What you should know
Congressmen María Elvira Salazar of Florida and Adriano Espaillat of New York, and other legislators of the country, presented the Innovation and Development Law in Ecuador (IDEA) that establishes a trade preference program with Ecuador and a free trade agreement between the Latin American country and the United States. This is so that Ecuador meets the requirements to be designated as a beneficiary country under the Caribbean Basin Economic Recovery Act (CBERA), duty-free entry to the United States for certain products, to Ecuador. It also confers other benefits provided for in the Caribbean Basin Trade and Partnership Act (CBTPA). At this time Ecuador does not have a free trade agreement with the United States. Imports from Ecuador to the United States totaled $11.04 billion in 2022 alone, making the health of the Ecuadorian economy important to U.S. interests, lawmakers said in a statement.
NEW YORK — This could be good news for economic relations between Ecuador and the United States.
Congressmen María Elvira Salazar of Florida and Adriano Espaillat of New York, and other legislators of the country, presented the Innovation and Development Law in Ecuador (IDEA) that establishes a trade preference program with Ecuador and a free trade agreement between the Latin American country and the United States.
This is so that Ecuador meets the requirements to be designated as a beneficiary country under the Caribbean Basin Economic Recovery Act (CBERA), duty-free entry to the United States for certain products, to Ecuador. It also confers other benefits provided for in the Caribbean Basin Trade and Partnership Act (CBTPA).
At this time Ecuador does not have a free trade agreement with the United States. Imports from Ecuador to the United States totaled $11.04 billion in 2022 alone, making the health of the Ecuadorian economy important to U.S. interests, lawmakers said in a statement.
“Ecuador is suffering an unprecedented economic and security crisis,” Salazar said. “Ecuador needs a boost to its economy to get back on track. “My bill will provide much-needed stability to one of the United States’ most critical allies in the region.”
The United States imports more than $6.17 billion in oil from Ecuador, in addition to $1.68 billion in seafood, $637 million in plants and $585 million in fruits. The extension of CBTPA benefits will boost Ecuadorian production, reducing overall prices for certain Ecuadorian imports such as tuna and roses. American consumers will benefit exponentially from increased access to Ecuadorian imports.
“I am proud to co-lead the bipartisan IDEA Act, which aims to strengthen trade ties between Ecuador and the United States,” said Rep. Espaillat. “This innovative bill will help support a critical allied nation whose population is currently suffering from increased violence, poverty, and instability, which has led to mass migration of Ecuadorians to the United States in recent years. “Our bill will help reduce the prices of Ecuadorian products, while helping to stop the root causes of mass migration from Ecuador by creating jobs, reinforcing stability and promoting economic growth and development in the region.” .
The IDEA Law also has the support of the Ecuadorian government.
“AmCham Ecuador applauds Congressmen Salazar and Espaillat for introducing this important legislation that will provide trade preferences to Ecuadorian exports entering the US market. Ecuador is currently the only country in the Western Pacific that does not have a trade agreement with the United States. Equally important, the legislation will open a path toward a comprehensive bilateral trade agreement between the United States and Ecuador. “AmCham looks forward to working with the Noboa Administration and the United States government and private sector to build strong and lasting ties between Ecuador and the United States,” said the Ecuadorian American Chamber of Commerce (AmCham Ecuador) in a statement in support of the IDEA Act.
2023-11-14 22:02:17
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