Project presented by two senators seeks to make Ecuador eligible as a beneficiary of the Caribbean Basin Economic Recovery Law.
The United States and Ecuador have been strengthening their diplomatic and economic ties over the past few months. Recently, two US Senators introduced a new bill in the Senate called the ‘Innovation and Development Act in Ecuador,’ which aims to make Ecuador eligible for the Caribbean Basin Economic Recovery Act.
If passed, this bill could have a significant impact on the Ecuadorian economy. It would reduce US tariffs on almost 50% of Ecuadorian exports entering the United States, which would promote economic growth in the country. Additionally, the bill seeks to promote market-based economic policies to reduce illegal immigration from Ecuador, which has been a growing issue in recent years.
The bill was introduced by US Senators Bob Menendez (D) and Jim Risch (R). Menendez, who is the Chairman of the Senate Foreign Relations Committee, said that this new legislation would deepen the partnership between the United States and Ecuador established by the Bipartisan Association Act between the United States and Ecuador which became law in December. Both senators say that the new bill would further expand economic and commercial ties between the two countries.
Risch, a Senior Member of the Committee, argued that Ecuador is facing a series of crises, including illegal immigration, pressure from China, and violence from Mexican drug cartels. He believes that the new legislation would help Ecuador address these threats by promoting the creation of jobs in the private sector, which would lead to greater economic mobility for Ecuadorians at home.
The Senate Foreign Relations Committee detailed the benefits of the bill in a statement. In addition to reducing tariffs and promoting market-based economic policies, the bill would provide support to a democratic partner that is under extreme pressure from China and other malign influences.
The proposal has been met with enthusiasm from the official CREO movement, which sees it as a sign of confidence in the Government of Ecuador and in President Guillermo Lasso. Guido Chiriboga, the assemblyman and director of this political group, stressed that the inclusion of Ecuador in the Economic Recovery Law would reduce export tariffs, support development projects, and promote entrepreneurship.
The bill proposes modifying article 212 (b) of the Caribbean Basin Economic Recovery Law, inserting Ecuador after Dominica. To become law, it must be enacted by the Senate and the House of Representatives of the United States of America in Congress. If the bill is passed, it could have a significant impact on the Ecuadorian economy and strengthen the partnership between the United States and Ecuador.