What is the Caribbean Basin Initiative?

The Caribbean Basin Initiative was launched in 1983 through the Caribbean Basin Economic Recovery Act. It was expanded further in 2000 through the U.S.-Caribbean Basin Trade Partnership Act. The initiative is intended to facilitate the economic development of countries included in the program.

In 1982, President Reagan established the program as a perk for nations that sided with the U.S. in cold war politics. The CBI program includes 24 countries in Central America and the Caribbean. The CBI is not a trade agreement. It is a non-reciprocal grant that allows countries in the program to freely access the U.S. market for goods such as textiles and apparel made in those countries.