The Impact of the Andean Trade Preference Act Twelfth ... - USITC

American Chamber of Commerce of Peru 350The American Chamber of Commerce of Peru (AmCham Peru), an organization thatrepresents both Peruvian and foreign businesses in promoting trade, investment, andexchange between Peru and the United States, provided an estimate of the impact of theATPDEA on Peru’s economy in 2005. According to the submission, exports from Peru tothe United States were in excess of $5 billion in 2005, up 166 percent since the renewal ofthe ATPA as the ATPDEA in 2002. AmCham Peru also stated that in 2005, Peru’s GDPgrew at a rate of 6.7 percent. The submission indicated that much of this growth was exportled,helping to create jobs in areas where export activity has increased and providing viablealternatives to drug trafficking. AmCham Peru explained that “the ATPDEA has beenpromoting a diversification among exporting industries … allowing a chance for Peruviansto sell practically any good to the American market.” The submission noted that theATPDEA also benefits American producers of capital goods, who are the leading providersof capital goods for Peruvian industry and transportation equipment, as well as Peru’ssecond-leading suppliers of capital goods for agriculture. In addition, the ATPDEA hasencouraged the adoption of new measures at the local level to ease the costs and constraintsof starting new businesses. AmCham Peru advocated for the extension of ATPDEA dutypreferences in Peru until permanent duty preferences have been established under the PeruTrade Promotion Agreement, calling the duty preferences an effective contribution to thefight against poverty and stating that, “the jobs and welfare of many Peruvians depend onthe continuity of the preferences [the ATPDEA] grants.”Association of Food Industries, Inc. 351The Association of Food Industries, Inc. (AFI) is a trade association that represents interestsin the U.S. food importing industry, with a membership of approximately 200 domesticcompanies, as well as approximately 200 associate member-companies located abroad.Imports by AFI members include food products from beneficiary countries under the AndeanTrade Preference Act (ATPA), and many AFI associate member-companies are located inATPA beneficiary countries. According to AFI, imported food products as a share of foodconsumed in the United States has risen 44 percent over the past 20 years to 11.2 percent,demonstrating the increased importance of imports in securing consistent access to a widerange of low-cost food products for the American consumer. AFI strongly supported “tradeliberalization through the reduction of tariffs and elimination of non-tariff barriers in thecourse of multilateral and bilateral negotiations.” AFI was concerned by the potentialnegative consequences of import duty rates should the ATPA be allowed to expire at the endof this year without the completion of FTA agreements with each of the four ATPAbeneficiary countries. As stated by AFI, “this would constitute a drastic change in the tradeenvironment, and will cause significant harm to U.S. importing companies, U.S. consumers,and overseas suppliers.” AFI also noted the indirect harm that the loss of ATPA benefitswould cause to U.S. companies not directly importing products from ATPA countries.350Aldo R. Defilippi, Executive Director for AmCham Peru, written submission to the Commission, June9, 2006.351Jeffrey S. Levin, Counsel to the Association of Food Industries, Inc., written submission to theCommission, June 9, 2006.B-3