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

and apparel sectors could lose competitiveness if free trade agreements do not go into effectbefore the ATPDEA expires. 65Copper cathodesRefined copper cathodes (HTS 7403.11.00), a major traded form of copper produced bymining companies, had been the number one import under the original ATPA from 1998 to2002. However, by 2005, U.S. imports of copper cathodes from the region, amounting to$556.4 million, had declined to less than one half of their volume in 2000. Even so, refinedcopper cathodes ranked third on the list of leading U.S. imports by value under ATPA (table2-7), and seventh from ATPA countries under all entry categories (table 2-3) in 2005.Among ATPA countries, Peru is the sole U.S. supplier of refined copper cathodes. Allimports from Peru enter under ATPA. From 1997 through 2002, Peru was the largest sourceof U.S. copper cathode imports among all countries of the world. However, U.S. ownershipinterests in Peruvian mining and processing have declined in recent years, contributing toPeru’s decline as a U.S. supplier. Chile and Canada now are the largest suppliers. Peru’sshare of U.S. imports dropped from 30 percent by value in 2001 to 17 percent in 2005.Conversely, Chile’s share rose from 15 percent in 2001 to 42 percent in 2005, and Canada’sshare rose from 28 percent to 32 percent.Peru also shifted its exports to destinations other than the United States, including Italy,Brazil, and China. Meanwhile, more recently, the improvement of mining practices and landaccess in Peru reportedly reignited U.S. interests in Peruvian copper mines. Investments incopper mining in new locations and the expansion of existing mines are under way andpromise a new surge in U.S. copper imports from Peru in the coming years.The volume of U.S. imports of copper cathodes from the world was up in 2005, respondingto greater demand for cathodes by U.S. manufacturers of wrought copper products. Themoderately rising volume of imports, combined with a 27-percent increase in the averageglobal price during the year, resulted in a 39-percent higher U.S. import value of coppercathodes in 2005 as compared with 2004. Similarly, although the volume of U.S. importsfrom Peru was up only slightly from 2004, the value of imports from that country was up by32 percent.FlowersOver the past two decades, the U.S. market for flowers (HTS 0603.10) has been increasinglyserved by imports. In 2005, the import share of U.S. consumption on a value basis was 63percent. However, the value of U.S. imports from all countries, as well as of those underATPA, was virtually unchanged in 2005 compared with 2004. One source attributes theflower industry’s problems is to multiple constraints on U.S. consumers’ discretionaryspending, heightened retail competition in flower retailing, major hurricanes, and othercauses. 6665Carlos Mateo Paz-Soldan, attorney, Schmeltzer, Aptaker & Shepard, on behalf of Exporamerica,written submission to the Commission concerning inv. No. 332-352, Andean Trade Preference Act: Impacton U.S. Industries and Consumers and on Drug Crop Eradication and Crop Substitution, June 8, 2006.66 Stan Rohmer, “The State of the Industry,” Floral Retailing Magazine, Jan. 2006.2-15