"Ecuador had an agreement in which many products entered the EU without tariffs, but the bananas were subject to a high tariff in order to protect the EU's local production. Ecuadorian bananas have been paying high tariffs for 4 years, which have resulted in the reduction of their market, "said the president of the Association of Banana Exporters of Ecuador, Eduardo Ledesma Garcia.
Ecuador's market share in the international trade of bananas went from 40% to 30% within a couple of years, a window that was exploited by other Latin American countries that seized the opportunity to market their product. "Now our bananas will pay almost the same tariff as our competitors. However, it's also important to stress that this is a measure that also benefits importers, as they will now have the opportunity to regain the market share they had lost," he said.
"There's been some confusion among some producers who believe this 50-cent saving is as a monetary benefit for exporters. In reality, it will benefit importers, who will be able to buy a box of bananas for a price that is equivalent to that of the competition. Despite this reduction, Ecuadorian bananas will continue to be more expensive than the bananas from other markets because of logistical reasons. Thus, our next challenge will be to have an appropriate strategy," Ledesma said.
For more information:
Eduardo Ledesma Garcia
AEBE Association of Banana Exporters of Ecuador
T:+593 999423997
E: eledesma@aebe.com.ec
www.aebe.com.ec