WORLD TRADE  
ORGANIZATION  G/C/W/611 
11 March 2009 
 
 (09-1215) 
Council for Trade in Goods  
  
 
UNITED STATES - CARIBBEAN BASIN ECONOMIC RECOVERY ACT  
 
Renewal of Waiver
 
 
Draft Decision of ....20091 
 
  The General Council, 
  Conducting  the function of the Ministerial Conference in the interval between meetings 
pursuant to paragraph 2 of Article IV of the WTO Agreement;   
 
Having  regard to  paragraphs 1, 3 and 4 of Article  IX of the Marrakesh Agreement 
Establishing the World Trade Organization (the "W TO Agreement"), the Guiding Principles to be 
followed in considering applications for waiver s adopted on 1 November 1956 (BISD 5S/25), and the 
Understanding in Respect to Waivers of Obliga tions under the General Agreement on Tariffs and 
Trade 1994 (the "Understanding");   
 
Taking note  of the request of the United States
2, pursuant to paragraph 3 of Article IX of the 
WTO Agreement, to extend and expand the scope of the existing waiver3 of its obligations under 
paragraph 1 of Article I of th e General Agreement on Tariffs a nd Trade 1994 (GATT 1994), to the 
extent necessary to permit the United States to  provide duty-free treatment to eligible products 
originating in beneficiary Central American a nd Caribbean countries and territories (“beneficiary 
countries”) designated pursuant to the provisions of  the Caribbean Basin Economic Recovery Act of 
1983, as amended by the Caribbean Basin Economic Recovery Expansion Act of 1990 (CBERA), by 
extending the waiver through 31 December 2014, and by broadening the waiver to include U.S. 
obligations under paragraph 1 of Ar ticle I and paragraphs 1 and 2 of  Article XIII to the extent 
necessary for the United 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 
United States-Caribbean Basin Trade Partnership Act, the Haitian Hemispheric Opportunity through 
Partnership Encouragement Ac t of 2006, and the Haitian Hemi spheric Opportunity through 
Partnership Encouragement Act of 2008 (“CBERA as amended”); 
 
Bearing in mind  the Ministerial Decision on Measures in Favour of Least-Developed 
Countries, adopted in Marrakesh on 15 April 1994; 
 Bearing in mind  also the 1979 Decision on Differential and More Favourable Treatment, 
Reciprocity and Fuller Participation of Devel oping Countries and the 1994 Decision on Measures in 
Favour of Least-Developed Countries;  
                                                     
 
1 Adopted in accordance with th e Decision-Making Procedures under Article IX of the WTO 
Agreement agreed by the General Council in November 1995 (WT/L/93). 
2 Documents G/C/W/508 and Add.1. 
3 Document WT/L/104. G/C/W/611 
Page 2  
 
  Bearing in mind  also that the CONTRACTING PARTIES of the GATT 1947 granted the 
United States a waiver of obligations under pa ragraph 1 of Article I on February 15, 1985
4, for the 
period from 1 January 1984 through 30 September 1995, and that Members extended the waiver on 15 
November3 in respect of paragraph 1 of Article I of the GATT 1994 through 30 September 2005, to 
the extent necessary for the United States to provi de duty-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 Basi n Trade Partnership Act (CBTPA), the 
Haitian Hemispheric Opportunity through Partners hip Encouragement Act of 2006, and the Haitian 
Hemispheric Opportunity through Partnership Enco uragement Act of 2008 expand 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; 
 
Considering,  moreover, that the duty-free treatment provided under CBERA should not 
prejudice the interests of other Members not benef iting from such treatment, and that it is expected 
that the extension of such duty-free treatment will not cause a significant diversion of United States imports of products eligible under CBERA originating in Members who are not beneficiary countries; 
 Considering that the duty-free treatment provided under CBERA by the United States 
Government shall not constitute an impediment to the reduction or eliminati on of tariffs and other 
restrictions to trade on a most-favoured-nation basis; 
 
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; 
 
Decides , in view of these exceptional circumstances, as follows: 
 
1. Subject to the terms and conditions set out here under, paragraph 1 of Article I and paragraphs 1 
and 2 of Article XIII of the GATT 1994 shall be waived through 31 Decemb er 2014, to the extent 
necessary to permit the United States to provide pr eferential 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 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 Agre ement.  The United States shall promptly notify the 
General Council of any trade-rela ted measure taken under CBERA, in particular, any changes in the 
designation of beneficiary countries, as well as any modification being considered in the list of 
                                                     
 
4 (BISD 31S/20).  G/C/W/611 
 Page 3 
 
 
  eligible products and the duty-free treatment thereof,  and shall furnish them with all the information 
they may deem appropriate relating to such action.  The United States shall consult with regard to any 
modification being considered in  the list of eligible products. 
 3. Such duty-free treatment shall be designed to facilitate and promote the trade of beneficiary 
countries and not to raise barriers to or create undue difficulties for the trade of any other Members. 
 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 examine the possibility of action for a satisfactory resolution of the matter.   
 
5. This Decision does not affect Members’ rights  as set forth in the Understanding in Respect of 
Waivers of Obligations under the GATT 1994. 
 
 
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