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The Impact of the Andean Trade Preference Act (Twelfth Report 2005)

Investigation No. 332-352
USITC Publication 3888

Summary

The overall effect of imports under the Andean Trade Preference Act (ATPA) on the U.S. economy and consumers continued to be negligible in 2005, reports the U.S. International Trade Commission.

The USITC recently issued its 12th report in a series monitoring imports under the ATPA, which affords preferential tariff treatment to most products imported into the United States from Bolivia, Colombia, Ecuador, and Peru. 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.

The USITC found:

  • Total U.S. imports from ATPA countries amounted to $20.1 billion in 2005, of which $11.5 billion, or 57 percent, entered under the ATPA.

  • The value of U.S. imports that entered under the ATPA rose 37 percent in 2005, faster than the increase in total U.S. imports from the region and faster than the growth of U.S. imports from the world.

  • The large increase primarily reflected an increase in the value of imports of petroleum-related products.

  • The ATPA continued to have a small, indirect effect on drug-crop eradication and crop substitution efforts in the ATPA countries in 2005. Net coca cultivation in the ATPA region in 2005 remained at roughly its lowest level in two decades.

  • Andean Trade Preference Act: Impact on U.S. Industries and Consumers and on Drug Crop Eradication and Crop Substitution, Twelfth Report, 2005 is now available. Also available on CD-ROM and in print; call 202-205-2791 for more information.

View the publication at: http://www.usitc.gov/publications/332/pub3888.pdf (PDF)