In a move that presages an even further distancing from the U.S., Ecuador has announced it is renouncing favorable tariffs that would save it hundreds of millions of dollars.
The tariffs are up for renewal in Congress right now, and could have been used by President Obama to put pressure on Ecuador if they granted asylum for whistleblower Snowden.
In this preemptive move, Ecuador is sending a clear signal of disengagement. But is it a smart move? The tariffs after all, benefit the people who work in the sector the tariffs would benefit.
The renewal of the tariffs had been in question even before the Snowden affair. They had been put in place time ago to help combat the drug trade in Andean countries. In fact most of the Andean Trade Promotion and Drug Eradication Act has come under scrutiny, and there many in Congress who see it as an unnecessary expense.
But the move might betray something unsaid: that Ecuador, in exchange for not granting Snowden asylum, could secretly ask for a presidential order that would make the tariffs permanent. In the absence of such secret deal, the tariffs would hit the country hard, since the U.S. partnership represents almost 50% of all Ecuadorian trade. It would principally hit the flower sector, but also some agricultural products. Some of the workers and farmers interviewed by France 24 have expressed concerns that their jobs will be curtailed to make up for the price difference once the tariffs are re-established.
Source : The Hindu/ 6.27.13
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