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COMMITTEE ON ECONOMIC DEVELOPMENT AND AGRICULTURE 04/23/2026-AMENDED AND REPORTED OUT TO THE FLOOR 01/14/2026-REPORTED OUT TO THE COMMITTEE ON RULES AND JUDICIARY BILL NO. 36-0194 Thirty-Sixth Legislature of the Virgin Islands October 27, 2025 A resolution urging the United States Congress and the Office of the United States Trade Representative to expand and modernize the Caribbean Basin Initiative (CBI) to further support economic growth and development in the Virgin Islands and the wider Caribbean region PROPOSED BY: Senator Angel L. Bolques, Jr. Sponsors: Carla J. Joseph, Alma Francis Heyliger and Marvin A. Blyden Co-sponsors: Hubert L. Frederick, Ray Fonseca, Avery L. Lewis and Milton E. Potter WHEREAS, the Caribbean Basin Initiative (CBI), originally enacted through the 1 Caribbean Basin Economic Recovery Act (CBERA) in 1983 and expanded by the Caribbean 2 Basin Trade Partnership Act (CBTPA) in 2000, was designed to promote economic 3 development and stability in the Caribbean region through preferential duty-free access to the 4 U.S. market; 5 WHEREAS, the Virgin Islands, as an unincorporated territory of the United States, 6 occupies a unique position as both an integral part of the nation and a vital Caribbean partner, 7 serving as a strategic bridge for hemispheric trade, cultural exchange, and regional diplomacy; 8 WHEREAS, the Virgin Islands possess a unique posture being geographically located 9 in the Caribbean and a territory of the United States, where goods may be shipped to the 10 territory for transshipment into qualifying vessels for entry into United States consistent with 11 applicable federal law and; 12 2 WHEREAS, the territory’s location outside of the United States customs zone and the 1 availability of foreign trade zone mechanisms create opportunities for trade facilitation and 2 tariff treatment consistent with federal standards; and 3 WHEREAS, foreign raw materials or component products that are substantially 4 transformed into new articles of commerce within the Virgin Islands may qualify for treatment 5 as products of the Virgin Islands for entry into the United States market; 6 WHEREAS, as a participant in the Caribbean Basin Initiative, the Virgin Islands has 7 benefited from trade preferences that support key industries such as rum production, light 8 manufacturing, sustainable agriculture, and marine-based commerce, thereby stimulating local 9 employment and investment; 10 WHEREAS, while the Virgin Islands is not classified as a beneficiary country under the 11 Caribbean Basin Trade Partnership Act due to its territorial status, the territory nonetheless 12 shares aligned economic interests with the Caribbean region and remains a strategic 13 stakeholder in regional trade development, policy integration, and sectoral cooperation under 14 the broader CBI framework; 15 WHEREAS, the global economy has evolved significantly since the original enactment 16 of the CBI, and modernization is now needed to incorporate emerging priorities such as digital 17 services, renewable energy, climate-resilient infrastructure, sustainable manufacturing, and fair 18 labor practices; 19 WHEREAS, the Virgin Islands and the broader Caribbean region remain highly 20 vulnerable to the impacts of climate change, including sea level rise, hurricanes, and supply 21 chain shocks, and would benefit from expanded CBI provisions that incentivize green 22 infrastructure, carbon-neutral development, and economic resilience; 23 WHEREAS, the Virgin Islands and the broader Caribbean region remain strategically 24 significant for the national security and economic development of the Western Hemisphere, 25 3 including countering threats of human trafficking, narcotics trafficking, and economic 1 infiltration from hostile countries, such as China; 2 WHEREAS, the impending expiration of the CBTPA on September 30, 2030, presents 3 a critical opportunity for the United States to reaffirm and strengthen its long-term economic 4 commitment to the Caribbean region, including the Virgin Islands; and 5 WHEREAS, equitable engagement of U.S. territories and Caribbean nations in any 6 modernization of the CBI is essential to ensure the program fosters shared prosperity, regional 7 cohesion, and meaningful opportunities for small and medium-sized enterprises (SMEs); Now, 8 Therefore, 9 Be it resolved by the Legislature of the Virgin Islands: 10 SECTION 1. The Legislature of the Virgin Islands urges the United States Congress to 11 modernize and permanently reauthorize the Caribbean Basin Initiative and the Caribbean Basin 12 Trade Partnership Act to reflect 21st-century economic realities, including support for digital 13 services, clean energy, advanced manufacturing, climate adaptation, and emerging sectors, 14 such as financial technology, educational services, green and renewable energy, creative 15 industries, the blue economy and digital infrastructure and also affirms the importance of 16 legacy export sectors, such as rum production and export, which reflect the modern economic 17 priorities of the Virgin Islands and the wider Caribbean. 18 SECTION 2. The Legislature further urges that any modernization effort explicitly 19 include the Virgin Islands as a stakeholder and partner, with opportunities for direct 20 participation and benefit under all CBI-related frameworks, policies, and review processes. The 21 Legislature also urges that in any modernization of the Caribbean Basin Initiative or related federal 22 trade preference programs, the unique status of the Virgin Islands as an unincorporated territory of the 23 United States be expressly recognized. The Legislature emphasizes that the Virgin Islands, while 24 geographically located in the Caribbean, is politically and constitutionally a part of the United States, 25 4 and its role in regional trade should reflect both its domestic economic interests and its strategic position 1 as a conduit for United States and Caribbean economic engagement. 2 SECTION 3. The Legislature encourages the Office of the United States Trade 3 Representative to consult with the Virgin Islands and relevant Caribbean stakeholders to ensure 4 equitable implementation and policy alignment under the revised CBI framework. 5 SECTION 4. The Legislature further urges that special consideration be given to the 6 establishment of a Virgin Islands International Ship Registry as a component of broader 7 modernization efforts. Such a registry would support the restoration of American maritime 8 leadership by enhancing United States maritime competitiveness, strengthening national 9 security and sanctions enforcement, expanding lawful United States influence over 10 international shipping and generating new streams of revenue and workforce development for 11 the United States and its territories. This initiative would be pursued in full compliance with 12 existing statutory authorities and international obligations. 13 The Legislature respectfully requests that the Virgin Islands be granted a permanent 14 consultative role in any present or future federal policy discussions, administrative rulemaking, 15 or legislative proposals concerning the modernization of the Caribbean Basin Initiative, 16 Caribbean Basin Trade Partnership Act, or similar trade programs impacting the region. 17 SECTION 5. The Legislature further encourages the Office of the United States Trade 18 Representative and the United States Department of Commerce to promote and facilitate the 19 use of the unique status of the Virgin Islands for: 20 (1) the transshipment of goods into qualifying non-United States-made or non- 21 United States-flagged vessels consistent with applicable federal law; and 22 (2) the substantial transformation of foreign raw materials or component 23 products into new and distinct products within the Virgin Islands, qualifying for entry 24 into the United States market under applicable federal standards. 25 5 SECTION 6. The Legislature supports the continuation of trade preference programs 1 that promote environmental sustainability, labor protections, regional cooperation, Western 2 Hemisphere national security and long-term economic stability across the Caribbean Basin. 3 SECTION 7. The President of the Legislature shall transmit certified copies of this 4 resolution to the President of the United States, the United States Trade Representative, the 5 President Pro Tempore of the United States Senate, the Speaker of the United States House of 6 Representatives, and the Virgin Islands Delegate to Congress. 7 BILL SUMMARY 8 This bill urges the United States Congress to modernize and permanently reauthorize the 9 Caribbean Basin Initiative (CBI), including the Caribbean Basin Trade Partnership Act 10 (CBTPA), to reflect economic realities and priorities such as digital services, renewable energy, 11 advanced manufacturing, climate adaptation, and small business development. The bill also 12 calls for the inclusion of the Virgin Islands as a direct stakeholder in all CBI-related policy 13 discussions and implementation processes. 14 BR25-0733/September 10, 2025/KEH 15 S:\AMENDS\36th Legislature\BOLQUES, JR., ANGEL L\Amendment 36-724\Amendment 16 No. 36-724 - DRAFTED ON YELLOW.docx 17