ABSTRACT
The Economic Recovery Act is an attempt to promote economic growth and development among the countries of the Caribbean Sea and Central America. The act implements the tax and trade portions of President Reagan's Caribbean Basin Initiative (CBI) by eliminating U.S. tariffs on most products imported from beneficiary countries in the Caribbean Basin and by providing incentives for U.S. investments in these countries. The CBI was designed to alleviate the problems of high unemployment, large debt servicing costs, and slow economic growth that prevail in these countries. 1
