G/C/W/710  
 
13 March 2015  
(15-1506)  Page: 1/4  
Council for Trade in Goods  Original: English  
 
 CARIBCAN 
REQUEST FOR A WAIVER 
The following communication, dated 13 March 2015, 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 Commonwealth 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 th e World Trade Organization (WTO) Agreement shall 
terminate, unless extended in accordance with the procedures set out in the Understanding and 
those of Article IX of the WTO Agreement, on the da te of its expiry or two years from the date of 
entry into force of the WTO Agreement, whichever is earlier. Pursuant to 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. Canada requests that Members renew the waiver until 31 December 2023, in order that Canada can continue to extend duty-free treatment to the imports of Commonwealth 
Caribbean nations. This request is made in accordance with the Guiding Principles to be followed in 
considering 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 assist ance measures 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 Commonwealth Caribbean countries. G/C/W/710 
 
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The considerations that led the CONTRACTIN G 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 request 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 ex isting trade and export earnings to promote 
economic development as well as new investment opportunities and encourage enhanced 
economic integration and co-operation within the region.  2. The duty-free treatment provided under CARI BCAN has been shown to address the trade, 
financial and development needs of the beneficiarie s 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 arising out of the impl ementation 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, CARIBC AN has not prevented the further reduction of 
Canadian General Preferential Tariff rates available to all 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 a ccorded to Commonwealth Caribbean countries, at 
least 60 per cent of the ex-factory price of the goods 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 co untries or Canada. The goods must be finished 
in the beneficiary country 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 Barb uda, Bahamas, Barbados , Belize, Bermuda, the 
British Virgin Islands, the Cayman Islands, Dominica, Grenada, Guyana, Jamaica, Montserrat, St Kitts and Nevis, St Lucia, St Vincent and th e Grenadines, Trinidad and Tobago, and the Turks 
and Caicos Islands. 
 In light of the continuing relevance of these considerations 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/710 
 
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  CARIBCAN 
 
Draft Decision of … 20151 
 
 
 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 Confer ence 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 Cana da for a renewal of the waiver from its 
obligations under paragraph 1 of Article I of the General Agreement
2 for provision of unilateral 
duty-free treatment for imports of eligible produc ts 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 initially 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, and on 30 November 2011 for a period from 
1 January 2012 until 31 December 2013;  
 Bearing in mind  the 1979 Decision on Differential and More Favourable Treatment, 
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 tr ade and export earnings to promote economic 
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 prov i d e d  u n d e r  C A R I B C A N  i s  d e s i g n e d  t o  
promote the expansion of trade and economic deve lopment of beneficiaries in a manner consistent 
with the objectives of the GATT 1994 and with th e 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 treatmen t 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 tr eatment 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 any 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 Canada 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-Makin g 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/710 
 
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 Having regard  to the Guiding Principles to be followed in considering 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, an d paragraphs 3 and 4 of Article IX of the 
WTO Agreement; 
  Decides , in view of the exceptional 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 2023, 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 treatm ent to like products of any other Member. 
 
2. Such duty-free treatment shall be designed no t 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 Government 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 th ereof, 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 examine the possibility of action for a satisfactory 
a d j u s t m e n t  o f  t h e  m a t t e r .  T h i s  D e c i s i o n  d o e s  n o t  a f f e c t  M e m b e r s '  r i g h t s  a s  s e t  f o r t h  i n  t h e  
Understanding in Respect of Waivers of Obligations under the GATT 1994.  
 
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