The Caribbean Basin Trade Partnership Act (CBTPA) is a United States legislative act signed into law on May 18, 2000 by President Bill Clinton as part of the Trade and Development Act of 2000. This latter act, which also included the Africa Growth and Opportunity Act of 2000 (AGOA), was intended to advance U.S. economic and security interests by strengthening American relationships with other regions of the world then viewed to be making significant strides in terms of economic development and political reform. The Act sought to expand two-way trade and create incentives for the countries of the Caribbean basin and the countries of sub-Saharan Africa to continue ot reform their economies and participate more fully in the benefits of the global economy.

The CBTPA was intended to strengthen American ties with its Caribbean basin trading partners. The 23 independent countries of the Caribbean basin region together form the sixth largest export market for U.S. goods, totaling $19 billion and absorbing 2.7 percent of U.S. exports in 1999. However, the devastation of hurricanes Mitch and Georges in 1998 set the regional economy back. The CBTPA sought to expand previous CBI programs, with an intent to repair the damage caused by the hurricanes and to promote long-term growth, by extending preferential tariff treatment to textile and apparel products assembled from U.S. fabric that were previously excluded from the program. American policy makers hoped that this would encourage additional U.S. exports of cotton and yarn and U.S. investment in the region, thereby improving the global competitive position of the U.S. textile industry.

The CBTPA was intended to encourage diversification of CBI countries’ economies, this being viewed by American policymakers as an important component for economic development that decreases dependence on aid and reduces illegal immigration into the United States as well as the trafficking of illegal drugs. American lawmakers also hoped that CBTPA would send a signal to the other countries of the Caribbean basin and elsewhere of American committment to promoting trade-expanding policies.

Source

This page adapted from the Caribbean Basin Initiative page, maintained of the United States Department of Commerce.