The Significance of the Extension of the Caribbean Basin Economic Recovery Act (CBERA) for Trinidad and Tobago

On October 10, 2020, the U.S. President Donald Trump signed legislation extending the benefits of the Caribbean Basin Economic Recovery Act (CBERA) until September 30, 2030. This extension is a pivotal development for Trinidad and Tobago, underscoring the country’s vital trade relationship with the United States—a relationship that is central to its economic recovery and growth strategy.

Understanding CBERA and Its Impact

Enacted on January 1, 1984, CBERA was designed to promote economic stability among beneficiary countries in the Caribbean Basin. It provides duty-free access to the U.S. market for most goods produced in these countries, fostering export growth, attracting investment, and supporting regional development. Trinidad and Tobago has been a beneficiary since the inception of CBERA, benefiting from duty-free access for selected commodities, which has significantly boosted its exports to the U.S.

The Importance of the CBERA Extension

The extension of CBERA’s preferential duties—initially set to expire on September 30, 2020—was achieved through active lobbying efforts by the Government of Trinidad and Tobago, in collaboration with CARICOM and key U.S. stakeholders. Notably, Prime Minister Dr. Keith Rowley led a delegation to Washington D.C., engaging with Congressional leaders. The persistent diplomatic efforts of Trinidad and Tobago’s ambassador, regional ambassadors, and strategic support from lobbying firms like Group DC were instrumental in securing bipartisan support for the extension.

This renewal ensures the continued duty-free access for Trinidad and Tobago’s exports to the U.S., which is crucial for the country’s economic recovery and diversification efforts.

Trade Relations and Economic Impact

The U.S. remains Trinidad and Tobago’s leading trading partner, with over 36% of the nation’s total exports and 51% of non-energy exports going to the U.S. in 2019. The country’s exports to the U.S. totaled approximately US$551.8 million in 2018—an increase of 13.1% over the previous year—with key exports including:

Energy Products:**
Methanol (US$449 million)
Petroleum and related products (US$55.4 million)
Liquefied Natural Gas (LNG), ammonia, urea, and methanol (totaling around TTD$8.6 billion)

Non-Energy Products:**
Rum, aerated beverages, sugar confectionery, sauces, and biscuits (approximately TTD$55 million)

More than 200 firms benefit from duty-free exports, generating significant foreign exchange earnings and employment. The continuation of CBERA ensures that these firms retain their competitive edge, vital for the country’s economic recovery, especially as Trinidad and Tobago seeks to diversify its economy beyond energy.

Strategic Importance for Economic Recovery

The extension of CBERA is a cornerstone of Trinidad and Tobago’s strategy to reset and revitalize its economy. By maintaining duty-free access, the country can sustain its export-driven growth, attract foreign investment, and promote innovation across sectors. The ongoing trade relationship with the U.S. not only generates foreign exchange but also creates jobs and supports local industries—key objectives in the nation’s broader economic recovery plan.

In conclusion, the extension of CBERA until 2030 is a significant milestone, reinforcing Trinidad and Tobago’s role as a vital trading partner with the U.S. and providing a strong foundation for future economic resilience and growth. Continued engagement and strategic utilization of CBERA benefits will remain essential as the country navigates its recovery and diversification journey.

Explore Our Expert Articles & Reports

Our curated collection of articles and reports offers deep, strategic insights into the dynamic regional landscape of the Caribbean, South America, and the broader Americas. Designed for policymakers, entrepreneurs, investors, and community leaders, these resources illuminate emerging opportunities, highlight strategic developments, and showcase best practices. By leveraging the power of the Caribbean Basin Initiative (CBI) and related regional programs, stakeholders can effectively navigate the evolving economic environment and unlock sustainable growth.

Understanding the Caribbean Basin Initiative (CBI):

This comprehensive overview traces the origins and evolution of the CBI—an ambitious framework established to promote economic integration, trade liberalization, and sustainable development across the Caribbean and South American regions. It details how the initiative has expanded over time, broadening its scope to include tariff reductions, preferential trade agreements, and targeted investment incentives.

Learn how the CBI acts as a catalyst for regional prosperity by opening new markets for U.S. companies, encouraging local entrepreneurship, and fostering regional value chains. Policymakers and business leaders can discover how to effectively leverage CBI provisions to promote sustainable growth, enhance regional competitiveness, and reduce barriers to trade and investment.

Key Highlights:

• The historical background and policy evolution of the CBI.
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Regional Trade & Investment Opportunities:

Stay ahead of market trends with detailed analyses of high-growth sectors, emerging industries, and investment hotspots within the Caribbean and South America. This report explores how the CBI facilitates cross-border trade by reducing tariffs, streamlining customs procedures, and fostering regional value chains—making regional markets more accessible and attractive.

Discover how to identify high-potential markets, navigate complex regulatory environments, and develop strategies to attract foreign direct investment (FDI). The resource offers a strategic roadmap for stakeholders seeking to expand their footprint, diversify their portfolios, and capitalize on regional economic transformation.

Key Highlights:

• Sector analysis and growth forecasts for tourism, agriculture, manufacturing, and technology.
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• Success stories of regional diversification, export expansion, and market entry.

Cultural Exchange & Tourism Development:

Explore how cultural initiatives and tourism promotion serve as powerful engines for regional branding and economic growth. This report showcases successful campaigns, festivals, arts initiatives, and heritage projects that celebrate diversity, foster mutual understanding, and attract international visitors.

Understand the vital role of cultural diplomacy in strengthening regional ties, boosting tourism, and creating jobs. Learn best practices for designing festivals, heritage sites, and tourism strategies that showcase regional identities while appealing to global audiences—driving economic development and fostering cross-cultural understanding.

Key Highlights:

• Case studies of flagship cultural festivals and tourism campaigns.
• Strategies for leveraging cultural assets for sustainable economic growth.
• The impact of cultural diplomacy on international relations and regional integration.

Policy Updates & Legal Frameworks:

Stay informed with the latest policy developments, trade agreements, and legal frameworks that shape cross-border commerce and cultural collaborations. This section provides updates on new trade treaties, tariff policies, customs regulations, and regional cooperation agreements.

Understanding these policies allows stakeholders to navigate complex legal environments with confidence, maximize benefits, ensure compliance, and avoid potential pitfalls. This knowledge is essential for optimizing trade flows, attracting investment, and fostering effective cultural exchanges.

Key Highlights:

• Recent policy reforms and updates on trade agreements.
• Best practices for regulatory compliance in cross-border trade and cultural projects.
• Guidance on dispute resolution and legal risk mitigation.

Unlocking Regional Potential

Empowering stakeholders with up-to-date knowledge and strategic insights is key to unlocking the full potential of the Caribbean and South American regions. Our articles and reports are continually updated to reflect the latest developments, ensuring you have the best information at your fingertips.

Dive deep into these resources to understand how strategic engagement with the CBI and regional initiatives can transform opportunities into tangible success stories—driving economic growth, fostering cultural understanding, and building resilient, interconnected communities.