Ecuador eliminated safeguard for raw materials and capital goods imported from Colombia

06/02/2015 12:00 - 563 Views

Quito, Feb 5 (Andes).- Safeguarding of 21% for raw materials and capital goods of 977 products imported from Colombia to Ecuador has been eliminated, as Minister of Foreign Trade, Francisco Rivadeneira, explained the morning of Thursday.

Safeguarding of 21% for raw materials and capital goods of 977 products imported from Colombia to Ecuador was eliminated in order to avoid a "trade war", as the Minister of Foreign Trade, Francisco Rivadeneira, explained this Thursday’s morning.

After a meeting between ministers from the productive and commercial sectors of Ecuador with President Rafael Correa, on the premises of the Vice-Presidency, Rivadeneira said the measure was taken to "avoid a trade war" and "safeguard the domestic industry".

At the end of the meeting, it was learned that until next February 27, safeguarding will be completely removed; i.e. Ecuador tariffs, charged to all products that come from the northern neighbor, are removed.

Since 5 January, the Ecuadorian government imposed a safeguard of 21% for imports from Colombia and 7% for Peru as a means of addressing the devaluation of the currencies of these countries against the dollar.

On the topic with the Colombians, Rivadeneira said that until February 27 "the safeguard measure by commercial exchange rate remains as currently; ie 21% ", implying that the finished products entering Ecuador until then still pay the percentage.

The decision to remove the safeguards was adopted after a meeting held on Tuesday, by the deputy ministers of Foreign Trade of Colombia, Mariana Sarasti, and Ecuador, Genaro Baldeón.

Speaking to the press, Baldeón indicated that these items mean 55% of all imports to the Colombian market.

From Colombia to Ecuador, materials are imported for the plastics industry, paper industry, pulp, among others. In 2013, imports from that country exceeded 2,200 million and from Peru totaled nearly 1,100 million.

In the coming days, it will be known whether the government will also eliminate tariffs on products that come to Ecuador from the Peruvian market. Discussions with southern neighbor still ongoing and according to the head of the Ministry of Foreign Trade, "they are willing to accept a similar compromise that was reached with Colombia".

The government is also considering the possibility of applying safeguards to products coming from other countries. Rivadeneira explained that "we are analyzing a mechanism that is multilateral so that these distortions of safeguarding exchange rate are removed and only affect members of the Andean Community (of Nations CAN)”.

In this context, the authorities analyze the productive sector to implement a measure that "has a global impact" and that applies not only with Colombia and Peru, but with all countries that have had their currency depreciation.

Source: andes.info.ec