Scott Higgins: We want to work with our partners and focus on the agreements and protocols that already exist

Next week a new TIC (Trade and Investment Council) meeting between the United States and Ecuador will be held in Guayaquil, aimed at addressing issues of agriculture, labor, the environment and MSMEs. All this, within the framework of the Protocol of commercial norms and transparency that entered into force in December 2021, after the approval of the document by the National Assembly. The Protocol and the TIC form the framework in which relations between the two countries unfold.

US Embassy Economic and Trade Counselor Scott Higgins explains achievements under the Protocol. However, he takes the opportunity to clarify that the US and Ecuador do not have a bilateral free trade agreement and are not currently negotiating one.

What is the evaluation or the results regarding the Protocol on Trade and Transparency Rules that came into force last August?

The Protocol is very important to us because it is a framework to discuss various issues such as strengthening customs, transparency, anti-corruption policies and, of course, SMEs and MSMEs. We have had some activities on cooperation and financial development. For example, the US DFC (Financial Corporation) has given Produbanco a credit line of $150 million for MSMEs and women entrepreneurs. We have seen some progress in the reforms of the Lasso Government: of course the tax reform, there is more transparency and consolidation in the economy and a focus on the sustainable economy and the environment. There are impressive projects like the expansion of the Galapagos reserve, which is incredible.

Are all these issues included in the umbrella of the Protocol?

Yes, because we are talking about better standards at all levels, to combat corruption and everyone is part of the ICT conversations in which we have had meetings in 2020 and 2021 and the administrations of Lasso and, before Moreno, have carried out some activities and projects to improve these issues, in terms of the Protocol and the Agreement.

Next week there is going to be a meeting of the Trade and Investment Council. What are they going to focus on?

We’re going to have a high-level delegation from Washington, including Deputy US Trade Representative Jayme White, number 2 of the Unites States Trade Representative (USTR). We are going to have four work tables, specifically on the environment, MSMEs, agriculture and the labor issue. The idea is to discuss how to expand investment and trade and we are going to talk about barriers to trade. In this last topic are, for example, import licenses for agriculture. It will seek to determine if we can do anything to improve the flow of trade.

Will this TIC also focus on advances to reach an Agreement with the US? We are currently in the second phase, what is needed for Ecuador to say that we have an Agreement with the US?

We’ve heard a lot about those phases. But we are not talking about phases, we have ICTs and protocols and we are focused on these. The process of a Trade Agreement or FTA takes a long time, in which Congress and the White House in Washington have a very important role. Within the Biden-Harris administration, we are looking at how to work with our bilateral partners to focus on the agreements and protocols that already exist to strengthen trade processes, improve the situation of the middle class, workers, environmental issues, among others. The White House and Congress are what should determine the future for other agreements.

So ICT is the framework in which we talk about how to advance or improve our relationships. Is ICT like an Agreement?

The TIC is an update of the 1990 agreement and it is the base, the mechanism to talk. In Washington it will be determined what we can do about other agreements, not exactly FTA. Ambassador Jayme White, representative of the US Trade agency, is key to this.

Isn’t an FTA like the one signed by Peru and Colombia, our neighbors several years ago, currently under negotiation?

It is that there are no negotiations or processes of this type with the US for other countries at this time. The administrations in the US change like here and the priorities and approaches of the administrations change as well.

In terms of trade, how has the exchange of the countries been?

Bilateral trade in goods exceeded $13 billion in 2021, an increase of nearly 32% from 2020 when it was $10 billion.

The US senators have just presented a bill that addresses several issues, including joining economic ties with Ecuador and also an inclusive economy, what is your perspective on this initiative?

It is a positive thing for us. Congress has a lot of interest in Ecuador. We have had visits from high-level delegations from Congress and the result is this bill. We would like to work together with Congress, with the White House, with the Lasso government, with the people of Ecuador to expand this relationship. The support of the US Congress is important, since they have an important role in terms of the budget and foreign assistance. There is an exchange between the State Department and Congress about our policy. For us an opportunity to assess the priorities of President Lasso and the Biden-Harris administration. The visits, the resolutions, the bills, are fantastic for the relationship.