ITC Issues 2003 Report on Impact of ATPA and ATPDEA On U.S. Industries and Consumers
The International Trade Commission (ITC) has issued a news release announcing that, as reported in its publication Andean Trade Preference Act: Impact on U.S. Industries and Consumers and on Drug Crop Eradication and Crop Substitution, Tenth Report, 2003, the overall effect of imports under the Andean Trade Preference Act (ATPA) on the U.S. economy and consumers continued to be negligible in 2003.
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The ITC notes that the ATPA was renewed and amended on August 6, 2002, under the Andean Trade Promotion and Drug Eradication Act (ATPDEA), which broadened the scope of products eligible for tariff preferences. The ITC states that highlights of its report include:
Petroleum-related products and apparel are top imports into U.S. According to the ITC, the value and share of U.S. imports that entered under the ATPA rose significantly in 2003 due primarily to the implementation of the ATPDEA. Petroleum-related products and apparel articles, both newly eligible for ATPA trade preferences under the ATPDEA, accounted for over 70% of imports under the program and represented 10 of the top 20 U.S. imports under the ATPA. Other important imports under the ATPA were copper cathodes, cut flowers, precious metal jewelry, and asparagus.
Several U.S. industries were identified as potentially experiencing displacement by ATPA imports. The ITC states that a few U.S. industries were identified as potentially experiencing displacement by ATPA imports of more than an estimated 5% of the value of U.S. production: asparagus; fresh-cut roses; and chrysanthemums, carnations, anthuriums, and orchids.
Positive effect on drug-crop eradication and substitution efforts. The ITC states that the ATPA continued to have a small, indirect, but positive effect on drug-crop eradication and crop substitution efforts in the ATPA countries in 2003. According to the ITC, by supporting such industries as flowers in Colombia and asparagus in Peru, the ATPA also remained an important source of employment creation for workers who might otherwise have grown illicit coca or entered the drug trade.
The ITC's report (Inv. No. 332-352, USITC Publication No. 3725, dated 09/04) is available at ftp://ftp.usitc.gov/pub/reports/studies/PUB3725.PDF.
ITC news release (04-107, dated 10/07/04) available at http://www.usitc.gov/er/nl2004/er1007bb1.htm.