Colombia: The Andean Trade Preferences Act Has Been Renewed For Bolivia, Colombia, Ecuador And Peru

On August 1, 2002, the US Congress approved the HR 3009 Project through which the ATPA was renewed for Bolivia, Colombia, Ecuador and Peru.

The agreement will be applied backdated to December 4, 2001, date on which the previous agreement had expired, and will be in force until year 2006.

The Andean Trade Preferences Act was enacted in 1991 to provide an economic foundation for Colombia, Ecuador, Peru and Bolivia in their efforts to reduce drug production and trafficking.

ATPA was scheduled to expire on December 4, 2001 and it has been renewed until 2006. It was designed to promote export diversification and create new employment in its beneficiary countries. The United States is the leading source of imports and the leading export market for each of the four ATPA countries.

ATPA has generated significant job opportunities in a variety of economic sectors in each of the beneficiary countries. Alternative development programs in each of the ATPA countries have provided former illegal crop growers with viable income alternatives.

In fact, between 1991 and 1999, two-way trade between the United States and the ATPA region nearly doubled.

A renewed, enhanced ATPA will help Colombia solidify its economic recovery, and set the stage for long-term growth.

From 1992 to 1999, ATPA was responsible for $1.2 billion in output, and an estimated of 140,000 new jobs in Colombia. Key exports currently excluded from ATPA are: apparel, textiles, footwear, canned tuna, Rum and certain sugars, leather goods and petroleum and its derivatives. All of these industries have the potential for increased employment in Colombia.

While the US is Colombia’s most important trading partner, tenths of thousands of jobs in the United States are dependent on trade with Colombia. Nine states each export more than $100 million a year to Colombia. Two states - Florida and Texas – export more than $500 million to Colombia annually.

An enhanced ATPA must include benefits for apparel and luggage made from either US or regional inputs. American producers of fibers and yarns will benefit from an ATPA that enhances the region’s capacity to produce fabrics and finished textile products. Over the period 1996 through 2000, US raw cotton accounted for an average of 50% of Colombia’s cotton imports. Colombian apparel exports pose no threat to US domestic producers. In fact, a total of 29 other countries export more apparel products to the United States than Colombia does.