Ecuador walks away from trade pact with the U.S.

07/02/2013 10:57:00 AM
Tom Karst

The government of Ecuador appears willing to walk away from preferential trade access to U.S. markets for mangoes and other agricultural commodities over a blowup over the search for a fugitive from the U.S.

Potentially doing harm to their own fresh produce exporters, Ecuador’s leaders said June 27 that the country would unilaterally back out of a trade pact with the U.S.

Ecuador’s leftist government has been under fire from several U.S. lawmakers for considering the request of granting refuge to American Edward Snowden. Members of Congress threatened to drop Ecuador from a preferential trade pact later this summer when it is up for renewal.

Snowden, a former contractor for the National Security Agency now believed to be in Russia, is being sought by U.S. authorities for leaking sensitive national security secrets.

Quoted by in the Quito-based newspaper El Comercio, Ecuador’s Minister of Communications Fernando Alvarado said that the country “doesn’t trade its principles or give them up for commercial interests, no matter how important.” Claiming U.S. blackmail over the trade pact and the Snowden issue, Alvarado said Ecuador “unilaterally and irrevocably renounces those trade preferences.”

A spokesman for the Office of the U.S. Trade Representative could not be reached for comment about Ecuador’s statement.

Ecuador’s biggest fresh produce export item to the U.S. is bananas, although the U.S. has no tariff on fresh banana imports from any country. U.S. imports of Ecuador’s bananas rated at about $410 million in 2012, down from $469 million in 2011.

However, among Ecuador’s fresh produce suppliers, mango exporters stand to be hurt the most by the loss in U.S. preferential trade treatment.

U.S. imports of Ecuadorian mangoes totaled $37 million in 2012, up from $23 million in 2011 and $18 million in 2010.

Holding out hope for a resolution to the issue, Larry Nienkirk, president of mango importer Splendid Products LLC, Burlingame, Calif., said Ecuador’s preferred trade status comes up for debate before Congress every three or four years. Nienkirk said that Ecuador mango season typically start in late October and finishes in early February.

Ecuador also exports a substantial volume of frozen broccoli and cauliflower, according to U.S. Department of Agriculture trade statistics.

William Watson, executive director of the Orlando, Fla.-based National Mango Board, said the current tariff-free trade preferences for Ecuador mangoes expire at the end of July and must be renewed by Congress.


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TRINI QUIROZ    
Florida  |  July, 03, 2013 at 07:18 AM

According to "William Watson, executive director of the Orlando, Fla.-based National Mango Board, said the current tariff-free trade preferences for Ecuador mangoes expire at the end of July and must be renewed by Congress". What about the dozens of containers that get SPOILED due to unnecessary and arbitrary SEARCHES????? Little Ecuador is constantly BULLIED....about time Ecuador said "kiss our &*#@s"!

dhinds    
Guadalajara  |  July, 08, 2013 at 03:46 PM

The message was clear and simple: Back off! Ecuador is a sovereign nation and will not allow another country to interfere in it's internal decision making processes, any more than the USA can be forced to consult with Ecuador before granting asylum to a fugitive seeking shelter from political persecution. But above and beyond that, trade between the two countries is a separate issue, and the statement made was no more than that: A Statement. Don't push us.

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