Ecuador's Foreign Minister Seeks Extension of ATPDEA

By Sara Enright
March 23, 2007

Event: A Conversation with María Fernanda Espinosa
Featuring: María Fernanda Espinosa, Minister of Foreign Relations, Ecuador

"It is estimated that without the ATPDEA, Ecuador's GDP would decrease 2 percent, which could have a devastating effect on our country's economy," said María Fernanda Espinosa, minister of foreign relations of Ecuador, at a March 23 Inter-American Dialogue session. On December 31, 2006, the US Congress renewed the Andean Trade Promotion and Drug Eradication Act (ATPDEA) for six months, which, Espinosa argues, is not long enough to establish long-term, predictable commercial relationships. Instead, she proposes an extension of the ATPDEA for at least another five years, which would demonstrate "the commitment of the United States in the regional fight against illicit drug trafficking and its support for pre-emptive actions to foster sustainable human development of the countries in the region."

The United States first extended trade relations to Ecuador in 1991 through the Andean Trade Preferences Act, which was expanded into the ATPDEA in 2002. In exchange for anti-drug cooperation, the Act allows the United States access to over 6,000 tariff-free products from Bolivia, Colombia, Ecuador, and Peru, such as flowers, textiles, and tuna. Espinosa pointed out that these industries employ 350,000 Ecuadorians and brought Ecuador over $5.7 billion last year from trade with the United States. Espinosa argued that a multi-year extension would encourage investment by making tariff levels and commercial relationships more predictable.

In addition, the Act has provided important support for Ecuador's anti-drug policy. According to Espinosa, "The ATPDEA has been critical in the fight against the growth of the illegal narcotics industry in the Andean region [by providing] economic alternatives to the production, processing, and shipment of illegal drugs." Ecuador spends millions of dollars a year to fight against illegal drug trafficking, which comes in from its coca producing neighbors, Colombia and Peru. Due to its diligence and commitment, Espinosa declared that Ecuador is the only country in the Andean region that does not produce illegal drugs. However, she said, the United States shares responsibility in the fight against illicit drugs and warned that without the continued revenue and jobs generated from the ATPDEA, "unemployed farmers may be forced to grow illegal crops as a way of subsistence or to migrate to other countries."

Ecuador prefers an extension of the ATPDEA to a Free Trade Agreement (FTA) with the United States, because current proposals for an FTA have no provisions to protect Ecuador's soy, corn, or wheat industries. Espinosa pointed out that the ATPDEA is mutually beneficial to both countries, as lucrative new industries have benefited U.S. investors and the creation of new jobs has prevented migration.

Espinosa addressed participants' concerns about civil and political unrest over the creation of a Constituent Assembly by arguing that Ecuador is going through a transformation process towards "strengthening the transparency and accountability of its democratic institutions, fostering greater equity and opportunities for the historically disadvantaged groups in key democratic processes, and increasing consensus on policies that are critical to democratic consolidation."

Ecuador is also moving to conform to international labor standards by adopting laws against child labor and improving labor conditions and to improve public health through nationalizing the public health system and increasing access to free drugs.