With it, we help to insure that everyone is in a position to move forward when the time comes. I would like to take this opportunity to discuss with you the importance of trade enhancement for the Caribbean Basin. It represents a permanent commitment by the United States to encourage the development of strong democratic governments and economies in the neighboring countries of the Caribbean Basin. Briefly, CBI offers one way free trade in all commodities except for textiles and apparel, certain footwear, canned tuna, petroleum and petroleum derivatives, and certain watches and watch parts. Certain handbags, luggage, wallets, work gloves, and leather wearing apparel have a reduced duty.
Quotas apply to sugar and beef.
While excluded from CBI, apparel has been the fastest growing export to the US from CBI countries, growing from 5.5 percent of exports in 1984 to 43 percent in 1995. The CBI was initially envisioned as a program to facilitate the economic development and export diversification of the Caribbean Basin economies. Overall, however, the CBI appears to have benefited both the beneficiary countries and the United States. Export diversification away from traditional agricultural products and raw materials such as aluminum, bananas, coffee, petroleum, and sugar has been extraordinarily successful. Light manufactures, such as apparel, footwear, instruments, and jewelry, account for an increasing share of U.S. imports from the region as well as the fastest growing sectors for new investment in CBI countries.