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

Fresh-cut rosesU.S. imports of fresh-cut roses in 2005 were dutiable at the NTR rate of 6.8 percent advalorem. Such imports were dutiable at the rate of 3.4 percent for Chile and Singapore underthe FTAs with those countries, and 6.1 percent for Australia under its FTA. Fresh-cut roseimports were eligible for duty-free treatment under ATPA, CBERA, NAFTA, the AfricanGrowth and Opportunity Act, and FTAs with Israel and Jordan. Imports of fresh-cut rosesare not eligible for duty-free entry under GSP.In 2005, U.S. sales of domestically produced roses fell to 100 million stems, valued at $39million, from 104 million stems, valued at $42 million, the previous year. 172 This patterncontinued the downward trend in the value of U.S. domestic production of fresh-cut rosesthat began in the late 1980s as imported roses entered the United States in increasingquantities. Although the price of both U.S.-grown and imported roses increased slightly in2005 over 2004, imported prices remained lower than those of U.S. roses. 173Imports of roses from all sources accounted for 86 percent of the value of U.S. consumptionof roses in 2005, up from 83 percent the previous year. Imports from ATPA countries in2005 supplied 84 percent of the value of U.S. consumption, compared with 79 percent of itsvalue in 2004. 174 Colombia was the leading supplier, with imports from that countryaccounting for 60 percent of the value of U.S. consumption in 2005. Ecuador was second,with imports accounting for 24 percent of total U.S. consumption in 2005.U.S. imports of fresh-cut roses from all sources totaled $275 million in 2005, an increase of10 percent over the previous year. Colombia and Ecuador were the leading suppliers,accounting for 69 percent and 27 percent, respectively, of the total value in 2005. U.S.imports of fresh-cut roses from all ATPA sources totaled $263 million in 2005, an increaseof 10 percent from the previous year, virtually all of which entered free of duty under ATPA.Colombia supplied 72 percent of the fresh-cut rose imports under the ATPA program in2005, and Ecuador accounted for 28 percent. Peru supplied less than 1 percent of total roseimports under the ATPA program, and no imports of roses from Bolivia were entered in2005.Fresh-cut chrysanthemums, standard carnations, anthuriums, and orchidsU.S. imports of fresh-cut chrysanthemums, standard carnations, anthuriums, and orchids(fresh-cut chrysanthemums etc.) were dutiable in 2005 at the NTR rate of 6.4 percent advalorem. Such imports were dutiable at the rate of 3.2 percent for Singapore and 4.8 percentfor Australia under the FTAs with those countries. Such imports were eligible for duty-freetreatment under the GSP (excluding those from Colombia, which exceeded the competitiveneedlimit), ATPA, CBERA, NAFTA, and FTAs with Israel, Jordan, and Chile. In 2005,virtually all U.S. imports of fresh-cut chrysanthemums etc. from ATPA beneficiary countriesentered free of duty under the ATPA program.172USDA, NASS, Floriculture Crops, 2005 Summary, Apr. 2006.173USDA, ERS, Floriculture and Nursery Crops Outlook, Sept. 2005, p. 12.174Market shares are calculated using all imports of fresh-cut roses from ATPA countries, not exclusivelythose that benefit from the ATPA program.3-16