Publication Date

2011

Abstract

[Excerpt] The submission of this report to the Congress continues a series of reports by the U.S. Department of Labor on the trade and employment effects of the Andean Trade Preference Act (ATPA). The current report covers calendar year 2010 and represents the eighteenth in the series.

The ATPA, enacted on December 4, 1991, authorized the President to proclaim duty-free treatment for eligible articles from Bolivia, Colombia, Ecuador, and Peru. ATPA preferential duty treatment expired on December 4, 2001, but was renewed by the Andean Trade Promotion and Drug Eradication Act (ATPDEA) and applied to imports as of December 5, 2001. The ATPDEA significantly expanded the product coverage of the ATPA program. While the ATPA, as amended and expanded by the ATPDEA, was originally scheduled to expire on December 31, 2006. Since then, Congress authorized several short-term extensions of the program, before allowing the ATPA/ATPDEA to expire on February 12, 2011. The program remained expired until October 21, 2011, when it was renewed retroactively to the expiration and until July 31, 2013. Section 207 of the ATPA directed the Secretary of Labor to undertake a continuing review and analysis of the impact of ATPA/ATPDEA preferences on U.S. employment and submit a summary report of such analysis annually to the Congress.

Three of the original four ATPA countries – Colombia, Ecuador, and Peru – received benefits under the ATPA/ATPDEA in 2010. A total of $14.4 billion in U.S. imports from the beneficiary countries entered the United States duty-free under ATPA/ATPDEA provisions. This represented 51.1 percent of all U.S. imports from the beneficiary countries in 2010, but just 0.8 percent of total U.S. imports from all sources. Of the $14.4 billion in imports that entered duty- free under the provision of the ATPA/ATPDEA, approximately ten percent, or $1.4 billion, could have qualified for duty-free entry under the Generalized System of Preferences (GSP) or the United States – Peru Trade Promotion Agreement (PTPA) and, as such, were not benefits available exclusively under the ATPA/ATPDEA. U.S. imports from the beneficiary countries that benefited exclusively from the ATPA/ATPDEA were $13.0 billion in 2010, which represented 46.2 percent of all U.S. imports from the beneficiary countries, but just 0.7 percent of total U.S. imports from all sources.

The main finding of this report is that preferential tariff treatment under the provisions of the original ATPA and the ATPDEA amendments has neither had an adverse impact on, nor posed a significant threat to, overall levels of U.S. employment.

Comments

Suggested Citation
U.S. Department of Labor, Bureau of International Labor Affairs. (2011). Trade and employment effects of the Andean Trade Preference Act - 2010. Washington, D.C.: Author.

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