Posted On 26 Jul 2017
200 will pay tariffs to enter the US if the GSP is not renewed. The system governs until December. Entrepreneurs see the possibility of a commercial agreement.
Sales to the United States may lose competitiveness if the country loses the General System of Tariff Preferences (GSP, in force until December 31, and which is dependent on the government of Donald Trump for renewal. This time, Ecuador is not alone. Another 120 countries depend on the restoration of that system.
400 million non-oil Ecuadorian products enter the United States, the 15% of the total exports directed to that market. This guild estimates that in the first three years there will be a cumulative reduction of approximately $ 269 million in exports to the US due to the end of preferences.
For the private sector, the key is to anticipate to the facts. President of the Ecuadorean Business Committee Richard Martinez recalled that the trade agreement with the EU was delayed because of an ideological discussion: “This is the best example to not waste time with the US. We must act with the same pragmatism as in the last stage with the EU. President Moreno is willing to collaborate and we will support him.” The business sector expects the government to send the appropriate signals to strengthen trade relations and trust there is a route to achieve an extension. The last time this program expired, the renovation took months, but finally, the US returned the tariffs charged. (I)