WORLD TRADE WT/L/104
24November 1995
ORGANIZATION(95-3674)
CARIBBEAN BASIN ECONOMIC RECOVERY ACT
Renewal ofWaiver
Decision of15November 19951
Taking noteoftherequest oftheGovernment oftheUnited States forarenewal ofthewaiver
from itsobligations under paragraph 1ofArticle IoftheGeneral Agreement which wasgranted by
theCONTRACTING PARTIES oftheGATT 1947 on15February 1985 fortheperiod from
1January 1984 until30September 1995, forprovision ofduty-free treatment forimports ofeligible
products originating inbeneficiary Caribbean countries andterritories asprovided forintheCaribbean
Basin Economic Recovery Act(hereinafter referred toas"CBERA");
Bearing inmindthe1979Decision onDifferential andMore Favourable Treatment, Reciprocity
andFuller Participation ofDeveloping Countries andthe1994 Decision onMeasures inFavour of
Least-Developed Countries;
Considering theexceptional situation ofthedeveloping countries andterritories oftheCaribbean
Basin, andthestated objective ofCBERA toassist thetradeandeconomic development ofbeneficiary
developing countries andterritories situated intheCaribbean Basin byencouraging theexpansion of
productive capacity inresponse tomore liberal access andtonewtrading opportunities forCaribbean
countries andterritories;
Considering alsothattheduty-free treatment provided under CBERA isdesigned topromote
theexpansion oftrade andeconomic development ofbeneficiaries inamanner consistent withthe
objectives oftheGATT 1994 andwiththetrade, financial anddevelopment needs ofthebeneficiary
countries andterritories, andnottoraisebarriers ortocreate difficulties fortrade ofother Members;
Considering,moreover,thattheduty-freetreatmentprovidedunderCBERAshouldnotprejudice
theinterests ofother Members notbenefitting from suchtreatment, andthatitisexpected thatthe
extension ofsuchduty-free treatment willnotcause asignificant diversion ofUnited States imports
ofproducts eligible under CBERA originating inMembers whoarenotbeneficiary countries;
Having regard totheassurances thattheUnited States Government doesnotenvisage anyaction
inpursuance ofCBERA which might cause adverse effects onthesugar trade ofMembers whoare
notbeneficiary countries;
./.
1Adopted inaccordance withtheProcedures onWTO Decision-Making under Articles IXandXIIoftheWTO Agreement
agreed bytheGeneral Council (WT/L/93).WT/L/104
Page2
Consideringthattheduty-freetreatmentprovidedunderCBERAbytheUnitedStatesGovernment
shallnotconstitute animpediment tothereduction orelimination oftariffs andother restrictions to
trade onamost-favoured-nation basis;
Considering ,furthermore, thattheduty-free treatment provided under CBERA bythe
United States Government shallnotadversely affect themaintenance, operation andimprovement of
theUnited States 'Generalized System ofPreferences;
Noting ,furthermore, theassurances given bytheUnited States Government thatitwill,upon
request, promptly enter intoconsultations withanyinterested Member withrespect toanydifficulty
ormatter thatmayariseasaresult oftheimplementation ofthetrade-related provisions ofCBERA;
Having regard totheGuiding Principles tobefollowed inconsidering applications forwaivers
adoptedon1November1956,theUnderstandinginRespectofWaiversofObligationsundertheGeneral
Agreement onTariffs andTrade 1994, andparagraphs 3and4ofArticle IXoftheMarrakesh Agreement
Establishing theWorld Trade Organization (hereinafter "WTO Agreement");
Members,actingpursuanttotheprovisionsofparagraph3ofArticleIXoftheWTOAgreement,
Decide that:
1. Subject totheterms andconditions setouthereunder, theprovisions ofparagraph 1ofArticle I
oftheGATT 1994 shallbewaived until31December 2005, totheextent necessary topermit the
United States Government toprovide duty-free treatment toeligible products oftheCaribbean Basin
countries asauthorized bytheprovisions ofCBERA asamended, uptothedateofthisDecision, without
being required toextend thesame duty-free treatment tolikeproducts ofanyother Member.
2. Suchduty-free treatment shallbedesigned nottoraisebarriers orcreate undue difficulties for
thetrade ofother Members. ThisDecision innowayaffects theobligation oftheGovernment ofthe
United States toadminister itstariff ratequotas applied tosugar imports inamanner consistent with
Article XIIIoftheGATT 1994.
3. TheGovernment oftheUnited States willsubmit totheGeneral Council anannual report on
theimplementation ofthetrade-related provisions oftheCBERA withaviewtofacilitating theannual
reviewprovidedforinparagraph4ofArticleIXoftheWTOAgreement.TheUnitedStatesGovernment
shallpromptlynotifytheGeneralCouncilofanytrade-relatedmeasuretakenunderCBERA,inparticular,
anychanges inthedesignation ofbeneficiary countries, aswellasanymodification being considered
inthelistofeligible products andtheduty-free treatment thereof, andshallfurnish them withallthe
information theymaydeem appropriate relating tosuchaction. TheUnited States Government shall
consult withregard toanymodification being considered inthelistofeligible products.
4. TheUnited States Government will,uponrequest, promptly enter intoconsultations withany
interestedMemberwithrespecttoanydifficultyormatterthatmayariseasaresultoftheimplementation
ofthetrade-related provisions ofCBERA; where aMember considers thatanybenefit accruing toit
under theGATT 1994 maybeorisbeing impaired unduly asaresult ofsuchimplementation, such
consultation shallexamine thepossibility ofaction forasatisfactory adjustment ofthematter. This
Decision doesnotaffect Members 'rights assetforthintheUnderstanding inRespect ofWaivers of
Obligations under theGATT 1994.