Caribbean Basin Trade Partnership Act
Encyclopedia
The Caribbean Basin Trade Partnership Act (CBTPA) is a United States
legislative act
signed into law on May 18, 2000 by President Bill Clinton
as part of the Trade and Development Act of 2000. This latter act, which also included the Africa Growth and Opportunity Act of 2000 (AGOA), was intended to advance U.S. economic and security interests by strengthening American relationships with other regions of the world then viewed to be making significant strides in terms of economic development and political reform.
The 23 independent countries of the Caribbean basin
region together form the sixth largest export market for U.S. goods, totaling $19 billion and absorbing 2.7 percent of U.S. exports in 1999. However, the devastation of hurricanes Mitch
and Georges
in 1998 set the regional economy back. In addition, the U.S.'s signing of the NAFTA
with Mexico in 1994 had caused Caribbean basin countries to lose the preferential treatment they had previously enjoyed.
The CBTPA, an expansion of the 1983 Caribbean Basin Initiative
(CBI), sought to address those issues. In particular, the CBTPA extended preferential tariff
treatment to textile
and apparel products assembled from U.S. fabric that were previously excluded from the program. American policy makers hoped that this would encourage additional U.S. exports of cotton
and yarn
and U.S. investment in the region, thereby improving the global competitive position of the U.S. textile industry.
The CBTPA was also intended to encourage the diversification of CBI countries’ economies, viewed by American policymakers as a key step towards economic development that would decrease the region's dependence on aid and reduce illegal immigration into the United States as well as the trafficking of illegal drugs. American lawmakers also hoped that CBTPA would send a signal to the other countries of the Caribbean basin and elsewhere of American commitment to promoting trade-expanding policies.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
legislative act
Legislative act
A legislative act is a formal written enactment produced by a legislature or by a legislative process. It may be contrasted with a non-legislative act which is adopted by an executive or administrative body under the authority of a legislative act or for implementing a legislative act....
signed into law on May 18, 2000 by President Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
as part of the Trade and Development Act of 2000. This latter act, which also included the Africa Growth and Opportunity Act of 2000 (AGOA), was intended to advance U.S. economic and security interests by strengthening American relationships with other regions of the world then viewed to be making significant strides in terms of economic development and political reform.
The 23 independent countries of the Caribbean basin
Caribbean Basin
The Caribbean Basin is generally defined as the area running from Florida westward along the Gulf coast, then south along the Mexican coast through Central America and then eastward across the northern coast of South America. This region includes the islands of the archipelago of the West Indies...
region together form the sixth largest export market for U.S. goods, totaling $19 billion and absorbing 2.7 percent of U.S. exports in 1999. However, the devastation of hurricanes Mitch
Hurricane Mitch
Hurricane Mitch was the most powerful hurricane and the most destructive of the 1998 Atlantic hurricane season, with maximum sustained winds of 180 mph . The storm was the thirteenth tropical storm, ninth hurricane, and third major hurricane of the season. Along with Hurricane Georges, Mitch...
and Georges
Hurricane Georges
Hurricane Georges was a very destructive, powerful and long-lived Cape Verde-type Category 4 hurricane. Georges was the seventh tropical storm, fourth hurricane, and second major hurricane of the 1998 Atlantic hurricane season...
in 1998 set the regional economy back. In addition, the U.S.'s signing of the NAFTA
North American Free Trade Agreement
The North American Free Trade Agreement or NAFTA is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. It superseded the Canada – United States Free Trade Agreement...
with Mexico in 1994 had caused Caribbean basin countries to lose the preferential treatment they had previously enjoyed.
The CBTPA, an expansion of the 1983 Caribbean Basin Initiative
Caribbean Basin Initiative
The Caribbean Basin Initiative was a unilateral and temporary United States program initiated by the 1983 "Caribbean Basin Economic Recovery Act" . The CBI came into effect on January 1, 1984 and aimed to provide several tariff and trade benefits to many Central American and Caribbean countries....
(CBI), sought to address those issues. In particular, the CBTPA extended preferential tariff
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....
treatment to textile
Textile
A textile or cloth is a flexible woven material consisting of a network of natural or artificial fibres often referred to as thread or yarn. Yarn is produced by spinning raw fibres of wool, flax, cotton, or other material to produce long strands...
and apparel products assembled from U.S. fabric that were previously excluded from the program. American policy makers hoped that this would encourage additional U.S. exports of cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
and yarn
Yarn
Yarn is a long continuous length of interlocked fibres, suitable for use in the production of textiles, sewing, crocheting, knitting, weaving, embroidery and ropemaking. Thread is a type of yarn intended for sewing by hand or machine. Modern manufactured sewing threads may be finished with wax or...
and U.S. investment in the region, thereby improving the global competitive position of the U.S. textile industry.
The CBTPA was also intended to encourage the diversification of CBI countries’ economies, viewed by American policymakers as a key step towards economic development that would decrease the region's dependence on aid and reduce illegal immigration into the United States as well as the trafficking of illegal drugs. American lawmakers also hoped that CBTPA would send a signal to the other countries of the Caribbean basin and elsewhere of American commitment to promoting trade-expanding policies.
Source
This page adapted from the Caribbean Basin Initiative page, maintained of the United States Department of Commerce.External links
- CARICOM trade gets five year WTO Waiver for US market, 14 April 2009, Barbados Advocate newspaper