USTR Report Says Total Trade With Andean Countries Unchanged, but Imports Rose
U.S. trade with the Andean Trade Preference Act (ATPA) was virtually unchanged in 2011, falling less than 0.1 percent following rapid growth of 34 percent in 2010, despite the exit of Peru from the program at the beginning of the year, and the lapse in the program from February 12, 2011, through October 21, 2011, according to the report on ATPA released June 30 by the U.S. Trade Representative.
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U.S. imports from ATPA countries rose 13 percent to $31.9 billion in 2011, despite the exit of Peru. U.S. exports fell 17 percent to $18.3 billion, mainly reflecting the exit of Peru, resulting in a trade deficit of $13.5 billion. Over the past five years, U.S. imports from the region increased 43 percent and U.S. exports grew 58 percent, USTR said.
About 49 percent of U.S. imports from ATPA/ATPDEA countries enter the U.S. market duty-free under ATPA/ATPDEA, GSP, the U.S.-Peru FTA, or Normal Trade Relations (NTR) tariff rates (formerly known as Most Favored Nation (MFN) tariff rates) compared to 88 percent in 2010, the report said. The lapse in ATPA/ATPDEA during 2011 was responsible for the larger part of the lower duty-free share, while the exit of Peru (and its duty-free imports under the PTPA) was responsible for a smaller part, it said. Petroleum-based imports accounted for 89 percent of U.S. imports under ATPA/ATPDEA in 2011. Cut flowers was the next largest category of imports under ATPA/ATPDEA, at 6 percent, followed by apparel, with 1.2 percent.
The U.S. Chamber of Commerce welcomed the release of the report, saying (here) it shows that the ATPA continued to make progress in achieving the goals of promoting broad-based economic development and diversification of exports in beneficiary countries.
“USTR’s report illustrates how trade preference programs, including ATPA, ... help developing trading partner countries to mature and diversify their economies,” said Jodi Bond, the Chamber’s vice president of the Americas. “Ideally, such programs lead over time to reciprocal free trade agreements that benefit both the United States and its partners.”