The ITC, an independent, nonpartisan, factfinding federal agency, recently issued its annual reports monitoring imports under the two programs in a single publication. This year's reports examine trends in U.S. trade with beneficiaries from the implementation of each program until 1997.

The CBERA program, operative since January 1, 1984, affords preferential tariff treatment to most products of 24 designated Caribbean, Central American, and South American countries. The ATPA program, signed into law in December 1991, affords preferential tariff treatment to most products of Bolivia, Colombia, Ecuador, and Peru. These four Andean countries are the source of the coca plants from which most of the world's cocaine is produced or are major transit areas for cocaine. The ATPA's goal is to promote the development of sustainable economic alternatives to drug crop production by offering alternative, legal Andean products broader access to the U.S. market.

Following are highlights of the reports, Caribbean Basin Economic Recovery Act: Impact on U.S. Industries and Consumers, Thirteenth Report, 1997 and Andean Trade Preference Act: Impact on U.S. Industries and Consumers and on Drug Crop Eradication and Crop Substitution, Fifth Report, 1997:

• U.S. imports under CBERA grew from 6.7 percent of total U.S. imports from the region in 1984 to 18.9 percent in 1996, and to a record 19 percent in 1997. The leading U.S. imports under CBERA between 1984 and 1997 were items classified as electrical machinery and equipment, sugar and sugar products, and tobacco and tobacco products. However, over time, these products have accounted for a decreasing share of the total as diversification of the region's production caused U.S. imports in other product categories, such as eligible footwear, medical goods, and methanol, to grow faster. The Dominican Republic, Costa Rica, Guatemala, and Honduras were the leading sources of U.S. imports under CBERA in 1997, as they have been throughout most of the life of the CBERA program.

• The probable future effect of CBERA on the United States, as estimated by an examination of export-related investment in the beneficiary countries, is expected to be minimal in most economic sectors. U.S. imports of the 20 leading CBERA-exclusive items, except for two sugar items, produced net welfare gains for U.S. consumers in 1997. Frozen concentrated orange juice yielded the largest such net gain, followed by fuel-grade ethyl alcohol and methanol. The Commission did not identify any U.S. imports under CBERA that would have potentially significant negative effects on domestic industry.

• The Commission conducted case studies on the Dominican Republic and The Bahamas to analyze the effectiveness of CBERA in promoting export-led growth and diversification of production in the beneficiary countries. The case study on the Dominican Republic revealed that CBERA appears to have had a positive effect on its economy, whereas the case study on The Bahamas suggests that CBERA has had only a limited effect.

• U.S. imports under ATPA grew from 11.3 percent of total U.S. imports from the region in 1994 to 15.8 percent in 1996, but fell to 14.8 percent in 1997 as U.S. imports of certain dutiable imports (such as apparel) and of column 1-general duty-free imports (such as coffee, shrimp, and bananas) grew faster. Cut flowers and jewelry dominated U.S. imports under ATPA between 1994 and 1997. However, over time, these products have accounted for a decreasing share of the total as U.S. imports of other products, such as copper articles, have grown faster. Colombia has been the leading supplier of U.S. imports under ATPA in each year that ATPA has been in effect.

• The probable future effect of ATPA on the United States, as estimated by an examination of export-related investment in the beneficiary countries, is expected to be minimal in most economic sectors. U.S. imports of nearly all of the 20 leading ATPA-exclusive items produced net welfare gains for U.S. consumers in 1997. Fresh cut roses yielded the largest such net gain, followed by asparagus and chrysanthemums, carnations, anthuriums, and orchids. The same three industries were identified as potentially experiencing displacement by ATPA imports of more than an estimated 5 percent of the value of U.S. production.

• The Commission conducted a case study on Peru to analyze the effectiveness of ATPA in promoting export-led growth and diversification of production in the beneficiary countries. The case study revealed that ATPA has had only a limited effect to date on Peru's economy.

• ATPA continued to have a slight but positive effect on drug-crop eradication and crop substitution in the Andean region in 1997. Eradication efforts contributed to a marked, overall decline in the volume of land under coca cultivation, and alternative development efforts to introduce new products and expand legal-crop production in the region are continuing to show promising results.

Caribbean Basin Economic Recovery Act: Impact on U.S. Industries and Consumers, Thirteenth Report, 1997 and Andean Trade Preference Act: Impact on U.S. Industries and Consumers and on Drug Crop Eradication and Crop Substitution, Fifth Report, 1997 (Invs. Nos. 332-227 and 332-352, USITC Publication No. 3132, September 1998) will be available on the ITC's Internet server at www.usitc.gov. The publication will also be available at federal depository libraries in the United States and on a future edition of the Department of Commerce's National Trade Data Bank. A printed copy may be requested by calling 202-205-1809 or by writing to the Office of the Secretary, U.S. International Trade Commission, 500 E Street, SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.