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

exports of various types of woven fabrics containing cotton continued to rise in the range of36 to 54 percent. 102In the automotive category, notable 2005 increases were in U.S. exports of special purposevehicles to Colombia. In prior years, such exports were insignificant, but they surged from$165,000 in 2004 to $6.7 million in 2005, and this group of products rose to rank third onthe list of leading U.S. export items to Colombia.PeruGrowth of the Peruvian economy accelerated to 6.7 percent in 2005 from 4.8 percent in2004. 103 The vitality of the economy boosted Peru’s overall imports, which increased by 23percent during the year. 104 In 2005, Peru purchased $2 billion worth of merchandise from theUnited States, which accounted for 23 percent of combined U.S. exports to ATPA countries(table 2-13 and figure 2-5), up by less than 10 percent from 2004.The overall expansion of the Peruvian market masked the growth of certain U.S. sectorexports to that country and the contraction of others. U.S. exports to Peru of machinery,petroleum derivatives, 105 and various instruments and apparatus were up by at least one-thirdby value in 2005. On the other hand, U.S. exports to Peru dropped in some other leadingproduct categories, including plastics, by 6 percent, and cotton, by 14 percent. Most notably,U.S. exports of cereals to Peru dropped by 42 percent. Prior to 2005, Peru had been asteadily and rapidly growing market for U.S. plastics and U.S. cereals, mostly wheat. 106Machinery and parts continued to dominate U.S. exports to Peru during 2005, accountingfor 35 percent of the total. Petroleum-related exports accounted for 11 percent, plastics for8 percent, and cereals for 5 percent.102 For more information on textile and apparel trade, see the section on “Textiles and Apparel”earlier inthis chapter, and chapter 3 (section on “Probable Future Effects of ATPA.”)103 EIU, Country Report, Peru, Apr. 2006, found at http://www.eiu.com retrieved May 12, 2006, andUnited Nations, Economic Commission for Latin America and the Caribbean (ECLAC), PreliminaryOverview of the Economies of Latin America and the Caribbean, 2005, Dec. 2005, p. 118.104EIU, Country Report, Peru, Apr. 2006, found at http://www.eiu.com, retrieved May 12, 2006.105 Although in 2004 Peru was still the largest market for U.S. petroleum oils (HTS 2710.19) amongATPA countries, in 2005, it was outranked by Ecuador, as U.S. refined petroleum exports to Ecuadorincreased faster than to Peru.106The U.S.-Peru Trade Promotion Agreement (TPA), if implemented, is expected to result in a renewedincrease of U.S. grain exports to Peru. A recent USITC report said that “The TPA is likely to have asubstantial positive effect on U.S. grain exports, especially over the long term. The positive effect resultsfrom increased market access through tariff removal and TRQ phase out, removal of Peruvian governmentsupport measures, and removal of competitive disadvantages vis-a-vis other grain suppliers to the Peruvianmarket, see USITC, U.S.-Peru Trade Promotion Agreement: Potential Economy-wide and Selected SectoralEffects, Inv. TA-2104-20, USITC Publication. 3855, June 2006, p. 3-3.2-31