ATPDEA: Ecuadorian exporters fear market loss

Since yesterday Ecuadorian exporters began paying fees to enter the U.S. market, because of the suspension of the Andean Preference Trade Act (ATPDEA, according to its English acronym).

The deadline to approve a new extension of the benefit expired last Saturday. Therefore, since this week, about 786 products must pay tariffs if they want to enter the U.S. under the preferential regime. Among them there is the broccoli market, which has a 15% rate, the roses (6.8%), fruits (3.4%), tuna in water (12%), tuna in pouch (30%) among others.
For example, shipments of broccoli will pay about $ 85,000 in fees this week.

Broccoli exports reach 30 million each year. Without the ATPDEA they will pay 4.5 million fees annually.
Nylon stockings also have a strong impact, “he pointed Javier Diaz, leader of the textile industry, and since yesterday charged a tariff of 16.5%.

During the first week without the ATPDEA, nylon stockings exporters have to pay $ 32,000 in fees to enter the U.S. market. Ecuador exports 10 million a year for that product to the United States.
Even more complicated are the shirts, trousers, and clothing, “adds Diaz as their tariffs are 30% or more.

The situation has caused many employers choose to defer their shipments to the U.S. to avoid paying large sums of money for taxes.

Producers hope the U.S. Congress will approve the extension in the coming days. In case of a further delay in the adoption a greater uncertainty effect will be generated in the importers. They could seek new suppliers, says Chris Evans, executive director of the Ecuador-American Chamber of Commerce.

Source: Daily Expreso