How Will Changes in Ecuador Affect You?

How Will Changes in Ecuador Affect You?

At Flowerlink, our roots go all the way back to the early 90s when our first farms were established in the beautiful country of Ecuador.  Since then, we’ve been providing the world’s freshest roses directly to florists and high-end buyers across the globe.  This is all possible because the rich natural environment of our Ecuadorian farms continue to produce gorgeous, healthy flowers year after year.

Recent changes in trade benefits between the US and Ecuador, however, will have quite an impact on not only the export of Flowerlink’s roses, but every product shipped from Ecuador.  Committees in both the House of Representatives and the Senate decided to allow the Andean Trade Preference Act (ATPA) to expire after twenty-two years.   According to a trade policy specialist at the GlobalWorks Foundation, “I don’t see ATPA being renewed.  This would be the first U.S. trade preference program to fade out.”

Enacted in December of 1991, the ATPA granted duty-free access to a variety of Ecuadorian exports in hopes of fostering economic development as an alternative to the production of drugs.  The duty-free status meant that the goods were free of many of the usual government taxes and customs duties, and it’s believed the loss of the program will see weaker investments in Ecuador exports, lower US sales, and a loss of many jobs.

The cut flower industry was one of Ecuador’s industries that flourished the most under the ATPA, employing over 100,000 men and women across the country, and it will certainly be one hit the hardest by the changes.  A separate program known as the Generalized System of Preference (GSP) still keeps some Ecuadorian exports duty-free.  So, officials within Ecuador have made a request to add cut roses along with certain produce to the GSP program.  The requests have since been deferred.

Ecuador’s National Assembly did approve a law, however, that will attempt to compensate those exporters that are affected by the expiration of the ATPA.  This new law with compensate affected exporters with nearly $23 million a year in tax-credits.

What Does The Change in US/ Ecuador Trade Relations Mean For Flowerlink?

Our devotion to growing flowers with both a social and environmental conscious isn’t going to change and neither will the incredible quality of our roses.   The increased price of exports from Ecuador means that our products will see an increase as well, but we promise that Flowerlink is not only dedicated to providing roses that are of the highest quality but roses that are also competitively priced.

To learn more about ordering flowers with Flowerlink, our process, or the effects of the recent policy changes, please contact us by phone at 310.848.1843, by email at [email protected], or come in and visit our store in Hawthorne.

Source. The Wall Street Journal, ‘http://www.reuters.com/article/2013/07/25/us-usa-ecuador-trade-idUSBRE96O1BL20130725,’ Mercedes Alvaro, July 31, 2013.
Source. Reuters, ‘http://www.reuters.com/article/2013/07/25/us-usa-ecuador-trade-idUSBRE96O1BL20130725,’ Doug Palmer, Mohammad Zargham, July 25, 2013.

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