Caribbean Basin Initiative
Encyclopedia
The Caribbean Basin Initiative (CBI) was a unilateral and temporary United States
program initiated by the 1983 "Caribbean Basin Economic Recovery Act" (CBERA). The CBI came into effect on January 1, 1984 and aimed to provide several tariff and trade benefits to many Central America
n and Caribbean
countries. It arose in the context of a U.S. desire to respond with aid and trade to leftist movements that were active in some countries of the region, such as the guerrillas
in El Salvador
and the Sandinista government in Nicaragua
. Provisions in the CBERA prevented the U.,fd./fd/dfdsf/lf,letrlelrlerere;rerjl9iowS. from extending preferences to CBI countries that it judged to be under the influence of Communists or that had expropriated American property.
The "Caribbean Basin Economic Recovery Expansion Act" of 1990, known as "CBI II", made the CBI permanent. However, once the U.S. entered into the North American Free Trade Agreement
(NAFTA) in 1994 with Mexico it became easier for Mexico to export its products to the U.S. CBI countries had lost their advantage relative to Mexico, a major competitor in industries such as textiles and apparel, so they sought to increase their own preferences and achieve "NAFTA parity". Those efforts were not successful until the 2000 Caribbean Basin Trade Partnership Act
, which was broadened in 2002. Several exports from the region continue to receive preferential status in the U.S., however those preferences will likely be replaced by bilateral
free trade agreements, and possibly by the proposed Free Trade Area of the Americas
.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
program initiated by the 1983 "Caribbean Basin Economic Recovery Act" (CBERA). The CBI came into effect on January 1, 1984 and aimed to provide several tariff and trade benefits to many Central America
Central America
Central America is the central geographic region of the Americas. It is the southernmost, isthmian portion of the North American continent, which connects with South America on the southeast. When considered part of the unified continental model, it is considered a subcontinent...
n and Caribbean
Caribbean
The Caribbean is a crescent-shaped group of islands more than 2,000 miles long separating the Gulf of Mexico and the Caribbean Sea, to the west and south, from the Atlantic Ocean, to the east and north...
countries. It arose in the context of a U.S. desire to respond with aid and trade to leftist movements that were active in some countries of the region, such as the guerrillas
Guerrilla warfare
Guerrilla warfare is a form of irregular warfare and refers to conflicts in which a small group of combatants including, but not limited to, armed civilians use military tactics, such as ambushes, sabotage, raids, the element of surprise, and extraordinary mobility to harass a larger and...
in El Salvador
El Salvador
El Salvador or simply Salvador is the smallest and the most densely populated country in Central America. The country's capital city and largest city is San Salvador; Santa Ana and San Miguel are also important cultural and commercial centers in the country and in all of Central America...
and the Sandinista government in Nicaragua
Nicaragua
Nicaragua is the largest country in the Central American American isthmus, bordered by Honduras to the north and Costa Rica to the south. The country is situated between 11 and 14 degrees north of the Equator in the Northern Hemisphere, which places it entirely within the tropics. The Pacific Ocean...
. Provisions in the CBERA prevented the U.,fd./fd/dfdsf/lf,letrlelrlerere;rerjl9iowS. from extending preferences to CBI countries that it judged to be under the influence of Communists or that had expropriated American property.
The "Caribbean Basin Economic Recovery Expansion Act" of 1990, known as "CBI II", made the CBI permanent. However, once the U.S. entered into the North American Free Trade Agreement
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...
(NAFTA) in 1994 with Mexico it became easier for Mexico to export its products to the U.S. CBI countries had lost their advantage relative to Mexico, a major competitor in industries such as textiles and apparel, so they sought to increase their own preferences and achieve "NAFTA parity". Those efforts were not successful until the 2000 Caribbean Basin Trade Partnership Act
Caribbean Basin Trade Partnership Act
The Caribbean Basin Trade Partnership Act 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 , was intended to advance U.S...
, which was broadened in 2002. Several exports from the region continue to receive preferential status in the U.S., however those preferences will likely be replaced by bilateral
Bilateralism
Bilateralism consists of the political, economic, or cultural relations between two sovereign states. For example, free trade agreements signed by two states are examples of bilateral treaties. It is in contrast to unilateralism or multilateralism, which refers to the conduct of diplomacy by a...
free trade agreements, and possibly by the proposed Free Trade Area of the Americas
Free Trade Area of the Americas
The Free Trade Area of the Americas , , ) was a proposed agreement to eliminate or reduce the trade barriers among all countries in the Americas but Cuba. In the last round of negotiations, trade ministers from 34 countries met in Miami, United States, in November 2003 to discuss the proposal...
.
Further information
- Caribbean Basin Interim Trade Program: CBI/NAFTA Parity. CRS Issue Brief for Congress. Updated January 12, 2005. http://fpc.state.gov/documents/organization/47156.pdf
- Office of the United States Trade Representative, CBI page http://www.ustr.gov/Trade_Development/Preference_Programs/CBI/Section_Index.html
- U.S. Department of Commerce, CBI page http://www.mac.doc.gov/CBI/webmain/intro.htm
- U.S. Department of Treasury, CBI page http://www.itds.treas.gov/cbi.html
- U.S. Labor Education in the Americas Project, CBI page http://www.usleap.org/trade/CTPA10-03.html
- A contextual macro-analysis of media in the Caribbean in the 1990s
- The Caribbean Basin Initiative: An Examination of Structural Dependency, Good Neighbor Relations, and American Investment. Michael Cornell Dypski. Journal of Transnational Law and Policy. Volume 12, Issue 1, pages 95-136. http://www.law.fsu.edu/journals/transnational/vol12_1/dypski.pdf
- Overview of CBI from AllRefer.com http://reference.allrefer.com/country-guide-study/caribbean-islands/caribbean-islands247.html
- El Salvador Trade & Investment http://www.elsalvadortrade.com.sv/tratados/i_html/cbi.html
- Costa Rican Ministry of Commerce http://www.comex.go.cr/acuerdos/Otros/CBI/default.htm (in Spanish)