Felipe Espinosa: If we don't start competing with everyone, we will be relegated

Felipe Espinosa, executive director of the Ecuadorian American Chamber of Commerce, explains the expectations that Ecuador may have regarding the United States.

The executive director of the Ecuadorian American Chamber of Commerce, Felipe Espinosa, presents the panorama of Ecuador's bilateral relations with the United States. The closest step is the approval by the Ecuadorian Assembly of the first phase agreement. The recent statement by the Senate of that country on bilateral relations is the result of work to restore trust that has been done during this Government.

How should this latest US Senate resolution on the bilateral relationship with Ecuador be understood?

You have to take it with the importance it has. It is a kind of corollary to all the work that has been done since Ambassador Francisco Carrión and that was accelerated with the presence of Ambassador Ivonne Baki, in recent times. The relationship was on the rocks with the previous Government, which even expelled a US ambassador in the country. It is important that the Senate highlights that a relationship has been built between the two countries and that they want to continue doing things with the country.

A few months ago there was already a statement from the Senate in this regard, perhaps now the important thing is that it is the new authorities who are going to be in office for several years who have spoken out?

The statement is important because they are new authorities, and it was signed unanimously by the Committee made up of the two political parties. If we continue talking, with a view to eventually making a trade agreement with our main partner, we are going to have to talk to these authorities.

What are the expectations of the productive sector regarding relations with the US, with a view to a Free Trade Agreement?

I would dare say that it should be an expectation of the country, not only of the productive sector. You have to think that exports in 2020 sustained the country in the pandemic. Oil exports did not grow but non-oil exports did. We did better than Colombia and Peru in certain products. This good activity should be maintained in the long term and be able to do so on equal terms. Colombia and Peru have had a trade agreement for years, and they have more tariff advantages. For example, Ecuadorian broccoli must pay a 14.6% tariff when Peru and Colombia pay 0 tariffs. Imagine how much our exports can grow if only non-oil exports that have reached $2.6 billion doubled.

The misgivings come from the growth of imports from the US. What can you say about this?

We are 0.5% of US exports. I think there is a misconception. There is fear that it will be flooded with imported products, but that has not happened in Colombia or Peru. But they have become more competitive. If we don't start competing with everyone, we will continue to be relegated. Of course there are sensitive products that must be taken care of, deductible times established. Peru achieved up to 17 years to reduce taxes on certain products.

In any case, Ecuador already has a mirror or a window with the Agreement with the European Union. How do you see this experience?

That example is essential. We have done well with the EU. It's not that we have been inundated with European products. They have both grown. We have grown and we have had the opportunity for our products to go to a larger market.

The signing of an Agreement will not be immediate, what can Ecuador expect in the meantime?

In December we signed Phase 1, which included anti-corruption issues; foreign trade facilitation, good practices in foreign trade and another on small and medium-sized businesses. This first phase treaty must be ratified by the Assembly. We do not lose hope that this will be the case. But we believe that there must be a positive response because what country in the world is not going to approve an agreement on these issues. Regardless of the government that comes, we must act with will and pragmatism.

Could we expect some other facility to be given to products like what happened with roses?

The lowering of the tariff for roses occurred within the GSP, which is a global and unilateral program of the country that offers it. The roses being included was a fantastic deal. Now the GSP expired in December and can be renewed in the coming months, but we should not wait and depend on this, but look for something permanent.