Promoting strategies to boost Andean exports to the United States

The opportunities offered by the Andean Trade Program and Drug Eradication Act (ATPDEA) were analyzed in a workshop organized by the Andean Development Corporation (CAF) in Lima on February 12. The event was attended by leading representatives from the export business community of Bolivia, Colombia, Ecuador and Peru – the countries that benefit from the scheme – along with high-level officials from the host Corporation.

The CAF executive president, Enrique García, said the event defined a vision and a joint agenda for the business sector, public authorities and the CAF on how to boost Andean exports to the U.S. market in a relatively short period.

The knowledge and experience of the participants contributed to framing a set of recommendations and commitments, especially the formation of a team of important actors to continue working with the CAF in an effort to promote the objective of improving the position of our countries in the world's largest market, García added.

The workshop identified instruments that the CAF can use to promote the development of the export sector, including special lines of credit to finance working capital, medium- and long-term loans, and risk capital investments in small and medium-sized enterprises. Participants also discussed other cooperation initiatives through the Andean Competitiveness Program (PAC) which could benefit from the trade opportunities available in the United States.

The ATPDEA, passed last August, opens preferential access to the U.S. market for merchandise from these four Andean countries. Its objective is to support the fight against drugs by promoting legitimate export alternatives, aimed at generating employment and investment and in the longer term promoting political, economic and social stability in the region.

Unlike the former Andean Trade Commercial Preferences Act (ATPA), the new law allows tariff-free entry into the U.S. market for clothing, leather and footwear, and tuna in bags or cases, all products in which the Andean countries have strong advantages. For the CAF president, the ATPDEA presents our countries with an immediate opportunity that has to be taken up. The preferences apply to most of the region’s exports and give preferential access to a series of leading products from the region.

The workshop analyzed the opportunities for the textiles and clothing, tuna, leather and footwear, agroindustry and timber sectors. The strategies adopted include aspects of production, quality, productive integration and SMEs, investment finance, compliance with regulations and standards, logistics and marketing in the United States.

Finally, the CAF president confirmed the CAF's commitment to use the Corporation's range of projects and instruments as a means of assisting Andean companies to fully exploit the preferences offered by the ATPDEA.