US President Donald Trump announced a 10% reciprocal tariff applicable to Ecuador and other countries. Foreign trade experts evaluate the potential impact of this tariff on Ecuadorian exports to the US market.
The banana sector, represented by the Association of Banana Exporters of Ecuador (AEBE), was among the first to react. According to the AEBE, the measure has a global impact but doesn't differentially affect the competitiveness of Ecuadorian bananas vis-à-vis its main competitors. Ecuadorian bananas maintain a 0% tariff, but the new measure is general. Ecuador, Colombia, Guatemala, and Costa Rica are subject to the same 10% minimum tariff, even with trade agreements in place. "In this context, we all operate under comparable tariff conditions," AEBE stated.
AEBE is waiting for the official and detailed proclamation of the measure, which will define its final application for bananas and other agricultural products. "We reaffirm our commitment to continue working in coordination with our authorities and allied unions, carrying out the necessary technical and political follow-up to preserve the stability and competitiveness of Ecuador's export supply," the union stated.
According to an analysis by Andersen Ecuador, Ecuador has a 6.2% tariff gap with the US. The 10% tariff for Ecuador corresponds to the minimum base tariff announced globally by Trump. "The details of the measure remain to be seen to answer questions about its application and impact, but we have to keep in mind that this is a cross-cutting measure that also affects competitors of Ecuadorian products, including shrimp, bananas, and cocoa, which are the biggest ones," stated Francisco Briones, former director of Ecuador's Internal Revenue Service.
Source: eluniverso.com