[Congressional Record Volume 143, Number 104 (Tuesday, July 22, 1997)]
[Senate]
[Page S7868]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. BOXER:
  S. 1052. A bill to amend the Andean Trade Preference Act to prohibit 
the provision of duty-free treatment for live plants and fresh cut 
flowers described in chapter 6 of the Harmonized Tariff Schedule of the 
United States; to the Committee on Finance


 The Andean Trade Preference Act Flower Exemption Amendment Act of 1997

  Mrs. BOXER. Mr. President, in 1991 Congress enacted the Andean Trade 
Preference Act which provided for duty-free treatment, or reduced 
duties, on many products, including fresh-cut flowers, imported from 
the four South American Andean countries of Bolivia, Colombia, Ecuador, 
and Peru. This legislation was proposed as a means of promoting 
alternatives to coca cultivation and production by offering broader 
access to U.S. markets for legal products.
  However, the impact of the ATPA on our domestic flower industry, 
particularly in my home State of California, has been devastating. 
Colombian fresh-cut flowers have been the greatest beneficiary of the 
ATPA. In 1992, Colombia exported $87.7 million worth of fresh cut 
flowers to the United States. By 1995, Colombian exports increased to 
over $374.4 million. This represents a 427-percent increase over that 
3-year period.
  Domestic growers of roses and carnations have been particularly hard-
hit. In 1996, Colombia exported approximately 1.7 billion roses and 
carnations to the United States. Colombia now controls more than 50 
percent of the United States market for roses and 80 percent of the 
carnation market. Overall, Colombian flowers account for about 65 
percent of the United States fresh-cut flower market.
  The preferential treatment accorded Colombian fresh-cut flowers under 
the ATPA has had a direct and dire impact on the United States flower 
industry--approximately 58 percent of which is located in California. 
This preferential treatment, however, does not appear to be serving its 
intended purpose.
  In 1996, an International Trade Commission report found that the 
``ATPA had little effect on drug crop eradication in the Andean region 
* * *.'' In fact, quite the opposite has happened. The number of 
hectares devoted to coca cultivation in Colombia increased from 37,500 
in 1991 to more than 50,000 in 1995. The ITC report also found that 
``[the] ATPA had a small and indirect * * * effect on crop substitution 
during 1995 * * *.'' Thus, the intended goal of reducing drug crop 
cultivation by providing market access for alternative crops has not 
been achieved.
  Mr. President, I applaud and support the goals of the Andean Trade 
Preference Act. We must do all we can to encourage Colombia to seek 
alternatives to drug production. The impact of the ATPA on our domestic 
flower industry, however, has been far too great to justify the 
continued inclusion of fresh-cut flowers. It is imperative, therefore, 
that we exempt fresh-cut flowers from the ATPA.
  In enacting the ATPA, Congress specifically exempted certain 
products, that is textiles and apparel, watches and watch parts, and 
petroleum products, which were considered particularly sensitive to 
import competition. Fresh-cut flowers should be considered a similarly 
sensitive domestic product, and thus also exempted from the ATPA. Thank 
you, Mr. President.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1052

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. PROHIBITION ON PROVISION OF DUTY-FREE TREATMENT 
                   FOR LIVE PLANTS AND FRESH CUT FLOWERS UNDER THE 
                   ANDEAN TRADE PREFERENCES ACT.

       (a) In General.--Section 204 of the Andean Trade Preference 
     Act (19 U.S.C. 3203) is amended--
       (1) in subsection (b)--
       (A) in paragraph (7), by striking ``or'' at the end;
       (B) in paragraph (8), by striking the period at the end and 
     inserting ``; or''; and
       (C) by adding at the end the following:
       ``(9) live plants and fresh cut flowers described in 
     chapter 6 of the HTS.''; and
       (2) in subsection (e)(5)--
       (A) by striking subparagraph (A); and
       (B) by redesignating subparagraph (B) through (D) as 
     subparagraphs (A) through (C), respectively.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply with respect to goods entered, or withdrawn from 
     warehouse for consumption, on or after the date that is 15 
     days after the date of enactment of this Act.
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