NAM, Other Associations Urge "Close Review" of Ecuador's ATPA/ATPDEA Eligibility (Could Lose Benefits on July 1)
A group of associations representing U.S. business interests have written the U.S. Trade Representative to recommend he "closely review Ecuador's eligibility to continue to receive preferences" under the Andean Trade Preference Act (ATPA) and the Andean Trade Promotion and Drug Eradication Act (ATPDEA).
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The signatories to the letter are the Business Roundtable, the National Association of Manufacturers, the National Foreign Trade Council, the United States Council for International Business, the U.S. Chamber of Commerce, and the Emergency Committee for American Trade.
President Could Drop Ecuador from ATPA/ATPDEA for Last Half of 2009
The ATPA/ATPDEA was extended for six months for Ecuador (through June 30, 2009), plus an additional six months, unless the Administration determines that Ecuador does not satisfy ATPA criteria. The President's report to Congress on this determination is due by June 30, 2009.
According to 19 USC 3202(e), if the President proposes to withdraw or suspend the designation of any country as a beneficiary country, among other measures, he must publish notice of the action in the Federal Register at least 30 days before, and the U.S. Trade Representative (USTR) must hold hearings and accept written comments from the public within the 30-day period, etc.
(See ITT's Online Archives or 10/20/08 news, 08102015, for BP summary of this "qualified" extension of ATPA/ATPDEA trade preferences for Ecuador for 2009.)
Corruption, Denial of Due Process in Judicial System Reported
The group reports that there are serious concerns within the U.S. business community about breaches of the basic rule of law that are occurring in Ecuador, and point out that the State Department's February 2009 annual human rights report on Ecuador noted concerns with "corruption and the denial of due process within [Ecuador's] judicial system." U.S. businesses have also continued to witness denials of Ecuador's legal obligations to U.S. investors and a politicization of the country's judicial system, the group states.
(The companies do not provide specific examples in their letter, but a USTR report dated April 30, 2009 cites cases of: U.S. investors being involved in land ownership and squatter disputes; frozen or cancelled mining contracts; revised laws leading to the government taking of 99 percent of extraordinary revenues in the petroleum sectors; and repeated defaults on commercial bond issuances.)
Group Argues Automatic Renewal Would Send Wrong Message to Other Developing Countries
The group argues that the automatic renewal of Andean preferences for Ecuador would send the wrong message to other developing countries in the hemisphere and throughout the world that have worked to meet the basic eligibility criteria to qualify for U.S. trade preferences, and evokes the precedent case of Bolivia, which was suspended from the ATPDEA on November 25, 2008.
(See ITT's Online Archives or 02/23/09 news, 09022330, for BP summary of Ecuador's imposition of temporary restrictions on certain imports.
See ITT's Online Archives or 02/12/09 news, 09021230, for BP summary of USTR notice requesting comments on whether ATPA/ATPDEA Beneficiary Countries are meeting eligibility criteria.
See ITT's Online Archives or 12/05/08 news, 08120505, for BP summary of Bolivia's suspension from ATPDEA.)
Letter to USTR from business groups to USTR available at http://www.ecattrade.com/uploads/content/2F67F384F65C4538BCF6A25342BF9714.pdf
USTR "Fourth Report to the Congress on the Operation of the Andean Trade Preference Act as Amended" available at http://www.ustr.gov/sites/default/files/USTR%202009%20ATPA%20Report%20Final.pdf