While Ecuador waits for the United States Senate to give the green light for its inclusion in the proposal of the Innovation and Development Act in Ecuador (IDEA), which seeks to reduce tariffs on almost 99% of its non-export oil supply entering that market, the country received a new positive signal that would encourage entry into this initiative.

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

It was the official launch, last Wednesday, of the Friendship Group (Caucus) with Ecuador in the United States Congress, which took place in the room of the International Relations Committee of the United States House of Representatives.

Caucuses are groups that are formed in the United States Congress to promote the work of that body for various purposes. This, according to the Ministry of Production, Foreign Trade, Investments and Fisheries, will strengthen actions in favor of Ecuador in the aforementioned Congress, including the treatment of the IDEA law.

The proposal for Ecuador’s entry into the IDEA law was introduced last March by Senators Bob Menéndez and Jim Risch; and from there, the Government, together with the Ecuadorian private sector, began a campaign to gather US support to materialize Ecuador’s entry and that the country is a beneficiary of the Caribbean Basin Economic Recovery Act program, an initiative created 40 years ago that currently benefits 17 countries with unilateral tariff preferences to enter the US market.

Meanwhile, the Club’s launch event was led by representatives Terri Sewel and Carol Miller, Co-Chairs of the Club, and Ecuador’s Ambassador to the United States, Ivonne Baki.

“Ecuador is a strong ally of the United States. We share a lot in common, but most importantly, we share interests and values,” said Ambassador Baki.

The club will consist of the following representatives:

During the event, the great momentum that bilateral relations between Ecuador and the United States have taken in recent years was highlighted, which is reflected in the creation of the Friendship Group with Ecuador; the first of its kind to honor Ecuador within this important center of United States power.

The United States could cut tariffs on nearly 50% of Ecuadorian exports under legislation introduced in the Senate

It noted that as of 2021, bilateral trade has grown from USD 5.1 million to USD 7.4 million in 2022, with a 44% annual growth rate. Imports of American products to Ecuador increased by 56% annually.

In addition, it was recalled that as of December 2022, the US-Ecuador Association Act has become a law that governs economic and trade relations, promotes economic development, fights against negative foreign influence and corruption, and strengthens governance centered on democracy. This month, the United States and Ecuador agreed to establish their first bilateral defense working group to focus on bilateral defense cooperation between the countries.