HEMISPHERIC CONGRESS OF LATIN CHAMBERS OF
COMMERCE AND INDUSTRY
The Andean Trade Preference Extended Act (ATPEA)
For Your Consideration
The Andean Trade Preference Extended Act (ATPEA) is a unilateral program of commerce of the United States, designed to promote, with the initiative of the private sector, the economies of the Andean countries of Bolivia, Colombia, Ecuador and Peru. The Andean Trade Preference Act is a comprehensive agreement eliminating tariffs and other barriers to goods and services from the Andean economies for a period of ten years, from December 4, 1991 to December 4, 2001.
This commercial agreement was renewed again until February 29th 2008, with the enactment of the Andean Trade Preference Extended Act (ATPEA). The new law of the (ATPEA) renews and expands benefits, including specific tariffs entries for various chapters; though with persistent restrictions, especially for certain types of textiles, canned tuna and sugar.
It should be taken into consideration that additionally to the ATPEA; the Andean countries are beneficiaries of the General System of Preferences (GSP), which would allow them the inclusion of their preference products if the ATPEA ends.
The General System of Preferences does not include items like roses or other flowers, fruits, canned fish, ceramic, etc., in addition to other articles for exporting which provides employment in the Andean countries and in the State of Florida. As an example, the flowers exported to the United States from Ecuador and Colombia, for each US dollar ($1.00) of the Andean export, the profit is $0.25 for the exporting countries and its farmers and the US ($0.75) remaining in the United States is used for freight forwarding, storage and distribution of the product by a vast net of low income workers.
We will like to refer to the country of Colombia; the principal allied of the United States in Latin America. Total bilateral merchandise trade between the United States and Colombia has gown by more than 50% in the past three years, reaching $16.0 billion in 2006. Of this, almost a fourth ($4.4 billion) moves through Florida. The vast majority of Florida-origin exports to Colombia are in high value-added industries like information, technology, transportation equipment, aerospace products, medical devices, and machinery. These high-tech goods exported to Colombia originate in Florida, more than three times as much as second-ranked Texas, and seven times as much as third-ranked California.
More than 40 Colombians corporations, currently operate in Florida, employing some 800 Floridians, plus dozens of smaller, mostly family owned firms estimated to employ thousands more. Over 150,000 Colombians are estimated to be living in Florida, while a quarter of a million more visit Florida each year. Numerous Colombian students are enrolled at Florida’s colleges and universities.
Florida origin goods and services to Colombia, made possible by this trade deal would after three years, increased Florida exports to Colombia would annually supporting and estimated additional 4,483 jobs all over the state.
Colombia is facing the continuing challenges of terrorism, drug trafficking, corruption and socialist influences from neighboring countries which at the end would create a social and economic crisis to its government is the ATPEA is not extended.
Using standard U.S. Department of Commerce “rule of thumb” estimates 11,000 U.S. jobs per each additional $1,00 billion in U.S. exports.
Followed by Peru, whose new democratic government is showing solidarity with the democratic principles and free enterprise system of the United States but equally due to its economic situation needs an extension of the ATPEA. Along with Texas, Florida already is the main gateway to commercial ties between the U.S. and Peru. The total bilateral merchandise trade between the United States and Peru has more than doubled in the past three years, reaching $8.8 billion in. 2006. Of this, almost a fifth ($1.6 billion) moves through Florida. The total holdings by U.S. firms in Peru are worth about $13 billion. Peruvian corporations with a presence in Florida, employing some 250 Floridians, plus dozens of smaller, mostly family-owned firms estimated to employ hundred more workers.
Ecuador, despite its continuous fighting for a democratic political process, has been experiencing bitter conflicts between the executive branch on the one side and the unicameral legislature and the judiciary on the other, suffering from the competing influences of populism making it necessary for the country to negotiate alliances, and the extension of the ATPEA will contribute significantly to political stability and democracy. To this effect, we wish to mention the excellent role the chambers of commerce have played in this area.
In synthesis, last year Ecuadorian exports to the United States reached $6,791 millions, of which 79% was crude oil, making a big impact in the country’s export earnings. This situation equally benefits the United States, with this alliance, because otherwise if all tariffs were not eliminated, the importing of crude oil would create a crisis of shortage and increase in prices for the United States.
Actually, thanks to the ATPEA, there is a benefit of 1,443 millions of dollars in Ecuadorian exports in products like, roses, flowers in general, wood, ceramics, aluminum, canned tuna, fruits, jewelry, vegetables, etc., playing a dominant role in the country’s economy as well as in the State of Florida as it was mentioned before. It has been calculated that in Ecuador, only with the principal export sectors, they generate more than 420,000 jobs, which would be in jeopardy if the ATPDA is not approved.
William Alexander Wifredo “Willy” Gort
Presidente Chairman
CAMACOL Hemipheric Congress of Latin
Chambers of Commerce and Industry
November 1st 2007.
COMMERCE AND INDUSTRY
The Andean Trade Preference Extended Act (ATPEA)
For Your Consideration
The Andean Trade Preference Extended Act (ATPEA) is a unilateral program of commerce of the United States, designed to promote, with the initiative of the private sector, the economies of the Andean countries of Bolivia, Colombia, Ecuador and Peru. The Andean Trade Preference Act is a comprehensive agreement eliminating tariffs and other barriers to goods and services from the Andean economies for a period of ten years, from December 4, 1991 to December 4, 2001.
This commercial agreement was renewed again until February 29th 2008, with the enactment of the Andean Trade Preference Extended Act (ATPEA). The new law of the (ATPEA) renews and expands benefits, including specific tariffs entries for various chapters; though with persistent restrictions, especially for certain types of textiles, canned tuna and sugar.
It should be taken into consideration that additionally to the ATPEA; the Andean countries are beneficiaries of the General System of Preferences (GSP), which would allow them the inclusion of their preference products if the ATPEA ends.
The General System of Preferences does not include items like roses or other flowers, fruits, canned fish, ceramic, etc., in addition to other articles for exporting which provides employment in the Andean countries and in the State of Florida. As an example, the flowers exported to the United States from Ecuador and Colombia, for each US dollar ($1.00) of the Andean export, the profit is $0.25 for the exporting countries and its farmers and the US ($0.75) remaining in the United States is used for freight forwarding, storage and distribution of the product by a vast net of low income workers.
We will like to refer to the country of Colombia; the principal allied of the United States in Latin America. Total bilateral merchandise trade between the United States and Colombia has gown by more than 50% in the past three years, reaching $16.0 billion in 2006. Of this, almost a fourth ($4.4 billion) moves through Florida. The vast majority of Florida-origin exports to Colombia are in high value-added industries like information, technology, transportation equipment, aerospace products, medical devices, and machinery. These high-tech goods exported to Colombia originate in Florida, more than three times as much as second-ranked Texas, and seven times as much as third-ranked California.
More than 40 Colombians corporations, currently operate in Florida, employing some 800 Floridians, plus dozens of smaller, mostly family owned firms estimated to employ thousands more. Over 150,000 Colombians are estimated to be living in Florida, while a quarter of a million more visit Florida each year. Numerous Colombian students are enrolled at Florida’s colleges and universities.
Florida origin goods and services to Colombia, made possible by this trade deal would after three years, increased Florida exports to Colombia would annually supporting and estimated additional 4,483 jobs all over the state.
Colombia is facing the continuing challenges of terrorism, drug trafficking, corruption and socialist influences from neighboring countries which at the end would create a social and economic crisis to its government is the ATPEA is not extended.
Using standard U.S. Department of Commerce “rule of thumb” estimates 11,000 U.S. jobs per each additional $1,00 billion in U.S. exports.
Followed by Peru, whose new democratic government is showing solidarity with the democratic principles and free enterprise system of the United States but equally due to its economic situation needs an extension of the ATPEA. Along with Texas, Florida already is the main gateway to commercial ties between the U.S. and Peru. The total bilateral merchandise trade between the United States and Peru has more than doubled in the past three years, reaching $8.8 billion in. 2006. Of this, almost a fifth ($1.6 billion) moves through Florida. The total holdings by U.S. firms in Peru are worth about $13 billion. Peruvian corporations with a presence in Florida, employing some 250 Floridians, plus dozens of smaller, mostly family-owned firms estimated to employ hundred more workers.
Ecuador, despite its continuous fighting for a democratic political process, has been experiencing bitter conflicts between the executive branch on the one side and the unicameral legislature and the judiciary on the other, suffering from the competing influences of populism making it necessary for the country to negotiate alliances, and the extension of the ATPEA will contribute significantly to political stability and democracy. To this effect, we wish to mention the excellent role the chambers of commerce have played in this area.
In synthesis, last year Ecuadorian exports to the United States reached $6,791 millions, of which 79% was crude oil, making a big impact in the country’s export earnings. This situation equally benefits the United States, with this alliance, because otherwise if all tariffs were not eliminated, the importing of crude oil would create a crisis of shortage and increase in prices for the United States.
Actually, thanks to the ATPEA, there is a benefit of 1,443 millions of dollars in Ecuadorian exports in products like, roses, flowers in general, wood, ceramics, aluminum, canned tuna, fruits, jewelry, vegetables, etc., playing a dominant role in the country’s economy as well as in the State of Florida as it was mentioned before. It has been calculated that in Ecuador, only with the principal export sectors, they generate more than 420,000 jobs, which would be in jeopardy if the ATPDA is not approved.
William Alexander Wifredo “Willy” Gort
Presidente Chairman
CAMACOL Hemipheric Congress of Latin
Chambers of Commerce and Industry
November 1st 2007.
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