The Issue:
The Andean Trade Preference Act (ATPA) is a trade partnership program between the United States and the four Andean countries of Bolivia, Colombia, Ecuador and Peru.  The Andean region is a growing and important market for U.S. textile and cotton exports as about $250 million worth of U.S. cotton and textiles were exported last year to the Andean region.  Most of these products are incorporated into finished garments.  The finished products - made with U.S. yarns, fabrics, fibers, cotton and other textile inputs - are then brought back to the U.S. duty free. 

AAFA on the Issue: This win-win trade preference agreement stabilizes manufacturing and wholesale employment in all countries involved, while creating import opportunities that deliver a wider variety of goods at more affordable prices for all consumers.  ATPA is important legislation, but it isn’t perfect.  Permanent, comprehensive and reciprocal legislation such as the U.S./ Peru and U.S./ Colombia Trade Promotion Agreements is necessary to escape the current uncertainty created by the continual expiration and renewal of the ATPA program and move this vital partnership to the next level.    

The Latest News:

10.06.08
Last week, Congress approved an AAFA-supported package (HR 7222) of trade provisions related to the Caribbean Basin, the Andean region and Africa. The bill makes critically important changes in the so-called third country fabric provisions in the Africa Growth and Opportunity Act (AGOA). It eliminates the unworkable abundant supply program (which will make it easier to source third country denim in Africa) and extends third country fabric provisions to Mauritius. The legislation also creates a new Earned Import Allowance Program for the Dominican Republic which will supply essential help for Dominican trouser producers and their US fabric suppliers. Also included in the legislation is a one-year extension for Colombia and Peru, and six month extensions for Bolivia and Ecuador (which may be renewed for an additional six month period), under the Andean Trade Preferences Act (ATPA). Finally, the bill contains a one-year extension for the Generalized System of Preferences (GSP) program.

07.14.08
AAFA joined with over 100 companies and trade associations representing the entire textile, apparel and retail supply chain in sending a letter July 10 to Senate Majority Leader Harry Reid (D-NV) and Speaker of the House Nancy Pelosi (D-CA) stressing the urgent need for immediate approval and implementation of the US/Colombia Trade Promotions Agreement (TPA). The letter exemplifies the unprecedented industry unity on this issue and the industry consensus that immediate action is necessary to resolve the uncertainty caused by current short-term extensions of the Andean Trade Preference Act (ATPA). The industry coalition stresses the critical nature of Colombia and the Andean region to US textile and apparel producers. The letter notes that of the $16 billion worth of textile and apparel products produced by the 500,000 US workers employed by the sector, 45 percent are destined for Mexico, Central America and the Andean region. AAFA helped organize this effort and is working hard to bolster support for the US/Colombia TPA.

05.27.08
On May 21, the U.S. International Trade Commission opened its biennial fact finding investigation on the operation and effectiveness of the Andean trade program. The report will be submitted to Congress by September 30. Comments are requested by July 29. Requests to appear in person at a proposed July 22 hearing must be filed by July 9. The Andean program is currently scheduled to expire on December 31, 2008.

02.19.08
The House Ways and Means Committee on February 14 approved by voice-vote H.R. 5264, legislation that provides for a ten-month extension of the Andean Trade Preference Program. The measure is expected to be considered by the full US House of Representatives during the week of February 25 (Congress is on recess this week for the President's Day holiday). It is unclear whether the US Senate will approve the measure, or President George W. Bush will sign it into law, before the current preference program expires on February 29.

Meanwhile, 28 members of Congress sent a letter February 14 to House leadership urging them to extend the preferences as soon as possible. The 700-plus members of AAFA-supported Latin American Trade Coalition also sent a letter February 14 urging Congress to approve the US/Colombia Trade Promotion Agreement (TPA) as soon as possible.

02.11.08
House Ways & Means Committee Chair Charlie Rangel (D-NY) introduced sweeping trade preference legislation on February 7. If approved by Congress, the bill -- H.R. 5264 -- would extend the Andean Trade Preference Act (ATPA), the Caribbean Basin Trade Partnership Act (CBTPA) and the Generalized System of Preferences (GSP) program until September 30, 2010. The bill would also eliminate the abundant supply provisions and extend the designation of as a least-developed country under the African Growth and Opportunity Act (AGOA). While AAFA strongly supports all of the provisions included in the legislation, the bill faces an uncertain future as different key members of Congress and Senators have significant concerns with each of the provisions. Further, with ATPA set to expire in less than three weeks (February 29) and Congress on recess one of those weeks for the Presidents' Day holiday, many fear that the sheer breadth of this legislation could prevent the bill from being approved by Congress before ATPA expires.

07.10.07
Congress overwhelmingly approved an AAFA-supported extension of the Andean Trade Preferences Act (ATPA) last week. The extension passed by a vote of 365 to 59 in the US House of Representatives on June 27 and by Unanimous Consent (UC) in the US Senate on June 28. The program allows for apparel (under certain rules) and most footwear (under very flexible rules) from Colombia, Peru, Ecuador and Bolivia to have duty-free access to the US market for an additional eight months. President George W Bush signed the extension into law on June 30, just before the current program was set to expire. AAFA, with the unprecedented support of the entire US textile and apparel supply chain, continues to lobby Congress for quick approval of both the Colombia and Peru Trade Promotion Agreements (TPAs). Demonstrating their strong commitment to the trade agreement, Peru's Congress on June 27 overwhelmingly approved (70-38) the new labor/environmental provisions to the US/Peru Trade Promotion Agreement, only two days after the text of these provisions was released. (See AAFA News Release)