Embajada Del Ecuador

EMBAJADA DEL ECUADOR

ATPDEA, A PROGRAM THAT BENEFITS BOTH USA AND ECUADOR

Presentation

1. Ending ATPDEA Would Devastate Ecuador’s Economy, Cripple the Private Sector and Wipe Out More Than 350,000 Jobs

·  Annual exports to US under ATPDEA exceed $4 billion.

·  Crude oil accounts for the largest share.

·  But more than 350,000 people are employed in producing non-oil exports.

·  Mainly agricultural products, for export to US under ATPDEA.

·  They would have few prospects for alternative employment in the foreseeable.

·  Future – and most would turn to subsistence farming or cultivation of drugs.

·  Main industries affected would be fresh flowers, vegetables, tuna – all controlled by private sector, which would be wiped out.

·  Effects on GDP would be catastrophic – a decline of at least 2%.

2.  Extending ATPDEA Serves the Interests of the US as well as Ecuador

·  Extremely effective weapon in war on drugs: There is no coca cultivation in Ecuador -- ATPDEA promotes alternative cultivation of legitimate crops.

·  Reduces immigration to US by creating well-paying opportunities in Ecuador.

·  By generating employment and economic growth, it contributes to political and social stability, and reduces extremism, violence and crime.

·  Facilitates supply of crude oil to the US – Ecuador is the second-most important supplier of oil to the US in South America.

·  Fosters more favorable attitudes toward US and greater cooperation with US on a wide range of bilateral and regional issues, including promotion of democracy, transparency and human rights.

·  No US industries or economic interests are adversely affected by Ecuador’s exports to the US under ATPDEA.

·  More than 100 US companies with operations in Ecuador benefit from duty free access to US market under ATPDEA – US investment in Ecuador has grown by 30%, to $760 million, since ATPDEA was established.

3.  Ending ATPDEA Would Be Harmful to the US

·  It would eliminate the most effective weapon in war on drugs, and stimulate coca cultivation by many of the 350,000 displaced agricultural workers.

·  It would substantially increase illegal immigration to the US by jobless Ecuadorians.

·  By devastating the Ecuadorian economy, it would dramatically increase poverty, and economic, social and political instability.

·  It would undermine democracy and encourage extremist and populist movements.

·  It would wipe out much of the private business sector – which traditionally has been the most sympathetic to the US – and encourage anti-US sentiments among the population.

·  It would harm the many US companies and investors with operations in Ecuador that currently export duty-free to the US.

·  It would inevitably be interpreted as a sign of hostility from the US, and encourage Ecuador to look elsewhere for support and friendship -- at a time when the US is competing with other powers for the hearts and minds of the Latin American people and their governments.