ANDEAN TRADE PROGRAM

PERU
The Andean Trade Program (ATP, part of the Andean Trade Program and Drug Eradication Act or ATPDEA) retroactively renews and builds upon the recently-expired Andean Trade Preferences Act (ATPA) to further open U.S. markets to Peruvian products.

ATP is a critical element of a strategy to promote broad-based economic development, diversify exports, defeat the scourge of drug trafficking, and consolidate Democracy in Peru. The growing importance of the U.S. market for Peruvian exporters is reflected by the fact that the U.S. share of Peru's total exports grew from 16.6 percent in 1994 to over 30 percent in 2000.

As the leading ATPA exporter, in 2000 Peru accounted for 42.7 percent of U.S. imports under ATPA. Over 43 percent of Peru's $1.99 billion in exports to the U.S. entered under the ATPA. U.S. imports from Peru under ATPA increased in 2000 to $846 million, compared to $631 million in 1999.

ATPA generated significant job opportunities in a variety of sectors in Peru through increased duty-free export of metal products (copper cathodes and zinc plates), jewelry, non-traditional fruits (mangos) and vegetables (fresh asparagus), and cacao and coffee production. The area under coffee cultivation doubled since 1997, growing to 19,422 hectares in 2000, while the area under cacao cultivation nearly tripled to 4,882 in the same period. Meanwhile, Peru's area under coca cultivation dropped by 66 percent in 2000.

ATP will allow quota-limited duty-free imports of clothing made in Peru from regional fabric or other fabric dyed and finished in the U.S. Textile preferences could generate up to 120,000 new textile jobs and 300,000 to 400,000 cotton cultivation jobs in Peru by 2006. Under ATP, the President may proclaim duty-free treatment for Peruvian footwear not determined to be import sensitive. Tuna packed in pouches in Peru will enjoy duty-free, quota-free access to the U.S. market under ATP.

ATPA RELATED LINKS
U.S. Foreign Agricultural Service - Headquarters
Andean Community
Ministry of Tourism and International Trade of Peru
Customs Agency of Peru

More links:
U.S. International Trade Commision - Harmonized Tariff Schedule
U.S. Federal Register Notices

For more information about ATPA reports, please click here.