[Economics] The United States could reduce tariffs on almost 50% of Ecuadorian exports with a law presented in the Senate

[Wassim]

Project presented by two senators seeks to make Ecuador eligible as a beneficiary of the Caribbean Basin Economic Recovery Law.

In the United States Senate, the Innovation and Development Act in Ecuador was presented on March 22, 2023 to make this country eligible for designation as a beneficiary of the Caribbean Basin Economic Recovery Act.

One of the benefits of this would be the reduction of US tariffs to almost 50% of Ecuadorian exports to the United States.

The Senate Foreign Relations Committee reported that US Senators Bob Menendez and Jim Risch introduced this proposal. Menendez is Chairman of the Committee and Risch is a Senior Member.

On December 15, Congress approved the Bipartisan Association Act between the United States and Ecuador with the objective of expanding cooperation on issues of mutual interest, including the strengthening of democratic institutions, the promotion of inclusive economic growth, support for initiatives environmental conservation and increasing capacities to address corruption, crime and negative foreign influence.

Now, “with this new bill, the United States is deepening its partnership with a key democratic partner in the Americas and creating the conditions for inclusive economic growth in both countries. Building on the partnership between the United States and Ecuador, which became law in December, this new legislation will further expand the economic and commercial ties between our two countries,” Menéndez said.

While Risch argued that "Ecuador faces a series of crises, including illegal immigration, pressure from China, and violence from Mexican drug cartels" and that the new legislation "would help Ecuador address these threats by promoting the creation of jobs in the private sector so that Ecuadorians have greater economic mobility at home”.

In a statement, the Senate Foreign Relations Committee details that this new legislation would allow:

• Reduce US tariffs on almost 50% of Ecuadorian exports entering the United States.
• Promote market-based economic policies to reduce illegal immigration from Ecuador. Ecuadorians are the second largest group entering Panama illegally on their way to the United States, and illegal immigration from Ecuador has more than doubled so far in fiscal year 2023 compared to fiscal year 2022.
• “Providing support to a democratic partner under extreme pressure from China and other malign influences.”

From the official CREO movement, this proposal is taken as a sign of confidence in the Government of Ecuador and in President Guillermo Lasso. The assemblyman and director of this political group, Guido Chiriboga, stressed that the inclusion of Ecuador in the Economic Recovery Law "reduces export tariffs, supports development projects and promotes entrepreneurship."

The bill proposes modifying article 212 (b) of the Caribbean Basin Economic Recovery Law, inserting Ecuador after Dominica. It must be enacted by the Senate and the House of Representatives of the United States of America in Congress.

 

https://www.eluniverso.com/noticias/economia/estados-unidos-podria-reducir-aranceles-a-casi-el-50-de-las-exportaciones-ecuatorianas-con-ley-presentada-en-el-senado-nota/