Caribbean Basin Enhancement Legislation (CRS Report for Congress)
| Release Date |
March 26, 1999 |
| Report Number |
RS20102 |
| Report Type |
Report |
| Authors |
Raymond J. Ahearn, Foreign Affairs, Defense, and Trade Division |
| Source Agency |
Congressional Research Service |
Summary:
Legislation has been introduced to provide Caribbean Basin countries similar tariff benefits
afforded
Mexico under the North American Free Trade Agreement (NAFTA). On the House side, Title I of
H.R. 984 ("Caribbean and Central American Relief and Economic Stabilization Act)
would provide Caribbean Basin countries with essentially the same tariff treatment that Mexico
receives under NAFTA. On the Senate side, so-called Caribbean Basin Initiative (CBI) enhancement
legislation has been included in S. 371 , a bill to provide relief to the hurricane-ravaged
countries of Central America. The Senate bill is more restrictive than the House bill in the scope
of tariff benefits offered, particularly for textile and apparel products. The Clinton Administration,
in testimony before the House Ways and Means Subcommittee on Trade on March 23, announced
its opposition to H.R. 984 . While supporting enhanced trade benefits for CBI countries,
the Administration unveiled its own proposal that is more similar to S. 371 . As in the
past, the outlook in the 106th Congress for passage of some sort of enhancement bill remains
uncertain. Efforts to help the region recover from hurricane damage may provide impetus for
passage. But the legislation still lacks a consensus approach in the private sector and in Congress.
This report will be updated.
