. /.  WORLD TRADE  
ORGANIZATION  G/C/W/534 
31 October 2005 
 
 (05-5036) 
Council for Trade in Goods Original:   English 
  
 
UNITED STATES - REQUESTS FOR WAIVERS FOR THE 
CARIBBEAN BASIN ECONOMIC AND RECOVERY ACT (CBERA, AS AMENDED), 
THE AFRICAN GROWTH AND OPPORTUNITY ACT (AGOA), AND THE 
ANDEAN TRADE PREFERENCE ACT (ATPA, AS AMENDED) 
 
Follow-up questions from India
 
   The following communication, dated 27 October 2005, is being circulated at the request of the Delegation of India. 
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 1. We appreciate the US response to our concerns  on the delay in seeking the waiver despite the 
legislations having been promulgated earlier. Howe ver, the US has not answered our question on the 
impairment of benefits to the non- beneficiaries during the period of de lay in seeking waiver.  Is the 
US contemplating any compensation to the non-b eneficiaries for the impairment thus caused 
?  2. The stipulation preventing the use of fabric / yarn of non US origin (when these are 
commercially available in the US) in the appa rel exported under the CBERA  and ATPA preference 
schemes may lead to  non viability of exports for th e beneficiaries due to difference in costs of the 
procured fabric/ yarn of US and third party origin. Is n’t this a constraining factor in the exports to be 
made by the beneficiaries under the preference schemes?  Would this also not be in violation of the 
commitment of the US in the WTO Document WT/L/ 104 wherein it is stated that “duty free treatment 
shall be designed not to raise barriers or create undue difficulties for the trade of other Members?”  
3. The US has stated in its replies to question No 4 posed by  Pakistan in the WTO Document 
No G/C/W/518 dated 13.05.2005 that the   
“Apparel assembled in beneficiary country with fabric formed in the United States using yarn 
imported into the United States is not eligible for duty free treatment”.  
 
“Other than fabrics designated under the co mmercial availability provisions of the CBERA 
and ATPA, preferential treatment is not availabl e to apparel articles made from third country 
fabrics.” 
 
 This would imply that the United States grants  more favourable treatment to domestic yarn/ 
fabric over imported yarn/ fabric as per its re gulations under the CBERA and ATPA preference 
schemes.  Does the US therefore pl an to seek a waiver of Article III under GATT 1994? If not, then 
would the U.S. please elaborate how it proposes to c over the departure from its obligation under this 
Article?  
4. Is there statistical evidence to vindicate that the African Growth & Opportunity Act, 
Caribbean Basin Economic Recovery Act and Andean  Trade Preference Act have actually benefited G/C/W/534 
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the preference receiving countries? If so, does the US  think that the preference schemes in its present 
form can grant enhanced market access to the beneficiaries?       5. Does the United States believe that the African  Growth & Opportunity Act can generate real 
market access for the beneficiaries given the suppl y side constraints and lack of resources in their 
economies? If so, the features of the AGOA which the US believes addresses the impediments for 
exports from the beneficiaries? 
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