WORLD TRADE
ORGANIZATIONWT/L/416
18 September 2001
(01-4395)
General Council
10 October 2001Original:  English
UNITED STATES - ANDEAN TRADE PREFERENCE ACT
Report of the Government of the United States
under the Decision of 14 October 19961
The following communication, dated 10 September 2001, has been received from the
Permanent Mission of the United States.
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1. Introduction
1. On 14 October 1996, the United States was granted a renewal of the waiver (WT/L/184) from
its obligations under paragraph 1 of Article I of the GATT 1994 to the extent necessary to permit the
United States Government to provide duty-free treatment to eligible products of beneficiary Andeancountries as authorized by the provisions of Andean Trade Preference Act (ATPA), without being
required to extend the same duty-free treatment to like products of any other Member.  This waiver
was extended until 4 December 2001.
2. Under the terms of this waiver, the United States is required to submit to the General Council
an annual report on the implementation of the trade-related provisions of the ATPA with a view to
facilitating the annual review provided for in paragraph 4 of Article IX of the WTO Agreement.  This
report covers calendar year 2001.  Trade data has been provided for calendar year 2000, the mostrecent year for which full-year data is available.
2. Duty-free Treatment under the ATPA
3. The ATPA, which was signed into law on 4 December 1991, authorizes the President to
eliminate duties on all products, with certain exceptions
2, from four Andean nations – Bolivia,
Colombia, Ecuador and Peru.  The Act is intended to help the beneficiaries reduce the production andtrafficking of illicit drugs by offering opportunities to expand trade in legitimate products.  Congress
authorized the ATPA for a period of ten years, ending on 4 December 2001.
3
                                                     
1 WT/L/184.
2 The products excluded from duty-free treatment are:   textile and apparel articles which are subject to
textile agreements;  certain footwear which was not eligible for duty-free entry under the US GeneralizedSystem of Preferences in 1991;  prepared tuna in airtight containers;  petroleum and petroleum products;
watches and watch parts if such products contain any material from countries not accorded MFN treatment;
certain leather products (handbags, luggage, flat goods, work gloves, and leather-wearing apparel);  certainsugars, syrups, and molasses;  and rum and tafia.
3 The US Congress is considering legislation at this time to renew the ATPA.WT/L/416
Page 2
3. ATPA Performance
4. The main goal of the ATPA is to promote broad-based economic growth and development in
the Andean countries.  Specifically, the programme aims to develop sustainable economic alternatives
to coca cultivation and cocaine production by offering Andean products broader access to the US
market.  The ATPA continues to have indirect, but positive effects on beneficiary countries' drug
control efforts.  Ongoing eradication efforts have contributed to the continued overall decline in cocaproduction in the Andean region.  Also, alternative development efforts to introduce new products and
expanded production into the region are beginning to show promising results.
5. US imports afforded duty-free entry under the ATPA continued to increase in 2000,
amounting to US$1.98 billion.  Total US imports from  ATPA beneficiary countries grew 13 per cent
from 1999 to US$11.1 billion largely because of higher petroleum prices.  The United States
continues to be the single largest trading partner for each ATPA beneficiary country.
6. The Andean copper industry, located predominantly in Peru, replaced the fresh cut flower
sector as the principal beneficiary industry of  the programme during 2000, with a 75 per cent growth
rate from 1999.  The copper industry's share of total ATPA entries has steadily increased, from 8.3 per
cent in 1996 to 29.3 per cent in 2000, while the flower industry has gradually decreased from 34.3 per
cent in 1996 to 22.2 per cent in 2000.  The increase in importance of copper reflects the comparatively
faster growth of some industries under the ATPA, as well as the diversification of exports, includingpigments and dyeing extracts, zinc, cathodes of refined copper, and compounds of precious metals.
7. In 2000, Peru overtook Colombia as the lead ATPA beneficiary country, with exports under
ATPA growing 34 per cent from 1999 to provide 43.3 per cent of all US imports under the ATPA.
Colombia ranked as the second ATPA beneficiary, with 41.0 per cent of all US imports under the
ATPA in 2000; Ecuador was third, with 12.6 per cent; and Bolivia was fourth, with 3.1 per cent of thetotal.
8. Statistical tables are provided to present a detailed description of the trade aspects of the
ATPA programme for the most recent period.  Detailed information for previous years has been
provided in previous reports to the GATT Council or WTO General Council.
Table 1 provides information on leading US imports, by product, under ATPA provisions during the
period 1996-2000.
Table 2  provides information on leading US imports, by product, from ATPA countries during
1999-2000.
Table 3  provides information on US trade with ATPA countries during 1991-2000.
Table 4  provides summary information on the duty treatment of US imports from ATPA countries
during 1996-2000.WT/L/416
Page 3TABLE 1
Leading US Imports for Consumption under ATPA Provisions, by Major Product Categories, 1996-2000
HTS
ChapterDescription 1996 1997 1998 1999 2000
Value (1,000 dollars)
74 Copper and articles thereof 105,608 187,826 214,196 331,138 580,044
06 Live trees and other plants; bulbs, roots and the like; cut flowers and
ornamental foliage435,871 444,922 451,926 436,434 439,614
32 Tanning or dyeing extracts; tannins and derivatives; dyes, pigments
and other coloring matter; paints and varnishes; putty and othermastics; inks2,627 4,516 40,314 163,004 200,862
71 Natural or cultured pearls, precious or semiprecious stones, precious
metals; precious metal clad metals, articles thereof; imitation
jewelry; coin245,316  219,040 360,970 186,826 159,548
16  Edible preparations of meat, fish, crustaceans, molluscs or other
aquatic invertebrates61,232 51,129 49,603 86,922 80,279
79 Zinc and articles thereof 37,634 22,777 43,233  83,420 67,588
07 Edible vegetables and certain roots and tubers 37,544 39,757 46,367 63,922 63,258
39 Plastics and articles thereof 44,673 42,676 43,578 51,756 53,631
28 Inorganic chemicals; organic or inorganic compounds of precious
metals, of rare-earth metals, of radioactive elements or of isotopes2,261 72,259 49,998 60,017 51,791
44 Wood and articles of wood; wood charcoal 30,093 32,125 33,284 40,132 37,545
Subtotal 1,002,860 1,117,027 1,333,469 1,503,572 1,734,161
All other 267,194 235,828 311,727 246,707 247,471
Total 1,270,054 1,352,855 1,645,196 1,750,279 1,981,632WT/L/416
Page 4TABLE 1 – CONTINUED
Leading US Imports for Consumption under ATPA Provisions, by Major Product Categories, 1996-2000
HTS
ChapterDescription 1996 1997 1998 1999 2000
Per cent of total
74 Copper and articles thereof 8.32 13.88 13.02 18.92 29.27
06 Live trees and other plants; bulbs, roots and the like; cut flowers and
ornamental foliage34.32 32.89 27.47 24.94 22.18
32 Tanning or dyeing extracts; tannins and derivatives; dyes, pigments
and other coloring matter; paints and varnishes; putty and othermastics; inks.21 .33 2.45 9.31 10.14
71 Natural or cultured pearls, precious or semiprecious stones, precious
metals; precious metal clad metals, articles thereof; imitation
jewelry; coin19.32 16.19 21.94 10.67 8.05
16 Edible preparations of meat, fish, crustaceans, molluscs or other
aquatic invertebrates4.82 3.78 3.02 4.97 4.05
79 Zinc and articles thereof 2.96 1.68 2.63 4.77 3.41
07 Edible vegetables and certain roots and tubers 2.96 2.94 2.82 3.65 3.19
39 Plastics and articles thereof 3.52 3.15 2.65 2.96 2.71
28 Inorganic chemicals; organic or inorganic compounds of precious
metals, of rare-earth metals, of radioactive elements or of isotopes.18 5.34 3.04 3.43 2.61
44 Wood and articles of wood; wood charcoal 2.37 2.37 2.02 2.29 1.89
Subtotal 78.96 82.57 81.05 85.90 87.51
All other 21.04 17.43 18.95 14.10 12.49
Total 100.00 100.00 100.00 100.00 100.00
Note:  The abbreviation "nesoi" stands for "not elsewhere specified or otherwise included".
Source:  Compiled from official statistics of the US Department of Commerce.WT/L/416
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TABLE 2
Leading US Imports for Consumption from ATPA Countries, 1999-2000
HTS
ProvisionsDescription 1999 2000 Change,
2000 over
1999
1,000 dollars Per cent
2709.00.20 Petroleum oils and oils from bituminous minerals, crude,
testing 25 degrees A.P.I. or more1,039,092 1,142,458 9.95
2709.00.10 Petroleum oils and oils from bituminous minerals, crude,
testing under 25 degrees A.P.I.581,463 1,057,583 81.88
2710.00.05 Distillate and residual fuel  oils (including blends) derived
from bituminous minerals, testing under 25 degrees A.P.I.477,059 678,109 42.14
7403.11.00 Refined copper cathodes and sections of cathodes 327,252 566,402 73.08
0901.11.00 Coffee, not roasted, not decaffeinated  558,133 478,781 -14.220803.00.20 Bananas, fresh or dried 482,761 413,633 -14.32
2713.11.00 Coke, petroleum, not calcined 278,307 317,019 13.91
2711.29.00 Petroleum gases and other gaseous hydrocarbons, except
natural gas214,310 302,419 41.11
2710.00.10 Distillate and residual fuel  oils (including blends) derived
from bituminous minerals, testing 25 degrees A.P.I. or more296,604 298,867 .76
0306.13.00 Shrimps and prawns, cooked in shell or uncooked, dried,
salted or in brine, frozen447,397 223,270 -50.10
3212.90.00 Pigments dispersed in nonaqueous media, in liquid or paste
form, used in making paints; dyes & coloring matter packagedfor retail sale160,939 200,722 24.72
2701.12.00 Coal, bituminous, whether or not pulverized, but not
agglomerated131,537 199,410 51.60
7108.12.10 Gold, nonmonetary, bullion and dore 351,466 198,376 -43.56
6110.20.20 Sweaters, pullovers and similar articles, knitted or crocheted,
of cotton, nesoi132,514 196,032 47.93
0603.10.60 Roses, fresh cut 182,986 192,436 5.16
2710.00.25 Naphthas (ex. motor fuel or mtr fuel blend. stock), fr. petro
oils and bitumin. minrls, o/than crude, or preps. 70+ by wt. fr.
petro. oils110,448 164,646 49.07
2711.12.00 Propane, liquefied 113,679 131,159 15.38
2901.21.00 Ethylene 40,252 125,804 212.540603.10.70 Chrysanthemums, standard carnations, anthuriums and
orchids, fresh cut138,125 121,322 -12.17
2711.14.00 Ethylene, propylene, butylene and butadiene, liquefied 54,075 108,176 100.05
Subtotal 6,118,399  7,116,623 16.32
All other 3,711,817 4,000,602 7.78
Total 9,830,217 11,117,225 13.09
Note:  The abbreviation "nesoi" stands for "not elsewhere specified or otherwise included".
Source:  Compiled from official statistics of the US Department of Commerce.WT/L/416
Page 6
TABLE 3
US Trade with ATPA Countries, 1991-2000
Year US Exports1Share of US
exports to the
worldUS imports2Share of US
imports from the
worldUS trade balance
Million dollars Per cen tMillion dollars Per cen tMillion dollars
1991 3,798.2 .9 4,969.5 1.0 -1,171.3
1992 5,319.7 1.3 5,058.7 1.0 261.0
1993 5,359.1 1.2 5,282.3 .9 76.8
1994 6,445.0 1.3 5,879.5 .9 565.5
1995 7,820.2 1.4 6,968.7 .9 8,514.8
1996 7,718.7 1.3 7,867.6 1.0 -148.9
1997 8,681.8 1.3 8,673.6 1.0 8.2
1998 8,670.1 1.4 8,361.0 .9 309.0
1999 6,263.2 1.0 9,830.2 1.0 -3,567.0
2000 6,295.1 .9 11,117.2 .9 -4,822.1
1 Domestic exports, f.a.s. basis.
2 Imports for consumption, customs value.
Source:  Compiled from official statistics of the US Department of Commerce.WT/L/416
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TABLE 4
US Imports for Consumption from Bolivia, Colombia, Ecuador, and Peru, by Duty Treatments, 1996-2000
Item Bolivia Colombia Ecuador Peru ATPA
totalShare of
ATPA
total
1,000 dollars Per cent
1996:
   Total imports 268,338 4,421,492 1,975,027 1,202,788 7,867,645 100.0
   Dutiable value130,656 2,108,721 783,551 456,115 3,379,043 42.9
        ATPA reduced duty 1,468 23,489 226 22 25,205 .3   Duty-free value
2237,682 2,312,771 1,191,476 746,673 4,488,602 57.1
       MFN 126,128 1,520,542 941,542 277,798 2,866,010 36.4
  GSP42,446 45,538 17,837 64,788 130,609 1.7
  ATPA5104,323 537,057 218,193 385,276 1,244,849 15.8
       Production Sharing62,102 126,148 1,676 1,018 130,944 1.7
  Other duty free72,683 83,486 12,228 17,793 116,190 1.5
1997:
   Total imports        213,408 4,614,873 2,139,354 1,705,929 8,673,564 100.0
   Dutiable value133,492 1,662,344 692,408 526,881 2,915,126 33.6
       ATPA reduced duty 1,882 25,157 139 45 27,224 .3
   Duty-free value2179,916 2,952,528 1,446,946 1,179,048 5,758,438 66.4
       MFN3
90,9572,041,264 1,195,364 566,376 3,893,961 44.9
       GSP418,885 78,162 17,312 140,910 255,271 2.9
       ATPA565,730 579,205 215,247 424,057 1,284,238 14.8
       Production sharing6      2,874 159,759 2,178 427 165,238 1.9
       Other duty free71,469 94,148 16,845 47,279 159,740 1.8
1998:
   Total imports 220,140 4,425,163 1,773,917 1,925,286 8,344,507 100.0
   Dutiable value134,989 1,736,822 441,474 447,961 2,661,246 31.9
    ATPA reduced duty 1,070 24,800 308 8 26,187 1.0
   Duty-free value2185,151 2,688,341 1,332,443  1,477,325 5,683,261 68.1
      MFN3108,453 1,795,720 1,081,552 682,198 3,667,923 44.0
      GSP47,773 42,645 14,579 125,054 190,051 2.3
      ATPA568,559 685,088 232,694 632,668 1,619,010 19.4
      Production sharing6258 155,813 2,210 292 158,572 1.9
      Other duty free7108  9,075  1,408 37,113 47,705 .6
1999:
   Total Imports 224,167 5,813,997 1,852,631 1,870,815   9,761,610 100.0
    Dutiable value140,473 2,176,911 612,883 456,712  3,286,978  33.7
       ATPA reduced duty 886 22,250 839 26 24,002  .2   Duty-free value
2 183,694  3,637,086  1,239,748 1,414,103  6,474,632  66.3
       MFN3114,969 2,532,774 950,556  727,927 4,326,225 44.3
       GSP47,934 46,485 19,190 51,684 125,293 1.3
       ATPA560,606 774,866 259,334  631,098  1,725,903 17.7
       Production sharing693 141,287 5,062  253 146,695 1.5
       Other duty free793  141,674  5,607  3,141 150,515 1.5WT/L/416
Page 8
TABLE 4 – CONTINUED
US Imports for Consumption from Bolivia, Colombia, Ecuador, and Peru, by Duty Treatments, 1996-2000
Item Bolivia Colombia Ecuador Peru ATPA
totalShare of
ATPA
total
1,000 dollars Per cent
2000:
  Total Imports 184,250 6,601,802  2,266,975  1,979,099  11,032,126  100.0
  Dutiable value130,523 2,505,479 1,250,278 571,965 4,358,245 39.5
      ATPA reduced duty  675 25,393  370 100 26,538 .2  Duty-free value
2153,727  4,096,323 1,016,697 1,407,134  6,673,881 60.5
      MFN386,240 2,968,505 729,924  515,885  4,300,554 39.0
     GSP45,783 66,144 28,569 45,054 145,549 1.3
     ATPA5 60,786 800,951  247,084 845,849  1,954,670 17.7
     Production sharing6420  130,189 5,475 29  136,112 1.2
     Other duty free7 499 130,534 5,646 317 136,997 1.2
1Dutiable value excludes the US content entering under HTS subheading 9802.00.80 and misreported imports.
2 Calculated as total imports less dutiable value.
3 Value of imports that have a col. 1-general duty rate of free.
4 Reduced by the value of MFN duty-free imports and ineligible items that were misreported as entering under the
GSP programme.
5 Reduced by the value of MFN duty-free imports and ineligible items that were misreported as entering under
ATPA.
6 HTS items 9802.00.60 and 9802.00.80.  Refers to the value of non-dutiable exported and returned US-origin
products or components.
7 Calculated as a remainder, and represents imports entering free of duty under special rate provisions.
Note:  This table provides adjusted data.  The adjusted data differ from their counterparts in the other tables, which contain
data based on unadjusted, reported entries. Virgin Islands data have been excluded from this table.
Source: Compiled from official statistics of the US Department of Commerce.
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