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Andean Community
ATPDEA renewed
Together with the Colombia and Panama agreements, the US Congress, October 12, approved the
renewal of the Andean Trade Promotion and Drug Eradication Act (ATPDEA) until July 31, 2013. The
renewal applies retroactively to Colombia and Ecuador as of February 12 this year, the date on
which the ACT had expired.
The ATPDEA is a system of tariff preferences granted unilaterally by United States to the Andean
countries. The program was created in late 2002 as a replacement for the Andean Trade
Preferences Act (ATPA) of 1991. Its aim is to promote the economic development of these countries
and to create alternatives to narcotics production. The regime allows the tariff-free entry to the US
market of approximately 6,300 Andean products, including textiles, clothing, footwear, tuna, oil
and derivatives, and leather goods.
Originally, the program applied to Bolivia, Colombia, Ecuador, and Peru. However, in 2008, Bolivia
was excluded on the grounds that it had not met the commitments to eradicate drugs, while, in
Peru’s case, the entry into force of the FTA with United States in 2009 replaced the preferences
obtained by the country through ATPDEA.
As explained in the INTAL Monthly Newsletter No. 175, the preferences had expired in February
2011 and the non-pronouncement on the subject by the US Senate meant that the benefits were not
extended. In response to this situation, the Andean countries took steps to compensate the affected
producers by implementing credit lines to finance payment of the tariff. Likewise, some sectors
paid higher tariffs, while others shared the cost with US importers. The 18-month renewal for
Colombia and Ecuador was finally approved in October.
Graph 2.a shows the great relevance of the ATPDEA for both countries, although the bulk of exports
covered are oil: in 2010, this product accounted for 96.9 % of the total. The second most important
component is apparel. That year, Colombia’s total non-oil sales were US$261 million and Ecuador’s
US$g64 million.
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INTAL Monthly Newsletter N° 183 - November 2011 - All rights reserved
Andean Community
Graph 2. Evolution of Andean countries’ exports to United States under
ATPDEA, 2002–September 2011
In billions of US$ and as percentage
Source: USITC
Related articles:
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•
IDB-INTAL. “US tariff preferences to the Andean countries,” in: INTAL Monthly Newsletter
No. 149. December 2008.
IDB-INTAL. “Another year of the ATPDEA for Colombia, Ecuador and Peru,” in: INTAL
Monthly Newsletter No. 161. December 2009.
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INTAL Monthly Newsletter N° 183 - November 2011 - All rights reserved