Without U.S. government's renewal,
expiration of trade agreement in July will make sought-after Ecuadorian products
more expensive
While most
Americans may view Ecuador as simply the gateway to the Galapagos Islands,
Ecuador's importance to the United States as a trading partner is really much
more significant. This important message will be on display in May as the
Ecuadorian Trade Office in Chicago launches a new communications campaign, "Keep
Trade Going." The campaign will launch in Chicago and then expand to other
cities in the United States over the coming months. The goal of the campaign is
to enable the business community and general public to know the facts about
trade with Ecuador and why many sought-after Ecuadorian products may become more
difficult to find after July of this year. The campaign
website, to be launched soon, is www.keeptradegoing.com.
Ecuador produces the greatest roses in the world,
according to many flower aficionados. Approximately 30 percent of the roses
purchased in the United States are imported from Ecuador. Ecuador exported $400
million worth of flowers, in market value, to the United States in 2012. Other
high-quality Ecuadorian products that are exported to the United States include
quinoa, broccoli, artichokes, tropical fruits, tuna, tilapia, coffee, chocolate,
cacao and processed food. "All of our major exported products are excellent, but
we're especially proud of our roses," said Borys Mejia, Trade Commissioner for
Ecuador in Chicago. "Ecuador is blessed with the perfect climate and soil
conditions for rose production. When people want the best, they choose
Ecuadorian roses."
In 2012, the United States imported nearly
9.3 billion dollars' worth of Ecuadorian products, according to the United
States Census Bureau. For more than a century, Ecuador has been a strong trading
partner with the United States. Since 1991 trade relations have been under two
key trade preferences agreements: the Andean Trade Promotion and Drug
Eradication Act (APTA/ATPDEA) and/or the U.S. Generalized System of Preferences
Program (GSP). These trade preferences agreements have allowed Ecuador to export
products to the United States without paying an import tariff. This has helped
keep the price of Ecuadorian products down while enabling Ecuador to be
competitive with other exporting countries. But these agreements are due to
expire on July 31, 2013 and without quick action from the U.S. government, when
the agreements expire a highly increased tariff will be imposed, and the price
of imported Ecuadorian products will go up.
The "Keep Trade Going" campaign is one method that Ecuador is
using to encourage the U.S. Government to renew the ATPDEA and GSP so that
Ecuadorian products will continue to be tariff-free. As an alternative, Ecuador
would like to have more of its products classified under the GSP. "Trade
relations between Ecuador and the United States are very positive. The United
States is Ecuador's principal trading partner, and our business activities are
important sources of jobs in both countries," said Mejia. "Renewing these trade
preferences agreements and re-classifying some products under GSP would mean
that trade between Ecuador and the U.S. could continue seamlessly while the two
governments continue to develop new mutual cooperation agreements that could be
broader and more far reaching. New trade preferences agreements with a broader
extent in other cooperation areas would help Ecuador and the United States enjoy
a more predictable and stable trade relationship while putting in place
additional policies that benefit both countries."
The key mission of Ecuador's Chicago Trade Office is to reach
out to the business community and the public. "It is important that we
continually let businesses and the public know the value of our products to both
the Ecuadorian and American economy," said Mejia.
One key outreach effort on the part of Ecuador's
Chicago Trade Office, during the past year, has been to work very closely with
the investor group that is establishing a new Chicago Perishable Center within
O'Hare airport. It will be located in the former Lynx Cargo Building at Mannheim
Road and I-90, in the northeast corner of the airfield. This new state of the
art Center, which will officially open in the third quarter of 2013, represents
the first time in decades that Chicago will be a destination to which exporters
can directly ship their perishable products. U.S. cargo airlines are planning to
soon begin flying directly between Ecuador and Chicago.
"The Chicago Perishable Center means that Midwestern
distributors don't have to purchase their perishable wholesale products in Miami
or Los Angeles, where the major perishable centers are, and then truck them to
the Midwest," said Shlomo Danieli, one of the key principals involved with the
creation of the Chicago Perishable Center. "Trucking the products from Miami to
Chicago typically takes two or three days which, for perishable products such as
fresh flowers and produce, can make a big difference in product freshness and
shelf life. With a new Perishable Center in Chicago, the products will arrive in
the Midwest in fresher and better condition." Danieli predicts that by the end
of its first 30 months of operation, shipping to the Center will have reached a
rate of nearly $90 million dollars of product per year.
As a major fresh rose exporter, Ecuador views the Chicago
Perishable as crucial, since the marketplace within a 500-mile radius of Chicago
represents approximately 80 million consumers, based on U.S. Census data. "We
don't see the Chicago Perishable Center as taking away import business from
Miami or Los Angeles," said Mejia. "Rather, we believe that it will expand the
overall availability of imported products from Ecuador in the United States. It
will increase our geographic reach to include the greater Midwest area which
until now hasn't had access to our products when they are still really
fresh."
In preparation for the opening of the Chicago Perishable Center,
Ecuador's Chicago Trade Office has organized a series of business-to-business
activities that will allow Midwestern importers to meet with H.E., Nathalie
Cely, Ecuadorian Ambassador to the United States, and other Ecuadorian
governmental representatives and businessmen. On May 15, the Trade Office will
host a private preview and tour of the Chicago Perishable Center and, at a
special reception and dinner later that evening, meet with business and
political leaders to discuss its vision for a continued prosperous and mutually
beneficial trade relationship between Ecuador and the United States.
"Keep Trade Going" to be featured on the "L"
The Chicago public will also delight in the "Keep
Trade Going" campaign. Beginning May 6, fifteen train cars on the Brown Line "L"
will be wrapped in beautiful images of Ecuadorian roses and food products. The
interiors of these train cars will be decorated wall-to-wall with photography
and key messages about Ecuador and its products, all under the banner of "Keep
Trade Going."
"This is only the beginning," said Mejia. "Through our
continuing efforts to reach out and tell the story of Ecuador, we want everyone
in the United States to know that the phrase "Product of Ecuador" is not merely
a sign of quality and good business, it is also a symbol of our continuing and
productive relationship with the United States and the American people. That is
something the people of Ecuador cherish."
Midwestern Rose Vendors Will Benefit
One of the Midwest-area vendors of Ecuadorian roses who will
benefit from the Chicago Perishable Center is Shelley Rosen, President of Luxe
Bloom, LLC., (www.luxebloom.com
) a Chicago-based start-up that offers natural long-lasting rose
arrangements to luxury business operators on a monthly recurring basis. All of
her company's rose products are imported from Ecuador. "Our strong relationship
with the Trade Office of Ecuador allows us to keep our quality imports coming to
meet our demand," she said. "We support the 'Keep Trade Going' efforts between
the USA and Ecuador, as the quality and innovation is paramount to our
operation."
About The Republic of Ecuador
The Republic of Ecuador is located on the Equator in the
northwest of South America. It borders Colombia and Peru to the north, Peru to
the east and south, and the Pacific Ocean to the west. Having a surface area of
283,561 square kilometers, the geography of its four regions is very diverse:
Andes, Amazon, Pacific Coast and Galapagos. Ecuador is known as the gateway to
the world renowned Galapagos Islands, but the mainland of Ecuador is also a
beautiful and varied country with an interesting history and culture, making it
an ideal travel destination.
Ecuador's population is approximately 15 million people. The
largest cities are Guayaquil (2.6 million people) and Quito, the capital (1.7
million people), and Cuenca (277,000). Quito and Cuenca have been declared World
Heritage Sites by UNESCO.
Ecuador is a representative democracy with five branches:
executive, legislative, judicial, electoral, and transparency and social
control. The President is Rafael Correa and the Vice President is Lenin Moreno.
The Ecuadorian Ambassador to the United States is Nathalie Cely. Ecuador is
divided into 24 provinces.
The government adopted the U.S. Dollar as its national currency
in 2000. The economy is based primarily on oil and agricultural production, with
an annual Gross National Product of $127.4 billion in 2012. The economy
experienced 7.8 percent growth in 2012, with a 5-year compound annual growth of
4.2 percent, according to the 2013 Index of Economic Freedom.