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Securing non-reciprocal preferential market access to the US
The Caribbean Basin Initiative (CBI), initially launched in 1983 through the Caribbean Basin Economic Recovery Act (CBERA), was expanded in 2000 through the US-Caribbean Basin Trade Partnership Act (CBTPA). However, under US legislation the termination of the effect of CBTPA was scheduled 30 September 2008.
To operate legally under the World Trade Organisation (WTO), the CBERA and CBTPA require a waiver approved by all other WTO Members. The waiver on CBERA expired on 31 December 2005 and the request by the US for the continuation of the waiver is still not being agreed to by Paraguay. The US is therefore unilaterally implementing CBERA in the absence of the waiver, which also covers CBTPA procedures.
On 8 February 2008, Congressman Rangel introduced a Bill for the *extension* of the CBTPA and other US unilateral preferential trade arrangements, namely, the Andean Trade Preference Act (ATPA) and the Generalised System of Preferences (GSP). The proposed extension was to 30 September 2010 for all three arrangements. The ATPA was due to expire on 29 February 2008. The CBTPA expiration was scheduled 30 September 2008 and the GSP on 31 December 2008.
On 14 February 2008 however, the Committee on Ways on Means approved an extension for the Andean Trade Preferences Act (ATPA) only*; *and only until 31 December 2008, instead of 30 September 2010 as had been proposed by Congressman Rangel. It is understood that Congressman Rangel had agreed to drop from his Bill an extension and modification of the GSP and CBTPA, under pressure from Republican Members. An extension of the ATPA to 31 December 2008 was signed by President Bush on 29 February 2008. This benefits Bolivia, Colombia, Ecuador and Peru.
However, without the approval of an extension of the CBTPA by 30 September 2008, it was unclear whether beyond that date, the Region’s exports to the US would continue to benefit from the same preferential access by an administrative arrangement.
In April 2008 Congressman Rangel indicated/ /that he was not in a position to promise that an *expansion* would take place this year. In addition, he indicated that in this election year, there would be problems in advancing an * extended* CBTPA as the Republicans were seeking Democratic support for a Free Trade Agreement with Colombia, an issue with which many Democratic members had difficulty.
However, US President George Bush, during his March 2008 meeting with the Prime Ministers of The Bahamas, Barbados and Belize, gave reassurances that the CBTPA would be/ /extended.
On April 25 2008, U.S. House and Senate negotiators reached agreement on a new five-year Farm Bill after a final round of negotiations on spending cuts and approving tax cuts and new customs fees, to meet budget rules and win over Republicans in the Senate. As part of the bargaining, Congressman Rangel was able to win inclusion in the Farm Bill of a two-year extension of the CBTPA. To get the deal on the Farm Bill, concessions were made to Chairman Rangel on his own trade priorities. Attaching it to the Farm Bill was considered an easy way to fast-track the extension.
It should be noted that while Congressman Rangel was able to win inclusion in the Farm Bill for a two-year extension, there was no guarantee that the two-year extension of the CBTPA would be approved. President Bush, though supportive of the CBTPA extension was not in favor of the Farm Bill as it was disposed and was expected to veto the bill. Furthermore it was unclear whether there was sufficient bi-partisan support to secure the passing of the bill and override the effects of the President’s likely decision to veto.
However, the US House on May 7 and later, the US Senate on May 8, voted overwhelmingly to approve the five-year, $307 billion farm bill and the attached farm bill. The 81-to-15 Senate vote, like the 318-to-106 House vote attracted broad bipartisan support in excess of the two-thirds majority which was required to override the President’s veto. Following the January 2010 earthquake which devastated the Republic of Haiti, the U.S. Congress promptly sought to implement measures that would support Haiti’s economic recovery. To revitalize one of Haiti’s key industries, the apparel industry, Congress enacted the Haiti Economic Lift Program (HELP) Act in May 2010. This key Federal legislation not only secured preferences for Haiti by extending the Haitian Hemispheric Opportunity through Partnership Engagement Act (HOPE Act) but it also extended preferences for all of the beneficiaries of the Caribbean Basin Trade Partnership Act (CBTPA) until 30 September 2020. WTO Approves CBERA Waiver On March 24, 2009, the World Trade Organization (WTO) Council for Trade in Goods approved the long standing waiver request from the US on the Caribbean Basin Economic Recovery Act (CBERA). The approval of the waiver which will remain valid until 2014, provides the legal authorization for CARICOM to export goods covered under CBERA to the US duty-free. Free Trade Agreement with the US*
The Prime Minister of Trinidad and Tobago has expressed interest in the Region negotiating a free trade agreement with the United States, with the aim of safeguarding access to that market for specified products of interest to Trinidad and Tobago, including Methanol, Ammonia and Liquefied Natural Gas (LNG) and to improve the prospects of attracting US investment into CARICOM. It is expected that an impact assessment on Member States in the event of the negotiation of a free trade agreement with the United States will be conducted.
Further development on CARICOM-US trade negotiations has been deferred until after the completion of the negotiation of a Trade and Development Agreement with Canada.
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Negotiating Arenas 
