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Ecuador: Objections to the Banana Law Project

18.4.2019

The Association of Marketing and Export of Bananas (Acorbanec) participated a meeting of the Food Sovereignty Commission of the National Assembly. The director of the association, Richard Salazar, was received on Wednesday, April 10th in the legislature. Other representatives of the sector were also there, among them, Eduardo Ledesma, executive director of the Association of Exporters (AEBE). The idea was to present the arguments of the representatives of the agricultural sector regarding the Bill that regulates the production of bananas, plantains, orito and other musaceas. There were four observations.

First: The project does not include the reality of the market for setting the mínimum oficial price for the fruit. Acorbanec wants two prices, one to apply under contracts and the other on the spot market (free), now that Ecuador exports much of the fruit to markets such as Russia, Asia, North Africa, and some countries in South America. Almost two decades ago, when the current law was enacted, the relevant markets were only the United States and the European Union.

Second: The representatives of the banana exporters' association said there are some 40,000 hectares of unregistered or irregular banana plantations that must be legalized, since their owners are subject to the low prices paid by intermediaries who, subsequently sell the fruit without problems to the exporters at higher prices.

Third: Acorbanec rejects the current Law and the first report of the bill, because "there should not be a regulation for this product, as it does not exist for other export products, because this regulation makes the country less competitive".

Fourth: Ecuador should allow the "controlled" planting of new hectares, since Guatemala has won a very important part of the market in the United States.

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