Fourteenth Report to Congress on the Operation of the Caribbean Basin Economic Recovery Act (2021)
Caribbean Basin Initiative (CBI)
The trade programs known collectively as the Caribbean Basin Initiative (CBI) remain important elements of U.S. economic relations with our neighbors in the Caribbean. The CBI is intended to facilitate the development of stable Caribbean Basin economies by providing beneficiary countries with duty-free access to the U.S. market for most goods.
The CBI was launched in 1983 through the Caribbean Basin Economic Recovery Act (CBERA) and expanded in 2000 by the U.S.-Caribbean Basin Trade Partnership Act (CBTPA) and again by the in the Trade Act of 2002. CBERA was implemented on January 1, 1984 and has no set expiration date. The CBTPA is scheduled to expire on September 30, 2030.
Additional benefits have been created for Haiti by amending CBERA to include the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006 (HOPE), the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II), and the Haiti Economic Lift Program of 2010 (HELP). HOPE established special new rules of origin that make Haiti eligible for new trade benefits for apparel imports, and that enhance sourcing flexibility for apparel producers in Haiti. HOPE II modified the existing trade preference programs under HOPE, and HELP provided duty-free treatment for additional textile and apparel products from Haiti. These preferences are scheduled to expire on September 30, 2025.
On a biennial basis, the United States Trade Representative (USTR) is required to submit a report to Congress regarding the results of the general review of CBI beneficiary countries and their performance under the CBI eligibility criteria. This Report provides an important opportunity to evaluate the effects of these expansions of CBI trade preferences. The latest CBI Report is available on the USTR website. On an annual basis, USTR is required to submit a report to Congress regarding the implementation of HOPE II. The latest HOPE II Report is available on the USTR website.
There are 17 CBERA beneficiary countries:
- Antigua and Barbuda
- Aruba
- The Bahamas
- Barbados
- Belize
- British Virgin Islands
- Curacao
- Dominica
- Grenada
- Guyana
- Haiti
- Jamaica
- Montserrat
- St. Kitts and Nevis
- St. Lucia
- St. Vincent and the Grenadines
- Trinidad and Tobago
Eight of these 17 are also beneficiaries under CBTPA:
- Barbados
- Belize
- Curacao
- Guyana
- Haiti
- Jamaica
- St. Lucia
- Trinidad and Tobago
CAFTA-DR Trade & Investment Summary
U.S. goods and services trade with CAFTA-DR totaled an estimated $108.5 billion in 2022. Exports were $58.3 billion; imports were $50.2 billion. The U.S. goods and services trade surplus with CAFTA-DR was $8.1 billion in 2022.
U.S. goods exports to CAFTA-DR in 2022 were $48.3 billion, up 24.3 percent ($9.4 billion) from 2021 and up 62 percent from 2012. U.S. goods imports from CAFTA-DR totaled $35.6 billion in 2022, up 19.4 percent ($5.8 billion) from 2021, and up 15 percent from 2012. U.S. exports to CAFTA-DR account for 2.3 percent of overall U.S. exports in 2022. The U.S. goods trade surplus with CAFTA-DR was $12.7 billion in 2022, a 40.8 percent increase ($3.7 billion) over 2021.
U.S. exports of services to CAFTA-DR were an estimated $10.0 billion in 2022, 11.4 percent ($1.0 billion) more than 2021, and 45 percent greater than 2012 levels. U.S. imports of services from CAFTA-DR were an estimated $14.6 billion in 2022, 23.8 percent ($2.8 billion) more than 2021, and 62 percent greater than 2012 levels. The United States has a services trade deficit of an estimated $4.6 billion with CAFTA-DR in 2022, up 63.6 percent from 2021.
U.S. foreign direct investment (FDI) in CAFTA-DR (stock) was $8.5 billion in 2022, a 10.6 percent increase from 2021.
