Ecuador

NPPC’s Position

NPPC wants Ecuador to remove its protectionist barriers on the importation of U.S. pork.

NPPC supports the United States in negotiating a free trade agreement with Ecuador that would allow greater market access to the South American country.

Background

Ecuador, a country with a significant protein preference for pork, is struggling with numerous swine diseases in its domestic herd. But because of tariff and non-tariff barriers, Ecuador significantly limits U.S. pork exports to the South American country. The barriers include high tariffs and needlessly complex and difficult import-licensing requirements. The restrictions impede U.S. pork producers from capitalizing on a considerable growth opportunity in the country.

The country applies the Andean Price Band System to imports of pork and other agricultural products, which means import duties can be as high as 45 percent. The World Trade Organization’s Agreement on Agriculture prohibits such variable levy systems. Additionally, annual import quotas determined through consultation with the domestic pork industry aim to limit pork imports. In early 2021, Ecuador implemented new meatpacking and product registration requirements as part of its Annex 2 registration process that is proving to be ambiguous and hampering the ability of U.S. facilities to export successfully.

A mini trade deal between the United States and Ecuador was agreed to in August 2021 to maintain a consistent dialogue to strengthen trade flows and agricultural policy. During the negotiations, Ecuador’s import licensing system was streamlined. Because of its Annex 2, the U.S. pork industry has not been able to test the system to ascertain if the highly bureaucratized and politicized gauntlet of permit approvals has been addressed.

Fast Facts

45%

is the top tariff rate Ecuador can place on U.S. pork under its Andean Price Band System.

Only $2.1 million

of U.S. pork – 499 metric tons – was sent to Ecuador in 2021.

Ecuador’s import licensing system, import permits and plant facilities and product registration requirements are non-tariff barriers to U.S. pork.

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