The Andean Trade Preferences Act Has Been Renewed For Bolivia, Colombia, Ecuador And Peru - Banking and Financial - Mondaq Colombia - Mondaq Business Briefing - Books and Journals - VLEX 29357269

The Andean Trade Preferences Act Has Been Renewed For Bolivia, Colombia, Ecuador And Peru

Author:Ms Natalia Tobón
Profession:Cavelier Abogados
 
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On August 1, 2002, the US Congress approved the HR 3009 Project through which the ATPA was renewed for Bolivia, Colombia, Ecuador and Peru.

The agreement will be applied backdated to December 4, 2001, date on which the previous agreement had expired, and will be in force until year 2006.

What is ATPA1?

The Andean Trade Preferences Act was enacted in 1991 to provide an economic foundation for Colombia, Ecuador, Peru and Bolivia in their efforts to reduce drug production and trafficking.

ATPA was scheduled to expire on December 4, 2001 and it has been renewed until 2006. It was designed to promote export diversification and create new employment in its beneficiary countries. The United States is the leading source of imports and the leading export market for each of the four ATPA countries.

Is ATPA working?

ATPA has generated significant job opportunities in a variety of economic sectors in each of the beneficiary countries. Alternative development programs in each of the ATPA countries have provided former illegal crop growers with viable income alternatives.

In fact, between 1991 and 1999, two-way trade between the United States and the ATPA region nearly doubled.

A renewed, enhanced ATPA will help Colombia solidify its economic recovery, and set the stage for long-term growth.

From 1992 to 1999, ATPA was responsible for $1.2 billion in output, and an estimated of 140,000 new jobs in Colombia. Key exports currently excluded from ATPA are: apparel, textiles, footwear, canned tuna, Rum and certain sugars, leather goods and petroleum and its derivatives. All of these industries have the potential for increased employment in Colombia.

While the US is...

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