WORLD TRADE
ORGANIZATIONWT/L/328
22 October 1999
(99-4614)
General Council
3, 4 and 8 November 1999Original:  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 21 October 1999, has been received from the Permanent
Mission of the United States.
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1. Introduction
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 Andean
countries as authorized by the provisions of Andean Trade Preference Act (ATPA) without beingrequired to extend the same duty-free treatment to like products of any other Member.  This waiver
was extended until 4 December 2001.
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 trad e-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 1999.  Trade data has been provided for calendar year 1998, the mostrecent year for which full-year data is available.
2. Duty-free treatment under the ATPA
The ATPA, which was signed into law on 4 December 1991, authorizes the President to
eliminate duties on all products, with certain exception
2, from four Andean nations – Bolivia,
Colombia, Ecuador and Peru.  The Act is intended to help the beneficiaries reduce the production and
trafficking 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.
                                                     
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 1983;  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 sugar; and rum and tafia.WT/L/328
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3. ATPA performance
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.  ATPA continues to have indirect, but positive effects on beneficiary countries’ drug controlefforts.  Eradication efforts in 1998 contributed to the continued overall decline in coca production in
the Andean region.  Also, alternative development efforts to introduce new products and expanded
production into the region are beginning to show promising results.
US imports afforded duty-free entry under ATPA continued to increase in 1998, amounting to
$1.6 billion or 0.17 per cent of total U.S. imports.  Due to lower commodity prices, total US imports
from ATPA beneficiary countries dropped slightly in 1998 to $8.3 billion or 0.9 per cent of total USimports.  The United States continues to be the single largest trading partner for each ATPA
beneficiary country.
The Andean fresh cut flower sector, located predominantly in Colombia and to some extent in
Ecuador, continued to be the principal beneficiary industry of the programme.  That said, the flowerindustry’s share of total ATPA entries continues to decline, from 60 per cent in 1993 to 27.5 per cent
in 1998.  In fact, 1998 was the first year in which a cut-flower product was not the leading 8 digit
HTS import item under ATPA.  However, the decrease in the importance of flowers reflects the
comparatively faster growth and diversification in other import categories entered under ATPA,
including certain jewelry articles, refined unwrought lead, cathodes of refined copper, tuna andskipjack not in airtight containers, and unwrought metal products.
Colombia continued to be the leading ATPA beneficiary country in 1998, providing 43.2 per
cent of all imports under ATPA.  Peru ranked as the second ATPA beneficiary, with 38.5 per cent of
all US imports under ATPA in 1998;  Ecuador was third, with 14.2 per cent; and Bolivia was fourth,with 4.2 per cent of the total.
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 im ports, by product, under ATPA provisions
during the period 1996-98.
Table 2 provides information on leading US imports, by product, from ATPA countries
during 1997-98.
Table 3 provides information on US trade with ATPA countries during 1994-98.
Table 4 provides summary information on the duty treatment of US imports from ATPA
countries during 1994-98.WT/L/328
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TABLE 1
Leading US Imports for Consumption under ATPA, by Major Product Categories, 1994-98
HTS
Chapter Description 1996 1997 1998
06 Live trees and other plants; bulbs, roots and
the like; cut flowers and ornamental foliage 435,871 444,922 451,926
71 Natural or cultured pearls, precious or
semiprecious stones, precious metals;
precious metal clad metals, articles thereof;
imitation jewelry; coins 245,316 219,040 360,970
74 Copper and articles thereof 105,608 187,826 214,196
91 Clocks and watches and parts thereof 781 559 56,852
28 Inorganic chemicals; organic or inorganic
compounds of precious metals, of rare-earth
metals, of radioactive elements or of isotopes 2,261 72,259 49,998
16 Edible preparations of meat, fish,
crustaceans, molluscs or other aquatic
invertebrates61,232 51,129 49,603
07 Edible vegetables and certain roots and
tubers37,544 39,757 46,367
39 Plastics and articles thereof 44,673  42,676 43,578
79 Zinc and articles thereof 37,634 22,777 43,233
17 Sugars and sugar confectionary 74,692 33,944 41,443
     Total of above 1,045,612 1,114,889 1,358,168
     All other 224,442 237,967 287,028
     Total all commodities 1,270,054 1,352,855 1,645,196
Note:  Because of rounding, figures may not add to totals shown.
Source:  Compiled from official statistics of the US Department of Commerce.WT/L/328
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TABLE 2
Leading US Imports for Consump tion from ATPA Countries, 1997-98
HTS Number Description 1997 1998 Change
Value (1,000 dollars) Percent
2709.00.20 Petroleum oils and oils from bituminous minerals,
crude, testing 25 degrees A.P.I. or more 1,319,426 1,088,453 -17.51
0901.11.00 Coffee, not roasted, not decaffeinated 887,124 721,985 -18.620306.13.00 Shrimps and prawns, cooked in shell or uncooked,
dried, salted or in brine, frozen 656,445 636,767 -3.00
0803.00.20 Bananas, fresh or dried 417,858 436,467 4.45
2710.00.05 Distillate and residual fuel oils (including blends)
derived from bituminous minerals, testing under 25degrees A.P.I.357,104 367,522 2.92
7108.12.10 Gold, nonmonetary, bullion and dore 139,667  292,616 109.51
2709.00.10 Petroleum oils and oils from bituminous minerals,
crude, testing under 25 degrees A.P.I. 344,406 265,417 -22.93
7403.11.00 Cathodes and sections of cathodes, of refined
copper214,643 212,614 -0.95
9999.95.00 Informal entries under $1251 152,831 199,328 30.42
0603.10.60 Roses, fresh cut 184,291 195,895 6.30
0603.10.70 Chrysanthemums, standard carnations, anthuriums
and orchids147,827 147,359 -0.32
2713.11.00 Coke, petroleum, not calcined 222,270 139,054 -37.44
2710.00.10 Distillate and residual fuel oils (including blends)
derived from bituminous minerals, testing 25
degrees A.P.I. or more111,932 122,552 9.49
7108.13.70 Other semi-manufactured forms of nonmonetary
gold41,299 115,021 178.50
2701.12.00 Coal, bituminous, whether or not pulverized, but not
agglomerated97,527 108,552 11.30
9801.00.10 US goods returned without having been advanced in
value or improved in condition while abroad 99,090 106,278 7.25
2711.29.00 Petroleum gases and other gaseous hydrocarbons,
except natural gas 111,698 100,205 -10.29
6110.20.20 Sweaters, pullovers and similar articles, knitted or
crocheted, of cotton, nesoi 71,057 96,152 35.32
0901.12.00 Coffee, not roasted, decaffeinated 99,588 91,589 -8.03
6105.10.00 Men's or boys' shirts, knitted or crocheted, of cotton 77,489 81,686 5.42
        Total 5,753,572 5,525,513 -3.96        All other 2,919,992 2,835,524 -2.89
        Total all commodities 8,673,564 8,361,036 -3.60
Note:  The abbreviation, nesi, stands for "not elsewhere specified or included."  The abbreviation, nesoi, stands
for "not elsewhere specified or otherwise included."
Source:  Compiled from official statistics of the US Department of Commerce.WT/L/328
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TABLE 3
US Trade with ATPA Countries, 1994-98
Year US exports1Share of US
exports to
the worldUS imports2Share of US
imports from
the worldUS trade
balance
Million dollars Percent Million dollars Percent Million dollars
1994 6,445.0 1.3 5,879.5 0.9 565.51995 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
1997 8,681.8 1.3 8,673.6 1.0 8.21998 8,670.1 1.4 8,361.0 0.9 309.1
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/328
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TABLE 4
US Imports for Consumption from Bolivia, Colombia, Ecuador, and Peru,
by Duty Treatment, 1994-98
Share
ATPA o f
Item Bolivia Colombia Ecuador Peru total total
- - -- - - - - - - -- - 1.000  dollars - - - - - - - - - - -  - - %
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 .3Duty-free value
2244,948 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
       ATPA591,156 392,007 72,803 107,420 663,386 11.3
       Production sharing6853 145,550 254 9,013 155,670 2.6
       Other duty free7336 123,597 199 6,432 130,563 2.2
1995:
Total imports 256,795 3,807,348 1,929,218 965,370 6,968,729 100.0Dutiable value
118,974 1,716,998 766,565 360,541 2,863,078 41.1
      ATPA reduced duty 1,317 21,715 138 6 23,176 .3Duty-free value
2237,821 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
       ATPA582,783 477,546 147,721 207,563 915,613 13.1
       Production sharing62,106 169,028 907 185 172,226 2.5
      Other duty free7379 37,569 298 9,598 47,844 .7
1996:
Total imports 268,338 4,421,492 1,975,027 1,202,788 7,867,645 100.0 Dutiable value
130,656 2,108,721 783,551 456,115 3,379,043 42.9
      ATPA reduced duty 1,468 23,489 226 22 25,205 .3Duty-free value
2237,682 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
       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 8,673,564 100.0Dutiable value
133,492 1,662,344 692,408 526,881 2,915,126 33.6
      ATPA reduced duty 1,882 25,157 139 45 27,224 .3Duty-free value
2179,916 2,952,528 1,446,946 1,179,048 5,758,438 66.4
       MFN390,957  2,041,264 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 sharing62,874 159,759 2,178 427 165,238 1.9
      Other duty free71,469 94,148 16,845 47,279 159,740 1.8WT/L/328
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Share
ATPA o f
Item Bolivia Colombia Ecuador Peru total total
- - -- - - - - - - -- - 1.000  dollars - - - - - - - - - - -  - - %
1998:
Total imports 220,142 4,441,685 1,773,919 1,925,291 8,361,036 100.0Dutiable value
134,989 1,736,822 441,474 447,961 2,661,246 31.8
      ATPA reduced duty 1,070 24,800 308 8 26,187 0.3Duty-free value
2185,152 2,704,863 1,332,445 1,477,330 5,699,790 68.2
       MFN3108,453 1,795,720 1,081,552 682,198 3,667,923 43.9
       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 free7109 25,597 1,411 37,118 64,234 0.8
1 Dutiable value excludes the US content entering under HTS heading 9802.00.80 and misreported imports.
2 Calculated as total imports less dutiable value, including US Virgin Islands imports.
3 Value of imports that have a col. 1-general duty rate of free.
4 Reduced by the value of unconditionally duty-free imports and ineligible items that were misreported as
entering under the GSP programme.
5 Reduced by the value of unconditionally duty-free imports and ineligible items that were misreported as
entering under ATPA.
6 HTS 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 entered free of duty under special rate provisions.
Source: Compiled from official statistics of the US Department of Commerce.
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