The Caribbean Basin Initiative: An Interim Assessment of the Trade Provision′s Impact

The interim performance of the six‐year‐old Caribbean Basin Initiative (CBI) has been mixed. Export performance has been especially strong in agribusiness, chemicals and high technology components; and success stories abound in other product areas as well. However,legislative exclusions and quotas on major high volume, competitive products such as textiles and shoes; inadequate local infrastructure,such as roads, ports and transportation carriers; poor knowledge of export opportunities; and the lack of an export“consciousness” among government and producers have impeded the ability of beneficiary countries to attain significant and far‐reaching benefits. At present, countries are begining to adjust to the CBI and remove, in part, the deficiencies cited. Additionally,revised legislation to broaden product coverage, liberalise access, and extend the time‐frame of the CBI is under consideration, and medium‐sized foreign firms are increasing their activity in the region in the areas of trading, licensing and investment.