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Exporters of the country request agreement with the United States
Posted On 22 Dec 2017
Ecuadornews:
The sector considers that one should not depend on a system of unilateral preferences. They propose to negotiate instruments with a longer-term impact. The export sector looks with concern at the expiration of the deadline for the renewal of the General System of Tariff Preferences (GSP) of the United States, with which 300 products that Ecuador exports to that country, would be affected.
The Minister of Economy and Finance, Carlos de la Torre, said on Thursday that to face a scenario of non-renewal of the system, which expires on December 31, a compensation mechanism is planned for exporters for the taxes they have canceled and thus improve their competitive conditions. “You can review within the framework of this mechanism that we are working, if you can do something more in order to compensate to some extent, the loss that could occur by sales in that market,” said the official after the expanded cabinet in Carondelet.
For his part, Daniel Legarda, president of the Ecuadorian Federation of Exporters (Fedexpor), expressed concern about the possible non-renewal of the GSP and coincided with what was expressed in the morning in a televised interview, where the United States Ambassador, Todd Chapman said that the government’s economic plan affects the private sector and that measures such as the customs control rate could be motivating for Washington not to grant Ecuador that commercial benefit. Legarda assured that to avoid this uncertainty, the Government should seek a commercial agreement with the US. long-term.
Broccoli exporters ask for compensatory payments
On the other hand, vegetable exporters insist that the Government fulfill its commitment to cancel about $ 7 million for Tax Credit Certificates for businessmen that export to the United States. Rafael Gómez, representative of exporters of broccoli and other vegetables, explained that after the unilateral decision of the former government to renounce the Law of Andean Tariff Preferences and Drug Eradication (Atpdea) delivered by the United States as compensation, the delivery of Tax Credit Certificates equivalent to 14.9% of the tariff paid by the broccoli upon entering the US was offered. However, since June 2016, this value has stopped being paid, affecting exports to the North American country, which, according to Proecuador’s 2015 data, is the second international market to which the Ecuadorian product arrives, after Japan. “Past government failures and the ratification of the pending government have affected exports to the United States. This sector generates nearly $ 120 million in shipments, of which 40% goes to the US, “said the entrepreneur.
Javier Díaz, Executive President of the Association of Textile Industrialists of Ecuador (AITE) joined this questioning and considers that the regime must comply with the delivery of these certificates. “As exporters we have relied on the offer of Certificates of tax credits to negotiate with our customers, which has put us in a disadvantaged condition, even of little seriousness and that image that Ecuador is giving is something that we must reverse if we want to attract foreign currency and generate employment, “said the principal of the AITE. He added that the regime must also deliver the drawback, which became official in February 2015 and consists of the return of a percentage of taxes directed to foreign trade. Daniel Legarda questioned that the State, for the subject of these certificates, between 2016 and 2017, owes about $ 60 million to the export sector “If there is that pending commitment and it is intended to give another as a compensation mechanism, under what credibility we will work”. The Government for its part ensures that the values for the drawback and the Tax Credit Certificates will not be recognized, since the requirements set for this benefit were not met. (I)
