Ecuadorian exportation products are basically agricultural related and banana is one of those products which has an important position as a big foreign exchange earner in the agricultural gross domestic product. Last year, Ecuador signed the European Union Agreement which determined a reduction in prices to bananas from 127€ to 97 €.
However, the doubt is why this agreement is more beneficial to bananas? The answer is extraordinary. Although, bananas pay a price and other products do not, exporters will increase the volume of exports, new contracts will be signed for long periods which will represent more sales; and Ecuador will grow in this market, not in the same proportion as its mainly competitors in early years but the banana activity will be more productive and as a result it will represent more incomes to our country.
Accordingly, 2017 is a significant year to banana exporters because of the tariff preferences that as a consequent represents market expansion and sustainable development by the increase of productivity and the implementation of new strategic alliances.
Written by: Sophie Mendoza Asanza
El Telégrafo. (2016, Diciembre 15). El Acuerdo Multipartes con la Unión Europea beneficiará a 4.789 bananeros. Diario El Telégrafo .
Enríquez, W. P. (2016, Diciembre 15). El Comercio . Retrieved from http://www.elcomercio.com/actualidad/acuerdo-comercio-unioneuropea-ecuador-economia.html