In this year, Ecuador is a country with fewer trade barriers. This is reflected in the 2021 International Trade Barriers Index (TBI), published in recent days by the Property Rights Alliance.
According to the report, Ecuador went from box 46, in 2019, to 40 in 2021, among 90 countries analyzed. The index assesses countries on the use of all direct types of trade barriers and the enabling environment. The average score of the analysis in 2021 is 4.01 on a 10-point scale, with 10 indicating the highest use of trade barriers.
In the case of Ecuador, in 2019 it had 4.03 points while in 2021 the elimination of trade barriers was reflected in a lower score: 3.75.
In recent years, Ecuador has reduced tariffs on imported products. The last one occurred in July this year. The Government ordered the tariff reduction for 661 items. Of that amount, 590, that is, 88%, corresponds to an immediate reduction of 0% in the tariff. While in 30 items the tariff is reduced to 5%. Twenty games go down to 10% and the rest to 15% and 25%.
The list included products such as whiskey-making extracts, turning machines, video cameras, computer components, and other supplies.
Ecuador is going the opposite way to the world. E n 2021, the average score of TBI increased 0.5% over the 2019 edition, indicating a general rise in the use of trade barriers.
The report notes that although the average score remains low, it highlights the fact that the intensive use of trade barriers is generally an exception and not a norm to tolerate.
On a global scale, Singapore is the country with the fewest trade barriers, followed by New Zealand and the Netherlands. The top 5 is completed by the United Kingdom and Sweden.
In the region ( Central and South America ), Ecuador ranks fifth as the country with the least barriers to international trade. The first place is for Peru and is followed by Chile, Trinidad and Tobago and Colombia. On the other side are nations like Argentina, Bolivia and Brazil.
During the year between issues, the study says, the world experienced major events in the history of trade policy: Brexit, the US-China trade war, US tariffs and retaliation on steel and aluminum, the COVID-19 pandemic, among others.