U.S. Chamber Welcomes Review of Trade Preferences

Notes Deterioration of Investment Climate in Ecuador and Bolivia

WASHINGTON, D.C.—The U.S. Chamber of Commerce welcomed the White House signaling a closer review of country eligibility for trade preferences under the Andean Trade Preference Act (ATPA). The Obama administration declined to extend preferences for Bolivia and put Ecuador on notice that preferences may not be extended again unless longstanding rule of law issues are addressed.

"These trade preferences are a privilege, not a right," said Myron Brilliant, the Chamber's senior vice president for International Affairs. "Congress established clear eligibility criteria for the Andean countries to receive duty-free access to the U.S. market under the ATPA, including respect for the rule of law and fair treatment of U.S. companies. Colombia and Peru have easily met these criteria, but U.S. investors have faced an increasingly hostile environment in Ecuador and Bolivia."

"We welcome the increased scrutiny of Ecuador's eligibility going forward," Brilliant continued. "Engagement with the Andean region will bring shared benefits if our partners are committed to a level playing field and fair treatment of investors, which is one more reason we strongly support the trade agreements with Peru and Colombia."

Since the ATPA was enacted in 1991, the U.S. has provided unilateral trade preferences to Bolivia, Colombia, Ecuador, and Peru, eliminating tariffs on nearly all imports entering the United States from those countries. Congress last year extended ATPA preferences for Colombia and Peru through December 31, 2009, while establishing a mid-year review of the eligibility of Bolivia and Ecuador due to mounting complaints about the deteriorating treatment of U.S. investors.

"We look forward to the day when Bolivia and Ecuador are prepared to move forward to a mature, reciprocal trading relationship in similar fashion to Peru and Colombia," added Brilliant, "As of now, that day seems distant."

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

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