Tuna fishermen worry about ATPDEA renewal

News 11:08 10/10/2014 502
Ecuadorian entrepreneurs have little hope of achieving a further renewal of the Andean Trade Preference and Drug Eradication Act (ATPDEA), acknowledged the chaimran of the Corporation for the Promotion of Exports and Investments (Corpei), Ricardo Estrada.

The ATPDEA allows duty-free entry and unlimited quota of tuna packed in vacuum pouches but the tuna that is prepared or preserved by any means in vacuum packaging is excluded, such as canned tuna.

"We hope to resume talks with the US government in order to achieve a comprehensive agreement that includes trade and investment," said Estrada, but he reiterated that it is difficult to restore the tariff preferences quickly. The current ATPDEA expires on 31 July.

"We can not sit and mourn if there is something we can do. Currently, regardless the fact that it can be possible to get the good will of the US Congress and the Senate to renew it, there is not much to do because they are unilateral preferences granted by the Government of that country," he added, according to the newspaperLa Hora. If preferences are removed, tuna in puches will be affected, Corpei chairman warned.

Cristian Espinosa, executive director of the American Ecuadorian Chamber (AmCham), believes that the chances of the preference renewal are scarce.

While there is always a possibility, "the probabilities are low because the system lost importance in the United States" and "Ecuador is the only country that has the benefit," he explained.

When asked about the next steps to be taken in order to try and renew the preferences, Espinosa stated: "Currently, the exporters and the Government, with the embassy in Washington, are considering travelling to some towns and seek support among consumers and entrepreneurs."

"The aim is to show that they benefit when Ecuadorian products pay no tariffs because the prices are affordable for everyone," he added.

If the ATPDEA expires, the national resources will have to "compete hard with Colombian and Peruvian products, which have trade agreements and so have better conditions and their prices will be more competitive than ours," he stressed.

Felipe Rivadeneira, chief executive of the Ecuadorian Federation of Exporters (Fedexpor), estimates that the tariff to be paid by tuna producers as ATPDEA non-beneficiaries "is USD 16 million," reported the newspaper El Comercio.

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