Andean Trade Promotion and Drug Eradication Act

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Map of the countries that make up ATPDEA

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 coca production. Bolivian has its own process of industralization on coca, besides United States eliminated this "preference" because Bolivia decided to stop meddling.

History[edit]

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] An extension was granted on June 28, 2007, this time for eight months, until February 29, 2008.[6] The U.S. Congress passed a third renewal for ten months on February 28, 2008, up to December 31, 2008.[7] In November 2008, U.S. President George W. Bush asked Congress to remove Bolivia from the agreement due to failure to cooperate in counternarcotics efforts.[8][9][10] On December 14, 2009, the United States House of Representatives approved the extension of such plan for a period of one year. On February 12, 2011, the U.S. Senate did not renew the plan, but, after several months of negotiations, has been renewed, covering Ecuadorian products only.[11]

Impact[edit]

The Andean Trade Promotion and Drug Eradication Act has fostered a rapid growth in trade between the United States and the four Andean nations; U.S. exports to the region rose from $6.46 billion in 2002 to $11.64 billion in 2006, while imports grew from $9.61 billion to $22.51 billion in the same period.[12] As of 2006 main Andean exports to the United States under ATPDEA were oil, apparel, copper cathodes, cut flowers, gold jewelry, asparagus, and sugar.[13] Of the 2006 total of U.S. imports under ATPDEA, Ecuador accounted for 39%, Colombia for 36%, Peru for 24%, and Bolivia for 1%.[14] According to a September 2006 report by the United States International Trade Commission, ATPDEA has had a negligible effect on the U.S. economy and consumers as well as a small positive effect on drug-crop reduction and export-related job creation in the Andean region.[15] A 2006 report by the United States Department of Labor stated that ATPDEA does not appear to have had a negative impact on U.S. employment with the possible exception of some sectors of the cut flower industry.[16]

See also[edit]

Notes[edit]

  1. ^ USTR, Third Report to the Congress on the Operation of the Andean Trade Preference Act PDF (181 KiB), p. 7. Retrieved on March 4, 2008.
  2. ^ USTR, Third Report to the Congress on the Operation of the Andean Trade Preference Act PDF (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 Amended PDF (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. ^ Bush, George (2008-09-25). "Memorandum for the United States Trade Representative". White House. Retrieved 2008-09-28. 
  9. ^ "Bush seeks to suspend Bolivia trade benefits". AFP. 2008-09-26. Retrieved 2008-09-28. 
  10. ^ "U.S. Trade Representative Schwab Announces Proposed Suspension of Bolivia’s Tariff Benefits". United States Trade Representative. 2008-09-26. Retrieved 2008-09-28. [dead link]
  11. ^ http://web.ita.doc.gov/tacgi/eamain.nsf/6e1600e39721316c852570ab0056f719/53018ab5e2d8426a852573940049684c?OpenDocument
  12. ^ USTR, Third Report to the Congress on the Operation of the Andean Trade Preference Act as Amended PDF (310 KiB), p. 7. Retrieved on March 4, 2008.
  13. ^ USTR, Third Report to the Congress on the Operation of the Andean Trade Preference Act as Amended PDF (310 KiB), p. 8. Retrieved on March 4, 2008.
  14. ^ USTR, Third Report to the Congress on the Operation of the Andean Trade Preference Act as Amended PDF (310 KiB), p. 9. Retrieved on March 4, 2008.
  15. ^ USTR, Third Report to the Congress on the Operation of the Andean Trade Preference Act as Amended PDF (310 KiB), p. 5. Retrieved on March 4, 2008.
  16. ^ USTR, Third Report to the Congress on the Operation of the Andean Trade Preference Act as Amended PDF (310 KiB), p. 5–6. Retrieved on March 4, 2008.

Bibliography[edit]

External links[edit]