President Rafael Correa said in a radio interview that the Andean Trade Preference System (ATPDEA) “are a shame” that Ecuador “will eventually wean.” He also stressed that if the U.S. Congress does not renew the ATPDEA, it is expected that in 2011 the fees payment will be $25, 5 million, which would have to be assumed directly by the country.
“We have to find a way to help the exporters who would lose the ATPDEA,” he said. He stressed that the issue of renewal of this benefit has been overblown due to diplomatic impasse with the United States, since the exemption from such taxes was used “to subject us to the constraints of the United States.”
Correa insisted that there should be an alternative to the ATPDEA, he also tacknowledged that without this economic exemption, products would become more expensive for the consumer: between 8%, 10%, and 15%, he said. He said the state could make up for some of that, with the reduction in freight rates.
Moreover, the Government presented today a program to support the export sectors affected by the non-renewal of ATPDEA. According to the Ministry of Production, the program seeks to improve the efficiency of logistics chains with an investment of $ 20 million for savings of $ 6 million annually. Also, the Committee of Foreign Trade (Comexi) will approve an agenda for international efforts for the opening of different markets. The Minister Nathalie Cely said the results of meetings with the affected sectors will be announced next Monday.
Source: El Universo Newspaper