Floriculturist Sector Is Satisfied With The Renewal Of The Atpdea, But Shows Fears In The Next Future PDF Print E-mail
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Friday, 28 October 2011 02:14

The approval by United States Congress of the Free Trade Agreements with Colombia, Panama and South Korea additionally implied the renewal until July, 2013, and with retroactive effect as back as February 12, 2011, the Andean Trade Promotion and Drug Eradication Law (ATPDA in English), for Ecuador. Such renewal satisfies the floriculturist sector; because it allows us remain in equal terms with Colombia, main Ecuador's competitor in that market, until last two years.

Though ATPDA was not available since February, its effects were not felt, because roses from both countries accounting for 94% of the market entered with a tariff. However, such advantage will be lost in July, 2013 when the FTA with Colombia is fully operating. The United States shall not maintain tariff preferences exclusively for Ecuador.

It is worthy to remember that Colombia maintains an effective FTA with Canada, zero tariff for roses, while roses from our country pay 10.5%. Canada accounts for 5% to 6% of our exports, in accordance to Canadian data.

On the other hand, the SGP Plus that allows us entering the Europe Union with no tariff ends up on December 31st, 2013. Colombia and Peru already have a FTA with Europe which shall mean that we probably will not be granted with such a concession and that competitiveness will drop on the second market for our product. Europe accounts for 23 % of flower exports.

Additionally, Ecuador`s economic growth, pursuant to the World Bank is ranked medium-high, could definitely take Ecuador out of the list of countries considered eligible to tariff preferences by the European Union.

The sector is worried for the behavior of officials responsible for the Foreign Trade. Pursuant to the vice-chancellor, we could leave the CAN, a market that though not being interesting for the floriculturist sector, shows a certain lack of orientation in the management of our relationships. Besides, the chancellor's declarations in Germany, stating that Ecuador will never sign a FTA with Europe, spoiled every effort to go ahead with Union to seek a trade agreement.