USTR / Caribbean Basin Initiative - Request for Comments

The U.S. Trade Representative has to submit a report to Congress regarding the operation of the Caribbean Basin Initiative (CBI) on or before December 31, 2023.

The deadline for the submission of written comments is 11:59 EDT on August 18, 2023.

The Trade Policy Staff Committee (TPSC) is seeking comments on various aspects of the Caribbean Basin Initiative (CBI) program's operation. This includes evaluating the performance of countries benefiting from the Caribbean Basin Economic Recovery Act (CBERA) and the Caribbean Basin Trade Partnership Act (CBTPA) based on specific criteria outlined in the relevant sections of the CBERA. The TPSC welcomes feedback on any aspect of the program's operation.

The TPSC is particularly interested in assessing the CBI's impact on trade and investment between the United States and the CBI beneficiary countries, as well as its contribution to advancing U.S. trade policy goals. The committee aims to analyze the volume, composition, and outcomes of trade and investment resulting from the program.

To determine the eligibility of CBI beneficiary countries, certain criteria must be met. These criteria fall into two categories: "mandatory" criteria and "discretionary" factors.

The "mandatory" criteria, outlined in section 212(b) of the CBERA, include:

1. Prohibition of designating Communist countries as CBI beneficiaries.
2. Resolution of expropriation or nationalization issues involving U.S. citizens' property.
3. Enforcement of arbitral awards in favor of U.S. citizens or corporations owned by U.S. citizens.
4. Avoidance of preferential treatment to developed countries other than the United States that would negatively impact U.S. commerce.
5. Prevention of unauthorized broadcasting of copyrighted materials belonging to U.S. copyright owners.
6. Being a signatory to a treaty or agreement regarding the extradition of U.S. citizens.
7. Provision of internationally recognized worker rights to workers, including those in designated zones of the country.

The "discretionary" factors, as specified in section 212(c) of the CBERA, are considered by the President when designating a country as a CBI beneficiary. These factors include:

1. Expression of a country's desire to be designated as a CBI beneficiary.
2. Economic conditions and living standards within the country.
3. Assurance of equitable and reasonable access to the country's markets and basic commodity resources.
4. Adherence to international trade rules and agreements.
5. Avoidance of trade practices that distort international trade, such as export subsidies and local content requirements.
6. Contribution to the revitalization of the region through trade policies with other beneficiary countries.
7. Implementation of self-help measures to promote economic development.
8. Provision of internationally recognized worker rights.
9. Adequate protection of intellectual property rights under national law.
10. Prohibition of broadcasting U.S. copyrighted materials without consent.
11. Cooperation with the United States in administering CBI preferences.

For countries and dependent territories seeking enhanced preferences under the CBTPA, section 213(b)(5)(B) of the CBERA outlines additional criteria, including:

1. Demonstration of commitment to fulfill obligations under the World Trade Organization and participation in negotiations for free trade agreements.
2. Protection of intellectual property rights consistent with or exceeding the standards of the Agreement on Trade-Related Aspects of Intellectual Property Rights.
3. Provision of internationally recognized worker rights.
4. Implementation of commitments to eliminate the worst forms of child labor.
5. Compliance with U.S. counter-narcotics certification criteria.
6. Efforts to become a party to and implement the Inter-American Convention Against Corruption.
7. Transparent, nondiscriminatory, and competitive procedures in government procurement, along with contributions to international efforts for transparency in government procurement.

The TPSC invites comments from stakeholders on these criteria and any other aspect of the CBI program's operation.

[88 FR 46360]