WORLD TRADE
ORGANIZATIONWT/L/289
27 November 1998
(98-4781)
General Council
9 - 11 December 1998Original:  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 19 November 1998, has been received from the
Permanent Mission of the United States.
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Introduction
On October 14, 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 topermit the United States Government to provide duty-free treatment to eligible products ofbeneficiary 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 otherMember.  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 trade-related provisions of the ATPA with aview to facilitating the annual review provided for in paragraph 4 of Article IX of the WTOAgreement.  This report covers calendar year 1998.  Trade data has been provided for calendaryear 1997, the most recent year for which full-year data is available.
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 exceptions2, from four Andean nations -- Bolivia,
Colombia, Ecuador and Peru.  The Act is intended to help the beneficiaries reduce the production
                                                     
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 U.S. Generalized
System 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/289
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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.
ATPA Performance
The main goal of the ATPA is to promote broad-based economic growth and development
in the Andean countries.  Specifically, the program aims to develop sustainable economicalternatives to coca cultivation and cocaine production by offering Andean products broader accessto the U.S. market. ATPA continues to have indi rect, but positive effects on beneficiary countries’
drug control efforts.  Eradication efforts in 1997 did contribute to an overall decline in the volumeof land under coca cultivation.  Also, alternative development efforts to introduce new products andexpanded production into the region are beginning to show promising results.
U.S. imports afforded duty-free entry under ATPA continued to increase in 1997,
amounting to some $1.35 billion or 0.16 percent of total U.S. imports.  Total U.S. imports from
ATPA beneficiary countries totalled $8.7 billion or 1 percent of total U.S. imports.  The UnitedStates 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 program.  That said, the flowerindustry’s share of total ATPA entries continues to decline, from 60 percent in 1993 to 33 percentin 1997.  The decrease in the importance of flowers reflects the comparatively faster growth ofother import categories entered under ATPA, including certain jewelry articles, refined unwroughtlead, cathodes of refined copper, tuna and skipjack not in airtight containers, and unwrought metalproducts.
Colombia continued to be the leading ATPA  beneficiary country in 1997, providing 44.8
percent of all imports under ATPA. Peru ranked as the second ATPA beneficiary, with 34.1 percent of
all U.S. imports under ATPA in 1997; Ecuador was third, with 16.1 percent; and Bolivia was fourth,
with 5.1 percent of the total.
Statistical tables are provided to present a detailed description of the trade aspects of the
ATPA program 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 U.S. imports, by product, under ATPA provisions during the
period 1995-97.
Table 2  provides information on leading U.S. imports, by product, from ATPA countries during
1995-97.
Table 3  provides information on U.S. trade with ATPA countries during 1992-97.
Table 4  provides summary information on the duty treatment of U.S. imports from ATPA countries
during 1994-97.WT/L/289
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Table 1
Leading U.S. imports for consumption under ATPA, by major product categories, 1995-97
(expressed in thousands of dollars)
HTS
ItemDescription 1995 1996 1997
(Value in thousands of dollars)
06 Live trees and other plants; bulbs, roots and the like; cut flowers
   and ornamental foliage....................................................................................................371,882 435,871 444,922
71 Natural or cultured pearls, precious or semiprecious stones,   precious metals, precious
metal clad metals, articles thereo f;  imitation je welry; coins..............................................177,124 245,316 219,040
74 Copper and arti cles thereof ................................................................................................ 26 ,512 105,608 187,826
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
16 Edible preparations of meat, fish crustaceans, molluscs or other aquatic invertebrates...... 39,442 61,232 51,129
39 Plastics and articles thereof ................................................................................................ 39,435 44,673 42,676
07 Edible vegetables and certai n roots and tube rs................................................................... 27,020 37,544 39,757
17 Sugar and sugar co nfectionary ........................................................................................... 64,22 0 74,692 33,944
44 Wood and articles of wood; wood charcoal ....................................................................... 18,644 30,093 32 ,125
42 Articles of leather; saddlery and harness; travel goods, handbags  and similar
containers; articles of gut (other than silkworm gut) ..........................................................23,911 26,045 27,803
Total of ab ove ......................................................................................................... 788,608 1 ,063,335 1,151,481
All othe r.................................................................................................................. 150, 181 206,719 201,374
Total all commoditi es ............................................................................................. 938,789 1,270, 054 1,352,855
(Percent of total )
06 Live trees and other plants; bulbs, roots and the like; cut flowers  and ornamental
foliage39.61 34.32 32.89
71 Natural or cultured pearls, precious or semiprecious stones, precious metals, precious
metal clad metals, articles ther eof; imitation jewelry; coins...............................................18.87 19.32 16.19
74 Copper and arti cles thereof ................................................................................................ 2. 82 8.32 13.88
28 Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth
metals, of radioactive elements or of isotopes....................................................................0.04 0.18 5.34
16 Edible preparations of meat, fish crustaceans, molluscs or other aquatic invertebrates...... 4.20 4.82 3.78
39 Plastics and articles thereof ................................................................................................ 4.20 3.52 3.15
07 Edible vegetables and certai n roots and tube rs................................................................... 2.88 2.96 2.94
17 Sugars and sugar confectiona ry.......................................................................................... 6.84 5 .88 2.51
44 Wood and articles of wood ; wood charcoal ....................................................................... 1.99 2.37 2.37
42 Articles of leather; saddlery and harness; travel goods, handbags and similar containers;
articles of gut (other than silkworm gut) ............................................................................2.55 2.05 2.06
Total of above ......................................................................................................... 84.00 83. 72 85.11
All other.................................................................................................................. 16.0 0 16.28 14.89
Total all commoditi es ............................................................................................. 100.00 100.00 1 00.00
Note.—Because of rounding, figures may not add to totals given.
Source: United States International Trade Commission/Compiled from official statistics of the U.S. Department of Commerce.WT/L/289
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Table 2
Leading U.S. imports for consumption from APTA countries, 1995-97
HTS
NumberDescription 1995 1996 1997Change
1996/1997
Value in thousands o f dollars Percen t
2709.00.20 Petroleum oils and oils from bituminous minerals,
   crude, testing 25 degrees A.P.I. or more.............1,978,628 2,053,061 1,319,426 -35.73
0901.11.00 Coffee, not roasted, not d ecaffeinated................... 651,639 5 54,779 887,124 59.91
0306.13.00 Shrimps and prawns, cooked in shell or uncooked,
   dried, salted or in brine,  frozen........................... 491,989 414 ,208 656,445 58.48
0803.00.20 Bananas, fresh or dr ied.......................................... 38 7,065 352,399 417,858 18.58
2710.00.05 Distillate and residual fuel oils (including blends)
 derived from bituminous minerals, testing under
25 degrees A.P. I.................................................... 155,468 372,7 05 357,104 -4.19
2709.00.10 Petroleum oils and oils from bituminous minerals,
crude, testing under 25 degrees A.P.I.................... 167,916 183 ,458 344,406 87.73
2713.11.00 Coke, petroleum, not cal cined............................... 19, 693 129,891 222,270 71.12
7403.11.00 Refined copper cathodes and sections of cathodes 26,603 121,681 214,643 76.40
0603.10.60 Roses, fresh cut ..................................................... 127,817 156,4 86 184,291 17.77
0603.10.70 Chrysanthemums, standard carnations, anthuriums
and orchids, fresh cut ............................................ 147,966 162,300 147,827 -8.92
7108.12.10 Gold, nonmonetary, bullion and dore.................... 165,418 238 ,177 139,667 -41.36
2710.00.10 Distillate and residual fuel oils (including blends)
derived from bituminous minerals, testing 25 degrees
A.P.I. or more ....................................................... 3, 658 93,513 111,932 19.70
2711.29.00 Petroleum gases and other gaseous hydrocarbons,
except natural gas.................................................. 9,347 76,122 111,698 46.74
0901.12.00 Coffee, not roasted, decaf feinated......................... 95,903 73,756 99,588 35.02
2701.12.00 Coal, bituminous, whether or not pulverized,
but not agglomer ated............................................. 84,561 79, 903 97,527 22.06
7113.19.10 Precious metal (o/than silver) rope, curb, etc. in
continuous lengths, whether or not plated/clad
precious metal, for jewelry manuf acture ............... 127,863 103,528 80,398 -22.34
7103.91.00 Rubies, sapphires and emeralds, worked, whether
or not graded, but n/strung (ex. ungradedtemporarily strung), mounted or  set ...................... 94,200 74,523 79,957 7.29
6105.10.00 Men's or boys' shirts, knitted or crocheted, of cotton 38,206 54,226 77,489 42.90
0603.10.80 Cut flowers and flower buds suitable for bouquets or
ornamental purposes, fresh cut, nesi ..................... 64,592 81,505 76,151 -6.57
7113.19.50 Precious metal (o/than silver) articles of jewelry and
parts thereof, whether or not plated or clad with
precious metal, nesoi............................................. 57,550 63,430 75,762 19.44
Subtotal ............................................... 4,896,082 5,4 39,650 5,701,563 4.81
All Other ............................................. 2,07 2,648 2,427,996 2,972,001 22.41
 Total.................................................... 6,96 8,729 7,867,646 8,673,564 10.24
Note.--The abbreviation, nesi, stands for “not elsewhere speci fied or included.”  The abbreviation, nesoi, stands for “not
elsewhere specified or otherwise included.”
Sources: United States International Trade Commission: Compiled from official statistics of the U.S. Department of Commerce.WT/L/289
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Table 3
U.S. trade with ATPA countries, 1992-97
Share of Share of
total U.S. total U.S.
Year U.S. exports1exports U.S. imports2imports U.S.trade balance
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 0.9 565.51995 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   8.2
1Domestic exports, f.a.s. basis.
2Imports for consumption, customs value.
Source: U.S. International Trade Commission/Compiled from official statistics of the U.S.
Department of Commerce.WT/L/289
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Table 4
U.S. imports for consumption from Bolivia, Colombia, Ecuador ,
and Peru, by duty treatment, 1994-97
Share
Item Bolivia Colombia Ecuador Peru ATPA of
total total
---------------------------Value (1,000 dollars)---------------------         Percent    
1994:
Total imports..................................... 257,373 3,132,398 1,709,790 779,945 5,879,505 100.0
Dutiable value1.................................. 12,425 1, 312,104 591,338 210,192 2,126,059 36.2
ATPA reduced duty......................... 68 4 19,635 102 10 20,432 0.3
Duty-free value3................................ 244,948 1,820,2 94 1,118,452 569,753 3,753,446 63.8
Col. 1-general4................................. 115,185 1,070,3 86 1,007,929 270,876 2,464,376 41.9
GSP5......................................... 37,418 88,754 37,267 176,012 339,451 5.8
ATPA6......................................... 91,156 39 2,007 72,803 107,420 663,386 11.3
Production sharing7......................... 853 145,550 254 9 ,013 155,670 2.6
Other duty free8............................... 336 123,597 199 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 value1.................................. 18,974 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 value3................................ 237,821 2,090,3 50 1,172,653 604,829 4,105,653 58.9
Col. 1-general4................................. 137,083 1,330,4 70 1,000,602 273,575 2,741,730 39.3
GSP5......................................... 15,470 75,737 23,125 113,908 228,240 3.3
ATPA6......................................... 82,783 47 7,546 147,721 207,563 915,613 13.1
Production sharing7......................... 2,106 169 ,028 907 185 172,226 2.5
Other duty free8............................... 379 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 value1.................................. 30,656 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 value3................................ 237,682 2,312,7 71 1,191,476 746,673 4,488,602 57.1
Col. 1-general4................................. 126,128 1,520,5 42 941,542 277,798 2,866,010 36.4
GSP5......................................... 2,446 45,538 17,837 64,788 130,609 1.7
ATPA6......................................... 104,323 537 ,057 218,193 385,276 1,244,849 15.8
Production sharing7......................... 2,102 126,1 48 1,676 1,018 130,944 1.7
Other duty free8............................... 2,683 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 value1.................................. 33,492 1, 662,344 692,408 526,881 2,915,126 33.6
ATPA reduced duty......................... 1, 882 25,157 139 45 27,224 0.3
Duty-free value3................................ 179,916 2,952,528 1,446,946 1,179,048 5,758,438 66.4
Col. 1-general4................................. 90,957 2,04 1,264 1,195,364 566,376 3,893,961 44.9
GSP5......................................... 18,885 78,162 17,312 140,910 255,271 2.9
ATPA6......................................... 65,730 57 9,205 215,247 424,057 1,284,238 14.8
Production sharing7......................... 2,874 159,7 59 2,178 427 165,238 1.9
Other duty free8............................... 1,469 94,148 16,845 47,279 159,740 1.8
1Dutiable value excludes the U.S. content entering under HTS subheading 9802.00.80 and misreported imports.
2 Not eligible during 1992.
  3 Calculated as total imports less dutiable value.
  4 Value of imports that have a col. 1-general duty rate of free.
  5 Reduced by the value of unconditionally duty-free imports and ineligible items that were misreported as entering
under the GSP program.
  6 Reduced by the value of unconditionally duty-free imports and ineligible items that were misreported as entering
under ATPA.  
7 HTS items 9802.00.60 and 9802.00.80.  Refers to the value of nondutiable exported and returned U.S.-origin products
or components.
  8 Calculated as a remainder, and represents imports entering free of duty under column 1-special.
Source: United States International Trade Commission/Compiled from official statistics of the U.S. Department
of Commerce.
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