Is the Caribbean Basin initiative working?

trade preferences. This paper assesses the success of CBI since its initiation in 1984 on the basis of U.S. import trends. Analysis is limited to those CBI countries where A.I.D. has an active economic assistance program (i.e., Belize, Costa Rica, El Salvador, Guatemala, Honduras, the Dominican Republic, Haiti, Jamaica, and the Eastern Caribbean islands). According to the study, CBI has had a significant impact: (1) nontraditional exports have risen from 46% of total exports to the United States in 1983 to almost 70% in 1988; (2) new jobs are being created rapidly; and (3) the Basin region"s need for imports to support export expansion has spurred U.S. exports. These gains have been particularly evident in Costa Rica, Jamaica, the Dominican Republic, and (since 1985) Guatemala, and appear closely related to the willingness of these countries to introduce policy and institutional changes supportive of export growth - a positive trend which may be spreading to other CBI countries. On the negative side, the CBI countries have lost more due to U.S. sugar quotas and poor world prices for traditional commodities than they have gained from growth in nontraditional exports.