Overview
This section outlines the preferential treatment of goods and services from Caribbean Basin countries in federal procurement, designating them as "eligible products" for acquisitions covered by the World Trade Organization Government Procurement Agreement (WTO GPA).
Key Rules
- Eligibility Status: For WTO GPA-covered acquisitions, end products, construction materials, and services from designated Caribbean Basin countries must be treated as eligible products (equivalent to domestic offers during evaluation).
- Authority: The United States Trade Representative (USTR) holds the authority to determine this treatment under the Caribbean Basin Trade Initiative.
- CAFTA-DR Transition: Once a country enters the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), it is automatically removed from the "Caribbean Basin country" definition and the Caribbean Basin Economic Recovery Act.
- Legal Basis: These rules are governed by the CAFTA-DR Implementation Act (19 U.S.C. 4031) and the Caribbean Basin Economic Recovery Act.
Practical Implications
- Contracting officers must ensure that qualifying Caribbean Basin products are not penalized by the Buy American Act price differentials when the WTO GPA applies to a solicitation.
- Contractors must verify the current status of a country's trade designation, as products from countries that have transitioned to CAFTA-DR are handled under different regulatory headers (FAR 25.403) rather than the Caribbean Basin Trade Initiative.