Andean Trade Promotion and Drug Eradication Act

Map of ATPDEA members

Andean Trade Promotion and Drug Eradication Act (ATPDEA) was a United States trade preference program that provided tariff-free access to the U.S. market for certain products originating from Bolivia, Colombia, Ecuador, and Peru. The primary goal of the ATPDEA was to promote economic development in the Andean countries to provide alternatives to the cultivation of coca, used for the production of cocaine. This act was an extension of the Andean Trade Preference Act (ATPA), which was enacted in 1991 but expanded and renewed several times until its final expiration.

Background

The Andean Trade Preference Act (ATPA) was initially established as part of the U.S. government's efforts to combat drug production and trafficking in the Andean region. By encouraging legitimate economic development through trade benefits, the U.S. aimed to reduce the economic incentives for farmers to cultivate coca plants. The ATPDEA, as an expansion of ATPA, included additional provisions and products eligible for duty-free treatment, further enhancing the economic benefits for participating countries.

Provisions

The ATPDEA allowed for a wide range of products from participating Andean countries to enter the United States duty-free, including textiles, apparel, and agricultural products, which were not originally covered under the ATPA. The act aimed to diversify the economic activities of these countries and reduce their dependence on narcotic production. It included strict rules of origin and compliance measures to ensure that the benefits were accurately targeted and that drug trafficking did not benefit from the trade preferences.

Impact

The impact of the ATPDEA on the Andean region's economies was significant, with increases in exports to the U.S. and diversification of the export base in participating countries. However, the effectiveness of the act in reducing coca cultivation and drug production was more mixed, with varying results across different countries and time periods. The act also faced criticism for potentially not adequately addressing the root causes of drug production and for its impact on local industries and employment in some sectors.

Expiration and Legacy

The ATPDEA expired on July 31, 2013, and efforts to renew it were not successful. Its expiration raised concerns about the potential economic impact on the Andean countries, particularly those industries that had grown reliant on duty-free access to the U.S. market. The legacy of the ATPDEA remains mixed, with significant economic benefits during its operation but ongoing challenges in achieving its broader drug eradication goals.

See Also

• Trade Promotion Authority
• Economic development
• Drug policy of the United States
• International trade