Ecuadorian banana exporters seek to reach trade agreements with the Eurasian zone

Between January and October 2021, Ecuador's banana exports fell 1.74%, compared to the same period in 2020, according to the Banana Marketing and Export Association (Acorbanec).

The drop is explained by the decrease in exports to 8 markets: the European Union (-1.49%), Russia (-1.73%), the Middle East (-13.29%), East Asia (-25.74%), United Kingdom (-28.56%), Oceania (-1.44%); Liechtenstein, Norway, Iceland and Switzerland or EFTA (-8.797%), and Canada (-52.94%).

According to Acorbanec, the fall in exports is due to the reduction in exportable production, the increase in the price of fertilizers (due to the rise in the price of oil), the rise in maritime freight, and the deficit of shipping spaces and containers.

Regarding the reduction of market demand, the union explained that Ecuador's limitation is the payment of tariffs on Ecuadorian bananas that enter certain countries. For example, China charges a tariff of 10%, South Korea and Japan between 20-30%. Today, China buys more bananas from its neighbors Cambodia, Vietnam and Myanmar. In turn, South Korea increasingly buys bananas from Colombia.

Given this, exporters underline the need to reach trade agreements with the Eurasian zone, led by Russia.

Despite this decline, until October other markets were activated such as Africa (+ 33.61%); United States (+ 32.93%); Eastern Europe (+ 27.94%), and the Southern Cone (+ 1.47%).

This October, the banana associations of Ecuador, Guatemala, Colombia and other Central American countries signed the Great Regional Agreement for Shared Responsibility. With this they urge American, British and European supermarkets to pay the fair price for bananas, considering all the costs and expenses that have grown.

source: elcomercio.com

photo: larepublica.ec