1. CARIBCAN is an economic and trade development assistance program for the Commonwealth Caribbean countries and territories established as a result of a commitment by Canada at the Commonwealth Heads of Government meeting in Nassau in October 1985.

2. The objectives of CARIBCAN are to enhance Commonwealth Caribbean trade and export earnings, improve the trade and economic development prospects of the region, promote new investment opportunities, and encourage enhanced economic integration and co-operation. The main feature of CARIBCAN is the unilateral extension by Canada, beginning on June 15, 1986, of duty-free access to the Canadian market for most commodities originating in Commonwealth Caribbean countries.

3. On November 28, 1986, a decision by the Contracting Parties to the General Agreement on Tariffs and Trade (GATT) waived until June 15, 1998, the provisions of paragraph 1 of Article 1 of the General Agreement, "only to the extent necessary to permit the Government of Canada to provide duty-free treatment to eligible imports of Commonwealth Caribbean countries benefiting from the provisions of CARIBCAN, without being required to extend the same duty-free treatment to like products of any other contracting party." (L/6102). On October 14, 1996, the WTO extended the CARIBCAN waiver until December 31, 2006. (WT/L/185). The conditions associated with the CARIBCAN waiver remain unchanged.

4. This report is being made in accordance with paragraph 3 of the WTO waiver of October 14, 1996 and Article IX of the WTO Agreement.

2. Country Coverage

5. The Customs Tariff lists 18 countries or dependent territories which are eligible to receive the duty-free benefits accorded under CARIBCAN: Anguilla, Antigua-Barbuda, The Bahamas, Barbados, Belize, Bermuda, the British Virgin Islands, the Cayman Islands, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Christopher (St. Kitts) and Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago, and the Turks and Caicos Islands. No additions or deletions from this list have occurred since CARIBCAN was enacted on June 15, 1986.

3. Product Coverage

6. There have been no amendments to CARIBCAN product coverage since the changes made in February 1998.

7. Today, product exclusions from the duty-free provisions of CARIBCAN are:

Annex I: Total Imports form CARIBCAN Beneficiaries 1992 - 2002

Annex II: Total Canadian exports to CARIBCAN Beneficiaries 1992- 2002

Annex III: 2002 Imports from CARIBCAN Beneficiaries by Tariff Treatment

Annex IV: Top 25 Merchandise Imports from CARIBCAN Beneficiaries which entered Canada under the CARIBCAN Duty-Free Tariff Treatment (CCCT) in 2002

(thousands of Canadian dollars)