Ecuador’s growers desperate to ‘Keep Trade Going’ with US

Worried about the July 31 expiration date of two key trade agreements with the United States, Ecuador has launched a massive public awareness campaign to highlight the importance of its exports, of which cut flowers make up a substantial part.

“Keep Trade Going” is the official title of the campaign, launched by the Ecuadorian Trade Office. It aims to encourage the US government to renew the important preferential trade agreements as soon as possible, in light of their economic importance for both nations.

Trade between the US and Ecuador falls under two agreements: the Andean Trade Promotion and Drug Eradication Act and the US Generalized System of Preferences Program. These preferential agreements allow Ecuador to export products to the United States without paying an import tariff. Both expire July 31, however.

The looming tariff increase of roughly 7% and the corresponding price rise of imported Ecuadorian products evidently has the country’s cut flower exporters worried. Tens of thousands of jobs could be at risk, industry experts suggest.

About 30% of all the cut roses purchased in the United States are currently imported from Ecuador, putting the country second only to Columbia. The Andean republic exported a good $400 million worth of cut flowers to the States in 2012 and another $270 million worth to other countries, making it the third largest flower exporter in the world.

Additional sources: Superfloralretailing, Bloomberg