. /.   WORLD TRADE  
ORGANIZATION  G/C/W/541 
1 March 2006 
 
 (06-0869) 
Council for Trade in Goods  
  
UNITED STATES - CARIBBEAN BASIN ECONOMIC RECOVERY ACT  
 
Renewal of Waiver
 
 
Draft Decision of ....20061 
  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 
Marrakesh Agreement Establishing the World Trad e Organization (WTO Agreement), to extend and 
expand the scope of the existing waiver3 of its obligations under para graph 1 of Article I of the 
General Agreement on Tariffs and Trade 1994 (GA TT 1994), to the extent necessary to permit the 
United States to provide duty-free treatment to eligib le products originating in beneficiary Central 
American and 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 Expans ion Act of 1990 (CBERA), by extending the waiver through 
30 September 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 United States to 
provide preferential tariff treatment to eligible prod ucts originating in bene ficiary countries designated 
pursuant to the provisions of the CBERA, as amen ded by the United States-Caribbean Basin Trade 
Partnership Act (“CBE RA 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 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;  
                                                      
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. 
4 (BISD 31S/20). G/C/W/541 
Page 2  
 
   
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; 
 
Decides , in view of these exceptional circumstances, as follows: 
 
1. Subject to the terms and conditions set out hereunder, paragraph 1 of Article I and 
paragraphs 1 and 2 of Article XIII of the GATT 1994 shall be waived through 30 September 2008, 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.  
 
2. The United States shall submit to th e General Council an annual report on the 
implementation of the preferential treatme nt provided under the CBERA as amended. 
 
3. The United States shall promptly notify the General 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 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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