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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. 25 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: • • 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. 26 INTAL Monthly Newsletter N° 183 - November 2011 - All rights reserved