Government prefers cash compensation for exporters

In 6 days, the tariff preferences with the United States with the ATPDEA will disappear as a result of the unilateral renunciation of the treaty by Ecuador, the Government is obliged to seek immediate compensation solutions for exporters that were affected by the decision, and the alternative will be most likely, to compensate them with money.

Coordinating Minister of Production Richard Espinosa (r), worked along with the Economic Commission.

Yesterday the Economic Commission drafted the report for the second debate of the Organic Law of incentives for the productive sector, which aims the return of tariffs through tax credit certificates, and would be discussed in the plenary on next week. The option to return the paid fee with cash would be incorporated in that session.

Ramiro Aguilar (SUMA) objected to incorporate the option in the report and called the idea as “immoral”, while Richard Espinosa, Coordinating Minister of Production, who worked along with the Economic Commission, said that giving money is a positive mechanism due to its immediacy.

The meeting also incorporated several minor changes to the text. Among them, the legislator Patricio Donoso (CREO), successfully introduced an amendment, which requires the exporter to repay the compensation in case the export does not take place. In addition, the assembly member recommended that the law should make sure to know the percentage of exports that are being returned, so the return of profits would respond to the percentage of failed sales.