LIMA: Ecuador announced the adoption of economic measures that would apply a customs duty of 7% to Peruvian exports and 21% to Colombian exports, causing confusion and discontent among its Andean Nation countries.
According to Minister of Foreign Trade and Tourism (MINCETUR), Magali Silva, Ecuador’s move, “is contrary to the spirit of dialogue between the two countries and with the reengineering of the subregional Andean process undertaken by member countries.”
Currently, Ecuador, Peru, Colombia, and Bolivia are part of the Andean Community of Nations. These countries are bound together in a customs union with established processes and economic standards that promote the long standing history of the Andean community.
Silva announced that Peru is going to take the proper measures to maintain the relationship and prevent the action that is restricting trade in the subregion.
This restriction developed by Ecuador is a safeguard currency devaluation, where in it may apply a customs duty ad valorem of 7% for Peruvian products and 21% for Colombian products entering Ecuador. Beginning with products arriving in the country since yesterday, Jan. 5, will be judged under this restriction.
Ecuador sent this document to the General Secretariat of the Andean Community (CAN), as an emergency request on Dec. 24 and was therefore given permission to follow through with the sanction, “in which the existence of an alteration of the conditions of equivalent competence is demonstrated by 21% for the Colombian peso and 7% for the Peruvian sol.”
Ecuador’s action moves to further decrease the already lowered volume of Peruvian exports arriving in the country. In 2014, the period of January to October experienced a fall of US$ 133 million in exports to Ecuador compared to the same period in the previous year, according to MINCETUR.
Silva adds that Peru makes up only approximately 3% of the total world imports that Ecuador receives. And that therefore, this move does not serve to benefit the Peruvian economy or the Ecuadorian currency.
