Entire ATPA/ATPDEA to Expire on December 31, 2006 Unless Extended by Legislation
The Andean Trade Preference Act (ATPA), as amended by the Andean Trade Promotion and Drug Eradication Act (ATPDEA), is scheduled to expire on December 31, 2006 unless extended by legislation.
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(According to a press release issued by the International Trade Commission (ITC) and the Trade Act of 2002, the ATPA program affords preferential tariff treatment to most products of Bolivia, Colombia, Ecuador, and Peru. The ATPA was renewed and amended on August 6, 2002 by the ATPDEA, which broadened the scope of products eligible for duty-free treatment to include certain: petroleum-related products, apparel, footwear, watches, handbags, etc. Imports of petroleum-related products and apparel articles accounted for nearly four-fifths of imports under the program in 2005.)
New Law Must be Enacted in Order to Extend ATPA/ATPDEA
- USC 3206 provides that no duty-free treatment or other preferential treatment extended to ATPA/ATPDEA countries under 19 USC Chapter 20 (Andean Trade Preference) shall remain in effect after December 31, 2006. A press release by the ITC confirms this upcoming expiration of the ATPA/ATPDEA.
ATPDEA TPL Also Scheduled to Expire
Presidential Proclamation 7616, which implemented the ATPDEA, indicates that the tariff preference level (TPL) for ATPDEA duty-free treatment for apparel made from regional fabrics, fabric components formed, or components knit-to-shape under HTS 9821.11.25 expires on December 31, 2006. (See ITT's Online Archives or 11/18/02 news, 02111830, for BP summary of Proclamation 7616.)
Certain U.S. Legislators Seek Extension
According to press reports, a group of 28 legislators in Congress are seeking to bridge the gap between the expiration date of the ATPA/ATPDEA and the entry into force of free trade agreements (FTAs) with Peru and Colombia, by the passage of extension legislation during the "lame duck" session following the November elections.
(See ITT's Online Archives or 08/29/06 news, 06082905, for BP summary of the President's notification to Congress of his intent to sign an FTA with Colombia. See ITT's Online Archives or 04/14/06 news, 06041405, for BP summary of the signing of the U.S.-Peru FTA, although Congressional approval and other measures are required before enactment.)
BP will update subscribers as new information is available.
ITC news release 06-100, dated 10/19/06, on imports under ATPA/ATPDEA (Inv. No. 332-352), available at http://www.usitc.gov/ext_relations/news_release/2006/er1019dd1.htm
ITC's 12th Report on the ATPA/ATPDEA, dated Sept 2006 (Publication 3888), available at http://hotdocs.usitc.gov/docs/pubs/332/pub3888.pdf
BP Note
The standard Generalized System of Preferences (GSP) program (i.e., A, A*, and A) is also scheduled to expire for non-African Growth and Opportunity Act (AGOA) beneficiary countries on December 31, 2006, unless extended by legislation. See ITT's Online Archives or 12/05/06 news, 06120510, for recent BP summary.)