Ecuador closed the first five months of this year with nearly $8 billion in non-oil and mining exports. The 7,938 million dollars that the country managed to export from January to last May represents a growth of 3% compared to the first five months of 2022, according to the latest official data from the Ecuadorian Federation of Exporters (Fedexpor).

In addition, the exported value represented 63% of the country’s total exports. The first destination of non-mining and non-oil supply is still China with a growth of 17%, followed by the European Union with a growth of 4%, and as the third destination the United States of America, which together concentrated 67% of the exported value.

Ecuadorian pitahaya is reaching France and new customers in the United States, Canada and the Netherlands

However, the United States of America is the main destination of the product category that grew the most in the first five months of this year, namely fruit, which, with $115 million in exports, grew by 66% in foreign currency and 45% in volume. In that market alone, the fruit achieved 76 million dollars of deliveries with a growth of 62% in foreign currency and volume compared to the same period in 2022.

Pitahaya was the one that generated the most foreign exchange in this period with exports of 62 million dollars, 90% more than in 2022; and also 98% more volume. However, pineapple, despite only being exported for $5 million, was the one that grew the most with 323%, while tomato grew 57% in exports with $1 million in revenue. While other fruits had a drop of -37% with 8 million dollars of exports.

Bananas, a traditional fruit, confirm the good moment of this segment in the United States with 246 million dollars of exports, reflecting a growth of 39% in foreign currency and 30% in volume.

Richard Salazar, executive director of the Association of Traders and Exporters of Bananas of Ecuador (Acorbanec), explains that the growth shown in the United States is due to three factors. One is the reduction of shipping cargo, which was high in 2022 due to the consequences of the war between Russia and Ukraine. “Right now freight rates are normalized, they doubled and tripled in some markets last year.”

Another factor is the dynamics of production, since the main suppliers of bananas to the US: Guatemala, Costa Rica and Colombia, produce fewer bananas in winter, unlike Ecuador, which produces much more fruit.

A final factor, according to the head of Acorbanec, is that much of the organic bananas that Ecuador exports have gone to the United States. “I think there is a big difference in the amount of organic bananas exported to the United States, which is higher than the previous year, and that is one of the reasons why exports to the United States have increased.”

The Ecuadorian guinea pig is found in the United States, where it can be found on racks and farms at prices ranging from $23.99 to $60

However, not all Ecuadorian products have performed well in the US market in recent months. For example, shrimp – the country’s top export with $3,182 million and growth of 3% in foreign currency and 18% in total volume – showed red numbers in the United States. It exported $543 million there from January to last May, representing a 15 percent drop in revenue and 6 percent less exports.

Likewise, flowers, with $143 million in exports, fell 15% in foreign currency and 14% in tons exported. Although the product that fell the most in that market was fisheries and crustaceans with 39 percent less revenue that generated $77 million, the drop in volume is 30 percent.

The export sector expects the US to include Ecuador in the IDEA law

The executive president of Fedexpor, Felipe Ribadeneira, in the analysis of the latest export data, admits that in the last two months there has been a worrying stagnation as a result of the drop in the prices of the main products of the export basket, and that he warned the Guild from the end of 2022.

With this in mind, Ribadeneira calls for an improvement in competitiveness, recalling that there is currently the possibility of Ecuador’s inclusion in what is called the IDEA Law (Innovation and Development Law in Ecuador), so that it will be the beneficiary of unilateral customs privileges derived from the Caribbean Basin Economic Recovery Law (CBERA), a bill that is part of a series of bills called the Caribbean Basin Initiative.

Ecuador is rallying support in the United States to approve legislation that would drop tariffs on 99% of its exports to zero

According to the head of Fedexpor, the approval of the IDEA law would mean that the United States would grant tariff preferences for more than 5,961 subheadings of the US tariff, which would bring a reduction and tariff relief for 56% of products exported from Ecuador to the United States. , not counting the potential for new product exports, since tariffs would be eliminated on almost the entire global export basket.

“Although this is a unilateral privilege, which must be approved through the passage of the IDEA Act by the US Congress, it will provide the country with a bridge mechanism of preferential access, while we continue to insist on signing a long-term trade agreement. with our main business partner,” said Ribadeneira. The union has developed a strategy for relations with the US Congress and authorities, along with other manufacturing unions, to promote Ecuador’s entry into the IDEA Act.