WORLD TRADE
ORGANIZATIONWT/L/372
20 November 2000
(00-4937)
General Council
7 and 8 December 2000Original:  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 7 November 2000, 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 Andean
countries 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 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 2000.  Trade data has been provided for calendar year 1999, the most
recent 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 exceptions2, 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/372
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’ drugcontrol efforts.  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.
5. United States imports afforded duty-free entry under ATPA continued to increase in 1999,
amounting to US$1.75 billion.  Total US imports from ATPA beneficiary countries dropped slightly
in 1998 to US$8.3 billion, but imports rebounded in 1999 to US$9.8 billion largely because of higher
petroleum prices.  The United States continues to be the single largest trading partner for each ATPAbeneficiary country.
6. 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 flower
industry’s share of total ATPA entries continues to decline,  from 43 per cent in 1994 to 24.9 per cent
in 1999.  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,
zinc, pigments , cathodes of refined copper, processed  tuna, and unwrought metal products.
7. Colombia continued to be the leading ATPA beneficiary country in 1999, providing 45.55 per
cent of all imports under ATPA.  Peru ranked as the second ATPA beneficiary, with 36.06 per cent of
all US imports under ATPA in 1999;  Ecuador was third, with 14.87 per cent; and Bolivia was fourth,with 3.51 per cent of the total.
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 1995-99.
Table 2  provides information on leading US imports, by product, from ATPA countries
during 1998-99.
Table 3  provides information on US trade with ATPA countries during 1991-99.
Table 4  provides summary information on the duty treatment of US imports from ATPA
countries during 1994-98.WT/L/372
Page 3TABLE 1
Leading US Imports for Consumption under ATPA, by Major Product Categories, 1995-99
HTS
Chapter Description 1995 1996 1997 1998 1999
Value  (1,000 dollars)
06 Live trees and other plants; bulbs, roots and the like;
cut flowers and ornamental foliage371,882 435,871 444,922 451,926 436,434
74 Copper and articles thereof 26,512 105,608 187,826 214,196 331,138
71 Natural or cultured pearls, precious or semiprecious
stones, precious metals; precious metal clad metals,articles thereof; imitation jewelry; coin177,124 245,316 219,040 360,970 186,826
32 Tanning or dyeing extracts; tannins and derivatives;
dyes, pigments and other coloring matter; paints and
varnishes; putty and other mastics; inks2,390 2,627 4,516 40,314 163,004
16 Edible preparations of meat, fish, crustaceans,
molluscs or other aquatic invertebrates 39,442 61,232 51,129 49,60386,922
79 Zinc and articles thereof 7,040 37,634 22,777 43,233 83,420
07 Edible vegetables and certain roots and tubers 27,020 37,544 39,757 46,367 63,922
28 Inorganic chemicals; organic or inorganic
compounds of precious metals, of rare-earth metals,of radioactive elements or of isotopes 417 2,261 72,259 49,99860,017
39 Plastics and articles thereof 39,435 44,673 42,676 43,578 51,756
44 Wood and articles of wood; wood charcoal 18,644 30,093 32,125 33,284  40,132
     Subtotal 709,906 1,002,860 1,117,027 1,333,469 1,503,572
All other 228,883 267,194 235,828 311,727 246,707
     Total 938,789 1,270,054 1,352,855 1,645,196 1,750,279WT/L/372
Page 4 TABLE 1 – CONTINUED
Leading US Imports for Consumption under ATPA, by Major Product Categories, 1995-99
HTS
Chapter Description 1995 1996 1997 1998 1999
Percent of total
06 Live trees and other plants; bulbs, roots and the like;
cut flowers and ornamental foliage39.61 34.32 32.89 27.47 24.94
74 Copper and articles thereof 2.82 8.32 13.88 13.02 18.92
71 Natural or cultured pearls, precious or semiprecious
stones, precious metals; precious metal clad metals,
articles thereof; imitation jewelry; coin18.87 19.32 16.19 21.94 10.67
32 Tanning or dyeing extracts; tannins and derivatives;
dyes, pigments and other coloring matter; paints andvarnishes; putty and other mastics; inks.25 .21 0.33 2.45 9.31
16 Edible preparations of meat, fish, crustaceans,
molluscs or other aquatic i nvertebrates 4.20 4.82 3.78 3.024.97
79 Zinc and articles thereof  .75 2.96 1.68 2.63 4.77
 07 Edible vegetables and certain roots and tubers 2.88 2.96 2.94 2.82 3.6528 Inorganic chemicals; organic or inorganic
compounds of precious metals, of rare-earth metals,of radioactive elements or of isotopes .04 .18 5.34 3.043.43
39 Plastics and articles thereof 4.20 3.52 3.15 2.65 2.96
44 Wood and articles of wood; wood charcoal 1.99 2.37 2.37 2.02 2.29
     Subtotal 75.62 78.96 82.57 81.05 85.90
All other 24.38 21.04 17.43 18.95 14.10
     Total 100.00 100.00 100.00 100.00 100.00
Note:  Because of rounding, figures may not add to totals shown.
Source:  Compiled from official statistics of the US Department of Commerce.WT/L/372
Page 5
TABLE 2
Leading US Imports for Consumption from ATPA Countries, 1998-99
Change,
1999 over
1998
HTS Provision Description 1998 1999
1,000 dollars Percent
2709.00.20 Petroleum oils and oils from bituminous minerals,
crude, testing 25 degrees A.P.I. or more1,088,453 1,039,092 - 4.53
2709.00.10 Petroleum oils and oils from bituminous minerals,
crude, testing under 25 degrees A.P.I.265,417 581,463 119.08
0901.11.00 Coffee, not roasted, not decaffeinated 721,985 558,133 - 22.69
0803.00.20 Bananas, fresh or dried 436,467 482,761 10.612710.00.05 Distillate and residual fuel oils (including blends)
derived from bituminous minerals, testing under25 degrees A.P.I.367,522 477,059 29.80
0306.13.00 Shrimps and prawns, cooked in shell or uncooked, dried,
salted or in brine, frozen636,767 447,397 - 29.74
7108.12.10 Gold, nonmonetary, bullion and dore 292,616 351,466 20.11
7403.11.00 Refined copper cathodes and sections of cathodes 212,614  327,252 53.929999.95.00 Informal entries under $1,251 199,328 309,914 55.482710.00.10 Distillate and residual fuel oils (including blends)
derived from bituminous minerals, testing 25 degrees
A.P.I. or more122,552 296,604 142.02
2713.11.00 Coke, petroleum, not calcined 139,054 278,307 100.14
2711.29.00 Petroleum gases and other gaseous hydrocarbons, except
natural gas100,205 214,310 113.87
0603.10.60 Roses, fresh cut 195,895 182,986 - 6.59
9801.00.10 US goods returned without having been advanced in
value or improved in condition while abroad106,278 177,713 67.21
3212.90.00 Pigments dispersed in nonaqueous media, in liquid or
paste form, used in making paints; dyes & coloringmatter packaged for retail sale39,564 160,939 306.78
0603.10.70 Chrysanthemums, standard carnations, anthuriums and
orchids, fresh cut147,359 138,125 - 6.27
6110.20.20 Sweaters, pullovers and similar articles, knitted or
crocheted, of cotton, nesoi96,152 132,514 37.82
2701.12.00 Coal, bituminous, whether or not pulverized, but not
agglomerated108,552 131,537 21.17
2711.12.00 Propane, liquefied 31,241 113,679  263.88
2710.00.25 Naphthas (ex. motor fuel or motor fuel blend. stock),
from petroleum oils and bitumin. minerals, o/than crude,or preps. 70%+ by wt. from petroleum oils55,085 110,448 100.51
      Subtotal 5,363,106 6,511,700 21.42
All other 2,997,930 3,318,516  10.69
      Total 8,361,036 9,830,217 17.57
Note:  The abbreviation "nesi" stands for "not elsewhere specified or included".
Source:  Compiled from official statistics of the US Department of Commerce.WT/L/372
Page 6
TABLE 3
US Trade with ATPA Countries, 1991-99
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
1991 3,798.2 .9 4,969.5 1.0 -1171.3
1992 5,319.7 1.3 5,058.7 1.0 261.0
1993 5,359.1 1.2 5,282.3 .9 76.7
1994 6,445.0 1.3 5,879.5 .9 565.5
1995 7,820.2 1.4 6,968.7 .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 8.2
1998 8,670.1 1.4 8,361.0 .9 309.1
1999 6,263.2  1.0 9,830.2 1.0 - 3,567.0
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/372
Page 7
TABLE 4
US Imports for Consumption from Bolivia, Colombia, Ecuador, and Peru, by Duty Treatments, 1995-99
Share
ATPA of
Item Bolivia Colombia Ecuador Peru total total
1,000 dollars Percent
1995:
  Total imports 256,795 3,807,348 1,929,218  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 .3
  Duty-free value2237,821 2,090,350 1,172,653 604,829 4,105,653 58.9
       Col. 1-general3137,083 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 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 value2237,682 2,312,771 1,191,476 746,673 4,488,602  57.1
       Col. 1-general3126,128 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
       Col. 1-general390,957 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 1.8
 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 .3
Duty-free value2185,151 2,688,341 1,332,443 1,477,325 5,683,261 68.1
       Col. 1-general3108,453 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 .8
Note:  See footnotes at end of table.WT/L/372
Page 8
TABLE 4 – CONTINUED
US Imports for Consumption from Bolivia, Colombia, Ecuador, and Peru, by Duty Treatments, 1995-99
Share
ATPA of
Item Bolivia Colombia Ecuador Peru total total
1,000 dollars Percent
1999:
Total imports 216,819 5,476,338 1,798,628 1,781,803 9,273,589 100.0
Dutiable value140,086 2,059,293 587,800 450,632 3,137,811 33.8
      ATPA reduced duty 886 35,746 499 613 37,743 .4
Duty-free value2176,734 3,417,045 1,210,828 1,331,171 6,135,777 66.2
       Col. 1-general3108,101 2,467,748 926,701 645,836 4,148,385 44.7
       GSP47,934 46,485 19,190 51,684 125,293 1.4
       ATPA 560,606 761,370 259,675 630,511 1,712,162 18.5
       Production sharing693 141,287 5,062 253 146,695 1.6
       Other duty free7(8)155 201 2,886 3,242 -
1Dutiable value excludes the U.S. content entering under HTS subheading 9802.00.80 and misreported imports.
2Calculated as total imports less dutiable value.
3Value of imports that have a col. 1-general duty rate of free.
 4Reduced by the value of col. 1-general duty-free imports and ineligible items that were misreported as entering
under the GSP program.
5Reduced by the value of col. 1-general duty-free imports and ineligible items that were misreported as entering
under ATPA.
6HTS 9802.00.60 and 9802.00.80.  Refers to the value of non dutiable items exported and returned U.S.-origin
products or components.
7Calculated as a remainder, and represents imports entered free of duty under special rate provisions.
8Less than $500.
Source:  Compiled from official statistics of the U.S. Department of Commerce.
Note:  Because this table corrects entries reported in inappropriate categories of dutiability, it includes data that differ fr om
their counterparts in the other tables.  Data in all other tables are based on entries as reported.
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