WORLD TRADE  
ORGANIZATION  G/C/W/508 
1 March 2005 
 (05-0867) 
Council for Trade in Goods Original:   English 
   
REQUEST FOR A WAIVER 
 
Caribbean Basin Economic Recove ry Act (CBERA as amended)
 
  
 The following communication, dated 24 February 2005, is being circulated at the request of 
the Delegation of the United States.  Legislation and Annexes to this document are available on the 
WTO website and will be circul ated as addenda subsequently. 
 
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 Special United States Trade Arrangements for C ountries of Central America and the Caribbean
 
  Pursuant to Article IX:3 of the Marrak esh Agreement Establishing the World Trade 
Organization (WTO Agreement), the United States hereby requests Members to extend and expand 
the scope of the existing waiver of U.S. obligati ons under paragraph 1 of Ar ticle I of the General 
Agreement on Tariffs and Trade 1994 (GATT 1994) to the extent necessary to permit the United 
States to provide duty-free treatment to eligible pro ducts originating in beneficiary Central American 
and Caribbean countries and territories (“beneficiar y countries”) designated pursuant to the provisions 
of the Caribbean Basin Economic Recovery Ac t of 1983, as amended by the Caribbean Basin 
Economic Recovery Expansion Act of 1990 (CBERA).
1   The United States requests Members to 
extend the waiver through September 30, 2008, a nd broaden it to waive U.S. obligations under 
paragraph 1 of Article I and para graphs 1 and 2 of Article XIII of  GATT 1994 to the extent necessary 
to permit the United States to provide preferential ta riff treatment to eligible products originating in 
beneficiary countries designated pursuant to the pr ovisions of the CBERA, as amended by the United 
States-Caribbean Basin Trade Partnership Act (“CBERA as amended”). 
 
1. D ESCRIPTION OF THE MEASURE  
  The United States-Caribbean Basin Trade Partnership Act (CBTPA), enacted as Title II of the Trade and Development Act of 2000 (Public Law 106-200), and amended by  section 3107 of the 
Trade Act of 2002 (Public Law 107- 210) and section 1558 of the Miscellaneous Trade and Technical 
Corrections Act of 2004 (Public Law 108-429), amends the CBERA
2 by providing for preferential 
tariff treatment for additional products that origin ate in a country the President has designated as 
eligible to receive CBTPA benefits.3  The text of the CBERA as amended will be circulated as Annex 
II.   
                                                      
1See Caribbean Basin Economic Recovery Act, Renewal of Waiver, Decision of 15 November 1995 
(WT/L/104).   
2 The original CBERA program is described in mo re detail in the Request for Renewal of Waiver 
(G/L/25) submitted by the United States to the Council for Trade in Goods on September 13, 1995, which will 
be circulated as Annex I 
3In accordance with Section 212(b) of the CBERA as amended (19 U.S.C. § 2702 (b)), “Central 
America and the Caribbean” refers to the following countries or any successor political entities of these 
countries: Anguilla, Antigua and Barbuda, Bahamas, Barbad os, Belize, British Virgin Islands, Cayman Islands, G/C/W/508 
Page 2  
 
  
 Specifically, section 213(b)(2) of the CBERA as amended (19 U.S.C. § 2703 (b)(2)) provides for duty-free treatment for apparel assembled in eligible beneficiary countries from:  1) fabrics formed in the United States from U.S. yarns and cut, dyed, and finished in the United States; 2) components 
knit-to-shape in the United States from U.S. yarns; 3) fabrics formed in the United States from U.S. 
yarns and dyed and finished in the United States, but  cut in the region, and sewn with U.S. thread; and 
4) a combination of fabrics formed in the United States from U.S. yarns and dyed and finished in the 
United States, but cut in the region, and component s knit-to-shape in the United States from U.S. 
yarns, and sewn with U.S. thread.  Subject to a quantitative limit, the CBERA as amended also 
provides for duty-free treatment for certain knit a pparel cut and assembled in eligible beneficiary 
countries from fabrics formed in the region or the Un ited States from U.S. yarns, or apparel (other 
than socks) knit-to-shape in eligible beneficiar y countries from U.S. yarns.   There is a separate 
quantitative limit for t-shirts (other than underwear) made  in eligible beneficiar y countries from fabric 
formed in the region from U.S. yarns.  In a ddition, the CBERA as amended provides for duty-free 
treatment for:  1) certain brassieres; 2) apparel made from fabrics or yarns from third party sources, if 
those inputs are determined to be in “short supply” in the United States; 3) cer tain textile luggage; and 
4) hand-loomed, handmade, or folk lore textiles or apparel.   
  In addition, section 213(b)(3) of the CBER A as amended (19 U.S.C. § 2703 (b)(3)) provides 
tariff treatment equivalent to that extended to Mexico under the North American Free Trade 
Agreement for certain non-te xtile and apparel products,
4 and duty-free treatment for four rubber 
footwear items.5  Section 213(a)(6) of the CBERA as amended (19 U.S.C. § 2703 (a)(6)) also 
provides for duty-free treatment of certain bevera ges produced in Canada from rum produced in 
CBERA beneficiary countries.   Under section 212(e) of the CBERA  as amended (19 U.S.C. § 2702 (e)), the President may, in 
certain circumstances, withdraw or suspend the designation of any country as a beneficiary country, 
and may also withdraw, suspend, or limit the applicat ion of preferential treatment  to any article of any 
beneficiary country.  The CBERA as amended does not  alter the benefits the United States provides 
under its Generalized System of Preferences (GSP) program to other developing countries.   
                                                                                                                                                                    
 
Costa Rica, Dominica, Dominican Republic, El Salvador, Grenada, Guatemala, Guyana, Haiti,  Honduras,  
Jamaica, Montserrat, Netherlands Antilles, Nicaragua, Pa nama, Saint Lucia, Saint Vincent and the Grenadines, 
Saint Kitts and Nevis, Turks and Caicos  Islands, and Trinidad and Tobago.   
The President has designated the following Central American and Caribbean countries as both CBERA 
and CBTPA beneficiary countries:  Antigua and Barbuda , Aruba, Bahamas, Barbados, Belize, British Virgin 
Islands, Costa Rica, Dominica, Dominican Republic, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Montserrat, Netherlands Antilles, Nica ragua, Panama, Saint Kitts and Nevis, Saint Lucia, 
Saint Vincent and the Grenadines, and Trinidad and Tobago.  Sections 212 and 213(b)(5)(B) of the amended 
CBERA (19 U.S.C. §§  2702, 2703 (b)(5)(B)) describe the eligibility criteria countries must meet to be designated as a CBERA or CBT PA beneficiary country.   
To be eligible for the enhanced benefits of the CBTPA, however, CBTPA beneficiary countries must 
implement and follow (or be making substantial progress toward implementing and following) certain customs procedures and requirements, as described in section 213(b)(4) of the CBERA as amended (19 U.S.C. § 2703 
(b)(4)). The following CBTPA beneficiary countries are currently eligible for the enhanced benefits of the 
CBTPA:  Barbados, Belize, Costa Rica, Dominican Re public, El Salvador, Guatemala, Guyana, Haiti, 
Honduras, Jamaica, Nicaragua, Panama, Sa int Lucia, and Trinidad and Tobago. 
4These products are certain: 1) footwear; 2) canned tuna; 3) petroleum products; 4)  watches and watch 
parts; and 5) handbags, luggage, flat goods, work gloves and leather wearing apparel 
5With respect to footwear, note that section 155 8 of the Miscellaneous Trade and Tariff Act of 
2004 amended section 213(b) of the CBERA to redu ce the number of footwear items that are 
ineligible to receive duty-free treatment.  G/C/W/508 
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  Benefits provided under the original CBERA are permanent.  The benefits added by the 
CBTPA are available through September 30, 2008, or until the Free Trade Area of the Americas 
(FTAA) or other free trade agreement between the United States and the beneficiary country enters 
into force, whichever occurs first.   
2. S
PECIFIC POLICY OBJECTIVES OF THE MEASURE  
 
 The CBERA as amended is intended to help  Caribbean Basin countries develop their 
economies and diversify their exports.  The CBERA  as amended furthers these goals by creating 
opportunities to expand trade between the Unite d States and CBERA and CBTPA beneficiary 
countries, thus promoting the growth of free enterp rise and economic opportunity in the region.  The 
CBERA as amended is further intended to decr ease illegal immigration and improve regional 
cooperation in efforts to fight drug trafficking.  The CBERA as amended was also designed to help 
stabilize the region’s economies in the wake of devastating hurricanes in 1998.   
3. C
IRCUMSTANCES JUSTIFYING THE WAIVER  
 Caribbean Basin countries have made progress in recent years in advancing fundamental economic 
reform and diversifying their economies.  Nonethel ess, poverty rates remain very high, particularly 
for the Central American countries, Haiti, and the Dominican Republic.  Several beneficiary countries 
continue to struggle with high external debt.  Challenges such as high infant mortality, HIV/AIDS 
infection, and malnutrition continue to confr ont many Caribbean Basin countries.  Economic 
prospects for most countries in the region are comp licated by susceptibility to natural disasters, such 
as the major hurricanes that have affected the Caribbean Basin in recent years.  
 4. C
ONCLUSION  
 
 Pursuant to Article IX:3 of the WTO Agre ement, the United States requests Members to 
extend and expand the scope of the existing waiver of  U.S. obligations under pa ragraph 1 of Article I, 
to the extent necessary to permit the United States to  provide duty-free treatment to eligible products 
originating in beneficiary countries designated pursu ant to the provisions of the CBERA.  The United 
States requests Members to extend the waiver thr ough September 30, 2008, and broaden it to waive 
U.S. obligations under paragraph 1 of Article 1 an d paragraphs 1 and 2 of Article XIII of GATT 1994, 
to the extent necessary to permit the United States to provide preferential tariff treatment to eligible 
products originating in beneficiary countries designa ted pursuant to the provisions of the CBERA as 
amended.   
 The United States requests the Council for Trade in Goods to give this application for a 
waiver expeditious and favorable consideration.  In the meantime , the United States will promptly 
enter into consultations, on request, with any inte rested Member with respect to any difficulty or 
matter that may arise as a result of the preferentia l treatment provided under the CBERA as amended. G/C/W/508 
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 CBI Draft Decision of [Date]
 
 
Taking note  of the request of the United States, pursuant to Article IX:3 of the Marrakesh 
Agreement Establishing the World Trade Organiza tion (WTO Agreement), to extend and expand the 
scope of the existing waiver of its obligations under paragraph 1 of Ar ticle I of the General 
Agreement on Tariffs and Trade 1994 (GATT 1994), to the extent necessary to permit the United 
States to provide duty-free treatment to eligible pro ducts originating in beneficiary Central American 
and Caribbean countries and territories (“beneficiar y countries”) designated pursuant to the provisions 
of the Caribbean Basin Economic Recovery Ac t of 1983, as amended by the Caribbean Basin 
Economic Recovery Expansion Act of 1990 (CBERA),  by extending the waiver through September 
30, 2008, and by broadening the waiver to include U.S. obligations under paragraph 1 of Article I and 
paragraphs 1 and 2 of Article XIII to the extent necessary for the Unite d States to provide preferential 
tariff treatment to eligible products originating in beneficiary countries designated pursuant to the 
provisions of the CBERA, as amended by the Unite d States-Caribbean Basin Trade Partnership Act 
(“CBERA as amended”); 
 
Bearing in mind  the 1994 Decision on Measures in Favour of Least-Developed Countries; 
 
Bearing in mind  also the CONTRACTING PARTIES of the GATT 1947 granted the United 
States a waiver of obligations under paragraph 1 of  Article I on February 15, 1985, for the period 
from 1 January 1984 through 30 September 1995, and that Members extended the waiver on 15 
November in respect of paragra ph 1 of Article I of the GATT 1994 through 30 September 2005, to the 
extent necessary for the United States to provide dut y-free treatment for imports of eligible products 
originating in beneficiary countries designated pursuant to the provisions of the CBERA;  
 Considering  that the United States-Caribbean Basin Trade Partnership Act (CBTPA) expands 
the preferences the United States extends under the CBERA; 
 
Considering  further the exceptional situation of the CBERA and CBTPA beneficiary 
countries, and the stated objective of the CBERA as amended to assist the trade and economic development and recovery of Caribbean Basin c ountries by encouraging the expansion of productive 
capacity in those countries in response to more liberal access and to new trading opportunities; 
 
Considering  further that the preferential treatment provided for under the CBERA as 
amended is designed to promote the expansion of  trade and economic development of beneficiary 
countries in a manner consistent with the objectives expressed in paragraphs 1, 2, and 3 of the 
Preamble to the WTO Agreement; 
 
Considering  further that the preferential treatment provided under the CBERA as amended 
will not alter benefits provi ded under the U.S. Generalized System of Preferences to other developing 
countries; 
 
Noting  the assurances given by the United States that it will promptly enter into consultations, 
on request, with any interested Member with respect  to any difficulty or matter that may arise as a 
result of the preferential treatment provided under the CBERA as amended; 
 
Having  regard  for the Guiding Principles to be Follo wed in Considering Applications for 
Waivers adopted on 1 November 1956 (BISD 5S/25), the Understanding in Respect of Waivers of 
Obligations under the General Agreement on Tariffs and Trade 1994, and Decision-Making 
Procedures under Articles IX and XII of the WT O Agreement agreed by the General Council 
(WT/L/93);  
  G/C/W/508 
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 Members, acting pursuant to the provisions of paragraph 3 of Article IX of the WTO 
Agreement,  
Decide  that: 
 
1. Subject to the terms and conditions set out he reunder, paragraph 1 of Ar ticle I and paragraphs 
1 and 2 of Article XIII of th e GATT 1994 shall be waived thr ough September 30, 2008, to the 
extent necessary to permit the United States to pr ovide preferential tariff treatment to eligible 
products originating in beneficiary countries designated pursuant to the provisions of the 
CBERA as amended.  
 
2. The United States shall submit to the Genera l Council an annual report on the implementation 
of the preferential treatment provided under the CBERA as amended. 
 3. The United States shall promptly notify the Ge neral Council of any change in the designation 
of beneficiary countries, as well as any change that  would affect the eligibility of  products for 
the preferential treatment provided under the CBERA as amended.  
 
4. The United States shall promptly enter into consultations, on request, with any interested 
Member with respect to any difficulty or matter that may arise as a result of the preferential 
treatment provided under the CBERA as amended.   If 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 examin e the possibility of action for a satisfactory 
resolution of the matter.  This Decision does no t affect Members’ rights as set forth in the 
Understanding in Respect of Waivers of Obligations under the GATT 1994. 
 
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