WORLD TRADE WT/L/233
10October 1997
ORGANIZATION(97-4362)
Original: English General Council
22October 1997
UNITED STATES -CARIBBEAN BASIN ECONOMIC RECOVERY ACT
Report oftheGovernment oftheUnited States
under theDecision of15November 19951
Thefollowing communication, dated 9October 1997, hasbeenreceived fromthePermanent
Mission oftheUnited States.
_______________
Introduction
On15November 1995, theUnited States wasgranted arenewal ofthewaiver (WT/L/104)
fromitsobligations under paragraph 1ofArticle IoftheGATT 1994totheextent necessary topermit
theUnited States Government toprovide duty-free treatment toeligible products oftheCaribbean Basin
countries andterritories asauthorized bytheprovisions ofCaribbean Basin Economic Recovery Act
(CBERA) without being required toextend thesame duty-free treatment tolikeproducts ofanyother
Member. Thiswaiver wasextended until31December 2005.
Under theterms ofthiswaiver, theUnited States isrequired tosubmit totheGeneral Council
anannual report ontheimplementation ofthetrade-related provisions oftheCBERA withaviewto
facilitating theannual review provided forinparagraph 4ofArticle IXoftheWTO Agreement. This
report covers calendar year1997. Trade datahasbeenprovided forcalendar year1996, themost
recent yearforwhich full-year dataisavailable.
Duty-free Treatment under theCBERA
TitleII,section 211oftheCBERA allows thePresident oftheUnited States toeliminate duties
onallproducts,withcertainexceptions2,fromthoseCaribbeancountriesandterritoriesthathedesignates
asbeneficiaries. There are28countries orterritories eligible forCBERA benefits. Presently, 24
countries andterritories haverequested toreceive CBERA benefits; allarereceiving benefits. These
countries andterritories are: Antigua andBarbuda, Aruba, TheBahamas, Barbados, Belize, British
1WT/L/104.
2Theproducts excluded from duty-free treatment are:textile andapparel articles which aresubject totextile
agreements; certain footwear which wasnoteligible forduty-free entry under theUSGeneralized System of
Preferences in1983; prepared tunainairtight containers; petroleum andpetroleum products; watches andwatch
parts ifsuch products contain anymaterial from countries notaccorded MFN treatment .WT/L/233
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Virgin Islands, Costa Rica, Dominica, Dominican Republic, ElSalvador, Grenada, Guatemala, Guyana,
Haiti,Honduras,Jamaica,Montserrat,NetherlandsAntilles,Nicaragua,Panama,St.Christopher-Nevis,
St.Lucia, St.Vincent andtheGrenadines, andTrinidad andTobago. There hasbeennochange in
thelistofbeneficiaries since 1990.WT/L/233
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CBIPerformance
Thetremendousexpansioninnon-traditionalexportsfromCBIbeneficiariessincetheinauguration
oftheCBIprogramme hasgreatly cushioned thedeclines intraditional exports fromtheregion. On
aregion-wide basis, thisexport diversification hasledtoamore balanced production andexport base
andhasresulted inareduction intheregion 'svulnerability tofluctuations inmarkets fortraditional
products.
Total CBIcountry exports totheUnited States, excluding petroleum, increased bymore than
100percentbetween 1983, theyearpriortotheimplementation oftheCBI,and1996. Thegenerally
steady riseinUStradewiththeCBERA countries andterritories hasmirrored theincrease inUStrade
worldwide. In1996, USimports fromCBERA countries accounted for1.8percentoftotalUSimports.
USimports fromCBERA countries andterritories traditionally haveconsisted ofagricultural
products, rawmaterials, andtheirderivatives -namely, petroleum products, sugar cane, coffee, cocoa,
bananas, andaluminum oresandconcentrates. Thedeterioration intheterms oftradefortheseexport
items andaquestforeconomic growth prompted CBERA countries andterritories toseekdiversification
intheirexport profile. Theencouragement ofsuchdiversification oftheCaribbean Basin economies
wasoneoftheintended goals oftheUnited States inimplementing theCBERA programme.
Light manufactures, principally apparel, butalsofootwear, instruments, andjewellery, account
foranincreasing share ofUSimports from theregion, andconstitute thefastest growing sectors for
newinvestment inCBERA countries andterritories. However, traditional agricultural andrawmaterial
products continue toplayasignificant roleintheregion ’seconomies.
While generally noteligible forCBERA tariffpreferences, apparel constitutes oneofthefastest
growing categories ofimports fromtheCBERA countries territories -growing fromjust5.5percent
oftotalUSimports fromtheregion in1984, to41percentin1996, valued almost at$6billion. Apparel
hasranked astheleading category ofUSimports from theregion since 1988.
In1996, theDominican Republic andCosta Ricacontinued toleadallcountries intaking
advantage ofCBERA, astheyhavedonevirtually eachyearsince theprogramme became effective.
ThesetwocountriescombinedhavebeenresponsibleformorethanonehalfofoverallannualUSimports
under CBERA since 1989; in1996, theyprovided 56.9percentofthetotal, somewhat down from
60.7percentofthetotalin1995. Guatemala ranked asthethird-leading CBERA beneficiary in1996,
asithaseachyearsince 1989. Honduras, ranked thirdin1996 and1995, upfrom fifthin1993 and
1994. Trinidad andTobago ranked fifth.
Statistical annexes areprovided topresent adetailed description ofthetrade aspects ofthe
CBIprogramme forthemostrecent period. Detailed information forprevious years hasbeenprovided
inprevious reports totheGATT Council orWTO General Council.
Table1providessummaryinformationonUSimportsforconsumptionunderCBERAprovisionsduring
theperiod 1994-96.
Table 2provides information onleading USimports, byproduct, from CBERA countries during
1995-96.
Table 3provides information onUStrade withCBERA countries during 1992-96.
Table 4provides summary information onthedutytreatment ofUSimports fromCBERA countries
during 1994-96.WT/L/233
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TABLE 1
USIMPORTS FOR CONSUMPTION UNDER CBERA PROVISIONS, BYCOUNTRIES, 1994-96
1996 shareRank Country 1994 1995 1996oftotal
------------1,000 dollars, customs value----------- Percent
1 Dominican Republic ...........751,028 .......845,356 .....932,413 ..33.4
2 Costa Rica .................478,109 .......527,715 .....657,127 ..23.5
3 Guatemala .................171,381 .......168,466 .....279,768 ..10.0
4 Honduras ..................139,838 .......156,839 .....207,289 ...7.4
5 Trinidad andTobago ...........142,901 .......144,247 .....184,895 ...6.6
6 Nicaragua ...................80,554 .......78,543 .....116,007 ...4.1
7 Jamaica ....................69,316 .......87,329 ......95,965 ...3.4
8 ElSalvador ..................41,126 .......68,550 ......91,254 ...3.2
9 Panama ....................35,141 .......39,357 ......51,352 ...1.8
10 Guyana ....................13,100 .......17,409 ......32,285 ...1.1
11 Haiti ......................15,770 .......26,521 ......30,223 ...1.0
12 Belize .....................13,112 .......16,676 .....24,760 ..(1)
13 Barbados ...................21,313 .......23,042 ......23,089 ..(1)
14 Bahamas ...................45,062 .......22,854 ......20,765 ...(1)
15 St.Kitts andNevis .............17,220 .......18,776 ......19,241 ...(1)
16 St.Lucia ....................6,077 ........6,503 .......7,129 ...(1)
17 Netherlands Antilles .............3,214 ........4,468 .......4,357 ...(1)
18 Montserrat ....................886 ........1,488 .......3,962 ...(1)
19 St.Vincent andtheGrenadines .......1,299 ........2,527 .......3,580 ...(1)
20 Dominica ....................2,112 ........2,200 .......2,204 ...(1)
21 Antigua ......................809 ........1,683 .......1,615 ...(1)
22 Grenada ......................768 .........724.......1,007 ...(1)
23 British Virgin Islands ...............11..........12........631 ...(1)
24 Aruba ........................12.........114........138 ...(1)
Total ....................2,050,158 .....2,261,407 ....2,791,055 .100.0
1Less than1.0percent.
Note: Figures maynotaddtothetotals given duetorounding.
Source: USInternational Trade Commission/Compiled from official statistics oftheUSDepartment of
Commerce.WT/L/233
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TABLE 2
LEADING USIMPORTS FOR CONSUMPTION FROM CBERA COUNTRIES, 1995-96
(1,000 dollars, customs value)
HTS
ItemDescription 1995 1996
6203.42.40 Men’sorboys’trousers, breeches andshorts, notknitted, ofcotton .......823,333 .788,478
0803.00.20 Bananas, fresh ordried ..................................630,059 .703,234
2710.00.05 Distillate andresidual fueloils(including blends), testing under 25degrees API 247,072 .625,607
6109.10.00 T-shirts, singlets, tanktopsandsimilar garments, ofcotton ............459,249 .604,434
0901.11.00 Coffee, notroasted, notdecaffeinated .........................568,608 .467,563
6205.20.20 Men’sorboys’shirts, notknitted orcrocheted, ofcotton .............452,395 .384,304
9801.00.10 USgoods returned without having been advanced invalue orimproved in
condition while abroad ...................................304,656 .348,930
6110.20.20 Sweaters, pullovers, andvests, knitted orcrocheted ofcotton ..........287,750 .346,565
6204.62.40 Women ’sorgirls’trousers, breeches andshorts, ofcotton .............281,014 .339,420
1701.11.101Raw sugar notcontaining added flavouring orcolour ................185,460 .330,775
9018.90.80 Medical, surgical, ordental instruments andappliances ...............302,434 .327,302
6212.10.902Brassieres, notoflaceorsilk...............................346,610 .293,135
0306.13.00 Shrimps andprawns, cooked inshell oruncooked, live, fresh, chilled,
frozen, dried, orsalted inbrine .............................257,892 .273,638
2814.10.00 Anhydrous ammonia ....................................293,301 .264,321
2710.00.10 Distillate andresidual fueloils(including blends), testing over 25degrees API 173,835 .250,040
6105.10.00 Men’sorboys’shirts, knitted orcrocheted, ofcotton ................163,845 .239,503
6406.10.65 Footwear uppers, other thanformed, ofleather ....................191,759 .202,005
6108.21.00 Women ’sorgirls’briefs andpanties, knitted orcrocheted, ofcotton ......182,342 .200,940
6107.11.00 Men’sorboys’underpants andbriefs, knitted orcrocheted ofcotton ......112,957 .172,684
2402.10.80 Cigars, cheroots andcigarillos, each valued 23¢orover ...............76,445 .159,468
2710.00.25 Naphthas (except motor fuelormotor fuelblending stock) .............130,589 .151,394
6203.43.40 Men’sorboys’trousers, breeches andshorts, notknitted, synthetic fibers ...140,541 .146,157
2709.00.20 Petroleum oilsandoilsfrom bituminous minerals, crude, testing under
25degrees A.P.I. ......................................264,236 .142,396
7113.19.50 Jewellery andparts ofprecious metal except silver, except necklaces andclasps 148,478 .140,386
6204.31.20 Women ’sorgirls’suittypejackets andblazers, ofwool ...............94,283 .126,124
6115.11.00 Panty hose andtights, knitted orcrocheted ......................119,020 .123,987
2606.00.00 Aluminum oresandconcentrates .............................119,079 .120,945
2710.00.15 Motor fuelderived from bituminous minerals ......................18,431 .108,692
6108.22.903Women ’sorgirls’briefs andpanties ofmanmade fibers, notdisposable ....126,225 .105,523
0306.11.00 Rock lobster andother seacrawfish, cooked inshell, frozen ...........108,115 ..98,741
2818.20.00 Aluminum oxide, except artificial corundum ......................78,153 ..91,017
1707.11.20 Other sugar tobeused fortheproduction (other thandistillation)
ofpolyhydric alcohols ....................................19,048 ..89,533
6110.30.30 Sweaters, pullovers, andvests, knitted orcrocheted ofmanmade fibers ......58,337 ..88,848
6104.62.20 Women ’sorgirls’trousers, breeches andshorts, knitted orcrocheted, ofcotton 82,858 ..85,960
2709.00.10 Petroleum oilsandoilsfrom bituminous minerals ...................38,540 ..83,123
Total ofitems shown ...................................7,886,951 9,025,186
Total allcommodities .................................12,550,118 14,544,809
1Prior to1January 1995, reported under statistical annotations under HTS subheading 1701.11.01.
2Prior to1January 1995, reported under HTS items 6212.10.20.10/20/40.
3Prior to1January 1995, reported under HTS items 6108.22.00.20/30.
Note: Because ofrounding, figures maynotaddtototals given.
Source: USInternational Trade Commission/Compiled from official statistics oftheUSDepartment ofCommerce.WT/L/233
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TABLE 3
USTRADE WITH CBERA COUNTRIES, 1984-96
Share ofUS Share ofUS
Year USexports1exports to USimports2imports from UStrade balance
theworld theworld
Million dollars Percent Million dollars Percent Million dollars
1984 ........5,952.9 .......2.8.......8,649.2 .......2.7........-2,696.4
1988 ........7,421.8 .......2.4.......6,061.1 .......1.4........1,360.7
1992 .......10,901.7 .......2.6.......9,425.6 .......1.8........1,476.1
1994 .......12,822.0 .......2.7......11,200.3 .......1.7........1,621.7
1995 .......14,870.3 .......2.7......12,550.1 .......1.7........2,320.2
1996 .......15,374.7 .......2.6......14,544.8 .......1.8..........829.9
1Domestic exports, f.a.s. basis.
2Imports forconsumption, customs value.
Note: Forcomplete dataseries prior to1992, seeUSITC, Impact oftheCaribbean Basin Economic Recovery Acton
USIndustries andConsumers: TheFirst TenYears ofCBERA: Ninth Report, 1993,USITC publication 2813,
September 1994.
Source: USInternational Trade Commission/Compiled from official statistics oftheUSDepartment ofCommerce.WT/L/233
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TABLE 4
USIMPORTS FOR CONSUMPTION FROM CBERA COUNTRIES, BYDUTY TREATMENT, 1994-96
Item 1994 1995 1996
--------------1,000 dollars, customs value-----------
Total imports .................................11,200,280 ..12,550,118 ..14,544,809
Dutiable value1....................................3,730,777 ...3,911,365 ...4,568,359
Production sharing2................................1,347,019 ...1,671,731 ...1,878,840
CBERA reduced duty3................................31,938 .....37,385 .....43,373
Other dutiable ...................................2,351,820 ...2,202,248 ...2,646,326
Duty-free value4...................................7,469,503 ...8,638,753 ...9,976,450
MFN5......................................2,514,726 ...3,107,980 ...3,065,042
Production sharing6................................2,391,420 ...2,954,177 ...3,304,510
CBERA7......................................2,018,220 ...2,224,022 ...2,747,682
GSP8.......................................375,686 ....260,110 ....163,659
Other dutyfree9...................................169,451 .....92,464 ....695,557
---------------------Per centoftotal--------------------
Total imports .....................................100.0 ......100.0 ......100.0
Dutiable value1.......................................33.3 ......31.2 .......31.4
Production sharing2...................................12.0 ......13.3 .......12.9
CBERA reduced duty3..................................0.3 .......0.3 .......0.3
Other dutiable ......................................21.0 ......17.6 .......18.2
Duty-free value4......................................66.7 ......68.8 .......68.6
MFN5.........................................22.4 ......24.8 .......21.1
Production sharing6...................................21.3 ......23.5 .......22.7
CBERA7.........................................18.0 ......17.7 ......18.89
GSP8..........................................3.4 .......2.1 .......1.12
Other dutyfree9......................................1.5 .......0.7 .......4.8
1Dutiable value excludes theUScontent entering under HTS heading 9802.00.80 andsubheading 9802.00.60, and
misreported imports.
2Value ofCaribbean Basin-origin value added, under HTS heading 9802.00.80 andsubheading 9802.00.60.
3Value ofimports ofhandbags, luggage, flatgoods, work gloves, andleather apparel subject to20percentduty
reductions under theCBERA between 1992 and1996.
4Calculated astotalimports lessdutiable value.
5Value ofimports which have acol.1-general dutyrateoffree.
6Value ofnon-dutiable exported andreturned US-origin products orcomponents, under HTS heading 9802.00.80 and
subheading 9802.00.60.
7Reduced bythevalue ofMFN duty-free imports andineligible items thatwere misreported asentering under theCBERA
programme andthevalue ofreduced-duty items (handbags, luggage, flatgoods, work gloves, andleather wearing apparel) reported
separately above asdutiable.
8Reduced bythevalue ofMFN duty-free imports andineligible items thatwere misreported asentering under theGSP
programme.
9Calculated asaremainder, andrepresents imports entering freeofdutyunder special rateprovisions.
Note: Because ofrounding, figures maynotaddtothetotals shown.
Source USInternational Trade Commission/Compiled from official statistics oftheUSDepartment ofCommerce.