Flower farmers from Ecuador who were used to exporting their blooms to the US duty-free will not look forward to the arrival of August. As of that month they will face a 6.8% import levy, as a result of Ecuador withdrawing from the ATPDEA treaty over political pressure surrounding the asylum request of American whistleblower Edward Snowden.
Ecuador’s critical stance in the face of the demand by the US to not provide Snowden with asylum provoked a lot of anger in America. The threats by leading US political figures reached such intensity, in fact, that Ecuador president Rafael Correa decided to withdraw from the trade pact unilaterally. “Ecuador doesn’t accept pressure or threats from anyone and doesn’t barter its principles and sovereignty or submit to mercantile interests,” he subsequently stated.
The ATPDEA – the Andean Trade Promotion and Drug Eradication Act – is a trade preference policy that guarantees that Andean countries can export their products tax-free to the United States. It was primarily established to provide the countries of the South American region with incentives to develop alternatives to the lucrative but illicit coca trade. The cancellation of the treaty means a 6.8% import tax comes into effect as of August 1.
Ecuador is reportedly now trying to get its flower exports to fall under the United States’ Generalized System of Preferences program instead, which is designed to promote economic growth in the developing world by providing preferential duty-free access in a similar manner to the ATPDEA.
The United States did renew the ATPDEA agreement with Peru and Colombia. The latter country, in particular, also plays a major role in providing the United States with freshly cut flowers and now sees its competitive edge increase.
The free trade agreement between Ecuador and Europe still stands as well.
Sources: VvdB, Bloomberg, Florint.org
Announcements
Vacancies
- Head Grower Strawberries, Australia
- Growing Manager for Hydroponic strawberry producer
- Farm Manager Costa Rica
- Regional Sales Manager Fresh Produce
- Head Grower Strawberries, Norway
- Export Trade Manager
- Business Developer - Northern Europe
- Orchard Sector Manager
- Grower
- International Citrus Account Manager
Ecuadorian flowers no longer enter the US tax-free
Publication date:
Receive the daily newsletter in your email for free | Click here
Other news in this sector:
- 2023-09-27 Spanish zucchini exports decrease by 18%
- 2023-09-27 Digitalization of the Spanish agricultural sector
- 2023-09-27 Nigerian tomato growers aim for decentralized production
- 2023-09-27 "Shoppers may pay 50% more for tomatoes if the US puts duties on Mexican tomatoes"
- 2023-09-26 97% of Mexican berries go to the United States and Canada
- 2023-09-26 "Shift from tomatoes to other fruiting vegetables due to risk of ToBRFV"
- 2023-09-26 Fruit and vegetable exports Vietnam set for a record $5 billion this year
- 2023-09-26 Stable market ahead expected for Thai Chili peppers
- 2023-09-26 Production dip prompts price hike for loose tomatoes
- 2023-09-26 Azura Group and Foundation donating €1.5m to Moroccan earthquake relief fund
- 2023-09-25 NASA’s record-breaking astronaut: scientific highlights of Frank Rubio’s year in space
- 2023-09-25 Government in Morocco approves 5% minimum wage increase
- 2023-09-25 Australians are still throwing away too many vegetables
- 2023-09-25 Satisfactory market for Sicilian organic tomatoes in Germany
- 2023-09-25 Microgreens are increasingly popular
- 2023-09-22 What is biofortification?
- 2023-09-22 Seeds shortage delays the Moroccan pepper season
- 2023-09-22 Trinidad and Tobago will face sweet pepper shortage, with prices going up
- 2023-09-22 Raspberry grower predicts biggest season yet out of Central Mexico
- 2023-09-22 Glastuinbouw Nederland after Prinsjesdag Budget: New measures mark the end for many growers
