Uncertainty in Colombian exporters by the end of the ATPDEA

ATPDEA is valid until February 15, there are only six days. 

This situation has worried Colombian exporters who will no longer have that advantage for U.S. products entering duty free.

"We have a huge concern about this situation," said the chairman of the Foreign Trade Association (Analdex), Javier Diaz, who already made it known to the Minister of Trade, Sergio Diaz-Granados.

"It is necessary and important to sign the FTA with the United States, it is a treaty that is effective indefinitely to export to that country, which increases the flow of investment, as an exporter will not invest in capacity to export through a ATPDEA is only for a certain time, said former Minister of Trade, Industry and Tourism, Jorge Humberto Botero.

"However, after six years I signed the document that was sent to the U.S. government under NAFTA and has not been approved, does not seem appropriate to continue praying to have FTA with the United States, we must open ourselves to sign more FTAs with other countries, "says Botero.

Although the ATPDEA has increased exports, investment flow was not increased, because when there is uncertainty because at any time is running out, and as a unilateral treaty failed to attract a flow of capital, Botero said.

It should be noted, which was filed last Friday in the House of Representatives an initiative to extend preferences to June, which must also pass the Senate and in this instance things are not easy, so the uncertainty for Colombian companies that sell in the United States has not diminished one iota.

However, the President proposes to extend the ATPDEA Analdex for two years. Andean Trade Preferences Act (ATPDEA by its acronym in English), which allow entry into the United States hundreds of products free of tariffs, in force since 1991 and initially benefited Ecuador, Colombia and Peru, to the latter country signed a treaty bilateral free trade with Washington.

EXPORTS UNDER ATPDEA

In 2008, cumulative exports for the ATPDEA beneficiary countries reached U.S. $ 17,242 million, showing an increase of 40.1 percent over the previous year (U.S. $ 12,306 million). Colombia (U.S. $ 7,339 million), Ecuador (U.S. $ 6,594 million), Peru (U.S. $ 3,168 million) and Bolivia (U.S. $ 139 million) in that order were the most exported to the United States because of this program.

In the case of Colombia, of total exports to the U.S. in 2008 (U.S. $ 13,058 million), through the benefits of ATPDEA is exported U.S. $ 7,339 million, which accounted for 56.2 percent of total exports and increase of 62.1 percent over the previous year (U.S. $ 4,527 million).

Thus, more than 6,300 products enter the U.S. market without paying tariffs and through less restrictive rules of origin that apply to the General System of Preferences (GSP) and various trade agreements signed by the United States.

Among the products sheltered by these preferences since 1991 are the flowers, pigments, ceramics, some candies, etc.

From October 31, 2002, other products such as apparel, petroleum and petroleum products, footwear and leather goods, tuna, among others are also included in the preferences.