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The local industry faces a scenario with fewer protections
Posted On 20 Jun 2017
Ecuadornews:
Following the elimination of quotas, safeguard tariffs and other controls on imports, the local industry will have to compete in an economy more open to the world. Since 2007, national development plans were aimed at buying less abroad and producing more locally. This policy was essentially embodied in Resolution 116 of the Foreign Trade Committee (Comex), which established imports control for 292 products. The decision, according to the authorities at that time, was strategic for the change of the productive matrix.
The measure forced companies to sign agreements with the government to replace part of their imports and thus, boost local production. In total, more than 900 agreements were signed. While other measures such as surcharge tariffs and quotas on vehicles and cell phones were established to prevent the outflow of foreign exchange, opportunities for the local industry were opened.
With the gradual reduction of surcharges, which started in January 2016, demand for local production fell. Companies in the country will have to resort to commercial strategies to face the income of foreign products. (I)
Source: http://www.elcomercio.com/actualidad/industria-protecciones-comercio-negocios-ecuador.html
