Date: 2025-07-29Category: Not ApplicableState: Union GovernmentCountry: Europe
Council Decision (EU) 2025/1563 of 22 July 2025 establishing the position to be taken on behalf of the European Union within the General Council of the World Trade Organization (WTO) as regards the adoption of a decision to grant a WTO waiver permitting the United States to provide duty-free treatment under the US Caribbean Basin Economic Recovery Act (CBERA)
Executive Summary:
This Council Decision establishes the EU's position within the WTO General Council to support granting the United States a WTO waiver. The waiver permits the U.S. to provide duty-free treatment under the Caribbean Basin Economic Recovery Act (CBERA) to eligible products from Central American and Caribbean countries. The waiver would be in effect from October 1, 2025, to September 30, 2030. The decision was adopted on July 22, 2025, and enters into force on the same day.
Key Points / Main Content:
* **WTO Framework:**
* The Marrakesh Agreement established the WTO, effective January 1, 1995.
* Multilateral Trade Agreements are integral and binding parts of the WTO Agreement.
* The Ministerial Conference can waive obligations imposed on members in exceptional circumstances.
* The General Council conducts the functions of the WTO in between meetings of the Ministerial Conference.
* WTO decisions are usually taken by consensus.
* **U.S. Waiver History:**
* The U.S. previously received waivers related to CBERA, with the most recent extension expiring on September 30, 2025.
* Previous waivers covered Article I and Article XIII of GATT 1994.
* **Current Waiver Request:**
* The U.S. requested a waiver to provide duty-free treatment under CBERA to eligible products from Central American and Caribbean countries from October 1, 2025, to September 30, 2030.
* The U.S. justifies the request based on poverty and instability in the Caribbean Basin.
* **EU Position:**
* The EU supports granting the requested WTO waiver to the United States.
* The EU believes the waiver will not negatively affect the EU economy or trade relations and supports actions against poverty and for stability.
Impact Analysis:
* **European Union:**
* *Impact:* The EU's position within the WTO General Council is defined, supporting the waiver for the United States. The EU economy and trade relations are not expected to be negatively affected.
* *Action Required:* Support the granting of the WTO waiver within the General Council.
* **United States:**
* *Impact:* Will be permitted to provide duty-free treatment to eligible products originating in beneficiary countries designated pursuant to CBERA, if the waiver is granted by the WTO.
* *Action Required:* Pursue the granting of the WTO waiver within the General Council.
* **Central American and Caribbean Countries and Territories (CBERA Beneficiaries):**
* *Impact:* Could receive duty-free treatment for eligible products exported to the United States under CBERA.
* *Action Required:* Monitor the progress of the waiver request at the WTO.
* **World Trade Organization (WTO):**
* *Impact:* The General Council will need to consider and decide on the U.S. waiver request.
* *Action Required:* Process the U.S. waiver request according to WTO procedures.
Key Entities Referenced
European Union: A political and economic union of member states located primarily in Europe.
World Trade Organization (WTO): An intergovernmental organization that regulates international trade.
United States: A country in North America requesting a WTO waiver to provide duty-free treatment under CBERA.
US Caribbean Basin Economic Recovery Act (CBERA): A United States law that provides beneficiary countries in the Caribbean with duty-free access to the U.S. market.
Treaty on the Functioning of the European Union: One of the two primary treaties that form the constitutional basis of the European Union.
Marrakesh Agreement: The agreement establishing the World Trade Organization.
General Agreement on Tariffs and Trade 1994 (GATT 1994): A multilateral agreement regulating international trade and part of the WTO Agreement.
Brussels: The de facto capital city of the European Union, where the Council Decision was adopted.
Official Journal EN
of the European Union L series
2025/1563 29.7.2025
COUNCIL DECISION (EU) 2025/1563
of 22 July 2025
establishing the position to be taken on behalf of the European Union within the General Council of
the World Trade Organization (WTO) as regards the adoption of a decision to grant a WTO waiver
permitting the United States to provide duty-free treatment under the US Caribbean Basin Economic
Recovery Act (CBERA)
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular the first subparagraph of
Article 207(4), in conjunction with Article 218(9) thereof,
Having regard to the proposal from the European Commission,
Whereas:
(1) The Marrakesh Agreement establishing the World Trade Organization (‘WTO Agreement’) entered into force on
1 January 1995.
(2) Paragraph 2 of Article II of the WTO Agreement provides that the agreements and associated legal instruments
included in Annexes 1, 2 and 3 to the WTO Agreement (‘Multilateral Trade Agreements’) are integral parts of the
WTO Agreement and are binding on all Members.
(3) Pursuant to paragraph 3 of Article IX, in exceptional circumstances, the Ministerial Conference may decide to waive
an obligation imposed on a Member by the WTO Agreement or by any of the Multilateral Trade Agreements.
(4) Paragraphs 3 and 4 of Article IX of the WTO Agreement set out the procedures for the granting of waivers
concerning the Multilateral Trade Agreements in Annex 1A, 1B or 1C to the WTO Agreement and their annexes.
(5) Pursuant to paragraph 1 of Article IV of the WTO Agreement, the Ministerial Conference has the authority to take
decisions on all matters under any of the Multilateral Trade Agreements.
(6) Pursuant to paragraph 2 of Article IV of the WTO Agreement, in the intervals between meetings of the Ministerial
Conference of the World Trade Organization (WTO), the General Council of the WTO conducts its functions.
(7) Pursuant to paragraph 1 of Article IX of the WTO Agreement, the WTO usually takes the decisions by consensus.
(8) The United States was granted a waiver of obligations under paragraph 1 of Article I of the General Agreement on
Tariffs and Trade 1994 (‘GATT 1994’) on 15 February 1985, for the period from 1 January 1984 to 30 September
1995. On 15 November 1995, the Members renewed the waiver to 30 September 2005 and again on 29 May 2009
to 31 December 2014. On 5 May 2015, the Members extended the waiver in respect of paragraph 1 of Article I of
the GATT 1994 to 31 December 2019, and expanded the waiver to cover paragraphs 1 and 2 of Article XIII of the
GATT 1994 to the extent necessary for the United States to provide duty-free treatment to imports of eligible
products originating in beneficiary countries designated pursuant to the provisions of the US Caribbean Basin
Economic Recovery Act (‘CBERA’). On 17 October 2019, the Members extended the waiver in respect of
paragraphs 1 and 2 of Article XIII of the GATT 1994 to 30 September 2025, to the extent necessary for the United
States to provide duty-free treatment to imports of eligible products originating in beneficiary countries designated
pursuant to the provisions of CBERA.
(9) Pursuant to paragraphs 3 and 4 of Article IX of the WTO Agreement, the United States submitted a request to the
General Council to take a decision to grant a WTO waiver to permit the United States to provide duty-free treatment
to eligible products originating in Central American and Caribbean countries and territories under CBERA from
1 October 2025 to 30 September 2030.
ELI: http://data.europa.eu/eli/dec/2025/1563/oj 1/2EN
OJ L, 29.7.2025
(10) The United States justifies the request on the basis of the high prevalence of poverty and instability in the Caribbean
Basin countries, particularly in Haiti. Benefits under CBERA are intended to expand economic opportunities and
contribute towards a more stable and prosperous region.
(11) The waiver would not negatively affect either the economy of the Union or the Union’s trade relations with the
beneficiaries of the waiver. Moreover, the Union is supportive of actions against poverty and for stability.
(12) It is appropriate to establish the position to be taken on the Union’s behalf within the General Council to support the
United States request to grant the waiver in accordance with Article 218(9) TFEU, as the waiver will be binding on
Members of the WTO,
HAS ADOPTED THIS DECISION:
Article 1
The position to be taken on the Union’s behalf within the General Council of the World Trade Organization (WTO) shall be
to support the granting of a WTO waiver permitting the United States to provide duty-free treatment to eligible products
originating in Central American and Caribbean countries and territories under the US Caribbean Basin Economic Recovery
Act from 1 October 2025 to 30 September 2030.
Article 2
This Decision shall enter into force on the day of its adoption.
Done at Brussels, 22 July 2025,
For the Council
The President
M. BJERRE
2/2 ELI: http://data.europa.eu/eli/dec/2025/1563/oj