The New Nation - Internet Edition

BUSINESS REPORT

This year marks the expiration of two important programmes that allow duty-free access to the US market for CARICOM and other developing countries, said American Chamber of Industry and Commerce.

One of the programmes is the Caribbean Basin Initiative (CBI) which was established in 1983 to promote economic growth and development by stimulating investment in export industries.

CBI allows preferential access on a unilateral basis to the US market.

CBI is the collective term given to the Caribbean Basin Economic Recovery Act (CBERA) and the Caribbean Basin Trade Partnership Act (CBTPA). These Acts allow duty-free access to a number of manufactured goods, including TT's fastest growing exports - fuel ethanol, methanol and petroleum products.

In fact, TT is the largest user of CBI within CARICOM. CBERA and CBTPA require a waiver approved by all other WTO members to operate legally under WTO rules. The waiver on CBERA expired December 31, 2005, and while a renewal was sought, Bangladesh, Brazil, China, India, Pakistan and Sri Lanka initially objected - Paraguay remains the only hold out. The CBERA (including CBTPA) will expire on September 30 2008 unless the US Congress passes new legislation to replace it.

AmCham understands that a bill has been introduced by House Ways and Means Committee chairman Charles B Rangel, to extend certain trade preferences programmes, including CBTPA. The bill proposes to extend CBI, GSP and the Andean Trade Preference Act to September 30, 2010.

Whilst this bill is in its preliminary stages we understand that it may have to overcome several challenges namely: US Presidential elections and Colombia FTA politics to name a couple.

It is important therefore that as a region we begin lobbying through the various channels open to us.

It is at this stage that we can make an impact on the programme. We have the opportunity now to work towards shaping a bill that will benefit CARICOM/ Caribbean nations - as most of the other recipients of the CBI are moving towards a free trade agreement with the US - namely Panama. We must work together to expand the programme to allow for services - financial and professional; expand the list of products eligible for duty-free access and make the preference programme for Haiti permanent.

It is also critical that TT take the lead in this regard and AmCham TT is willing to spearhead the effort to ensure the timely passage of this bill. We look forward to the collaboration of all stakeholders and would welcome everyone's input in this regard.

AmCham will be sending letters to Members of Congress from companies and business organisations benefitting from CBTPA. All corporations who are beneficiaries of the CBTPA can contact AmCham so that we fully represent your views.

We must all work together and do our part in lobbying our Government and CARICOM to get this Bill passed. CBTPA must be extended so that we can continue to diversify our economies and our manufacturers and the US can benefit from a predictable market.