WORLD TRADE  
ORGANIZATION  G/C/W/510 
1 March 2005 
 (05-0871) 
Council for Trade in Goods Original:   English 
  
REQUEST FOR A WAIVER 
 
Andean Trade Preference Act (ATPA as amended)
 
   The following communication, dated 24 February 2005, is being circulated at the request of 
the Delegation of the United States.  Legislation and Annexes to this document are available on the 
WTO website and will be circul ated as addenda subsequently. 
 
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Special United States Trade Arra ngements 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, 2006, 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 th e Andean Trade Promotion and Drug Eradication 
Act.  The United States recalls that Members prev iously granted the United States a waiver of its 
obligations 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 
pursuant 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), re authorizes the trade preferences that the United 
States provided in the original ATPA (Public Law 102-182).2  The original ATPA provided duty-free 
treatment on all products, with the exception of textiles and apparel, footwear, petroleum and 
petroleum products, certain leather products, a minor  category of watches and watch parts, canned 
tuna, and rum.  As described further below, th e 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 
will be circulated as Annex II.   
                                                      
1 See 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) 
submitted by the United States to the Council for Trade in Goods on September 4, 1996, which will be 
circulated asAnnex I 
3 The President has designated all four countries e ligible to receive the be nefits of the ATPDEA - 
Bolivia, Colombia, Ecuador and Peru - as ATPDEA beneficiary countries.  All four countries had also been 
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. G/C/W/510 
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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 and 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 co untries from:  1) fabrics or fabric components 
formed, dyed, and finished, or components knit-to-shape, in the United States from U.S. or regional yarn; 2) 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 3) 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 provid es for duty-free treatment 
for other apparel assembled in beneficiary countr ies 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 amende d extend through December 31, 2006. 
  2. S
PECIFIC POLICY OBJECTIVES OF THE MEASURE  
 
 The ATPA as amended is intended to promot e 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. 
 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 
                                                     
 
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.  G/C/W/510 
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 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, 2006, 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 
Page 4  
 
 ATPDEA Draft Decision of [Date]
 
 
Taking note  of the request of the United States, pursuant to Article IX:3 of the Marrakesh 
Agreement Establishing the World Trade Organizati on (“WTO Agreement”), for a waiver of 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, 2006, 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;  
Bearing in mind  that the CONTRACTING PARTIES of  the GATT 1947 previously granted 
the United States a waiver of its obligations under Article I:1 of  the GATT 1947 on 19 March 1992, 
for the period from 4 December 1991 until 4 Decemb er 2001, which was renewed in respect of GATT 
1994 by the Members on 14 October 1996, to the extent necessary to permit 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;  
 
Considering  further that the preferential treatment  provided under the ATPA as amended will 
not alter benefits provided under the U.S. Generalized 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; 
 
Having  regard  for the Guiding Principles to be followed in considering applications for 
waivers adopted on 1 November 1956 (BISD 5S/25), the Understanding in Respect of Waivers of 
Obligations under the General Agreement on Tariffs and Trade 1994, and Decision-Making 
Procedures under Articles IX and XII of the WT O Agreement agreed by the General Council 
(WT/L/93); 
 
Members, acting pursuant to the provisions of paragraph 3 of Article IX of the WTO 
Agreement,  
Decide  that: 
 1. Subject to the terms and conditions set out he reunder, paragraph 1 of Ar ticle I and paragraphs 
1 and 2 of Article XIII shall be waived throug h December 31, 2006, to  the extent necessary to  G/C/W/510 
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 permit the United States to provide duty-free treat ment to eligible products originating in 
beneficiary countries designated pursuant to the provisions 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 that  would affect the eligibility of  products for 
the preferential treatment provide d 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 amende d.  If a Member considers that any benefit 
accruing to it under the GATT 1994 may be or is being impaired unduly as a result of such 
implementation, such consultation shall examin e the possibility of action for a satisfactory 
resolution of the matter.  This Decision does no t affect Members’ rights as set forth in the 
Understanding in Respect of Waivers of Obligations under the GATT 1994. 
 
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