Ecuador News

Ecuador delegation pushes to extend trade preferences with the U.S. but outcome is uncertain

Ecuador has dispatched a team of business leaders and government officials to the U.S. in hopes of extending trade preferences for about 300 exports beyond December 31.

Pineapples are a major Ecuadorian export to the U.S.

According to the Ecuador Exporters Federation (Fedexpor), elimination of the trade preferences granted under the U.S. General System of Preferences (GSP) could mean $270 million in losses annually to Ecuadorian businesses.

The GSP program covers products from 120 countries that do not have bi-lateral trade agreements with the U.S., allowing specified products to enter the U.S. duty free.

Fedexpor says it is concerned that a preference extension will be more difficult to negotiate this year due to changing U.S. trade policies.

The Ecuadorian leaders will meet with representatives of the U.S. Chamber of Commerce, the Council of the Americas, the U.S. State Department and U.S. House of Representatives from Tuesday through Saturday.

“Renewing the GSP is critical for several sectors of Ecuadorian industry and agriculture,” says  Fedexpor president Daniel Legarda. “Our largest exports to the U.S. are cut flowers, canned fruit, mangoes, pineapples, and sugar. If these products are forced to pay the standard 6.4% tariff, it would mean big loses for exporters. For flowers and agricultural products, the tariff could make our products noncompetitive.”

In total, Legarda says Ecuador exports $400 million to the U.S. annually.

  • Loren Lowe

    Perhaps it wasn’t the wisest thing for Correa to have constantly given the middle finger to the US.

    • baba free

      I don’t think you realize what a ‘bi-lateral’ treaty entails. You really invite the devil to dinner…

      • StillWatching

        You have never realized what bi-lateral means. You always thought it meant that Ecuador could export all of its products duty free into the U.S. and then have restrictive import tariffs of goods from the U.S. into Ecuador. That is what Loren meant by saying that Correa was giving the middle finger to the U.S.

        Tariffs and duties in either direction are ALWAYS bad and the sooner you statists realize it the better of we’ll all be.

    • Acbig1

      I agree, and If you are an expat and have lived in Ecuador for any length of time, you realize quickly that expats are expected to spend their money in Ecuador, and to pay for EVERYTHING and ANYTHING. That is the cultural commitment of Ecuador. Correa set the tone.

      • LadyMoon

        don’t understand the “everything and anything” comment.

        • StillWatching

          Stick around, Moonie, that poster doesn’t make sense in any of his posts. Few statists do.

          I stand corrected. His post at the bottom of this string actually does make sense. There is a first for everything.

    • edgeof 2

      Buttttt the USA deserves the middle finger in many ways – Kudos to Correa to standing up to wanker Americans !

      • StillWatching

        You did a great job of enumerating those ways. One of your best posts, ever.

        NOT

  • Ricki

    Would be nice if US products came tariff free to Ecuador, but then not much made in America anymore, grown however.

  • Acbig1

    Again, a “fair trade” deal needs to put the emphasis on “fair”. President Trump is ending the previous “freebie trade” doctrine, where the U.S. gives like a cow, and the rest of the world feeds of it as though they were entitled. The weak liberal politicians lead by Obama, allowed Correa to take from the U.S., while he disrespected us. This presidency of Trump is one of “accountability” across the board, as it should be. If given the opportunity, Trump will not help to destroy Ecuador’s economy, but he will do what any country does. He will make a deal that is in the U.S. interest first, and as equitable as possible. I believe Moreno has a good grip on what needs to be done for the Ecuadorian people. It is my guess that he and the Trump administration will work toward a mutually beneficial agreement on this and other fronts.