Created in 1986, CARIBCAN is a nonreciprocal agreement, which allows all Commonwealth Caribbean countries to export goods duty free to Canada, with a few exceptions. Approximately 6 per cent of Jamaica’s exports to Canada now enter duty free under this arrangement. Like CBERA, as a non-reciprocal preferential trade arrangement, CARIBCAN is incompatible with the World Trade Organization’s (WTO) rules on non-discrimination and, therefore, requires a waiver from the Most Favoured Nation (non-discrimination) rule. The last waiver expired on 31st December 2013. It is anticipated that the CARIBCAN Agreement will ultimately be replaced by a reciprocal Free Trade Agreement between CARICOM Member States and Canada which is currently under negotiation. Canada has requested a new waiver for CARIBCAN up to 2023 at the WTO.

 

Goods coverage: All goods may be exported to Canada, excluding textiles and clothing, footwear, leather garments, luggage and handbags and lubricating oil.

Rules of Origin/cumulation: Goods will be deemed originating within CARICOM member countries if wholly produced from materials obtained in either of the Parties to the Agreement, or contain nonoriginating materials that do not amount to more than 40% of the exfactory price (F.O.B) of the final good. Products harvested, gathered, bred or born within the respective territories or their Exclusive Economic Zones (EEZs), or produced onboard factory ships registered in those territories, shall be deemed originating from within the relevant Parties.

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