(atuna.com) The Ecuadorian government is seeking a new trade agreement with the European Union (EU), which will extend its exemption from paying tariffs on thousands of exported items – including canned tuna.
Currently, Ecuador has a duty-free scheme for about 7,000 products. The Generalized System of Preferences (GSP Plus) agreement is set to expire at the end of 2013.
Councilor Ricardo Patiño and the Coordinating Minister for Production, Santiago León, will lead the Ecuadorian delegation in their negotiations with members of the European Bloc in Brussels.
But there is a considerable road block since the Ecuadorian government wants to rejoin the Multiparty Trade Association Agreement with the EU, an agreement that the country left three years ago due to conflicting views.
In particular, Ecuador will propose a Trade Agreement for Development, which specifically addresses the business trade aspect and defines benefits according to the countries involved.
Brussels, on the other hand, is signaling a move towards a Free Trade Agreement (FTA), which Ecuadorian President Rafael Correa opposes. This multiparty agreement already exists between the EU, Colombia, and Peru, and focuses on broader issues such as copyright and public procurement.
The opportunity to negotiate is especially slim for Ecuador after the country abandoned the January negotiations. At that time, Ecuador had expressed interest in joining the Mercosur group, which Brussels has been negotiating with since 2000. More than 500 tons of tuna is processed daily in Ecuador, of which 60% is exported to the EU.