Andean Trade Promotion and Drug Eradication Act

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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.

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[edit] 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.[1] Its objective was the strengthening of legal industries in these countries as alternatives to drug production and trafficking.[2] The program was renewed on October 31, 2002 by the George W. Bush administration as the Andean Trade Promotion and Drug Eradication Act (ATPDEA).[3] Under the renewed act, Andean products exempted from tariffs increased from around 5,600 to some 6,300.[4] ATPDEA was set to expire on December 31, 2006 but was renewed by Congress for six months, up to June 30, 2007.[5] A further extension was granted on June 28, 2007, this time for eight months, up to February 29, 2008.[6] The US Congress passed a third renewal for ten months on February 28, 2008, up to December 31, 2008.[7]

[edit] 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.[8] As of 2006 main Andean exports to the United States under ATPDEA were oil, apparel, copper cathodes, cut flowers, gold jewelry, asparagus and sugar.[9] Of the 2006 total of US imports under ATPDEA, Ecuador accounted for 39%, Colombia for 36%, Peru for 24% and Bolivia for 1%.[10] 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.[11] 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.[12]

[edit] See also

[edit] Notes

  1. ^ USTR, Third Report to the Congress on the Operation of the Andean Trade Preference ActPDF (181 KiB), p. 7. Retrieved on March 4, 2008.
  2. ^ USTR, Third Report to the Congress on the Operation of the Andean Trade Preference ActPDF (181 KiB), p. 1. Retrieved on March 4, 2008.
  3. ^ The White House, Andean Trade Promotion and Drug Eradication Act. Retrieved on March 4, 2008.
  4. ^ USTR, New Andean Trade Benefits. Retrieved on March 4, 2008.
  5. ^ USTR, Third Report to the Congress on the Operation of the Andean Trade Preference Act as AmendedPDF (310 KiB), p. 1. Retrieved on March 4, 2008.
  6. ^ Reuters, US Senate OKs 8-month Andean trade pact extension. Retrieved on March 4, 2008.
  7. ^ Reuters, Congress extends Andean trade benefits 10 months. Retrieved on March 4, 2008.
  8. ^ USTR, Third Report to the Congress on the Operation of the Andean Trade Preference Act as AmendedPDF (310 KiB), p. 7. Retrieved on March 4, 2008.
  9. ^ USTR, Third Report to the Congress on the Operation of the Andean Trade Preference Act as AmendedPDF (310 KiB), p. 8. Retrieved on March 4, 2008.
  10. ^ USTR, Third Report to the Congress on the Operation of the Andean Trade Preference Act as AmendedPDF (310 KiB), p. 9. Retrieved on March 4, 2008.
  11. ^ USTR, Third Report to the Congress on the Operation of the Andean Trade Preference Act as AmendedPDF (310 KiB), p. 5. Retrieved on March 4, 2008.
  12. ^ USTR, Third Report to the Congress on the Operation of the Andean Trade Preference Act as AmendedPDF (310 KiB), p. 5–6. Retrieved on March 4, 2008.

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[edit] External links