The Ecuadorian government highlighted on Thursday the positive implications that the decision of the US Congress to approve the renewal of the Generalized System of Preferences (GSP) until December 31, 2017, which benefits more 120 countries, including Ecuador, would have for the productive sector whose products gain competitiveness in that market.
"This is great news because the US is our largest trading partner," said the Minister Coordinator of Production, Nathalie Cely, through a statement.
"This bill passed the House of Representatives and the US Senate has positive implications for the Ecuadorian productive sector, once it is official. This would guarantee tariff competitiveness for our producers, as it covers about 3,000 products worldwide," she said.
Cely said that, in the case of Ecuador, the preferential tariff would benefit products such as summer flowers, mangos, pineapples, fruit pulp, and processed wood, among others.
The GSP grants duty free or reduced tariffs to the beneficiary countries. The less developed countries generally receive preferential treatment for certain products and significant tariff reductions. Among the countries covered by the GSP, in addition to Ecuador, are Bolivia, Brazil, Paraguay, Uruguay, and Venezuela, among others.
The tariff preferences are intended for approximately 3,500 products from 127 developing countries and 1,500 additional products from 44 lesser developed countries, according to data from the Information System of Foreign Trade of the Organization of American States (OAS).
After the passage of the Act preferences through the House of Representatives, the Senate approved on Thursday the GSP and the legislation must now be signed by President Barack Obama.
The renewal of the GSP will be in force until December 31, 2017; it will apply retroactively, so there will be a period of 180 days for importers to request the US customs tariffs to return the money they paid after the expiry of the previous law (August 1, 2013), detailed the Ministry of Production of Ecuador.
In addition, it authorizes the Office of the United States Trade Representative's (USTR) to include "a limited number of travel products, such as some models of wallet, briefcases, or backpacks that were previously excluded from the program, in the GSP.”
Source: ANDESinfo.ec