WORLD TRADE WT/L/232
10October 1997
ORGANIZATION(97-4365)
Original: English General Council
22October 1997
UNITED STATES -ANDEAN TRADE PREFERENCE ACT
Report oftheGovernment oftheUnited States
under theDecision of14October 19961
Thefollowing communication, dated 9October 1997, hasbeenreceived fromthePermanent
Mission oftheUnited States.
_______________
Introduction
On14October 1996, theUnited States wasgranted arenewal ofthewaiver (WT/L/184) from
itsobligations under paragraph 1ofArticle IoftheGATT 1994 totheextent necessary topermit the
United States Government toprovide duty-free treatment toeligible products ofbeneficiary Andean
countriesasauthorizedbytheprovisionsofAndeanTradePreferenceAct(ATPA)withoutbeingrequired
toextend thesameduty-free treatment tolikeproducts ofanyotherMember. Thiswaiver wasextended
until4December 2001.
Under theterms ofthiswaiver, theUnited States isrequired tosubmit totheGeneral Council
anannual report ontheimplementation ofthetrade-related provisions oftheATPA withaview to
facilitating theannual review provided forinparagraph 4ofArticle IXoftheWTO Agreement. This
report covers calendar year1997. Trade datahasbeenprovided forcalendar year1996, themost
recent yearforwhich full-year dataisavailable.
Duty-free Treatment under theATPA
TheATPA,whichwassignedintolawon4December1991,authorizesthePresidenttoeliminate
duties onallproducts, withcertain exceptions2,fromfourAndean nations --Bolivia, Colombia, Ecuador
andPeru. TheActisintended tohelpthebeneficiaries reduce theproduction andtrafficking ofillicit
drugs byoffering opportunities toexpand trade inlegitimate products. TheATPA provides almost
thesame benefits astheCaribbean Basin Economic Recovery Act,awaiver forwhich wasgranted
1WT/L/184.
2Theproducts excluded from duty-free treatment are:textile andapparel articles which aresubject totextile
agreements; certain footwear which wasnoteligible forduty-free entry under theUSGeneralized System of
Preferences in1983; prepared tunainairtight containers; petroleum andpetroleum products; watches andwatch
parts ifsuchproducts contain anymaterial from countries notaccorded MFN treatment; certain sugar; andrum
andtafia.WT/L/232
Page2
byDecision oftheGeneral Council on15November 1995(WT/L/104). Congress authorized theATPA
foraperiod oftenyears, ending on4December 2001.
ATPA Performance
Themain goaloftheATPA istopromote broad-based economic growth anddevelopment
intheAndean countries. Specifically, theprogramme aimstodevelop sustainable economic alternatives
tococacultivation andcocaine production byoffering Andean products broader access totheUSmarket.
ATPA continues tohaveindirect, butpositive effects onbeneficiary countries ’drugcontrol efforts.
Eradication efforts in1996 didcontribute toanoverall decline inthevolume oflandunder coca
cultivation. Also, alternative development efforts tointroduce newproducts andexpanded production
intotheregion arebeginning toshow promising results.
USimports afforded duty-free entry under ATPA continued toincrease in1996, amounting
tosome $1.3billion or0.16percentoftotalUSimports. Total USimports fromATPA beneficiary
countries totalled $7.9billion or1percentoftotalUSimports. TheUnited States continues tobe
thesingle largest trading partner foreachATPA beneficiary country.
TheAndean fresh cutflower sector, located predominantly inColombia andtosome extent
inEcuador, continued tobetheprincipal beneficiary industry oftheprogramme. Thatsaid,theflower
industry ’sshare oftotalATPA entries continues todecline, from 60percentin1993 to34percent
in1996. Thedecrease intheimportance offlowers reflects thecomparatively faster growth ofother
import categories entered under ATPA, including certain jewellery articles, refined unwrought lead,
cathodes ofrefined copper, tunaandskipjack notinairtight containers, unwrought metal products,
andrawsugar.
Colombia continued tobetheleading ATPA beneficiary country in1996, providing 44.1per
centofallimports under ATPA. Peruranked asthesecond ATPA beneficiary, with30.4percent
ofallUSimports under ATPA in1996; Ecuador wasthethird, with17.2percent; andBolivia was
thefourth, with8.3.percentofthetotal.
Statistical tables areprovided topresent adetailed description ofthetradeaspects oftheATPA
programme forthemost recent period. Detailed information forprevious years hasbeenprovided
inprevious reports totheGATT Council orWTO General Council.
Table 1provides information onleading USimports, byproduct, under ATPA provisions during the
period 1994-96.
Table 2provides information onleading USimports, byproduct, fromATPA countries during 1995-96.
Table 3provides information onUStrade withATPA countries during 1992-96.
Table 4provides summary information onthedutytreatment ofUSimports from ATPA countries
during 1994-96.WT/L/232
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TABLE 1
LEADING USIMPORTS FOR CONSUMPTION ENTERED UNDER ATPA, 1995-96
1995 1996
_________________ _____ ____________________________
HTS Description Entries Share Entries Share Leading
item under oftotal under oftotal ATPA
ATPA imports1ATPA imports1supplier2
1,000 1,000
dollars3Percent dollars3Percent
0603.10.70 Chrysanthemums, standard carnations, anthuriums andorchids 147,875 99.9 161,918 99.8 Colombia
0603.10.60 Roses, fresh cut 126,897 99.2 156,039 99.7 Colombia
7113.19.10 Rope andchain forjewellery, ofprecious metal except silver 101,574 79.4 100,840 97.4 Peru
7403.11.00 Cathodes andsections ofcathodes ofrefined copper 11,995 45.0 91,749 75.4 Peru
0603.10.80 Cutflowers andflower buds suitable forbouquets, 64,388 99.6 81,386 99.8 Colombia
notelsewhere specified
1604.14.40 Tuna andskipjack, notinairtight containers 36,524 65.0 57,933 89.7 Ecuador
7113.19.50 Jewellery andparts ofprecious metal except silver, 46,810 81.3 57,383 90.5 Bolivia
except necklaces andclasps
1701.11.10 Rawsugar notcontaining added flavouring orcolour 31,860 55.2 54,635 60.4 Peru
0603.10.30 Miniature (spray) carnations, fresh cut 32,360 99.9 36,035 99.8 Colombia
3921.12.11 Cellular plastic plates andsheets withmanmade textile
components, over70% byweight ofpolymers ofvinyl
chloride 29,967 100.0 33,598 99.7 Colombia
7113.19.21 Gold ropenecklaces andneck chains 13,966 51.6 29,033 98.8 Peru
7901.11.00 Zinc notalloyed, containing byweight 99.99 7,028 36.4 21,893 86.6 Peru
percent ormore ofzinc
7108.13.505Gold (including goldplated withplatinum) unwrought orin
semi-manufactured forms nesi 328 100.0 18,654 100.0 Peru
0709.20.90 Asparagus, fresh orchilled, notreduced insize, 12,868 99.7 15,284 99.9 Peru
notentered Sept. 15-Nov. 15
7905.00.00 Zinc plates, sheets, stripandfoil 0 0.0 15,112 89.2 Peru
0302.69.40 Fresh orchilled fish, including sable, ocean
perch, snapper, grouper, andmonkfish 19,174 90.9 14,471 85.6 Ecuador
7113.19.29 Gold necklaces andneck chains,
other thanropeormixed link 10,926 96.2 11,676 99.0 Bolivia
7801.10.00 Refined lead, unwrought. 12,982 88.8 11,335 82.7 Peru
4202.91.00 Leather golfbags, travel bags, sports bags, andcases49,272 89.4 11,249 95.5 Colombia
7108.13.705Gold (including goldplated withplatinum)
unwrought orinsemi-manufactured forms nesi 0 0.0 10,875 100.0 Peru
Total ofabove items 716,796 9.1 991,100 12.6
Total, allitems entered under ATPA 938,789 13.4 1,270,054 15.8
_____________________________________________________________________________________________________________________________
1Value ofimports entered under ATPA provisions asashare oftotalimports ofthisitemfrom allATPA beneficiaries. Ashare of
100.0 percentindicates thatalloftheimports ofanitementered under ATPA provisions. Asindicated inthetext,aportion ofsome items
mayhave entered under other provisions.
2Based ontotalUSimports forconsumption from theregion during 1996.
3Customs value.
4Subject totheATPA staged 20percentreduced dutyprovision.
5HTS7108.13.50 wasdiscontinued andnewHTS 7108.13.55 and7108.13.70 were established effective on26October 1996, asa
result ofcongressional legislation. HTS 7108.13.55 wasestablished asMFN freeand7108.13.70 tookanystaging originally proclaimed for
7108.13.50.
Note: Because ofrounding, figures maynotaddtothetotals shown.
Source: USInternational Trade Commission/Compiled from official statistics oftheUSDepartment ofCommerce.WT/L/232
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TABLE 2
LEADING USIMPORTS FOR CONSUMPTION FROM ATPA COUNTRIES, 1995-96
(1,000 dollars, customs value)
____________________________________________________________________________________________________
HTS
itemDescription 1995 1996
___________________________________________________________________________________________________
2709.00.20 Petroleum oilsandoilsfrom bituminous minerals testing
25degrees APIormore 1,978,628 2,053,061
0901.11.00 Coffee, notroasted, notdecaffeinated 651,639 554,779
0306.13.00 Shrimps andprawns, cooked inshell oruncooked, live,fresh,
chilled, frozen, dried, orsalted inbrine 491,989 414,207
2710.00.05 Distillate andresidual fueloils(including blends) testing under
25degrees API 155,468 372,704
0803.00.20 Bananas, fresh ordried 387,065 352,399
7108.12.10 Unwrought goldbullion anddore, non-monetary 165,418 238,177
2709.00.10 Petroleum oilsandoilsfrom bituminous minerals testing
under 25degrees API 167,916 183,458
0603.10.70 Chrysanthemums, standard carnations, anthuriums, andorchids 147,966 162,300
0603.10.60 Roses, fresh cut 127,817 156,485
9999.95.00 Informal entries under $1,251 each 120,760 138,082
2713.11.00 Petroleum coke, notcalcined 19,692 129,890
7403.11.00 Cathodes andsections ofcathodes ofrefined copper 26,603 121,681
7113.19.10 Rope andchain forjewellery, ofprecious metal except silver 127,863 103,528
2710.00.10 Distillate andresidual fueloils(including blends) testing
25degrees APIormore 3,658 93,513
1701.11.10 Rawsugar notcontaining added flavouring orcolour 57,618 90,440
0603.10.80 Fresh cutflowers andflower buds suitable forbouquets, not
elsewhere specified 64,592 81,505
2701.12.00 Bituminous coal, whether ornotpulverized 84,561 79,903
2711.29.00 Petroleum gases andother gaseous hydrocarbons, nesi 9,346 76,122
7103.91.00 Rubies, sapphires andemeralds, worked orgraded 94,200 74,522
9801.00.10 USgoods returned, notadvanced invalue orimproved incondition
while abroad 56,697 74,475
0901.12.00 Coffee, notroasted, decaffeinated 95,902 73,756
7106.91.10 Unwrought silver bullion anddore 70,900 69,399
1604.14.40 Tuna andskipjack, notinairtight containers 56,183 64,576
7113.19.50 Jewellery andparts ofprecious metal except silver, except necklaces
andclasps. 57,550 63,429
6203.42.40 Men'sorboys'trousers, breeches andshorts, notknitted, ofcotton 42,809 59,374
1801.00.00 Cocoa beans, whole orbroken, raworroasted 50,050 56,469
2710.00.25 Naphthas (except motor fuelormotor fuelblending stock) 11,379 54,801
6105.10.00 Men'sorboys'shirts, knitted orcrocheted, ofcotton 38,206 54,226
6110.20.20 Sweaters andpullovers, ofcotton, knitted orcrocheted 55,634 49,615
4407.24.00 Virola, mahogany, imbuia andbalsa tropical woods 0 47,259
8001.10.00 Unwrought tin,notalloyed 40,256 42,010
2713.20.00 Petroleum bitumen 0 40,372
0803.00.30 Plantains, fresh 38,939 39,929
0603.10.30 Miniature (spray) carnations, fresh cut 32,362 36,074
3921.12.11 Nonadhesive plates, sheets, film, foil,strip, cellular, of70percent
byweight ofplastics 29,966 33,709
Total ofabove items 5,559,635 6,336,237
Total allcommodities 6,968,729 7,867,645
__________________________________________________________________________________________________
Note: Because ofrounding, figures maynotaddtothetotals shown.
Source: USInternational Trade Commission/ Compiled from official statistics oftheUSDepartment ofCommerce.WT/L/232
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TABLE 3
USTRADE WITH ATPA COUNTRIES, 1992-96
Share of Share of
Year USexports1totalUS USimports2totalUS UStrade balance
exports imports
Million dollars Percent Million dollars Percent Million dollars
1992 5,319.7 1.3 5,058.7 1.0 261.0
1993 5,359.1 1.2 5,282.3 0.9 76.7
1994 6,445.0 1.3 5,879.5 0.9 565.5
1995 7,820.2 1.4 6,968.7 0.9 851.4
1996 7,718.7 1.3 7,867.6 1.0 -148.9
1Domestic exports, f.a.s. basis.
2Imports forconsumption, customs value.
Source: United States International Trade Commission/Compiled from official statistics oftheUSDepartment ofCommerce.WT/L/232
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TABLE 4
USIMPORTS FOR CONSUMPTION FROM BOLIVIA, COLOMBIA, ECUADOR,
AND PERU, BYDUTY TREATMENT, 1994-96
____________________________________________________________________________________________________________
ATPAPercent
Year anditem Bolivia Colombia Ecuador Perutotalof
total
_____________________________________________________________________________________________________________
1,000 dollars, customs value
1994:
Total imports 257,373 3,132,398 1,709,790 779,945 5,879,505 100.0
Dutiable value112,425 1,312,104 591,338 210,192 2,126,059 36.2
ATPA reduced duty 684 19,635 102 10 20,432 0.3
Duty-free value2244,948 1,820,294 1,118,452 569,753 3,753,446 63.8
MFN3115,185 1,070,386 1,007,929 270,876 2,464,376 41.9
GSP437,418 88,754 37,267 176,012 339,451 5.8
ATPA491,156 392,007 72,803 107,420 663,386 11.3
Production sharing5853 145,550 254 9,013 155,670 2.6
Other dutyfree6336 123,597 199 6,432 130,563 2.2
1995:
Total imports 256,795 3,807,348 1,939,218 965,370 6,968,729 100.0
Dutiable value118,974 1,716,998 766,565 360,541 2,863,078 41.1
ATPA reduced duty 1,317 21,715 138 6 23,176 0.3
Duty-free value2237,821 2,090,350 1,172,653 604,829 4,105,653 58.9
MFN3137,083 1,330,470 1,000,602 273,575 2,741,730 39.3
GSP415,470 75,737 23,125 113,908 228,240 3.3
ATPA482,783 477,546 147,721 207,563 915,613 13.1
Production sharing52,106 169,028 907 185 172,226 2.5
Other dutyfree6379 37,569 298 9,598 47,844 0.7
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 0.3
Duty-free value2237,682 2,312,771 1,191,476 746,673 4,488,602 57.1
MFN3126,128 1,520,542 941,542 277,798 2,866,010 36.4
GSP42,446 45,538 17,837 64,788 130,609 1.7
ATPA4104,323 537,057 218,193 385,276 1,244,849 15.8
Production sharing52,102 126,148 1,676 1,018 130,944 1.7
Other dutyfree62,683 83,486 12,228 17,793 116,190 1.5
_____________________________________________________________________________________________________________
1Dutiable value excludes theUScontent entering under HTS subheading 9802.00.80 andsubheading
9802.00.60.
2Calculated astotalimports lessdutiable value.
3Value ofimports thathave acol.1general dutyrateoffree.
4Reduced bythevalue ofMFN duty-free imports andineligible items.
5Value ofnon-dutiable exported andreturned US-origin products orcomponents, under HTS items 9802.00.60
and9802.00.80.
6Calculated asaremainder, andrepresents imports entering freeofdutyunder special rateprovisions.
Source: USInternational Trade Commission/Compiled from official statistics oftheUSDepartment ofCommerce.