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Juan Carlos Cassinelli reports three changes in safeguard tariff measures to the WTO
Posted On 26 Apr 2017
Three changes to protective tariff measures compared to that originally established in March 2015 occurred last year. Foreign Trade Minister Juan Carlos Cassinelli explained this during his presentation to the Committee on Balance of Payments Restrictions of the World Trade Organization.
According to the official, in January 2016 the surcharge was reduced from 45% to 40%; In April, despite the earthquake, the 5% surcharge was eliminated, while in September the 40% surcharge was reduced to 35% and the 25% surcharge to 15%. Meanwhile, from April 1, 2017, the 35% surcharge fell to 23.3% and the 15% surcharge fell to 10%.
Cassinelli also explained that the measure currently covers 2,152 tariff subheadings, ie 811 products less than in 2015. According to the timetable, the percentage reduction will continue to 0% in June.
“When we conclude in June this year the dismantling of the safeguard measures the state of consultations with the WTO will end,” he said.
Last Monday, President Rafael Correa warned that after the VAT rebate from 14% to 12% and the dismantling of safeguard measures there could be an “import boom,” considering that there is an “environment of excess liquidity and repressed demand.”
