Ecuador will export bananas without limitations from 2020
Posted On 16 Dec 2016
The export of bananas to the European Union is one of the chapters with a particular treatment in the Multi-Party Agreement. Although the tariff regime decreases significantly with the entry into force of the same, the EU reserves the right to raise tariffs on Ecuadorian bananas, if the export of the fruit exceeds certain volumes.
This was explained by Foreign Trade Minister Juan Carlos Cassinelli during a conversation.
He explained that for Europe to be able to activate this protection measure, at least three considerations must be met.
The measure can be taken for only three months on a year. Additionally, each year the activating volume of the measure grows and can only be used until 2019. From 2020 Ecuador will be able to export bananas without limitations.
He specified that for the measure to be applied, Ecuador must overcome a volume called “activator.” In 2017 that index will be 1’801.788 tons and for 2019 this value will be 1’957,500. The values are higher than the current export of Ecuadorian bananas, since in 2015 Ecuador exported 1’361,756 tonnes.
Without the agreement, Ecuador would have had to pay in 2017 a tariff of $ 122 per ton of shipping, with the agreement it will only have to pay $ 97. This tariff is only $ 1 more than what is paid by Colombia or Peru.
Also, by 2023 tariffs continue to fall, and a tax of $ 74 per ton is raised, which is equal to those of the countries that are members of the Agreement.