Thursday, June 27, 2013

Ecuador Out of ATPA

Well, well, well. Ecuador announced it is withdrawing from the Andean Trade Preference Act, which was the primary leverage the United States has over Ecuador. It is also going to make an announcement very soon on Edward Snowden.

It's a bold move, and one that carries consequences. The last time there was a lapse, Ecuador's exports to the United States dropped significantly (see this report, page 2-16). In 2011, oil was 92.7% of Ecuador's exports under APTA, with cut flowers second. Ecuador's oil exports overall have declined this year, so this is going to have an impact.

From a strictly political standpoint, it obviously means Ecuador is freer diplomatically to do what it wants. Stay tuned.

h/t Otto


Anonymous,  2:24 PM  

Wasn't ATPA set to expire July 31 anyways?

Greg Weeks 4:01 PM  

Yes, so there was already a solid chance that Congress would let it expire anyway.

Alfredo 10:59 PM  

If that is the case then it seems dumb for the Obama administration to threaten Ecuador with holding back ATPA?

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