Salazar, Espaillat Fight for Free Trade with Ecuador

WASHINGTON, D.C. – Today, Western Hemisphere Subcommittee Chairwoman María Elvira Salazar (R-FL) and Rep. Adriano Espaillat (D-NY) introduced the Innovation and Development in Ecuador (IDEA) Act. The bill establishes a trade preference program with Ecuador, a critical partner and ally in the region. This will benefit the U.S. economy and promote development in Ecuador. Salazar and Espaillat are also joined on this legislation by Reps. Warren Davidson (R-OH), Vern Buchanan (R-FL), and Ruben Gallego (D-AZ).

Despite being one of America’s primary allies in South America, Ecuador does not have a free trade agreement with the United States. Imports from Ecuador to the United States totaled $11.04 billion in 2022 alone, making the health of the Ecuadorian economy important to U.S. interests. We must do more to strengthen this trading partnership.

“Ecuador is suffering from an unprecedented economic and security crisis,” said Chairwoman Salazar. “Ecuador needs a jumpstart to its economy to get back on track. My bill will give much needed stability to one of the United States’ most critical allies in the region.”

The Innovation and Development in Ecuador (IDEA) Act provides Caribbean Basin Economic Recovery Act (CBERA) benefits (duty-free entry to the United States for certain products) to Ecuador. It also confers other benefits provided under the Caribbean Basin Trade and Partnership Act (CBTPA).

The United States imports more than $6.17 billion in oil from Ecuador, on top of $1.68 billion in seafood, $637 million in plants, and $585 million in fruits. The extension of CBTPA benefits will bolster Ecuadorian production, reducing overall prices for certain Ecuadorian imports like tuna and roses. American consumers will benefit exponentially from increased access to Ecuadorian imports.

“I am proud to co-lead the bipartisan IDEA Act, which aims to strengthen trade ties between Ecuador and the United States,” said Rep. Espaillat. “This innovative bill will help support a critical ally nation whose population is currently suffering from increased violence, poverty, and instability, which has led to mass migration of Ecuadorians to the U.S. in recent years. Our bill will help lower prices on goods from Ecuador, while also helping stem the root causes of mass migration from Ecuador by creating jobs, bolstering stability, and promoting economic growth and development in the region.”

The IDEA Act is also supported by the Ecuadorian government.

The Cámara de Comercio Ecuatoriano Americana (AmCham Ecuador) issued the following statement in support of the IDEA Act: “AmCham Ecuador applauds Representatives Salazar and Espaillat for introducing this important legislation which will provide trade preferences to Ecuadorian exports entering the U.S. market. Ecuador is currently the only Western Pacific country that does not have a trade agreement with the United States. Equally important, the legislation will provide a pathway to a comprehensive, bi-lateral trade agreement between the United States and Ecuador. AmCham looks forward to working with the Noboa Administration and the United States government and private sector to build strong and lasting ties between Ecuador and the U.S.”

To read the full text of the bill, click HERE.

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