Caribbean Region: Review of Economic Growth and ... - USITC

Extent of Utilization of CBERA PreferencesThe share of U.S. imports from covered CBERA countries that entered under CBERA36preferences (original CBERA and CBTPA combined) rose considerably in the first fullyear after CBTPA went into effect in late 2000 (table 2.10). CBTPA expanded CBERA toinclude apparel and petroleum, petroleum products, and certain other products, causing theCBERA utilization rate to increase from 11.6 percent in 2000 to 25.1 percent in 2001. Asubstantial portion of U.S. imports from covered CBERA countries has always entered free37of duty under NTR (MFN) provisions (also shown in table 2.10). That share has generallyrisen as Trinidad and Tobago has increased its exports of natural gas and natural gasderivatives, several of which are imported into the United States free of duty under NTR38provisions. Of the 25 percent to 30 percent of total imports from the covered countries thatdoes not enter free of duty, over 95 percent consists of refined petroleum products fromcountries that are not CBTPA beneficiaries, mainly Aruba and the Netherlands Antilles.The share of U.S. imports entered under CBERA preferences varies greatly by countrydepending mainly on whether the country is a CBTPA beneficiary and on the product mixthe country exports to the United States (table 2.11). Haiti stands out with an 88.3 share ofimports under CBERA in 2007, based mainly on its exports of apparel under CBTPA. U.S.imports of apparel from the covered countries are overwhelmingly dominated by Haiti,which accounted for nearly 90 percent of such imports in 2007 (table 2.12). Jamaica andBelize account for an additional 9 percent. Total U.S. imports of apparel from Jamaica in2007 represented only 14 percent of the 2000 value, when such imports accounted for over46 percent of U.S. apparel imports from the covered countries.The share of U.S. imports of apparel entered under CBERA provisions has risen steadilyover the years during which CBTPA has been in effect (table 2.13). The share for Haiti roseto 93 percent in 2007 and the shares for both Jamaica and Belize have risen to around 98percent. The share entered under CBERA in 2000 was low because CBTPA went into effectin October 2000 and no imports were entered under CBTPA until December.Tourism and Financial Services as Important Region-WideSectorsThe tourism and financial services industries have a widespread and long-standing presencein the region. They represent well-established industries for some countries, and potentialindustries for others. Even for those countries with established services industries, theseservices sectors represent areas within which governments are attempting to diversify,adding innovative and nontraditional components to the tourism and financial servicessectors. Overviews of these industries are presented below.36The CBERA utilization rate.37This is nondiscriminatory tariff treatment, which is commonly and historically called “most-favorednation”(MFN) status and is referred to as Normal Trade Relations (NTR) status in the United States.38See the country profile in chap. 4 of this report for additional information on Trinidad and Tobago.2-20