Identifier
Created
Classification
Origin
09QUITO37
2009-01-21 21:18:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Quito
Cable title:
ECUADOR DEMARCHE RESPONSE - IMPORT RESTRICTIONS
how-toVZCZCXYZ0008 RR RUEHWEB DE RUEHQT #0037 0212118 ZNR UUUUU ZZH R 212118Z JAN 09 FM AMEMBASSY QUITO TO RUEHC/SECSTATE WASHDC 9889 INFO RUEHBO/AMEMBASSY BOGOTA 7934 RUEHCV/AMEMBASSY CARACAS 3357 RUEHLP/AMEMBASSY LA PAZ JAN LIMA 2999 RUEHGL/AMCONSUL GUAYAQUIL 4044 RUCPDOC/DEPT OF COMMERCE WASHDC RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS QUITO 000037
SENSITIVE
SIPDIS
USTR FOR BENNETT HARMAN
E.O. 12958: N/A
TAGS: ETRD ECON EC
SUBJECT: ECUADOR DEMARCHE RESPONSE - IMPORT RESTRICTIONS
REFTEL: STATE 4902
UNCLAS QUITO 000037
SENSITIVE
SIPDIS
USTR FOR BENNETT HARMAN
E.O. 12958: N/A
TAGS: ETRD ECON EC
SUBJECT: ECUADOR DEMARCHE RESPONSE - IMPORT RESTRICTIONS
REFTEL: STATE 4902
1. (SBU) On January 16, the DCM delivered reftel demarche to Susana
Cabeza de Vaca, Coordinating Minister for Production and head of
COMEXI, Ecuador's trade policy council, and to Ministry of Foreign
Affairs Under Secretary for Bilateral Relations Carlos Jativa.
Cabeza de Vaca said that she had been working on the balance of
payments safeguard measure all day, as well as meeting with importers
regarding their concerns. She asserted that Ecuador would abide by
WTO rules and that the measure would be WTO consistent. She noted
that COMEXI would still be making adjustments to the measure for
several more days.
2. (SBU) While details of the measure are not yet available, we
understand from the press and from talking with COMEXI that it will
affect consumer goods in 627 tariff lines, and will be applied to all
countries for one year. Importers will restrict imports to a reduced
percentage (likely 70%) of the 2008 import levels for certain goods,
and tariffs will be increased on other products. In contrast to
initial GOE plans, there will be no import prohibitions and tariffs
will not be increased to 500%. A COMEXI representative explained
that the measure was expected to cut imports by $1.5 billion
(President Correa had sought a $2.2 billion cut, but the
representative explained that the GOE would seek a loan for the
balance).
3. (U) Vice Minister for Trade Miguel Egas has requested a meeting
with the Ambassador on January 22 to explain the measure. We will
report additional details when available.
HODGES
SENSITIVE
SIPDIS
USTR FOR BENNETT HARMAN
E.O. 12958: N/A
TAGS: ETRD ECON EC
SUBJECT: ECUADOR DEMARCHE RESPONSE - IMPORT RESTRICTIONS
REFTEL: STATE 4902
1. (SBU) On January 16, the DCM delivered reftel demarche to Susana
Cabeza de Vaca, Coordinating Minister for Production and head of
COMEXI, Ecuador's trade policy council, and to Ministry of Foreign
Affairs Under Secretary for Bilateral Relations Carlos Jativa.
Cabeza de Vaca said that she had been working on the balance of
payments safeguard measure all day, as well as meeting with importers
regarding their concerns. She asserted that Ecuador would abide by
WTO rules and that the measure would be WTO consistent. She noted
that COMEXI would still be making adjustments to the measure for
several more days.
2. (SBU) While details of the measure are not yet available, we
understand from the press and from talking with COMEXI that it will
affect consumer goods in 627 tariff lines, and will be applied to all
countries for one year. Importers will restrict imports to a reduced
percentage (likely 70%) of the 2008 import levels for certain goods,
and tariffs will be increased on other products. In contrast to
initial GOE plans, there will be no import prohibitions and tariffs
will not be increased to 500%. A COMEXI representative explained
that the measure was expected to cut imports by $1.5 billion
(President Correa had sought a $2.2 billion cut, but the
representative explained that the GOE would seek a loan for the
balance).
3. (U) Vice Minister for Trade Miguel Egas has requested a meeting
with the Ambassador on January 22 to explain the measure. We will
report additional details when available.
HODGES