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Andean Initiative

The Andean Trade Preference Act (ATPA), enacted on December 4, 1991 and also referred to as the Andean Initiative, aims to promote broad-based economic development, diversify exports, consolidate democracy, and defeat drug trafficking by providing sustainable economic alternatives to drug-crop production in certain countries in the Andean region. The designations of Columbia and Bolivia as ATPA beneficiary countries became effective on July 22, 1992, while the designations of Ecuador and Peru became effective, respectively, on April 30, 1993 and August 31, 1993. Each of these designations has been reviewed annually and renewed.

ATPA, which had expired on December 4, 2001, was renewed as part of the Andean Trade Promotion and Drug Eradication Act (ATPDEA), enacted as part of the Trade Act of 2002 on August 6, 2002. ATPDEA amended the ATPA and extended and enhanced trade benefits that include, but are not limited to, certain footwear, petroleum, watches and watch parts, handbags, luggage, flat goods, work gloves, and leather wearing apparel. ATPDEA also authorizes the President to proclaim duty-free treatment for certain imports of Andean tuna and updated the calculation of the normal trade relations tariff-rate quota on other tuna such that it is calculated at 4.8 percent of apparent domestic consumption, not domestic production as specified previously). Duty-free treatment under ATPA and ATPDEA remain in effect through December 31, 2006.

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