Ecuador rejects pronouncement of the CAN on safeguards

Ecuador’s government expressed yesterday in a statement its refusal to resolution 1762 of the General Secretariat of the Andean Community of Nations, in which the regional organization did not authorize the application of the exchange safeguard requested by Ecuador.

The General Secretariat of the CAN noted that there was sufficient evidence to allow them to verify the existence of a disturbance to the conditions of domain as a result of the depreciation of the currencies of Colombia and Peru.

The Ecuadorian government said it considers that “this ruling exceeds the powers conferred upon the Cartagena Agreement: to issue non-binding opinions on Safeguarding Exchange. Opinions only reflect the institutional position without generating mandatory effects for member countries.”

“The case of Colombia and Peru depreciations has generated negative effects on the Ecuadorian economy and domestic production” and said that Ecuador has widely proved this argument in the last weeks.