UNITED STATES – CARIBBEAN BASIN ECONOMIC RECOVERY ACT
WAIVER
Decision
of 23 July 2025[1]
The General
Council,
Conducting the function of the Ministerial
Conference in the interval between meetings pursuant to paragraph 2 of
Article IV of the WTO Agreement;
Having regard to paragraphs 1, 3 and 4 of
Article IX of the Marrakesh Agreement Establishing the World Trade
Organization (the "WTO Agreement"), the Guiding Principles to be
followed in considering applications for waivers adopted on 1 November 1956
(BISD 5S/25), and the Understanding in Respect to Waivers of Obligations
under the General Agreement on Tariffs and Trade 1994 (the
"Understanding");
Taking note of the request of the United
States, pursuant to paragraph 3 of Article IX of the WTO Agreement,
to grant a new waiver under paragraph 1 of Article I of the General
Agreement on Tariffs and Trade 1994 (GATT 1994) and paragraphs 1 and
2 of Article XIII of the GATT 1994 to permit the United States to
provide duty-free treatment to eligible products originating in beneficiary
Central American and Caribbean countries and territories ("beneficiary
countries") designated pursuant to the provisions of the Caribbean Basin
Economic Recovery Act of 1983, as amended by the Caribbean Basin Economic
Recovery Expansion Act of 1990 (CBERA), by granting a waiver through
30 September 2030 to the extent necessary for the United States to
provide preferential tariff treatment to eligible products originating in
beneficiary countries designated pursuant to the provisions of the CBERA, as
amended by the United States-Caribbean Basin Trade Partnership Act ("CBERA
as amended"), and reflecting the expiration of the Haitian Hemispheric
Opportunity through Partnership Encouragement Act of 2006, the Haitian
Hemispheric Opportunity through Partnership Encouragement Act of 2008, and the
Haitian Economic Lift Program Act of 2010 ("CBERA as amended");
Bearing in mind the Ministerial Decision on
Measures in Favour of Least‑Developed Countries, adopted in Marrakesh on
15 April 1994;
Bearing in mind also the 1979 Decision on
Differential and More Favourable Treatment, Reciprocity and Fuller
Participation of Developing Countries and the 1994 Decision on Measures in
Favour of Least‑Developed Countries;
Bearing in mind also that the CONTRACTING
PARTIES of the GATT 1947 granted the United States a waiver of
obligations under paragraph 1 of Article I on 15 February 1985[2],
for the period from 1 January 1984 through
30 September 1995, and that Members extended the waiver on
15 November 1995[3]
in respect of paragraph 1 of Article I of the GATT 1994 through
30 September 2005, on 29 May 2009[4]
through 31 December 2014, and that Members extended the waiver in
respect of paragraph 1 of Article I of the GATT 1994 and
expanded the waiver to cover paragraphs 1 and 2 of Article XIII of
the GATT 1994 on 5 May 2015 through 31 December 2019,
to the extent necessary for the United States to provide duty‑free treatment
for imports of eligible products originating in beneficiary countries
designated pursuant to the provisions of the CBERA, and that Members extended
the waiver in respect of paragraphs 1 and 2 of Article XIII of the
GATT 1994 on 17 October 2019 through 30 September 2025,
to the extent necessary for the United States to provide duty‑free treatment
for imports of eligible products originating in beneficiary countries
designated pursuant to the provisions of the CBERA;
Considering that the United States‑Caribbean
Basin Trade Partnership Act (CBTPA) expands the preferences the United States
extends under the CBERA;
Considering further the exceptional
situation of the CBERA and CBTPA beneficiary countries, and the stated
objective of the CBERA as amended to assist the trade and economic development
and recovery of Caribbean Basin countries by encouraging the expansion of productive
capacity in those countries in response to more liberal access and to new
trading opportunities;
Considering further that the preferential
treatment provided for under the CBERA as amended is designed to promote the
expansion of trade and economic development of beneficiary countries in a
manner consistent with the objectives expressed in paragraphs 1, 2, and 3
of the Preamble to the WTO Agreement;
Considering further that the preferential
treatment provided under the CBERA as amended will not alter benefits provided
under the US Generalized System of Preferences to other developing
countries;
Considering, moreover, that the duty‑free
treatment provided under CBERA should not prejudice the interests of other
Members not benefiting from such treatment, and that it is expected that the
extension of such duty‑free treatment will not cause a significant diversion of
United States imports of products eligible under CBERA originating in Members
who are not beneficiary countries;
Considering that the duty‑free treatment
provided under CBERA by the United States Government shall not constitute an
impediment to the reduction or elimination of tariffs and other restrictions to
trade on a most‑favoured‑nation basis;
Noting the assurances given by the
United States that it will promptly enter into consultations, on request, with
any interested Member with respect to any difficulty or matter that may arise
as a result of the preferential treatment provided under the CBERA as amended;
Decides, in view of these exceptional
circumstances, as follows:
1. Subject
to the terms and conditions set out hereunder, paragraph 1 of
Article I and paragraphs 1 and 2 of Article XIII of the
GATT 1994 shall be waived through 30 September 2030, to the
extent necessary to permit the United States to provide preferential tariff
treatment to eligible products originating in beneficiary countries designated
pursuant to the provisions of the CBERA as amended.
2. The
United States shall submit to the General Council an annual report on the
implementation of the trade‑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. The United States shall promptly
notify the General Council of any trade‑related measure taken under CBERA, in
particular, any changes in the designation of beneficiary countries, as well as
any modification being considered in the list of eligible products and the duty‑free
treatment thereof, and shall furnish it with all the information it may deem
appropriate relating to such action. The United States shall consult with
regard to any modification being considered in the list of eligible products.
3. Such
duty‑free treatment shall be designed to facilitate and promote the trade of
beneficiary countries and not to raise barriers to or create undue difficulties
for the trade of any other Members.
4. The
United States shall promptly enter into consultations, on request, with any
interested Member with respect to any difficulty or matter that may arise as a
result of the preferential treatment provided under the CBERA as amended. If a
Member considers that any benefit accruing to it under the GATT 1994 may
be or is being impaired unduly as a result of such implementation, such
consultation shall examine the possibility of action for a satisfactory
resolution of the matter.
5. This
Decision does not affect Members' rights as set forth in the Understanding in
Respect of Waivers of Obligations under the GATT 1994.
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[1] Adopted in accordance with the Decision‑Making Procedures under
Article IX of the WTO Agreement agreed by the General Council in
November 1995 (_WT/L/93).