Ecuador seeks to boost production and exports

Ecuador seeks to reduce imports and boost production so that exports are greater than imports. However from January to November of 2013, the country sold $22.764 million, but bought $24.116 billion. That is, a giant deficit in its trade balance of – 1.351 million.

Yet the Government has sought to overcome the negative  balance with tariffs or quotas on imports, to curb the output of currency. Also with a tax of 5% to the money sent abroad , except for shipments of up to $1,000 every 15 days.

In a long term, the government seeks to encourage industries to grow and has already designed a strategy. Correa aspires that, until 2017, are substituted some $6 billion in imports, much by domestic production.

This idea takes time. According to the economic theory, proposed by David Ricardo, it is good that a country seeks to specialize in manufactured goods and earn an “advantage” in relation to another country which cannot produce it or is inefficient.

Economists such as Rodrigo Calderón, believe that the negative balances of trade do not do damage to the economy. “It is irrelevant if the trade balance has a  deficit or surplus. If the product is cheaper abroad, the consumer has access to goods cheaper than the ones manufactured domestically.”