ATPDEA is a trade preference system by which these four countries are granted duty-free access to a wide range of exports, with the goal of promoting economic development and providing alternatives to the production of cocaine. While the House version granted a one-year extension to all four countries, the version of the bill passed by the Senate granted a one-year extension to Colombia and Peru and a six-month extension to Ecuador and Bolivia. A final, reconciled bill awaits approval. For Bolivia, however, the outcome of Congress' decision on the matter may not make a difference. On Friday, September 26, President Bush enacted his presidential powers as outlined under the terms of the law, requesting that Bolivia's designation as a beneficiary country under ATPDEA be suspended. Under the terms of the agreement, the President may withdraw or suspend the designation of a country as a beneficiary country if the country is not satisfying the eligibility criteria.
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ATPDEA is a trade preference system by which these four countries are granted duty-free access to a wide range of exports, with the goal of promoting economic development and providing alternatives to the production of cocaine. While the House version granted a one-year extension to all four countries, the version of the bill passed by the Senate granted a one-year extension to Colombia and Peru and a six-month extension to Ecuador and Bolivia.
A final, reconciled bill awaits approval. For Bolivia, however, the outcome of Congress' decision on the matter may not make a difference. On Friday, September 26, President Bush enacted his presidential powers as outlined under the terms of the law, requesting that Bolivia's designation as a beneficiary country under ATPDEA be suspended.
Under the terms of the agreement, the President may withdraw or suspend the designation of a country as a beneficiary country if the country is not satisfying the eligibility criteria. According to the United States Trade Representative USTR , the White House's decision is based on the designation of Bolivia, on September 15, , as a country that has failed demonstrably to cooperate with counternarcotics efforts. As outlined in a USTR press release,.
Agency for International Development personnel and the removal of U. Drug Enforcement Administration officials from the main areas of Bolivia's illegal coca production, a marked increase in cocaine production, the government's failure to close illegal coca markets, and publicly stated policies that increase government-sanctioned coca cultivation, have placed in doubt the Bolivian government's commitment to cooperate in the fight against drug trafficking.
According to U. Trade Representative Susan Schwab, the United States "regret[s] that the proposed suspension that is prompted by the Bolivian government's actions could affect hard-working Bolivians However, Bolivian President Evo Morales has said that "dignity is more important and we cannot give in or back down," giving the impression that Bolivia's counternarcotics efforts will not change to fall in line with the policies of the United States, despite warnings by the Bolivian Institute of International Trade IBCE that this could be "terrible.
As outlined on this blog before, Bolivia's counternarcotics results have not differed much from that of two governments friendly to the United States, Peru and Colombia, and the U. In accordance with the ATPDEA agreement, a public hearing must be held on the proposed action to suspend trade preferences to Bolivia, which will take place on October 23rd. However, as it looks right now, Bolivia will be removed from the list of ATPDEA designated countries at least through the end of the Bush administration in January Abigail Poe.
Latin America and the Caribbean.
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The purpose of this preference system is to foster economic development in the Andean countries to provide alternatives to coca production. Bolivia has installed capacity to industrialize coca production and its derivatives, since coca has no narcotic effects, but the United States does not make any difference between coca and cocaine. Thus, the U. On December 4, , under the George H. Congress passed a third renewal for ten months on February 28, , up to December 31, President George W. Bush asked Congress to remove Bolivia from the agreement due to failure to cooperate in counternarcotics efforts.
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