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

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of the $10.7 billion in imports that benefited exclusively from ATPA during 2005. 123 Thefive leading ATPA-exclusive imports in 2005 were (1) heavy crude oil, (2) light crude oil(HTS 2709.00.20), (3) heavy fuel oil, (4) copper cathodes from Peru (which exceeded itsGSP competitive need limit), and (5) naphthas. Ecuador was the leading supplier of heavycrude oil, Colombia was the leading supplier of light crude oil and heavy fuel oil, and Peruwas the leading supplier of copper cathodes and naphthas. 124 In 2004, heavy crude oil rankedfirst among ATPA-exclusive imports, and light crude oil ranked second. 125For any particular product, the U.S. market share accounted for by ATPA-exclusive imports(value of imports benefiting exclusively from ATPA relative to apparent consumption) wasa major factor in determining the estimated impact on competing domestic producers. 126These market shares varied considerably in 2005 (table 3-3). For instance, the market shareof ATPA-exclusive imports of fresh-cut roses was approximately 87 percent, whereas themarket share of ATPA-exclusive imports of cigarettes (HTS 2402.20.80) was 0.12 percent.Estimated Effects on Consumers and ProducersTables 3-4 and 3-5 present the estimated impact of ATPA tariff preferences on the U.S.economy in 2005. 127 Estimates of the gains in consumer surplus and the losses in tariffrevenue, as well as measures of the potential displacement of U.S. production, are discussednext.Effects on U.S. consumersMen’s or boys’ knitted cotton shirts (HTS 6105.10.00) provided the largest gain in consumersurplus resulting exclusively from ATPA tariff preferences in 2005, from $30 million to $34million (table 3-4). Without ATPA, the price that U.S. consumers would have paid forimports of men’s or boys’ knitted cotton tops from ATPA countries would have been asmuch as 19.1 percent higher (the ad valorem duty rate, adjusted for freight and insurancecharges). Knitted cotton t-shirts (HTS 6109.10.00) provided the second-largest gain inconsumer surplus, from $22 million to $24 million. Without ATPA, the price of imports ofsuch t-shirts from ATPA countries would have been as much as 15.7 percent higher. Ingeneral, products providing the largest gains in consumer surplus also have either some ofthe highest NTR tariff rates or the largest volumes of imports, or both.123The import values reported in tables 3-2 and 3-3 reflect only that portion of imports under each HTSprovision that entered free of duty under ATPA. Even though all of these items were eligible for ATPA tariffpreferences, full duties were paid on a certain portion of imports under each HTS provision for a variety ofreasons, such as failure to claim preferences, insufficient documentation, and indirect shipment patterns.124Leading ATPA suppliers are shown in table 2-7.125 For the list of items benefiting exclusively from ATPA in 2004, see USITC, ATPA, Eleventh Report,2004, p. 3-5.126Other factors include the ad valorem equivalent tariff rate; the substitutability among beneficiaryimports, nonbeneficiary imports, and domestic production; and the overall demand elasticity for the productcategory.127 The methodology used is described in appendix C.3-6
Table 3-3 Leading imports that benefited exclusively from ATPA, apparent U.S. consumption, and ATPA exclusivemarket share, 2005HTSprovision DescriptionImports fromATPA countries(c.i.f. value) (A)Apparent U.S.consumption(B) aMarketshare(A/B)-----------1,000 dollars---------- Percent2709.00.10 Petroleum oils and oils from bituminous minerals, crude,testing under 25 degrees A.P.I. .................... 5,488,296 83,116,069 6.62709.00.20 Petroleum oils and oils from bituminous minerals, crude,testing 25 degrees A.P.I. or more .................. 1,827,791 152,711,493 1.22710.19.05 Distillate and residual fuel oil (including blends) derivedfrom petroleum or oils from bituminous minerals,testing under 25 degrees A.P.I. .................... 573,897 106,495,695 0.547403.11.00 Refined copper cathodes and sections of cathodes ....... 564,635 10,889,342 5.192710.11.25 Naphthas (exc. motor fuel/mtr fuel blend. stock) frpetroleum oils & bitumin minerals (o/than crude) orpreps 70%+ by wt. fr petroleum oils................. 429,380 10,361,071 4.140603.10.60 Roses, fresh cut .................................. 335,494 386,916 86.716110.20.20 Sweaters, pullovers and similar articles, knitted orcrocheted, of cotton, n.e.s.o.i. ..................... 308,044 ( b ) ( b )6105.10.00 Men's or boys' shirts, knitted or crocheted, of cotton ...... 200,136 1,943,273 10.36109.10.00 T-shirts, singlets, tank tops and similar garments, knitted orcrocheted, of cotton ............................. 172,076 5,142,022 3.356203.42.40 Men's or boys' trousers and shorts, not bibs, not knitted orcrocheted, of cotton, not containing 15% or more byweight of down, etc ............................. 159,325 7,295,709 2.180709.20.90 c Asparagus, n.e.s.o.i., fresh or chilled .................. 140,165 394,854 39.820603.10.70 Chrysanthemums, standard carnations, anthuriums andorchids, fresh cut ............................... 124,403 167,451 74.296106.10.00 Women's or girls' blouses and shirts, knitted or crocheted,of cotton...................................... 66,484 1,248,762 5.326204.62.40 Women's or girls' trousers, breeches and shorts, not knittedor crocheted, of cotton, n.e.s.o.i. ................... 57,126 7,730,861 0.740603.10.80 Cut flowers and flower buds suitable for bouquets orornamental purposes, fresh cut, n.e.s.o.i. ............ 55,648 1,061,411 5.241604.14.30 Tunas and skipjack, not in oil, in airtight containers,n.e.s.o.i. ...................................... 49,077 878,946 5.582710.19.15 Kerosene-type jet fuel from petroleum oils and oils ofbitumin minerals (o/than crude) or preps. 70%+ by wt. frompetroleum oils .................................... 41,304 2,602,261 1.590709.20.10 c Asparagus, fresh or chilled, not reduced in size, if enteredSeptember 15 to November 15, inclusive, andtransported to the U.S. by air ...................... 40,302 - -2402.20.80 Cigarettes containing tobacco but not containing clove,paper-wrapped ................................. 39,998 33,998,405 0.126908.90.00 Glazed ceramic flags and paving, hearth or wall tiles; glazedceramic mosaic cubes and the like, n.e.s.o.i. ............ 26,473 2,730,273 0.97Source: Estimated by the U.S. International Trade Commission from official statistics of the U.S. Department ofCommerce.Note: The abbreviation n.e.s.o.i. stands for “not elsewhere specified or otherwise included.”a Apparent U.S. consumption defined as U.S. production plus total imports (landed, duty-paid basis) minusexports.b U.S. production and/or export data not available.c Apparent consumption for HTS 0709.20.10 and HTS 0709.20.90 were aggregated into one category andreported under HTS 0709.20.90.3-7
Page 2 and 3:
U.S. International Trade Commission
Page 5:
PREFACEThe submission of this study
Page 17: Trade-Related Activities in 2005•
Page 20 and 21: Organization of the ReportThis chap
Page 22 and 23: actions to withdraw or suspend coun
Page 24 and 25: textile and apparel articles made i
Page 26 and 27: duty-free entry are identical—a C
Page 28 and 29: analysis assumes that the supply of
Page 30 and 31: $11.1 billion in 2005 compared with
Page 32 and 33: Table 2-2 Leading U.S. imports for
Page 34 and 35: and 9.5 percent in 2004 to 7.7 perc
Page 36 and 37: 2-8Table 2-5 U.S. imports for consu
Page 38 and 39: 2-10Table 2-6 Leading U.S. imports
Page 42 and 43: Table 2-8 Textiles and apparel: U.S
Page 44 and 45: Virtually all flower imports from t
Page 46 and 47: The 2005 list of leading imports un
Page 48 and 49: Table 2-9 U.S. imports for consumpt
Page 52 and 53: cathodes, four apparel products, on
Page 54 and 55: 2-26Table 2-11 U.S. exports to ATPA
Page 56 and 57: 2-28Table 2-12 Leading U.S. exports
Page 58 and 59: Figure 2-5U.S. exports to ATPA coun
Page 60 and 61: EcuadorThe growth rate of the Ecuad
Page 63 and 64: CHAPTER 3ECONOMIC IMPACT OF ATPA ON
Page 65 and 66: Products That Benefited Exclusively
Page 67: Several leading imports that were i
Page 71 and 72: Table 3-5 Estimated displacement ef
Page 73 and 74: more in 2004. 132 Asparagus and cut
Page 75 and 76: esulted in greater availability of
Page 77 and 78: In recent years, some U.S. growers
Page 79 and 80: U.S. sales of domestically produced
Page 81 and 82: Table 3-6 Foreign direct investment
Page 83 and 84: product quality at the volumes requ
Page 85 and 86: $314 million purchase by Phillip Mo
Page 87 and 88: Industry sources attribute the slow
Page 89 and 90: place will have a devastating effec
Page 91 and 92: textile and apparel machinery and t
Page 93 and 94: Textile and Apparel SectorPeru has
Page 95: could begin producing the high-end
Page 98 and 99: Role of ATPA in Counternarcotics Ef
Page 100 and 101: (table 4-1, figure 4-1). 306 Net co
Page 102 and 103: Figure 4-1Net Coca Cultivation in t
Page 104 and 105: to other forms of legal justice. Th
Page 106 and 107: ulk of funding for the plan between
Page 108 and 109: Alternative DevelopmentThe USAID al
Page 111: APPENDIX AFederal Register NoticeA-
Page 114 and 115: 27278 Federal Register / Vol. 71, N
Page 117 and 118: American Chamber of Commerce of Per
Page 119 and 120:
Government of Colombia—Colombian
Page 121:
Peruvian Asparagus Importers Associ
Page 125:
Technical Notes to Chapter 3:Partia
Page 128 and 129:
(1)N(Q a /Q a N) = (1+t)ε aa(2)N(Q
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