CBI TRADE: Trinidad major source of CBI exports, Jamaica loses third spot

Jamaica, meantime, fell in the CBI rankings due to a decline in ethanol and apparel trade.

The US imported US$2.2 billion worth of goods under CBI tariff preferences from Trinidad in 2010, an increase of 43.8 per cent from 2009, said the USTR's ninth report to Congress on the operations of the Caribbean Basin Economic Recovery Act 2011.

"Imports under CBI tariff preferences from Trinidad and Tobago are dominated by petroleum and methanol and 75 per cent of imports of these two goods entered under CBI provisions in 2010," said the report.

"US imports of petroleum under CBI tariff preferences increased in value in 2010 because of both higher volume and higher prices. US imports of methanol increased in value mainly because of higher prices."

Haiti, meantime, became the second leading source of US imports in 2009 after Costa Rica left CBI.

Apparel accounts for over 90 per cent of US imports from Haiti.

The report noted that the January 2010 earthquake in Haiti slowed the growth of imports of apparel under preferential tariffs to 0.7 per cent in 2010, but such imports surged 46 per cent in the January-August 2011.

Since Costa Rica left the CBI in 2009, Haiti has become the source of virtually all imports of apparel from CBI countries.

The Bahamas replaced Jamaica as the third leading source of US imports as fuel ethanol from Jamaica plummeted and apparel declined.

Major US source of fuel

"Jamaica had been the major US source of fuel ethanol in past years, but market conditions in 2009 and 2010 radically changed the profitability of fuel ethanol production in Jamaica, and there were no imports of fuel ethanol from Jamaica from March 2010 to June 2011," the report noted.

After several years of decline, there were no US imports of apparel from Jamaica under CBI tariff preferences in 2010.

The US continues to have a small amount of bilateral trade with many of the Caribbean economies.

"Cane sugar, non-monetary gold, orange juice, papayas, and electrical machinery were some of the leading categories of CBI- imports from the smaller Caribbean economies," the report said.

The USTR said although the CBI was initially envisioned as a programme to facilitate the economic development and export diversification of Caribbean economies, US export growth to the region has been a "welcome corollary benefit".

The value of total US exports to CBI countries fell 38.4 per cent in 2009, but rose 27.6 per cent in 2010.

Collectively, at US$18.5 billion, the CBI region ranked 16th among US export destinations in 2010 and absorbed 1.7 per cent of total US exports to the world.

"Panama, The Bahamas, the Netherland Antilles, and Trinidad and Tobago were the principal markets for US products in 2010, accounting for 72 per cent of US exports to the CBI region in 2010," the report said, noting that the US exports a broad range of products to the CBI region.

In 2010, the leading categories included refined petroleum products, aircraft, jewellery and jewellery parts, rice, and corn.