[Congressional Record (Bound Edition), Volume 154 (2008), Part 3]
[Senate]
[Page 3600]
[From the U.S. Government Publishing Office, www.gpo.gov]




                      ANDEAN TRADE PREFERENCE ACT

  Mr. LUGAR. Mr. President, on February 28, 2008 we ratified the Andean 
Trade Preference Act, ATPA. Historically, these preferences have been 
decisive in encouraging both development and liberalization in a key 
region. Renewing them is an important step in our relations with the 
region, but we should also be realistic, and sophisticated, in our 
expectations for what these preferences can accomplish. As we look at 
where each of the four Andean nations stands today, we see that they 
are at very different stages of development, politically and 
economically, so the preferences will impact each country differently.
  Peru has made commendable strides in its economic liberalization 
process while remaining a trustworthy counterpart on many nontrade 
matters. Earlier this year we cemented our relationship through 
ratification of a Free Trade Agreement, FTA. As we go through the FTA 
implementation process, preferences are still necessary to minimize 
disruption to current commercial flows between the United States and 
Peru.
  Colombia has made outstanding progress politically and economically. 
During the past 6 years, Colombia's economic growth, one of the fastest 
in Latin America, has helped usher in a new era of unprecedented 
stability for that country--kidnappings, once rampant, have dropped 
sharply, down nearly 90 percent since 1999; and the once sky-high 
murder rate has plummeted to its lowest in almost 20 years. The FTA 
signed between our two countries includes environmental standards as 
well as worker protections and safeguards similar to the trade pact 
with Peru, which enjoyed bipartisan support.
  Colombia's own private sector unions have endorsed the agreement. An 
extension on the Andean Trade Preference Act is crucial given that the 
Colombia FTA has not been ratified by the Congress, and would help 
leverage our considerable aid commitment, ensuring Colombia remains on 
its path to becoming a secure and prosperous nation.
  Our trade preferences for Bolivia and Ecuador are important because 
both countries have elected leaders whose record and rhetoric cast 
serious doubt on their commitment to market-based economic policies. 
For this reason, it is important for the United States to maintain a 
strong relationship with the constructive forces in these countries. We 
want to encourage those who are working for economic liberalization and 
reforms that promote foreign investment and the creation of jobs. We 
want to support those who are pursuing policies that will improve 
social and economic development in health and education and advance the 
welfare for the less fortunate. It is in these countries where the 
effect of greater, and not lesser, engagement will yield the highest 
long term benefits.
  The ability to benefit from trade preferences is difficult in an 
environment in which the rule of law is coming under severe attack. 
Both countries are facing challenges on this front, with weakened 
justice systems that struggle to uphold the law. In this regard, an 
environment that supports free economic exchange and accountable 
governance is weakened by the inability of these governments to 
implement the law.
  Both Bolivia and Ecuador have much to gain by focusing on 
strengthening and depoliticizing the rule of law. Without an 
improvement on the legal front in these countries, the potential for 
these trade preferences to serve as development tools is limited.
  It is my hope that 10 months from now, when we again address the 
issue of preferences for the Andean countries, we will be well into the 
implementation of FTAs with Peru and Colombia and at the same time 
witnessing an improved commitment in Ecuador and Bolivia to the reforms 
that are essential to getting the most out of trade preference 
legislation.

                          ____________________