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Fourth Report to the Congresson theOperation of theAndean Trade Preference Act as AmendedApril 30, 2009
 
FOURTH REPORT TO CONGRESS ONTHE OPERATION OFTHE ANDEAN TRADE PREFERENCE ACT AS AMENDEDApril 30, 2009Table of ContentsEXECUTIVE SUMMARY .......................................................................................................... 1
 
Chapter 1 - DESCRIPTION OF THE ATPA/ATPDEA ........................................................... 3
 Key Provisions ............................................................................................................................ 3Country Eligibility ...................................................................................................................... 4Product Eligibility ....................................................................................................................... 4Petition Process ........................................................................................................................... 4Safeguard Provisions .................................................................................................................. 5Reports on the Impact of the ATPA ........................................................................................... 5
Chapter 2 - U.S. TRADE WITH ATPA/ATPDEA COUNTRIES ........................................... 7
 U.S. Imports From ATPA/ATPDEA Beneficiaries .................................................................... 8U.S. Imports under the ATPA/ATPDEA by Country............................................................... 10U.S. Exports To ATPA/ATPDEA Beneficiaries ...................................................................... 11
Chapter 3 - COUNTRY ELIGIBILITY REPORTS ............................................................... 13
 Summary of Eligibility Criteria ................................................................................................ 13Bolivia ....................................................................................................................................... 17Colombia ................................................................................................................................... 25Ecuador ..................................................................................................................................... 34Peru ........................................................................................................................................... 45
Chapter 4 - SUMMARY OF FEDERAL REGISTER SUBMISSIONS ................................ 53
 
Chapter 5 - OPERATION OF THE PETITION PROCESS .................................................. 55
 
Tables
Table 2-1. - U.S. Trade with ATPA/ATPDEA Countries, 1991 - 2008 ......................................... 7Table 2-2. - U.S. Imports from ATPA/ATPDEA Countries, Total and Under Import Programs,2006 - 2008 ..................................................................................................................................... 9Table 2-3. - U.S. Imports for Consumption under the ATPA, by Country, 2006-2008 ............... 101
 
 EXECUTIVE SUMMARY
The Andean Trade Preference Act (ATPA), as amended by the Andean Trade Promotion andDrug Eradication Act (ATPDEA) (jointly referred to as ATPA/ATPDEA), requires the U.S.Trade Representative to submit a report to Congress on the operation of the program no laterthan April 30, 2003, and every two years thereafter during the period that the program is ineffect. Congress directed that these reports include a general review of the ATPA/ATPDEAbeneficiary countries based on the eligibility criteria and considerations described in the statute.This is the fourth such report, and covers the period 2007 through 2008, unless otherwiseindicated.The ATPDEA renewed and expanded the ATPA, which had expired on December 4, 2001,providing beneficiary countries duty-free access to the U.S. market for any product notspecifically excluded. Sections 203(c) and 203(d) and Section 204 (b)(6)(B) of ATPA, asamended by the ATPDEA, require that countries meet certain criteria in order to be designated asan ATPDEA beneficiary country and to maintain such beneficiary status. In PresidentialProclamation 7616 of October 31, 2002, the President designated all four ATPA beneficiarycountries – Bolivia, Colombia, Ecuador and Peru – as ATPDEA beneficiary countries.The ATPA, as amended, was set to expire on December 31, 2006, but Congress has enactedseveral extensions. Most recently, Congress extended the program through December 31, 2009for Colombia and Peru, and through June 30, 2009 for Ecuador and Bolivia. With respect toEcuador, the country will continue to be a beneficiary of the program through the end of 2009unless the President determines, before June 30, 2009, that Ecuador is not meeting the program’seligibility criteria. Bolivia may also be eligible for benefits through December 31, 2009, butonly if the President determines, before June 30, 2009, that Bolivia is satisfying the program’seligibility criteria.On September 15, 2008, the President designated Bolivia as a country that had faileddemonstrably over the previous 12 months to adhere to its obligations under internationalcounternarcotics agreements and to take the measures set forth in the Foreign Assistance Act of 1961. On November 25, 2008, based on Bolivia’s failure to meet ATPA/ADPDEA eligibilitycriteria related to counternarcotics cooperation, the President suspended Bolivia’s designation asa beneficiary country under the ATPA/ATPDEA, effective December 15, 2008. Bolivia’sdesignation remains suspended at this time.The objectives of the ATPA/ATPDEA are to promote broad-based economic development,diversification of exports, consolidation of democracy, and to defeat the scourge of drugtrafficking by providing sustainable economic alternatives to drug-crop production in Bolivia,Colombia, Ecuador, and Peru. This report shows that the ATPA/ATPDEA continues to achievethis goal. Furthermore, the United States is the leading source of imports and the leading exportmarket for the ATPA/ATPDEA beneficiary countries. The four Andean countries collectivelyrepresented a market of about $21.5 billion for U.S. exports in 2008, and were home to about$13.3 billion in U.S. foreign direct investment in 2007. Thus, the ATPA/ATPDEA has benefitedthe trade of both the Andean region and the United States.1
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