Ecuador to Eliminate Surcharge on Imports in June

Ecuador's new government on Wednesday said it would keep a promise to eliminate surcharges in June that had been applied to a third of all imports, a move likely to increase imports and consumption but hurt the balance sheet.

 

Former president Rafael Correa imposed the surcharges, which come on top of tariffs, in 2015 in an attempt to protect Ecuador's oil-reliant economy, but his government last year established a schedule to unwind them by mid-2017.

 

His successor and fellow leftist Lenin Moreno confirmed the surcharges would be eliminated on June 1, the International Commerce Ministry said in a statement.

 

Moreno, sworn in earlier this month, has promised a more conciliatory style and open dialogue with adversaries and foreign companies, in contrast to Correa's often combative manner.

 

He also reached out to the World Bank for a possible loan and said he wants to renegotiate Ecuador's onerous foreign debt.

 

President Lenin Moreno and Finance Minister Carlos de la Torre have made a number of announcements about their economic plans which "even if vague, are intended to assure investors as they look to shore up financing via markets ... and attract foreign investment," the Eurasia consultancy group said in a note to clients.


(Reporting by Alexandra Valencia and Alexandra Ulmer; editing by Grant McCool)