WORLD TRADE
ORGANIZATIONWT/L/329
22 October 1999
(99-4656)
General Council
3, 4 and 8 November 1999Original:  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 21 October 1999, has been received from the Permanent
Mission of the United States.
_______________
1. Introduction
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 EconomicRecovery Act (CBERA) without being required to extend the same duty-free treatment to like
products of any other Member.  This waiver was extended until 31 December 2005.
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 1999.  Trade data has been provided for calendar year 1998, the mostrecent year for which full-year data is available.
2. Duty-free treatment under the CBERA
Title II, section 211 of the CBERA allows the Pr esident of the United States to eliminate
duties on all products, with certain exception
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, Domi nica, Dominican Republic, El Salvador, Grenada,
Guatemala, Guyana, Haiti, Honduras, Jamaica, Montserrat, Netherlands Antilles, Nicaragua, Panama,St. Christopher-Nevis, St. Lucia, St. Vincent and th e 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 US 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/329
Page 2
3. CBI performance
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.
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 th e increase in US trade worldwide.  In 1998, US
imports from CBERA countries remained at 1.9 per cent of total US imports.
US 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 growth prompt ed 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.
Light manufactures, principally apparel, but also footwear, instruments, and jewellery,
account for an increasing share of US imports from  the region, and constitute the fastest growing
sectors for new investment in CBERA countries and territories.  However, traditional agricultural and
raw material products continue to play a significant role in the region’s economies.
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 48 per cent in 1998, valued at almost
$8.3 billion.  Apparel has ranked as the leading category of US imports from the region since 1988.
In 1998, 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.
Since 1989, these two countries combined have been responsible for more than one half of overall
annual US imports under CBERA.  In 1998, the two co untries provided 63.5 per cent of total CBERA
imports, up from 58.7 per cent in 1997 .  Guatemala ranked as the third-leading CBERA beneficiary in
1998, while Honduras was fourth, and Trinidad and Tobago ranked fifth.
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 1996-98.
Table 2 provides information on leading US  imports, by product, from CBERA countries
during 1997-98.
Table 3 provides information on US trade with CBERA countries during 1986-98.Table 4 provides summary information on the duty treatment of US imports from CBERA
countries during 1986-98.WT/L/329
Page 3
TABLE 1
US Imports for Consumption under CBERA, by source, 1996 - 1998
Rank Country 1996 1997 1998
1 Dominican Republic 932,413 1,136,523 1,294,533
2 Costa Rica 657,127 746,354 756,579
3 Guatemala 279,768 270,268 268,8694 Honduras 207,289 263,814 236,0735 Trinidad and Tobago 184,895 226,244 186,2196 Jamaica 95,965 74,515 102,1787P a n a m a
151,352 81,064 77,453
8 Nicaragua2116,007 135,340 72,694
9 El Salvador 91,254 81,799 50,20610 The Bahamas
320,765 25,132 34,914
11 Haiti 30,223 31,194 28,16712 St. Kitts and Nevis 19,241 24,636 25,42813 Guyana
432,285 28,512 24,617
14 Barbados  23,089 24,983 20,39215 Belize 24,760 34,710 19,70616 Grenada 1,007 4,071 8,24217 St. Lucia 7,129 5,263 7,80218 St. Vincent and the Grenadines 3,580 2,373 3,53219 Netherlands Antilles 4,357 3,862 2,77520 Dominica 2,204 1,557 1,85821 Aruba
5138 166 1,779
22 British Virgin Islands 631 262 33323 Antigua Barbuda 1,615 522 21424  Montserrat 3,962 4,679 -
       Total 2,791,056 3,207,842 3,224,564
1 Panama was suspended as a CBERA beneficiary on 9 April 1988 (Presidential Proclamation 5779,
23 March 1988).  It was reinstated on 17 March 1990 (Presidential Proclamation 6103, 28 February 1990).
2 Nicaragua was designated as a CBERA beneficiary effective 13 November 1990 (Presidential Proclamation
6223, 8 November 1990).
3 The Bahamas became a CBERA beneficiary effective14 March 1985 (Presidential Proclamation 5308,
14 March 1985).
4 Guyana became a CBERA beneficiary on 24 November 1988 (Presidential Proclamation 5909,
18 November 1988).
5 Upon becoming independent of the Netherlands Antilles, Aruba was designated as a CBERA beneficiary,
effective 1 January 1986 (Presidential Proclamation 5458, 11 April 1986).
Note:  Because of rounding, figures may not add to totals given.
Source:  Compiled from official statistics of the US Department of Commerce.WT/L/329
Page 4
TABLE 2
Leading US Imports for Consumption from CBERA Countries, 1997-98
HTS Number Description 1997 1998 Change
      Value (1,000 dollars) %
6109.10.00 T-shirts, singlets, tank tops and similar garments,
knitted  or crocheted, of cotton840,116 1,101,146 31.1
6203.42.40 Men's or boys' trousers, breeches and shorts, not
knitted  of cotton985,581 991,589 0.6
0901.11.00 Coffee, not roasted, not decaffeinated 760,172 717,453 -5.6
0803.00.20 Bananas, fresh or dried 641,139 599,821 -6.46204.62.40 Women's or girls' trousers, breeches and shorts, not
knitted or  crocheted, of cotton,     nesoi434,150 536,714 23.6
6110.20.20 Sweaters, pullovers and similar articles, knitted or
crocheted, of cotton, nesoi456,889 514,424 12.6
2710.00.05 Distillate and residual fuel oils (including blends)
derived from bituminous minerals,     testing under 25 degrees A.P.I.524,906 442,166 -15.8
6205.20.20 Men's or boys' shirts, not knitted or crocheted, o
f
cotton, nesoi405,162 435,714 7.5
9801.00.10 U.S. goods returned without having been advanced in
value or improved in condition     while abroad367,456 434,192 18.2
6105.10.00 Men's or boys' shirts, knitted or crocheted, of cotton 313,488 384,719 22.7
9018.90.80 Medical, surgical, or dental instruments and
appliances343,111 374,180 9.1
6212.10.90 Brassieres, not of lace, or silk 338,975 354,909 4.7
8473.30.10 Printed circuit assemblies for machines of heading
8471723 347,291 47,957
2402.10.80 Cigars, cheroots and cigarillos containing tobacco,
each valued 23 cents or over341,727 318,820 -6.7
0306.13.00 Shrimps and prawns, cooked in shell or uncooked,
dried, salted or in brine, frozen282,857 289,766 2.4
6108.21.00 Women's or girls' briefs and panties, knitted or
crocheted, of cotton282,749 271,094 -4.1
6107.11.00 Men’s or boys ’ underpants and briefs, knitted or
crocheted, of cotton231,708 268,404 15.8
1701.11.10 Raw  sugar not containing flavoring or coloring 343,135 246,726 -28.1
6203.43.40 Men's or boys' trousers, breeches and shorts, not
knitted, synthetic fibers214,587 230,147 7.3
2814.10.00 Anhydrous ammonia 229,742 223,901 -2.5
     Total of items shown 8,338,375 9,083,178 8.9
     Total all commodities 16,572,402 17,124,281 3.3
Note:  Because of rounding, figures may not add to totals shown.  The abbreviation, nesoi, stands for "not
elsewhere specified
or otherwise included."
Source: Compiled from official statistics of the US Department of Commerce.WT/L/329
Page 5
TABLE 3
US Trade with CBERA Countries, 1986-98
Year US exports1Share of US
exports to
the worldUS imports2Share of US imports
from the worldUS trade balance
Million dollars Percent Million dollars Percent Million dollars
1986 6,114 2.8 6,129 1.7 (15)
1988 7,428 2.4 6,062 1.4 1,3661990 9,307 2.5 7,525 1.5 1,782
1992 10,902 2.6 9,426 1.8 1,476
1994 12,822 2.7 11,200 1.7 1,6221996 15,375 2.6 14,545 1.8 8301998 19,200 3 17,124 1.9 2,076
1 Domestic exports, f.a.s. basis.
2 Imports for consumption, customs value.
Note:  For complete data series, see USITC, Caribbean Basin Economic Recovery Act (14th Report, 1998);
Andean Trade Preference Act (6th Report, 1998): Impact on the United States , Investigation Nos. 332-227 and
332-352.
Source: US International Trade Commission/Compiled fr om official statistics of the US Department of
Commerce.WT/L/329
Page 6
TABLE 4
US Imports for Consumption from CBERA Countries, by Duty Treatment, 1984-1998
Item 1988 1992 1994 1997 1998
          Total imports 60,610,542.00 9,425,616.00 11,200,280.00 16,572,402.00 17,124,281.00
Dutiable value31,975,850.00 3,269,148.00 3,730,777.00 5,320,617.00 5,384,147.00
     Production sharing4427,144.00 863,225.00 1,347,019.00 2,437,620.00 2,670,309.00
    CBERA reduced duty6(7.00) 29,418.00 31,938.00 55,471.00 63,930.00
    Other dutiable 1,548,706.00 2,376,505.00 2,351,820.00 2,827,526.00 2,649,908.00Duty-free value
84,085,204.00 6,156,467.00 7,469,503.00 11,251,785.00 11,740,134.00
    Col. 1-general91,927,912.00 2,097,079.00 2,514,726.00 3,237,554.00 3,864,752.00
    Production sharing10906,518.00 1,777,260.00 2,391,420.00 4,478,633.00 4,525,187.00
    CBERA11790,941.00 1,498,556.00 2,018,220.00  3,152,371.00 3,096,758.00
    GSP12353,079.00 340,666.00 375,686.00 228,885.00 195,407.00
    Other duty free13106,754.00 442,904.00 169,451.00   154,341.00 58,031.00
        Total imports 100 100 100 100 100
Dutiable value332.6 34.7 33.3 32.1 31.4
     Production sharing47  9.2 12 14.7 15.6
     CBERA reduced duty6-7 0.3 0.3 0.3 0.4
     Other dutiable 25.6 25.2 21  17.1  15.5Duty-free value
867.4 65.3 66.7    67.9  68.6
     Col. 1-general931.8 22.2 22.4    19.5 22.6
     Production sharing1015 18.9 21.3 27 26.4
     CBERA1113 15.9 18 19 18.1
     GSP125.8 3.6 3.4 1.4 1.1
     Other duty free131.8 4.7 1.5 0.9 0.3
1 Nicaragua and Guyana, currently covered by CBERA, were not beneficiaries and therefore were excluded from the data for
1984.
2 Nicaragua, currently covered by CBERA, was not eligible and therefore excluded from the data for 1988.
3 Dutiable value excludes the US content entering under HTS heading 9802.00.80 and subheading 9802.00.60, and
misreported imports.
4 Value of Caribbean Basin-origin value added, under HTS heading 9802.00.80 and subheading 9802.00.60, excluding items
entered under CBERA or GSP provisions.
5 Not available, included in “Other dutiable.”
6 Value of imports of handbags, luggage, flat goods, work gloves, and leather apparel subject to 20-percent duty reductions
under the CBERA between 1992 and 1996.
7 Presidential Proclamation 6428 of 1 May 1992 first implemented reduced duties for certain products of  beneficiary
countries under CBERA.
8 Calculated as total imports less dutiable value.
9 Value of imports which have a col. 1-general duty rate of free.
10 Value of non-dutiable exported and returned US-origin products or components, under HTS heading 9802.00.80 and
subheading 9802.00.60, excluding items entered under CBERA or GSP provisions.
11 Reduced by the value of unconditionally duty-free imports and ineligible items that were misreported as entering under the
CBERA programme and the value of reduced-duty items (handbags, luggage, flat goods, work gloves, and leather wearingapparel) reported separately above as dutiable.
12 Reduced by the value of unconditionally duty-free imports and ineligible items that were misreported as entering under the
GSP programme.
13 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.
Source:  Compiled from official statistics of the US Department of Commerce.
__________