The Caribbean Basin Trade Partnership Act (CBTPA) is a law adopted by the U.S. Government in October 2000 to provide additional trade preferences for the 24 Caribbean countries. The Act expanded preferential treatment for apparel made in the Caribbean Basin by providing duty free and quota-free treatment of apparel made in the Caribbean Basin from U.S. fabrics formed from U.S. yarn and from certain knit apparel made from fabrics formed in the Caribbean Basin that incorporated U.S. yarns are used in forming the fabric. In addition, the Act provides NAFTA-equivalent tariff treatment for other specified items. The existing 24 countries of the Caribbean Basin Initiative were declared to be beneficiary countries under the Act.
Background and adoption
On October 2 2000, President Clinton signed the proclamation implementing the Caribbean Basin Trade Partnership Act. The proclamation declared the 24 existing countries of the Caribbean Basin Initiative (CBI) to be "beneficiary countries" for purposes of the enhanced trade preferences under the CBTPA. In addition, the proclamation modified the Harmonized Tariff Schedule to reflect the new trade preferences.
It also delegated the authority to make additional determinations regarding the compliance with customs-related procedures to the Office of the United States Trade Representative, to be published in Federal Register notices.
Summary of the enhanced CBTPA Preferences
The Act significantly expanded preferential treatment for apparel made in the Caribbean Basin region. It provides for duty free and quota-free treatment of apparel made in the Caribbean Basin from U.S. fabrics formed from U.S. yarns.
Duty free and quota-free treatment is also available for certain knit apparel made in beneficiary countries from fabrics formed in the Caribbean Basin region, provided U.S. yarns are used in forming the fabric. This "regional fabric" benefit for knit apparel is subject to an overall yearly limit, with a separate limit provided for T-shirts.
New duty/quota free treatment were also to be available for apparel made in the Caribbean Basin from fabrics determined to be in short supply in the United States, and for designated "hand-loomed, handmade, or folklore" articles.
In addition to the apparel preferences, the Act provides NAFTA-equivalent tariff treatment for certain items previously excluded from duty-free treatment under the CBI program (e.g., footwear, canned tuna, petroleum products, watches and watch parts).
Beneficiary country designation
The Act authorized the President to designate individual countries as being beneficiary countries in order to receive the enhanced trade benefits available under the Act.
The 24 existing beneficiaries of the Caribbean Basin Economic Recovery Act (CBERA) were potentially eligible to be declared beneficiary countries under the Act.
These countries and territories were:
Reauthorisation
In 2019, a bill was introduced to reauthorise the Act.