New legislation to extend ATPDEA to Paraguay and Uruguay

Latin America and the Caribbean

Senator Richard Lugar (R-IN) introduced new legislation - S. 1665: ATPDEA Expansion and Extension Act of 2009 - this week to include Uruguay and Paraguay in the Andean Trade Promotion and Drug Eradication Act (ATPDEA). Presently, Ecuador, Colombia and Peru benefit from ATPDEA, which authorizes the President to grant duty-free treatment or reduced tariffs to a wide range of products, with the goal of promoting economic development and providing alternatives to the production of cocaine. (Bolivia has been suspended from eligibility due to its failure to cooperate with U.S. counternarcotics policy). In April of this year, similar legislation was introduced in both the House and the Senate, which called for the extension of ATPDEA benefits to Paraguay. Senator Lugar's new bill aims to extend benefits to both Paraguay and Uruguay. The ATPDEA Expansion and Extension Act of 2009 asks for Uruguay's wool-based textiles to be included under ATPDEA's benefits, which currently excludes from duty-free treatment "textiles and apparel articles" that previously have not been deemed eligible. It also asks for a two-year extension of ATPDEA benefits to all eligible countries - moving the current 'expiration date' from December 31, 2009 to December 31, 2012. Senator Lugar introduced the legislation on Monday, one day before Uruguayan President Tabaré Vásquez made an official visit to the United States.