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Getting the best of the Caribbean Basin Initiative (CBI)

Posted by CaribShout on January 6, 2010 at 8:03pm

Port of Miami From the American perspective, the Caribbean Basin Initiative (CBI) remains a vital element in US economic relations with Central America and the Caribbean. The Office of the United States Trade Representative says the CBI is intended to facilitate the economic development and export diversification of Caribbean Basin economies. But it has had another impact as well. The United States duty-free trade programme continues to provide significant benefits for American businessmen, according to the latest report on the Initiative which has just been submitted to Congress. The report by the Office of the US Trade Representative says that in conjunction with economic reform and trade liberalisation by beneficiary nations, "the trade benefits of CBI have helped countries and certain dependent territories in the region diversify their exports and have contributed to their economic growth". But, it notes, US export growth to the region has been a welcome benefit. American business making a dent For example, American exports to CBI beneficiary countries rose to $25 billion, more than 25% in 2008, and doubled over the decade up until then. "The United States duty-free trade programme continues to provide significant benefits for American businessmen" so said a US Trade representative report to Congress. That makes the region the 14th largest market for US exports ahead of economies such as Australia and Switzerland. By comparison, Caribbean Basin exports to the US reached $19.6 billion in 2008. Currently 18 countries receive CBI benefits, down from 24 when the programme was first launched. The Dominican Republic, Costa Rica and Honduras are among those that have since signed separate trade deals. Port of Spain is leading exporter Trinidad and Tobago is the leading CBI exporter to the United States, sending almost $2 billion in mostly petroleum and methanol products in 2008. That was close to a quarter percent increase, bettered by Jamaica, whose exports grew by a third, mainly on the strength of fuel grade ethanol exports. Ethanol fuel

Jamaica banking on biofuel exports to the US under the CBI The CBI programme is due to expire in September this year, and already some Caribbean nations have called for it to be extended and even to be made permanent. Jamaica views the programme as being crucial to its thrust to develop the island's local biofuels industry, through exports of ethanol made from local feedstock under the CBI arrangement. Available statistics suggest that between January and July of last year Jamaica exported 51 million gallons of ethanol to the United States. Source: BBC News
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Tags: basin, caribbean, caribshout, initiative, jamaica, trade, trinidad

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