Ecuador renounces trade benefits from US Congress

[Bacchus4.0]

http://bigstory.ap.org/article/ecuador-renounces-trade-benefits-us-congress

QUITO, Ecuador (AP) — Ecuador said Thursday it is renouncing tariff benefits on hundreds of millions of dollars in trade that are up for renewal by the U.S. Congress.

The announcement by Communications Minister Fernando Alvarez comes at a moment when Ecuador faces U.S. pressure to avoid granting asylum to National Security Agency leaker Edward Snowden. Alvarez told a news conference that the trade deal had become "a new instrument of blackmail.

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The program, initially meant to help Andean countries aiding in the fight against drugs, was facing an uphill fight for renewal. Alvarado did not explicitly mention a separate effort to win trade benefits under a presidential order.

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Ecuador has been lobbying for continuation of reduced tariffs on hundreds of millions of dollars' worth of trade in products such as cut flowers, artichokes and broccoli. Nearly half Ecuador's foreign trade depends on the U.S.

[railsback]

1. Talk about kicking yourself in the teeth

I could imagine the thousands who would lose out on a lucrative, beneficial trade deal, cheering Snowden's 'freedoms' as he walked down their streets. LoL. And its not like the surrounding countries can make up that deficit, or they would have already. None really need that stuff, nor would be willing to pay such good prices for it, duty free.

Its too psychotic to be true, and expect some kind of clarification in the really near future.

[Bacchus4.0]

2. well to be realistic it wasn't going to be renewed anyway

but the link on LBN is amusing since apparently some think that Ecuador really showed the US up by kicking themselves in the teeth.

Unless there is a huge new worldwide demand for flowers and fruit, jobs will be adversely impacted in Ecuador NOT the US.

The thing to watch is whether Ecuador will become a member of the Pacific Alliance trade pact.

[railsback]

3. There really was no reason NOT to renew the ATPDEA

until now. And wouldn't it be blazingly hypocritical to join the Pacific Alliance when Mexico, Chile, Colombia and Peru ALL have free trade agreements with the U.S.?

[Bacchus4.0]

4. oh they want to for sure. ALBA certainly doesn't cut it

US importers simply aren't going to bother with Ecuadorian products when the same products are available from free trade agreement countries.

[railsback]

5. It doesn't make sense at all

Currently, those countries already signed up offer up the same stuff. Ecuador has a special deal where they don't have to directly compete with these other countries.

[Bacchus4.0]

6. actually, Colombia, Peru, and Chile have FTAs with the US that supercede the Andean Pact

so Ecuador was on the same playing field as those countries at least for some products. Now they no longer have any trade benefits with the US puting them at a competitive disadvantage.

[railsback]

7. Well, I feel for the Ecuadorian people

I bet they wish Snowden would just go away.

[Bacchus4.0]

8. but again, they weren't going to get a renewed trade agreement anyway

and Snowden is just a political football. The Pacific Alliance trade pact is the new thing to watch.

[railsback]

9. Ecuador isn't currently a member of the bloc

- so I assume they would have to be voted in. But why would the other countries vote in one so deep in debt and has reneged on billions it owes to other countries?

[Bacchus4.0]

10. no, they are not currently a member

The pact is growing steam from the US to Australia even France. Paraguay is an observer. The central american countries want in too. I believe Ecuador is the only Pacific nation in the region to NOT have any type of status. I do not know how a country gets into the agreement. Not sure if its by unanimous consent so to speak. They want in though.

Bolivia and Venezuela don't want Ecuador to join.

[railsback]

11. Its all an interesting read

Apparently, Ecuador is also an 'observer', but not a member. A European Union style Latin America, which does require an application for membership. MERCOSUR wants Ecuador to join their bloc, but that isn't going to cut if for a country like Ecuador, especially when its neighbors are embracing global free trade and MERCOSUR wants it all to be regional.

[flamingdem]

12. As someone pointed out in GD this probably means China stepped up to take up the slack

Ecuador taking Snowden takes the heat off China for the fact they let him go, kind of. At least it will be resolved.

China will at a minimum be able to get good terms with Ecuador now they've lost their trade with the USA.

[Bacchus4.0]

13. so China has an increased need for flowers and bananas? n/t

s

[flamingdem]

14. more likely minerals nt