WORLD TRADE  
ORGANIZATION  G/C/W/510/Rev.1 
28 March 2007 
 
 (07-1289) 
Council for Trade in Goods Original:   English 
  
 
REQUEST FOR A WAIVER 
 
Andean Trade Preference Act (ATPA as amended)
 
 
Revision  
 
  The following communication, dated 22 March 2007, is being circulated at the request of the Delegation of the United States.   
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Special United States Trade Arrangements for Andean Countries
 
 
 Pursuant to Article IX:3 of the Marrak esh Agreement Establishing the World Trade 
Organization (WTO Agreement), the United Stat es hereby requests Members to waive U.S. 
obligations under paragra ph 1 of Article I and paragraphs 1 a nd 2 of Article XIII of the General 
Agreement on Tariffs and Trade 1994 (GATT 1994) through December 31, 2007, to the extent 
necessary to permit the United States to provide duty-fr ee treatment to eligible products originating in 
beneficiary Andean countries (“beneficiary countri es”) designated pursuant to the provisions of the 
Andean Trade Preference Act, as amended by the Andean Trade Promotion and Drug Eradication Act 
and the Andean Trade Preferences Extension Act.  The United States recalls that Members previously 
granted the United States a waiver of its obliga tions under Article I:1 of  the GATT 1994, to the 
extent necessary to permit the United States to  provide duty-free treatment to eligible products 
originating in beneficiary countries designated pur suant to the provisions of the Andean Trade 
Preference Act (ATPA).1  That waiver expired on December 4, 2001. 
 
1. D ESCRIPTION OF THE MEASURE  
 The Andean Trade Promotion and Drug Erad ication Act (ATPDEA), enacted as Title XXXI 
of the Trade Act of 2002 (Public Law 107-210), reau thorized the trade preferences that the United 
States provided in the original ATPA (Public Law 102-182).2  These benefits are extended by the 
Andean Trade Preferences Extensi on Act, enacted as Division D, Title VII of the Tax Relief and 
Health Care Act of 2006 (Public Law 109-432).  The original ATPA provided duty-free treatment on 
all products, with the exception of textiles and a pparel, footwear, petroleum and petroleum products, 
certain leather products, a minor category of watch es and watch parts, canned tuna, and rum.  As 
described further below, the ATPDEA amends the ATPA (“ATPA as amended”) to provide for duty-
free treatment of previously excluded products that originate in a country the President has designated 
as eligible to receive ATPDEA benefits.3  The text of the ATPA as amended is attached at Annex I.   
                                                      
1See United States - Andean Trade Preference Act, Decision of 14 October 1996 (WT/L/184).   
2The ATPA program is described in more detail in the Request for Renewal of Waiver (G/L/102) 
which was included in the previously submitted information on the Programme in G/C/W/510/Add.1. 
3The President has designated all fo ur countries eligible to receive the benefits of the ATPDEA - 
Bolivia, Colombia, Ecuador and Peru - as ATPDEA beneficiary countries.  All four countries had also been G/C/W/510/Rev.1 
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  Section 204(b)(1) of the ATPA as  amended (19 U.S.C. § 3203(b)(1)) authorizes the President to 
provide duty-free treatment for certain non-textile a nd apparel products if he determines that such 
products are not import-sensitive in the context of imports from ATPDEA beneficiary countries.
4   
  Section 204(b)(3) of the ATPA as amended (19 U.S.C. § 3203(b)(3)) provides for duty-free 
treatment for apparel assembled in beneficiary countries from:   
 
(i) fabrics or fabric components formed, dyed, and finished, or components knit-to-
shape, in the United States from U.S. or regional yarn;  
(ii) regional fabrics or fabric components, or components knit-to-shape, if the fabrics or 
components get most of their value from the llama, alpaca, or vicuna used in them; 
and  
(iii) fabrics or yarns from any source, if those inputs are determined to be in “short 
supply” in the United States.  Subject to  an annual quantitative limit, the ATPA as 
amended also provides for duty-free treatment for other apparel assembled in 
beneficiary countries from fabric formed or from components knit-to-shape in the 
region from U.S. or regional yarn.  Finally, the ATPA as amended provides for duty-free treatment for certain brassieres, certain textile luggage, and hand-loomed, handmade, or folklore textiles or apparel. 
 Section 204(b)(4) of the ATPA as amended (19 U.S.C. § 3203(b)(4)) provides for duty-free 
treatment for tuna harvested by U.S. or benefici ary country vessels and preserved in a beneficiary 
country in foil or other flexible airtight containers. 
  Under section 203(e) of the ATPA as amended (19 U.S.C. § 3202(e)), the President may, in certain circumstances, withdraw or suspend the designation of any country as a beneficiary country, 
and may also withdraw, suspend, or limit preferen tial treatment for any product of any beneficiary 
country.  The ATPA as amended does not alter the benefits the United States provides under its 
Generalized System of Preferences (GSP) program to other developing countries.   The benefits of the ATPA as amended extend un til June 30, 2007, with the possibility of a 
further six-month extension through December 31, 2007.
5 
 
2. S PECIFIC POLICY OBJECTIVES OF THE MEASURE  
 The ATPA as amended is intended to prom ote export diversification and broad-based 
economic development in the Andean region.  It provides sustainable economic alternatives to drug-
crop production by offering prod ucts of beneficiary countries broader access to the U.S. market. 
 
                                                                                                                                                                     
designated previously as ATPA beneficiary countries.  Sections 203, 204(b)(5), and 204(b)(6)(B) of the ATPA 
as amended (19 U.S.C. §§  3202, 3203(b)(5), 3203(b)(6)(B)) describe the eligibility criteria and customs requirements countries must meet to be designa ted as an ATPA or ATPDEA beneficiary country. 
4  These products are certain:  1) footwear; 2) petroleum or petroleum products; 3) watches and watch 
parts; and 4) handbags, luggage, flat goods, work gloves, and leather wearing apparel. 
5  The Andean Trade Preferences Extension Act (Public Law 109-432) continues benefits until 
December 31, 2007 for any co untry that concludes a free trade agreement with the Un ited States, provided the 
U.S. Congress and that country’s legislature both approve the agreement by June 30, 2007.  This provision is intended to assist beneficiary countrie s while they are in the process of ap proving a free trade agreement.  Under 
such an agreement preferential duty treatment would become permanent.    G/C/W/510/Rev.1 
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  3. C IRCUMSTANCES JUSTIFYING THE WAIVER  
 The production of and trade in illicit narco tics have had a severe negative impact on the 
ATPA beneficiary countries.  Drug trafficking fu els terrorism, foments corruption, and undermines 
democratic institutions in the Andean region, thereby discouraging the foreign investment and 
stability beneficiary countries need to deve lop economic opportunities for their citizens. 
 
 The ATPA as amended contributes to the fight against drug production and trafficking by strengthening the legitimate economies in beneficiar y countries and creating viable alternatives to the 
profitable drug trade.  The ATPA as amended is prov ing an important component of efforts to contain 
the spread of these illicit activities. 
 
 Over the last decade, the beneficiary countries have bolstered their capacity to combat illegal 
drug production, thanks in part to development programs in each of these countries that have 
successfully provided former drug-crop cultivators,  pickers and producers with viable income 
alternatives.  The original ATPA generated signi ficant job opportunities in a variety of sectors, 
including cut flowers, non-traditional fruits and vege tables, jewelry, and certain electronic inputs.  
The ATPA as amended seeks to expand on the successes of the original ATPA by providing additional legitimate commercial opportunities for the people of the Andean region.  
 4. C
ONCLUSION  
 Pursuant to Article IX:3 of the WTO Agreem ent, the United States requests a waiver of its 
obligations under paragraph 1 of Article I and paragraphs 1 and 2 of Article XIII of the GATT 1994 
through December 31, 2007, to the extent necessar y to permit the United States to provide duty-free 
treatment under the ATPA as amended to eligible products originating in beneficiary countries. 
  The United States requests the Council for Trade in Goods to give this application for a 
waiver expeditious and favorable consideration.  In the meantime , the United States will promptly 
enter into consultations, on request, with any inte rested Member with respect to any difficulty or 
matter that may arise as a result of the preferential treatment provided under the ATPA as amended.  G/C/W/510/Rev.1 
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ATPA ANNEX I 
(Public Law 109-432) 
 
Andean Trade Preferences Extension Act  
 
SEC. 7001. SHORT TITLE. 
This title may be cited as the `Andean Trade Preferences Extension Act'. 
 
SEC. 7002. ATPA EXTENSION. 
(a) TEMPORARY EXTENSION- Section 208 of  the Andean Trade Preference Act (19 
U.S.C. 3206) is amended by striking `Decem ber 31, 2006' and inserting `June 30, 2007'. 
(b) CONDITIONAL EXTENSIONS- Section 208 of  the Andean Trade Preference Act (19 
U.S.C. 3206), as amended by subsection (a), is further amended-- 
(1) by striking `No' and inserting `(a) Termin ation- Subject to subsection (b), no'; and 
(2) by adding at the end the following: 
`(b) Conditional Extensions- Duty-free treatment and other preferential treatment under this 
title shall remain in effect with respect to a beneficiary country, during the period beginning 
on July 1, 2007, and ending on December 31, 2007, only if on or before June 30, 2007-- 
`(1) an implementing bill with respect to a trade agreement with that country has been 
enacted into law pursuant to the Bipartis an Trade Promotion Authority Act of 2002; 
and 
`(2) the President determines that the legisl ature of that country has approved such 
trade agreement.'. 
 
SEC. 7003. TECHNICAL AMENDMENTS. 
Section 204(b)(3)(B) of the Andean Trade Pr eference Act (19 U.S.C. 3203(b)(3)(B)) is 
amended-- 
(1) in clause (iii)(II), by striking `The preferential' and inserting `Subject to section 
208, the preferential'; and 
(2) in clause (v)(II), by striking `During' and inserting `Subject to section 208, 
during'. 
  G/C/W/510/Rev.1 
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UNITED STATES – ANDEAN TRADE PREFERENCE ACT   
 
Renewal of Waiver  
 
Draft Decision of ....20071 
 
  The General Council, 
 
 Conducting  the function of the Ministerial Conference in the interval between meetings 
pursuant to paragraph 2 of Article IV of the WTO Agreement;   
 
Having  regard to  paragraphs 1, 3 and 4 of Article  IX of the Marrakesh Agreement 
Establishing the World Trade Organization (the "W TO Agreement"), the Guiding Principles to be 
followed in considering applications for waiver s adopted on 1 November 1956 (BISD 5S/25), and the 
Understanding in Respect to Waivers of Obliga tions under the General Agreement on Tariffs and 
Trade 1994 (the "Understanding");   
 
Taking note  of the request of the United States, pursuant to paragraph 3 of Article IX of the 
Marrakesh Agreement Establishing the World Trade Organization (“WTO Agreement”), for a waiver 
of U.S. obligations under paragra ph 1 of Article I and pa ragraphs 1 and 2 of Article XIII of the 
General Agreement on Tariffs and Trade 1994 ( GATT 1994) through 31 December 2007, to the 
extent necessary to permit the United States to  provide duty-free treatment to eligible products 
originating in beneficiary Andean countries (“be neficiary countries”) designated pursuant to the 
provisions of the Andean Trade Preference Act, as amended; 
 
Bearing in mind  that the CONTRACTING PARTIES of  the GATT 1947 previously granted 
the United States a waiver
2 of its obligations under Article I:1 of the GATT 1947 on 19 March 1992, 
for the period from 4 December 1991 until 4 December 2001, which was renewed3 in respect of 
GATT 1994 by the Members on 14 October 1996, to the extent necessary to pe rmit the United States 
to provide duty-free treatment to eligible products  originating in beneficiary countries designated 
pursuant to the provisions of the Andean Trade Preference Act (ATPA); 
 Considering  that the Andean Trade Promotion and Drug Eradication Act (ATPDEA) renews 
and expands the preferences the United States extended under the ATPA; 
 
Considering  further the exceptional situation of the beneficiary countries, and that the stated 
objective of the ATPA as amended is to assist th e trade and economic development of beneficiary 
countries situated in the Andean region by encouraging the expansion of legitimate products as an alternative to the production and trafficking of illicit  narcotics in response to more liberal access and 
to new trading opportunities for Andean countries; 
 
Considering  further that the preferential treatment provided under the ATPA as amended is 
designed to promote the expansion of trade and ec onomic development of beneficiary countries in a 
manner consistent with the objectives expressed in para graphs 1, 2, and 3 of the Preamble to the WTO 
Agreement;  
 
                                                     
 
1 Adopted in accordance with th e Decision-Making Procedures under Article IX of the WTO 
Agreement agreed by the General Council in November 1995 (WT/L/93). 
2 BISD (39S/385). 
3 Document WT/L/184. G/C/W/510/Rev.1 
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  Considering  further that the preferential treatment  provided under the ATPA as amended will 
not alter benefits provided under the US Generali zed System of Preferences to other developing 
countries;  
Noting  the assurances given by the United States that it will promptly enter into consultations, 
on request, with any interested Member with respect  to any difficulty or matter that may arise as a 
result of the preferential treatment provided under the ATPA as amended; 
 
Decides,  in view of these exceptional circumstances, as follows: 
 
1. Subject to the terms and conditions set out here under, paragraph 1 of Article I and paragraphs 1 
and 2 of Article XIII shall be waived through 31 D ecember 2007, to the extent necessary to permit the 
United States to provide duty-free treatment to eligib le products originating in beneficiary countries 
designated pursuant to the provisi ons of the ATPA as amended.  
 
2. The United States shall submit to the Genera l Council an annual report on the implementation 
of the preferential treatment provided under the ATPA as amended.  3. The United States shall promptly notify the Ge neral Council of any change in the designation 
of beneficiary countries, as well as any change th at would affect the eligibility of  products for the 
preferential treatment provided under the ATPA as amended. 
 
4. The United States shall promptly enter into consultations, on request, with any interested 
Member with respect to any difficulty or matter that  may arise as a result of the preferential treatment 
provided under the ATPA as amended.  If a Member  considers that any be nefit accruing to it under 
the GATT 1994 may be or is being impaired unduly as a result of such implementation, such 
consultation shall examine the possibility of action for a satisfactory resolution of the matter.   
 5. This Decision does not affect Members’ rights  as set forth in the Understanding in Respect of 
Waivers of Obligations under the GATT 1994. 
 
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