Ecuador has been taking steps on trade that could have a big impact on shrimp exporters.
If successful, the moves could result in no tariff on Ecuador shrimp exported to the European Union and would also ease the entry of shrimp into Brazil.
Minister of Foreign Trade, Francisco Rivadeneira, reported this week to the representatives of the shrimp sector that he seeks to eliminate the tariff on Ecuador shrimp to the EU.
This is part of the advances in the second round of negotiations for a trade agreement with the EU, which were held last week in Manta.
“If there is a winning sector if we close talks with the EU, is the shrimp,” he said.
Since 1971, the EU has had rules ensuring that exporters from developing countries pay lower duties on some or all of what they sell to the EU, under the Generalised System of Preferences (GSP) scheme.
Prior to the meeting, Jose Antonio Camposano, president of the National Chamber of Aquaculture, said the signing of the trade treaty with the EU is essential for the shrimp industry, because Ecuadorian shrimp, which currently enjoys GSP preferences with a 3.6% tariff for raw shrimp, would see the tariff go to 12% if no agreement is reached.
Ecuador has a 0% tariff on processed shrimp, as it is a GSP+ country. If it was not, the tariff would have gone from from 7% to 20% for processed shrimp, as has happened with Thailand.
The EU, on the other hand, reports that the meeting in Manta, Ecuador made progress towards the conclusion of the deal.
The proposal is for Ecuador to join the existing trade agreement between the EU and Columbia and Peru.
According to the European Commission, negotiators focused on four areas: trade in goods, services, access to government tenders and protection of geographical indications.
The round brought results in all these areas and significantly reduced the number of open issues. Nevertheless, some important matters are still on the table which will be discussed in a third round of talks.
The trade agreement signed in 2012 has been applying to trade with Peru since March 1, 2013 and with Colombia since Aug. 1, 2013.
The agreement opens up markets for European, Colombian and Peruvian exporters and could save them more than €500 million per year. Ecuador seems likely to join this agreement.
Camposano also said that the government should look at easing shrimp export barriers to Brazil. Brazil imports about 30,000 metric tons of shrimp per year, despite being a producing country itself.
Another request was that the release of the Ecuadorian shrimp exports to Brazil is managed. Camposano added that this nation, despite being a producer of shrimp, has a deficit of 30,000t.
Minister Rivadeneira confirmed that talks with Brazil on trade in both tuna and shrimp from Ecuador had begun.