Ecuador is set to sign a Reciprocal Trade Agreement with the United States, which will provide Ecuadorian flower exporters with a competitive edge over Colombian flowers in the U.S. market.
Ecuador and the United States are preparing to sign the Reciprocal Trade Agreement (ART) within the next two to three weeks, aiming to enhance trade relations between the two nations. A major focus of this agreement is the flower export sector, which is anticipating significant benefits due to reduced tariffs compared to its chief competitor, Colombia. Currently, Ecuadorian flowers face a trade barrier consisting of a 21.8% tariff and surcharge when entering the U.S. market, a situation that is expected to change drastically under the new agreement.
Under the ART, the existing surcharge of up to 15% on Ecuadorian flowers will be eliminated, allowing them to enter the U.S. market with only the original tariff of 6.8%. This represents a remarkable tariff advantage that is set to bolster Ecuador's position in the competitive U.S. flower market, where Colombia has historically held a significant advantage. Alejandro Martínez, president of Expoflores, revealed that this agreement would not only ease access for Ecuadorian products but could also have broader economic implications for the country’s flower industry.
The reduction in tariff barriers is projected to not only increase Ecuadorian flower exports but also enhance job creation within the local economy, particularly in regions dependent on flower production. As the market dynamics shift in favor of Ecuador due to the ART, this agreement is seen as a crucial step in bolstering trade ties and supporting economic growth within the Ecuadorian floral sector, thereby strengthening its resilience against external market pressures.
