulties 
for the trade of other Members and provides no basis for establishing rights of access to the Canadian 
market on the basis of discriminatory non -tariff measures.  
 
3. The Governm ent of Canada will submit to the General Council an annual report on the 
implementation of the trade -related provisions of CARIBCAN with a view to facilitating the annual 
review provided for in paragraph  4 of Article  IX of the WTO  Agreement. The Government  of Canada 
shall promptly notify Members of any changes in the legislation covered by this waiver and any 
trade-related measure taken under CARIBCAN, in particular any modifications in the status of eligible 
imports and the duty -free treatment thereof, and  shall furnish them with all the information they 
may deem appropriate relating to such action.  
 
4. The Government of Canada will, upon request, promptly enter into consultations with any 
interested Member with respect to any difficulty or matter that may arise as a result of 
implementation of the trade -related provisions of CARIBCAN; where 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 exa mine the possibility of action for a satisfactory 
adjustment of the matter. This Decision does not affect Members' rights.  
 
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