Andean Trade Promotion and Drug Eradication Act

The Andean Trade Promotion and Drug Eradication Act (ATPDEA) is a trade preference system by which the United States grants duty-free access to a wide range of exports from four Andean countries: Bolivia, Colombia, Ecuador, and Peru. It was enacted on October 31, 2002 as a replacement for the similar Andean Trade Preference Act (ATPA). The purpose of this preference system is to foster economic development in the Andean countries to provide alternatives to cocaine production.

History

On December 4, 1991, under the George H. W. Bush administration, the United States enacted the Andean Trade Preference Act (ATPA), eliminating tariffs on a number of products from Bolivia, Colombia, Ecuador, and Peru. [USTR, PDFlink| [http://www.ustr.gov/assets/Trade_Development/Preference_Programs/ATPA/asset_upload_file215_3783.pdf "Third Report to the Congress on the Operation of the Andean Trade Preference Act"] |181 KiB , p. 7. Retrieved on March 4, 2008.] Its objective was the strengthening of legal industries in these countries as alternatives to drug production and trafficking. [USTR, PDFlink| [http://www.ustr.gov/assets/Trade_Development/Preference_Programs/ATPA/asset_upload_file215_3783.pdf "Third Report to the Congress on the Operation of the Andean Trade Preference Act"] |181 KiB , p. 1. Retrieved on March 4, 2008.] The program was renewed on October 31, 2002 by the George W. Bush administration as the Andean Trade Promotion and Drug Eradication Act (ATPDEA). [The White House, " [http://www.whitehouse.gov/news/releases/2002/10/20021031-9.html Andean Trade Promotion and Drug Eradication Act] ". Retrieved on March 4, 2008.] Under the renewed act, Andean products exempted from tariffs increased from around 5,600 to some 6,300. [USTR, " [http://www.ustr.gov/Document_Library/Fact_Sheets/2002/New_Andean_Trade_Benefts.html New Andean Trade Benefits] ". Retrieved on March 4, 2008.] ATPDEA was set to expire on December 31, 2006 but was renewed by Congress for six months, up to June 30, 2007. [USTR, PDFlink| [http://www.ustr.gov/assets/Trade_Development/Preference_Programs/ATPA/asset_upload_file186_11132.pdf "Third Report to the Congress on the Operation of the Andean Trade Preference Act as Amended"] |310 KiB , p. 1. Retrieved on March 4, 2008.] A further extension was granted on June 28, 2007, this time for eight months, up to February 29, 2008. [Reuters, [http://www.reuters.com/article/latestCrisis/idUSN27294490 US Senate OKs 8-month Andean trade pact extension] . Retrieved on March 4, 2008.] The US Congress passed a third renewal for ten months on February 28, 2008, up to December 31, 2008. [Reuters, [http://www.reuters.com/article/politicsNews/idUSN2860042120080228 Congress extends Andean trade benefits 10 months] . Retrieved on March 4, 2008.] On November 2008, US President George W. Bush asked Congress to remove Bolivia from the agreement due to failure to cooperate in counternarcotics efforts. [cite web|url=http://www.whitehouse.gov/news/releases/2008/09/20080926-7.html|title=Memorandum for the United States Trade Representative |first=George|last=Bush|date=2008-9-25|publisher=White House|accessdate=2008-09-28] [cite news|url=http://afp.google.com/article/ALeqM5hYS-16kpcSPUg5j0OrIPoeb-JGLg|title=Bush seeks to suspend Bolivia trade benefits|date=2008-9-26|publisher=AFP|accessdate=2008-09-28] [cite web|url=http://ustr.gov/assets/Document_Library/Press_Releases/2008/September/asset_upload_file663_15152.pdf|title=U.S. Trade Representative Schwab Announces Proposed Suspension of Bolivia’s Tariff Benefits|date=2008-9-26|publisher=United StatesTrade Representative|accessdate=2008-09-28]

Impact

The Andean Trade Promotion and Drug Eradication Act has fostered a rapid growth in trade between the United States and the four Andean nations; US exports to the region rose from $6,463.8 million in 2002 to $11,636.5 million in 2006 while imports grew from $9,611.5 million to $22,510.6 million in the same period. [USTR, PDFlink| [http://www.ustr.gov/assets/Trade_Development/Preference_Programs/ATPA/asset_upload_file186_11132.pdf "Third Report to the Congress on the Operation of the Andean Trade Preference Act as Amended"] |310 KiB , p. 7. Retrieved on March 4, 2008.] As of 2006 main Andean exports to the United States under ATPDEA were oil, apparel, copper cathodes, cut flowers, gold jewelry, asparagus and sugar. [USTR, PDFlink| [http://www.ustr.gov/assets/Trade_Development/Preference_Programs/ATPA/asset_upload_file186_11132.pdf "Third Report to the Congress on the Operation of the Andean Trade Preference Act as Amended"] |310 KiB , p. 8. Retrieved on March 4, 2008.] Of the 2006 total of US imports under ATPDEA, Ecuador accounted for 39%, Colombia for 36%, Peru for 24% and Bolivia for 1%. [USTR, PDFlink| [http://www.ustr.gov/assets/Trade_Development/Preference_Programs/ATPA/asset_upload_file186_11132.pdf "Third Report to the Congress on the Operation of the Andean Trade Preference Act as Amended"] |310 KiB , p. 9. Retrieved on March 4, 2008.] According to a September 2006 report by the United States International Trade Commission, ATPDEA has had a negligible effect on the US economy and consumers as well as a small positive effect on drug-crop reduction and export-related job creation in the Andean region. [USTR, PDFlink| [http://www.ustr.gov/assets/Trade_Development/Preference_Programs/ATPA/asset_upload_file186_11132.pdf "Third Report to the Congress on the Operation of the Andean Trade Preference Act as Amended"] |310 KiB , p. 5. Retrieved on March 4, 2008.] A 2006 report by the United States Department of Labor stated that ATPDEA does not appear to have had a negative impact on US employment with the possible exception of some sectors of the cut flower industry. [USTR, PDFlink| [http://www.ustr.gov/assets/Trade_Development/Preference_Programs/ATPA/asset_upload_file186_11132.pdf "Third Report to the Congress on the Operation of the Andean Trade Preference Act as Amended"] |310 KiB , p. 5–6. Retrieved on March 4, 2008.]

See also

* Colombia Trade Promotion Agreement
* United States-Peru Trade Promotion Agreement

Notes

Bibliography

* Office of the United States Trade Representative. " [http://www.ustr.gov/Document_Library/Fact_Sheets/2002/New_Andean_Trade_Benefts.html New Andean Trade Benefits] ". September 25, 2002.
* Office of the United States Trade Representative. PDFlink| [http://www.ustr.gov/assets/Trade_Development/Preference_Programs/ATPA/asset_upload_file215_3783.pdf "Third Report to the Congress on the Operation of the Andean Trade Preference Act"] |181 KiB , January 31, 2001.
* Office of the United States Trade Representative. PDFlink| [http://www.ustr.gov/assets/Trade_Development/Preference_Programs/ATPA/asset_upload_file186_11132.pdf "Third Report to the Congress on the Operation of the Andean Trade Preference Act as Amended"] |310 KiB . April 30, 2007.
* Reuters. [http://www.reuters.com/article/politicsNews/idUSN2860042120080228 Congress extends Andean trade benefits 10 months] . February 28, 2008.
* Reuters. [http://www.reuters.com/article/latestCrisis/idUSN27294490 US Senate OKs 8-month Andean trade pact extension] . June 28, 2007.
* The White House. " [http://www.whitehouse.gov/news/releases/2002/10/20021031-9.html Andean Trade Promotion and Drug Eradication Act] ". October 31, 2002.

External links

* [http://www.mincomercio.gov.co/eContent/NewsDetail.asp?ID=907&IDCompany=1 Colombian Ministry of Trade site on the ATPDEA]
* [http://www.mincetur.gob.pe/COMERCIO/OTROS/Atpdea/ley_atpa_atpdea/resumen_ejecutivo.htm Peruvian Ministry of Trade site on the ATPDEA]
* [http://www.ustr.gov/Trade_Development/Preference_Programs/ATPA/Section_Index.html United States Trade Representative site on the ATPDEA]