Cordex, a new union of exporters, will focus on promoting the signing of trade agreements and improving competitiveness

With three clearly defined lines of action: trade agenda, promotion and competitiveness of exports, this Wednesday the Ecuador Export Guilds Corporation (Cordex), a new grouping made up of six exporting unions in the country that represent 70% of the non-oil sales of Ecuador.

The guilds that make up the new Corporation are the Association of Banana Exporters of Ecuador (AEBE), the Banana Marketing and Export Association (Acorbanec), the National Association of Cocoa Exporters of Ecuador (Anecacao), the Association of Banana Exporters (Asoexpla), the National Chamber of Pesquería (CNP) and the National Chamber of Aquaculture (CNA), whose principal, Jose Antonio Camposano, opened the formal presentation as chairman of the Cordex Board of Directors.

Accompanied by the representatives of the five remaining unions that comprise it, Camposano highlighted that together they generated more than $ 10.2 billion in foreign currency for the country in 2020 and also currently produce more than 650,000 jobs direct at the national level.

Exporters ask the Government to eliminate the ISD of logistics costs and to comply with the ‘drawback’

Camposano ruled out that the creation of Cordex is due to some kind of division, noting that the agenda of the Ecuadorian export sector is only one and the new union manages to strengthen it.

“What we want to do with Cordex is to strengthen the export agenda, surely we will coincide with other organizations that represent the country’s export activity, such as Fedexpor (Ecuadorian Federation of Exporters) or other unions that have the responsibility of representing to the productive and export activity ”, explained Camposano, who clarified that they are still part of Fedexpor and part of the Board of Directors. “What we have done here is to articulate ourselves better,” he added.

Regarding the axes of action of Cordex, such as the commercial agenda, he said that they will promote intelligent negotiations of trade agreements that allow Ecuador’s exportable offer to enter international markets.

In this sense, José Antonio Hidalgo, Executive Director of AEBE, assured that Cordex is aligned with the Government’s objectives, such as signing agreements with the ten largest economies.

“For us, those who have united us transversely is the agenda with Eurasia, because it is where we have the greatest growth potential, where we see how the middle classes of economies such as China are increasing, where food consumption is increasing in different Asian countries. “Said the leader, who assured that the promotion of the trade agreement with China is a priority.

The signing of a trade agreement with the United States, the second destination for Ecuadorian exports, is also on Cordex’s agenda, however, Camposano indicated that it is known that the current United States administration is not focused on negotiating trade agreements. with any country, although he assured that it is not necessary to rule out continuing to strengthen the relationship with that country.

“This is not an issue for Ecuador, but the current administration has said so, it is not its priority, and it must be understood that negotiating requires two parties, if it is not a priority for the United States, most likely within this administration has not been able to close an agreement ”, expressed the president of the Cordex Board of Directors.

Regarding the promotion of exports, he indicated that Cordex will present proposals to public policies to promote the growth of export activity.

Regarding competitiveness, Camposano highlighted as a priority for Cordex the global logistics crisis that directly affects the export sector.

In the case of shrimp, he pointed out that between 30% and 50% of the country’s supply has problems to go out to international markets due to lack of quotas to be able to reach their destinations through the different routes.

The creation of an emergency front seeks to offset the impact of the global logistics crisis

He added that the logistics problem also affects raw material imports and that they have already sent a request for a meeting to the Minister of Production, Foreign Trade, Investment and Fisheries, Julio José Prado, to find mechanisms.

“Colombia recently announced tax relief, that is, to reduce tariffs on imported products to try to offset the cost overruns that this logistical problem will generate,” Camposano quoted, adding that Cordex also requested meetings with the National Customs Service ( Senae).

In this regard, Hidalgo revealed that the banana sector has a tax burden of $ 470 million.

“We have to see a way to reduce this in order to continue to gain market and not lose international markets,” said the leader.

Richard Salazar, Executive Director of Acorbanec, described as “very serious” the logistics problem for the banana sector, ensuring that the reduction of around 4% in exports this year is largely due to the lack of shipping spaces.

“We must seek internal complementary measures that in one way or another help to counteract this situation, that is what Cordex is going to do,” he said.

For his part, Eduardo Manrique, executive director of Asoexpla, regretted that in the case of bananas, tariff barriers do not allow them to expand their destination markets.

Exports balance of 2021

The spokespersons of the different unions that represent bananas, shrimp, cocoa, plantain and fishing presented a balance of exports so far in 2021 and their expectations for the end of the year.

In shrimp, Camposano said that the sector presents an export growth of the 19 %. “We will have to wait for the impact of November and December of the logistics problem we are having,” he said.

With $ 2,222 million and 13% growth, shrimp leads non-oil exports in the first half of the year

Regarding bananas, Hidalgo said that until September they exported 282 million boxes, that is, 13 million boxes less than in 2020 with a reduction of 4.5%. “It is estimated that we will close (2021) with around 376 million boxes, 3.19% less,” he revealed.

For its part, Rafael Trujillo, executive director of the CNP, indicated that until September, fishery exports were $ 1,359 million, which represents 18% more in volume and 13% more in prices compared to the same period of 2020 when $ 1,204 million were exported.

“The year is going to end at approximately $ 1.8 billion, compared to $ 1.600 the previous year,” Trujillo said.

Meanwhile, the cocoa sector was preparing to break export records, according to Francisco Miranda, president of Anecacao, who expressed that with the logistical problems the projections they had at the beginning of the year, of approaching 380,000 tons, are further from being fulfilled.

He noted that until October they have exported 285,710 tons, 4% more than the same period in 2020, in addition to an 11% increase in turnover that exceeds $ 750 million.

Meanwhile, Manrique regretted that 30% less banana has been exported until September. In the case of fresh banana, they have been exported $ 118 million and in processed banana, $ 78 million. (I)