Flowers coming into the United States from Colombia, Ecuador, Bolivia and Peru may continue to arrive duty-free, according to a proposed extension of the Andean Trade Preference Act (ATPA). The ATPA was scheduled to expire on Feb. 29, but on Feb. 14, the House Ways and Means Committee approved H.R. 5264, extending the duty-free status through Dec. 31, 2008. House Ways and Means Committee Chairman Charles Rangel (D-15-N.Y.) sponsored the bill, which effectively maintains benefits for eligible products under the ATPA. If this extension does not go through, U.S. importers of record will begin paying duties on flowers from those four countries on March 1, 2008.

The bill is expected to go to the House floor for debate the week of Feb. 25.

Both Colombia and Peru have negotiated free trade agreements (FTAs) with the United States. Once fully ratified and implemented, those FTAs will provide permanent duty-free status for flowers exported to the U.S. from those two nations. Currently, duty-free status must be extended periodically under the rules and procedures outlined in the ATPA.

"Action on the FTA with Colombia has been blocked repeatedly this year because of concerns Colombia is not doing enough to stem the violence against trade unionists and to prosecute those responsible," says Drew Gruenburg, SAF's chief operating officer. Gruenburg adds that FTAs have not been negotiated with Ecuador or Bolivia due to concerns regarding the protection of U.S. investments in those two countries. A Senate companion bill similar to Rep. Rangel's has not yet been introduced.

In related news, last week the U.S. Chamber of Commerce hosted a U.S./Colombian Trade Promotion Event designed to highlight the value of passing a U.S./Colombia FTA.  Secretary of Commerce Carlos Gutierrez presented the Administration's point of view and Reps. Kevin Brady (R-Tex.) and Jim Moran (D-Va.) spoke for proponents in Congress. Other featured speakers included H.E. Luis Guillermo Plata, the Colombian Trade Minister, and Augusto Solano, president of Asocolflores.

--Morgan Schimminger
mschimminger@safnow.org

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