By Timothy Edward Josling
Bankruptcy on Ecuador deals a comparability with different Andean Pact nations. It argues that Ecuador is such a lot short of balance and safety provided through neighborhood marketplace entry.
Read or Download Agricultural Trade Policies in the Andean Group: Issues and Options (World Bank Technical Paper) PDF
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Extra resources for Agricultural Trade Policies in the Andean Group: Issues and Options (World Bank Technical Paper)
For agriculture, each of these options would have major implications. Full membership in MERCOSUR with the adoption of the CET against third-country supplies and free access for partner supplies, would place Bolivian agriculture in direct competition with production from Argentina and Brazil. Soybean farmers have already voiced their opposition to such an option, fearing that they would not be able to compete with Brazil. Cattle farmers would presumably also be adversely affected, as the degree of natural protection afforded by Bolivia's landlocked and mountainous position would not help in competition with Brazil.
Ecuador signed a more limited bilateral free-trade agreement with Peru in 1993, covering about 400 items. Peru has for the past few years been the major trading partner for Ecuador, in particular as a purchaser of Ecuadorian petroleum products. , September 1994, as well as from various FAO and World Bank sources. 21 Some of the 964 "permanent" exemptions are for items for which the Ecuador tariff is below the AEC, notably input items into the petrochemical industry and steel. For these products Ecuador can maintain a tariff 5 percentage points below the AEC.
Peru has a key location in the region. Bordering on Colombia, Ecuador, and Bolivia, as well as on Brazil and Chile, Peru could in the future play a central role in market integration in the region. 25 The Andean highlands (altiplano) produce the bulk of the traditional crops of corn, wheat, barley, potatoes, legumes and coca, and graze sheep and llamas. The dry coastal desert lowlands produce most of the export crops, particularly sugar, coffee and cotton, in oases irrigated by streams from the Andes.