Feb 25 • 22:00 UTC 🇪🇨 Ecuador El Universo (ES)

Producers worry that terrestrial blockade of exports to Colombia will generate oversupply and price drop

Ecuadorian producers are concerned that restrictions on the export of goods to Colombia could lead to oversupply and falling prices.

Ecuadorian producers are facing serious concerns due to the terrestrial blockade of certain goods to Colombia, compounded by a 30% tariff imposed by Colombia. This blockade, effective since February 24, affects agricultural sectors such as rice and potentially leads to increased shipping costs as exporters must resort to maritime routes to maintain access to this critical market. The agricultural community is particularly worried about the impact on costs, supply dynamics, and market access.

The restriction not only applies to rice but also to other products like shrimp, tomatoes, and tropical fruits, raising alarms about an impending oversupply situation. With the risk of reduced demand due to trade barriers and tariffs, producers fear that the resulting excess supply could cause a significant drop in prices and ultimately impact production levels. The implications of these trade restrictions are serious for Ecuador's agricultural exporters, as they rely heavily on the Colombian market for their goods.

Industry experts, such as José Antonio Camposano, the executive president of the National Aquaculture Chamber, have termed the Colombian measures as "commercial harassment." The situation is viewed as detrimental not only to producers but also poses broader risks to Ecuador's economy, which relies on agricultural exports. If the challenges persist, producers may find it increasingly harder to sustain their operations, leading to potential long-term impacts on the industry and local economies heavily dependent on agricultural output.

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