Andean Trade Benefits Temporarily Extended

Current trade benefits provided unilaterally by the U.S. to Andean countries under the Andean Trade Partnership Act (ATPA) could become a political football by mid-year. In December, Congress extended the benefits for six months.

Some members of Congress have sought to use the extension of benefits as a cudgel against Latin American opponents of free trade, conditioning a further extension of the benefits to approving free trade agreements. Both Bolivia and Ecuador are led by presidents who were elected in part because of their opposition to a free trade agreement with the U.S.

The new chair of the House Ways and Means Committee, Rep. Charles Rangel, D-NY, has made clear his opposition to such economic blackmail and his support for an extension for all Andean countries, whether they support an FTA or not.

The U.S. initiated ATPA and other preferential trade programs in the l980s and early 1990s to help countries diversify their exports. The programs have been successful in creating and expanding entire industries, such as the cut flower sector in Ecuador and Colombia. The trade union movements in both Ecuador and Colombia, while vigorously opposing free trade agreements that would extend the neo-liberal model, support an extension of ATPA benefits because loss of benefits would cause significant economic harm for workers in these industries.

Suggested action: Contact your representative and both senators. Urge each to (1) oppose the Colombia Free Trade Agreement, (2) oppose extension of "fast track" authority without fundamental changes, and (3) oppose conditioning the extension of Andean trade preference programs on countries approving a free trade agreement. Rep. ___________, U.S. House of Representatives, Washington, DC 20515; Sen. ________ U.S. Senate, Washington, DC 20510. Or call 202-224-3121 or email via the web at www.house.gov or www.senate.gov.