Benefits of ATPA 'Minimial,' According to ITC Report
Andean Trade Preference Act (ATPA) imports in 2011 had a negligible overall effect on the U.S. economy and consumers, and future impact is expected to remain minimal, said the International Trade Commission in a report on ATPA. A lapse in ATPA benefits in 2011, combined with Peru’s loss of ATPA beneficiary status, caused a steep drop in imports entered under ATPA. The entry into force of the U.S.-Colombia Trade Promotion Agreement (TPA) means that Ecuador is the only remaining beneficiary, which should further reduce the importance of ATPA, the ITC said.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Total imports from ATPA countries accounted for 1.5 percent of the total value of U.S. merchandise imports in 2011, and ATPA-exclusive imports were only 0.19 percent of the total, the ITC said. Of the products imported under ATPA, U.S. consumers benefitted the most from imports of fresh cut roses and chrysanthemums through lower prices as a result of duty free treatment. U.S. production of fresh cut roses fell in 2011 as a result of the lower priced imports.
Imports entered under ATPA fell 70 percent in 2011 as a result of a lapse in ATPA preferences and the loss of beneficiary status for Peru. ATPA expired on Feb. 12, 2011, but was retroactively renewed on Oct. 21, 2011. Peru lost its beneficiary status at the end of 2010.
The ITC said it expects future effects to be minimal as well. After the U.S.-Colombia TPA ended beneficiary status for Colombia, Ecuador is now the only remaining ATPA beneficiary country. U.S. imports from Ecuador represented only 0.43 percent of total U.S. imports in 2011. However, although the lapse in ATPA preferences in 2011 discouraged investment in some sectors due to uncertainty, investments in frozen broccoli and cauliflower, pouched tuna, and plywood could generate ATPA exports to the U.S. in the future, the ITC said.
The ITC Report, entitled "Andean Trade Preference Act: Impact on U.S. Industries and Consumers and on Drug Crop Eradication and Crop Substitution, Fifteenth Report," is available here.
(See ITT's Online Archives 12092604 for summary of petitions submitted to the U.S. Trade Representative requesting withdrawal of ATPA benefits for Ecuador.)