WORLD TRADE
ORGANIZATIONWT/L/373
20 November 2000
(00-4936)
General Council
7 and 8 December 2000Original: English
UNITED STATES CARIBBEAN BASIN ECONOMIC RECOVERY ACT
Report of the Government of the United States
under the Decision of 15 November 19951
The following communication, dated 6 November 2000, has been received from the
Permanent Mission of the United States.
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1. Introduction
1 On 15 November 1995, the United States was granted a renewal of the waiver (WT/L/104)
from its obligations under paragraph 1 of Article I of the GATT 1994 to the extent necessary to permit
the United States Government to provide duty-free treatment to eligible products of the Caribbean
Basin countries and territories as authorized by the provisions of Caribbean Basin Economic
Recovery Act (CBERA) without being required to extend the same duty-free treatment to likeproducts of any other Member.  This waiver was extended until 31 December 2005.
2 Under the terms of this waiver, the United States is required to submit to the General Council
an annual report on the implementation of the trad e-related provisions of the CBERA with a view to
facilitating the annual review provided for in paragraph 4 of Article IX of the WTO Agreement.  This
report covers calendar year 2000.  Trade data has been provided for calendar year 1999, the most
recent year for which full-year data is available.
2. Duty-free Treatment under the CBERA
3 Title II, section 211 of the CBERA allows the Pr esident of the United States to eliminate
duties on all products, with certain exceptions
2, from those Caribbean countries and territories that he
designates as beneficiaries.  There are 28 countries or territories eligible for CBERA benefits.
Presently, 24 countries and territories have requested to receive CBERA benefits, all are receiving
benefits.  These countries and territories are:  Antigua and Barbuda, Aruba, the Bahamas, Barbados,Belize, British Virgin Islands, Costa Rica, Dominica, Dominican Republic, El Salvador, Grenada,
Guatemala, Guyana, Haiti, Honduras, Jamaica, Montserrat, Netherlands Antilles, Nicaragua, Panama,
St. Christopher-Nevis, St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago.  There
has been no change in the list of beneficiaries since 1990.
                                                     
1 WT/L/104.
2 The products excluded from duty-free treatment are:   textile and apparel articles which are subject to
textile agreements;  certain footwear which was not eligible for duty-free entry under the U.S.  GeneralizedSystem of Preferences in 1983;  prepared tuna in airtight containers;  petroleum and petroleum products;watches and watch parts if such products contain any material from countries not accorded MFN treatment.WT/L/373
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3. CBI Performance
4 The CBI programme has helped beneficiaries diversify their exports.  On a region-wide basis,
this export diversification has led to a more balanced production and export base and has resulted in a
reduction in the region's vulnerability to fluctuations in markets for traditional products.
5 Since 1983, the year prior to the implementation of the CBI, total CBI country non-petroleum
exports to the United States have more than doubled.  The generally steady rise in US trade with the
CBERA countries and territories has mirrored the increase in US trade worldwide.  From 1997 to
1999, US imports from CBERA countries have remained at 1.9 per cent of total US imports.
6 United States' imports from CBERA countries and territories traditionally have consisted of
agricultural products, raw materials, and their derivatives namely, petroleum products, sugar cane,
coffee, cocoa, bananas, and aluminum ores and concentrates.  The deterioration in the terms of trade
for these export items and a quest for economic grow th prompted CBERA countries and territories to
seek diversification in their export profile.  The encouragement of such diversification of the
Caribbean Basin economies was one of the intended goals of the United States in implementing the
CBERA programme.
7 Light manufactures, principally printed circuit assemblies and apparel, but also footwear,
medical instruments, and jewellery, account for an increasing share of US imports from the region andconstitute the fastest growing sectors for new in vestment in CBERA countries and territories.
However, traditional agricultural and raw material products continue to play a significant role in the
region’s economies.
8 While generally not eligible for CBERA tariff preferences, apparel constitutes one of the
fastest growing categories of imports from the CBERA countries and territories growing from just
5.5 per cent of total US imports from the region in 1984, to over 45 per cent in 1999, valued at over
US$8.8 billion.  Apparel has ranked as the leading category of US imports from the region since
1988.  In 1999, printed circuit assemblies emerged as the leading US import for consumption from
CBERA countries.  From 1997 to 1999 the annual import value of these products grew from
US$723,000 to almost US$1.5 billion.
9 In 1999, the Dominican Republic and Costa Rica continued to lead all countries in taking
advantage of CBERA, as they have done virtually each year since the programme became effective.The combined share of these two countries' CBERA exports to the United States dropped to 57 per
cent of total CBERA trade in 1999, down from 63.5 pe r cent in 1998.  By contrast, Guatemala and
Trinidad and Tobago (third and fourth in exports ) have increased their total CBERA exports, moving
from a combined 14.2 per cent share of total CBERA trade in 1998 to just over 19 per cent in 1999.
10 Statistical annexes are provided to present a detailed description of the trade aspects of the
CBI programme for the most recent period.  Detailed information for previous years has been
provided in previous reports to the GATT Council or WTO General Council.
Table 1 provides summary information on US imports for consumption under CBERA
provisions during the period 1997-99.
Table 2  provides information on leading US imports, by product, from CBERA countries
during 1998-99.
Table 3  provides information on US trade with CBERA countries during 1995-99.
Table 4  provides summary information on the duty treatment of US imports from CBERA
countries during 1997-99.WT/L/373
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Table 1 A
US Imports for Consumption under CBERA, by Sources, 1997-99
Rank Source 1997 1998 1999
Value (1,000 dollars)
1 Dominican Republic US$1,136,523 US$1,294,533 US$820,270
2 Costa Rica 746,354 756,579 683,013
3 Guatemala 270,268 268,869 285,3494 Trinidad and Tobago 226,244 186,219 217,8575 Honduras 263,814 236,073 180,1526 Jamaica 74,515 102,178 89,593
7 El Salvador 81,799 50,206 59,051
8 The Bahamas 25,132 34,914 56,0189 Nicaragua 135,340 72,694 50,55610 Panama 81,064 77,453 45,96211 St. Kitts and Nevis 24,636 25,428 25,617
12 Barbados 24,983 20,392 24,632
13 Belize 34,710 19,706 23,05714 Haiti 31,194 28,167 21,91415 Guyana 28,512 24,617 14,70616 Grenada 4,071 8,242 11,48617 Dominica 1,557 1,858 9,497
18 St. Lucia 5,263 7,802 9,249
19 St. Vincent and the Grenadines 2,373 3,532 7,19520 Netherlands Antilles 3,862 2,775 1,61221 British  Virgin Islands 262 333 36422 Antigua Barbuda 522 214 2223 Aruba 166 1,779 19
24 Montserrat 4,679 - 6
       Total 3,207,842 3,224,564 2,637,200
Note:  Because of rounding, figures may not add to totals given.
Source:  Compiled from official statistics of the US Department of Commerce.WT/L/373
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Table 1 B
US Imports for Consumption under CBERA, by Sources, 1997-99
Rank Source 1997 1998 1999
Per cent of total
1 Dominican Republic 35.43 40.15 31.10
2 Costa Rica 23.27 23.46 25.90
3 Guatemala 8.43 8.34 10.82
4 Trinidad and Tobago 7.05 5.78 8.26
5 Honduras 8.22 7.32 6.836 Jamaica 2.32 3.17 3.407 El Salvador 2.55 1.56 2.248 The Bahamas .78 1.08 2.129 Nicaragua 4.22 2.25 1.92
10 Panama 2.53 2.40 1.74
11 St. Kitts and Nevis .77 .79 0.9712 Barbados .78 .63 0.9313 Belize 1.08 .61 0.8714 Haiti .97 .87 0.8315 Guyana .89 .76 0.56
16 Grenada .13 .26 0.44
17 Dominica .05 .06 0.3618 St. Lucia .16 .24  0.3519 St. Vincent and Grenadines .07 .11 0.2720 Netherlands Antilles .12 .09 0.06
21 British Virgin Islands .01 .01 0.01
22 Antigua Barbuda .02 .01 0.0023 Aruba .01 .06 0.0024 Montserrat .15 .00 0.00
       Total 100.00 100.00 100.00
Note:  Because of rounding, figures may not add to totals given.
Source:  Compiled from official statistics of the US Department of Commerce.WT/L/373
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Table 2
Leading US Imports for Consumption from CBERA Countries, 1998-99
HTS Item Description 1998 1999 Change
Value (1,000 dollars) Per cen t
8473.30.10 Printed circuit assemblies for machines of heading
8471347,291 1,465,993 322.1
6109.10.00 T-shirts, singlets, tank tops and similar garments,
knitted or crocheted, of cotton1,101,146 1,233,736 120
6203.42.40 Men's or boys' trousers and shorts, not bibs, not
knitted or crocheted, of cotton, not containing 15%or more by weight of down, etc991,589 1,025,045 3.4
6110.20.20 Sweaters, pullovers and similar articles, knitted or
crocheted, of cotton, nesoi514,424 844,845 64.2
0901.11.00 Coffee, not roasted, not decaffeinated 717,453 559,410 -22
0803.00.20 Bananas, fresh or dried 599,821 557,368 -7.16204.62.40 Women's or girls' trousers, breeches and shorts, not
knitted or crocheted, of cotton, nesoi 536,714519,981 -3.1
9018.90.80 Medical, surgical, or dental instruments and
appliances374,180 418,893 11.9
2710.00.05 Distillate and residual fuel oils (including blends)
derived from bituminous minerals, testing under 25degrees A.P.I.442,166 410,458 -7.2
6205.20.20 Men's or boys' shirts, not knitted or crocheted, of
cotton, nesoi435,714 385,831 -11.4
6212.10.90 Brassieres, not containing lace, net or embroidery,
containing under 70% by wt of silk or silk waste,whether or not knitted or crocheted354,909 370,798 4.5
6107.11.00 Men’s or boys’ underpants and briefs, knitted or
crocheted, of cotton268,404 344,022  28.2
6105.10.00 Men's or boys' shirts, knitted or crocheted, of cotton 384,719 342,390 -11
2710.00.10 Distillate and residual fuel oils (including blends)
derived from bituminous minerals, testing under 25degrees A.P.I. or more100,409 324,729 223.4
6108.21.00 Women's or girls' briefs and panties, knitted or
crocheted, of cotton 271,094321,102 18.4
0306.13.00 Shrimps and prawns, cooked in shell or uncooked,
dried, salted or in brine, frozen 289,766275,830 -4.8
2402.10.80 Cigars, cheroots and cigarillos containing tobacco,
each valued 23 cents or over 318,820237,259 -25.6
6203.43.40 Men's or boys' trousers, breeches & shorts, of
synthetic fibers, con under 15% wt down etc, contunder 36% wt wool, n/water resist, not k/c 230,147225,910 -1.8
2814.10.00 Anhydrous ammonia 223,901 225,339 0.6
6108.22.90 Women’s or girls’ briefs and panties (other than
disposable), of man-made fibers, knitted orcrocheted163,131 194,671 19.3
     Total of items shown 8,665,800 10,283,610 18.7
     Total all other 8,458,481 9,081,152 7.4
     Total all commodities 17,124,281 19,364,762 13.1
Note:  Because of rounding, figures may not add to totals shown.
Source:  Compiled from official statistics of the U.S. Department of Commerce.WT/L/373
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Table 3
US Trade with CBERA Countries, 1995-99
Year US exports1Share of US exports to
the worldUS imports2Share of US imports
from the worldUS trade
balance
Million dollars Per cen tMillion dollars Per cen t Million
dollars
1995 14,870 2.7 12,550 1.7 2,3201996 15,375 2.6 14,545 1.8 820
1997 17,808 2.8 16,572 1.9 1,235
1998 19,200 3 17,124 1.9 2,0761999 19,030 3 19,365 1.9 -335
Source:  Compiled from official statistics of the US Department of Commerce.
                                                     
1 Domestic exports, f.a.s. basis
2 Imports for consumption, customs value.WT/L/373
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Table 4
US Imports for Consumption from CBERA Countries, by Duty Treatment, 1997-1999
Item 1997 1998 1999
Value ( 1,000 dollars, customs value )
Total imports116,572,402 17,124,281 19,269,025
Dutiable value25,320,617 5,384,147 5,744,455
     Production sharing32,437,620 2,670,309 2,727,583
    CBERA reduced duty455,471 63,930 71,511
    Other dutiable 2,827,526 2,649,908 2,945,362Duty-free value
511,251,785 11,740,134 13,524,570
    Col. 1 – general63,237,554 3,864,752 5,948,811
    Production sharing74,478,633 4,525,187 4,849,533
    CBERA83,152,371 3,096,758 2,562,986
    GSP9228,885 195,407 94,903
    Other duty free10154,341 58,031 68,337
Percent of total
        Total imports 100 100 100
Dutiable value232.1 31.4  29.8
     Production sharing314.7 15.6 14.2
     CBERA reduced duty40.3 0.4 0.4
     Other dutiable 17.1 15.5 15.3Duty-free value
567.9 68.6 70.2
     Col. 1 – general619.5 22.6 30.9
     Production sharing727 26.4 25.2
     CBERA819 18.1 13.3
     GSP91.4 1.1 0.5
     Other duty free100.9 0.3 0.4
1 Excludes Virgin Island imports.
2 Dutiable value excludes the US content entering under HTS subheading 9802.00.80 and subheading
9802.00.60, and misreported imports.
3 Value of Caribbean Basin-origin value added, under HTS subheading 9802.00.80 and subheading
9802.00.60, excluding items entered under CBERA or GSP provisions.
4 Presidential Proclamation 6428 of 1 May, 1992, first implemented reduced duties for certain products
of  beneficiary countries under CBERA.
5 Calculated as total imports less dutiable value.
6 Value of imports which have a col. 1 - general duty rate of free.
7 Value of non-dutiable exported and returned US origin products or components, under HTS
subheading 9802.00.80 and subheading 9802.00.60, excluding items entered under CBERA or GSP provisions.
8 Reduced by the value of unconditionally duty-free imports and ineligible items that were misreported
as entering under the CBERA program and the value of reduced duty items reported separately above asdutiable.
9 Reduced by the value of unconditionally duty-free imports and ineligible items that were misreported
as entering under the GSP program.
10 Calculated as a remainder, and represents imports entering free of duty under column 1 - special.
Note:  Because of rounding, figures may not add to the totals shown.
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