ATPA Renewal: Background and Issues [April 14, 2011]   [open pdf - 185KB]

"The Andean Trade Preference Act (ATPA) extends duty-free treatment to certain U.S. imports that meet domestic content and other requirements from designated countries in the Andean region. The purpose of ATPA is to promote economic growth in the Andean region and to encourage a shift away from dependence on illegal drugs by supporting legitimate economic activities. ATPA […] was enacted on December 4, 1991. It was renewed and modified under the Andean Trade Promotion and Drug Eradication Act […] on August 6, 2002, extending trade preferences until December 31, 2006. Since that time, Congress has provided several short-term extensions of ATPA. The most recent extension took place late in December 2010 when the 111th Congress enacted legislation for a six-week extension of ATPA for Colombia and Ecuador until February 12, 2011. […] The 112th Congress has not renewed ATPA. […] The trade effects of ATPA on the U.S. economy have been minimal because the amount of U.S. trade with the Andean region is low. The value of duty-free U.S. imports under ATPA accounts for about 0.8% of total U.S. imports, or 0.1% of the U.S. gross domestic product (GDP). Approximately 90% of U.S. imports from ATPA countries enter duty-free under various trade preference programs or through normal trade relations. Duty-free imports under ATPA account for 49.9% of total U.S. imports from ATPA countries. […] The 112th Congress may reevaluate the extension of ATPA trade preferences for one or more of the beneficiary countries. Policymakers may also consider broader reform of U.S. trade preference programs, including the Generalized System of Preferences."

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CRS Report for Congress, RS22548
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