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

Product Composition and Leading Import CategoriesU.S. imports entered under ATPA continued to grow in 2005 at a rapid pace, increasing by36.9 percent to $11.5 billion from $8.4 billion in 2004. U.S. imports under ATPA accountedfor 57.1 percent as a portion of total U.S. imports from ATPA countries, based on unadjusteddata.Table 2-6 shows that in 2005, mineral fuels (HTS 27) accounted for 69.4 percent of importsunder ATPA (63.5 percent in 2004). The rapid growth of the petroleum sector as a share ofimports under ATPA depressed the relative importance of virtually all other sectors underthe program. Apparel, which also became eligible for duty-free preferences under ATPDE,gained relative importance after the growing and higher-value petroleum-related importsunder the program. Knitted apparel (HTS 61) accounted for 8.3 percent of all imports underATPA in 2005 (10.3 percent in 2004), and apparel not knitted (HTS 62) accounted for for3.2 percent in 2005 (3.6 percent in 2004).Figure 2-2 illustrates the dominance of the fuel sector in ATPA trade during 2005, as wellas the fundamental shift in the composition of imports under ATPA as a result of ATPDEA’simplementation. In 2001, under the original ATPA, the two largest product groups were theone containing copper products and the one containing principally flowers; combined, theyamounted to nearly one-half of the total. In 2005, copper and flowers were still major sectorsin imports under ATPA, but their combined relative share was reduced to less than 10percent of the total because of the addition of apparel and, especially, petroleum to this tradeflow as a result of ATPDEA.Leading Imports under ATPAIn 2005, 12 of the 20 leading imports under ATPA are ATPDEA products and eight areoriginal ATPA products (table 2-7). The ATPDEA group includes five petroleum products,of which two (heavy crude oil and light crude oil) top the list, six apparel products (fourknitted and two not knitted), and certain tuna products in airtight containers. 56 The eightleading original ATPA products are copper cathodes, three flower products, asparagus, twojewelry products, and polyvinyl chloride—a new item on the list in 2005A paper-wrapped cigarette, imported under HTS 2402.20.80 and marketed under the nameof Bronco, was the only leading ATPA product on the 2004 list of leading imports underATPA that was not a leading import in 2005, because of a steep decline in U.S. imports. Thecigarette is an inexpensive discount product that comes mostly from Colombia and is soldin niche markets, predominantly the Latino market, in the United States.Mineral fuels and oilsPetroleum-related products dominating imports under ATPA in 2005 were heavy crude andlight crude petroleum, heavy distillate and residual fuel oils, and naphthas (table 2-7). The56 For more information on ATPA-eligible tuna, see “Pouched tuna” later in this chapter.2-9