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

same products also appear on the list of leading imports from ATPA countries under allprograms (table 2-3). Some 80 percent of U.S. petroleum-related imports from ATPAcountries (HTS 27) entered under ATPA in 2005.The value of U.S. imports of heavy crude (testing under 25 degrees A.P.I.) under ATPAamounted to $5.2 billion, 57 79 percent more in 2005 than in 2004 (table 2-7). 58 The volumeof imports, which was more than one-third larger in 2005 than in 2004, was partlyresponsible for this surge, but the major cause was the continued, substantial rise ofpetroleum prices. By contrast, the volume of light crude imports (testing over 25 degreesA.P.I.) under ATPA decreased by 29 percent. Nonetheless, because of sharply higher prices,the value of these imports was also up slightly from 2004, amounting to $1.8 billion in 2005.Ecuador and Colombia are the principal suppliers of petroleum products under ATPA, butneither one is a major global U.S. supplier. Within the region, the United States importsheavy crude petroleum from Ecuador and Colombia and light crude from Colombia. In 2005,as in 2004, Ecuador was the fourth largest provider of heavy crude to the United States, afterMexico, Canada, and Venezuela. Colombia ranked 11th as a U.S. supplier of light crudeamong all countries globally. In addition to crude, both Colombia and Ecuador rapidlyincreased their exports of petroleum derivatives to the United States in recent years.In 2005, Peru became the principal supplier of naphthas under ATPA, providing more of thisproduct than Colombia and Ecuador combined.Textiles and ApparelU.S. imports of textiles and apparel from ATPA countries in 2005 increased $108 million,or 8 percent, from the 2004 level to $1.5 billion (table 2-8), reflecting continued growth inthe region’s shipments entering free of duty under ATPDEA. 59 In 2005, 88 percent ($1.3billion) of U.S. textile and apparel imports from ATPA countries entered free of duty underATPDEA, up from 83 percent in 2004. 60 Apparel assembled from regional fabric 61accounted for 85 percent ($1.1 billion) of total sector imports entering free of duty underATPDEA in 2005. The quantitative restriction (i.e., cap) on U.S. imports of apparel madein ATPA countries from regional fabrics allows for significant growth in trade from theATPA countries; to date, the cap has not restrained trade. 6257Import data for petroleum products are not identical in tables 2-3 and 2-7. Some imports do not enterduty-free under ATPA, mostly because they are transshipments from non-ATPA countries and therefore arenot eligible.58 The 2004 value of heavy crude imports under ATPA was already double the value of such imports in2003.59Import data in this paragraph are compiled from official statistics of the U.S. Department of Commerce,Office of Textiles and Apparel (OTEXA), found at http://otexa.ita.doc.gov.60Percentage changes based on unrounded data of the U.S. Department of Commerce.61For more information, see the chapter 1 section on ATPA qualifying rules.62For the one-year period ending Sept. 30, 2005, U.S. imports of apparel made in the ATPA countriesfrom regional fabric totaled 25.1 million square meter equivalents (SMEs) or 4 percent of the cap(707,772,286 SMEs).2-13