In 2002, the United States signed into law the Andean Trade Promotion and Drug Eradication Act (ATPDEA), expanding and renewing the earlier Andean Trade Preference Act. The legislation’s aim is to promote economic development and provide economic alternatives to drug crop production. The Act has been critical to fighting the growth of the illegal narcotics industry in the Andean region by fostering legitimate trade between Andean countries and the United States.

ATPDEA provides duty-free and reduced-duty access to U.S. markets for certain goods produced in Bolivia, Colombia, Ecuador, and Peru. Leather goods, petroleum and petroleum products, and apparel assembled with U.S. fabric are among the items included in the trade preference program.

Effective December 15, 2008, President Bush suspended Bolivia’s participation in the ATPDEA program based on its failure to meet international counter–narcotics obligations. Suspension has lessened investor’s interest in ATPDEA-dependent industries such as textiles and apparel.

To learn more about ATDPEA, go to http://www.ustr.gov/Trade_Development/Preference_Programs/ATPA/Section_Index.html

Please contact us to find out how ATPDEA may impact your product or service.