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ECUADORIAN ARTICHOKE IMPORTS UNDER GSP American Consumers Benefit from Ecuadorian Artichoke Imports  Demand for artichokes in the U.S. has doubled in the last three years. The American consumer benefits from the quality, price, and constant availability of the Ecuadorian product, a result of Ecuador’s geographic location.  Ecuadorian artichokes are high quality for the entire year, without decreasing in production during any particular season.1  The U.S. imported $4.9 million in Ecuadorian artichokes in 2011 (3.8% of the U.S. total artichoke imports).  U.S. imports $130.7 million in artichokes from Peru (52.9%), Spain (19.5%), Egypt (8.7%), Chile (7.3%), Italy (4.3%), and Ecuador (3.8%), amongst others. No LDBC supplies this product to the U.S.  The industry benefits Americans who have invested in establishing artichoke production. Ecuadorian Artichoke Production Depends and Thrives on American Markets  79% of Ecuadorian exports go to the United States.2 Losing preferential status would result in the withdrawal of Ecuadorian artichoke products from the American market and would bankrupt Ecuadorian artichoke producers.3  The Ecuadorian industry has grown at an annual rate of 19.6% in the last 5 years due to duty free access to American markets,4 and is expected to grow by 20% in 2012 if preferences continue.  The development of this industry is possible because of its tariff-free status under the Andean Trade Preferences Act, set to expire in July 2013.  If the tariff-free status remains, the expected investments will result in an even greater growth. Ecuador has the potential to increase production in the U.S. market because it offers an affordable and high quality product throughout the entire year.  Tariff benefits have resulted in a 25% increase in prepared artichoke exports from Ecuador to the U.S. since 2009. The Ecuadorian Artichoke Industry Supports National Development  Approximately 839 direct jobs and 2,500 indirect jobs are produced by the Ecuadorian artichoke industry in Ecuador.5 It is estimated that some 9,500 people are benefitted by the Ecuadorian artichoke industry, considering indirect employment.6  Artichoke products are produced by 140 agricultural units. 92% of these are owned by smallscale agricultural producers (units of less than 14 hectares) and 8% belong to producers who work in units of more than 14 hectares.7

Andean Trade Preference Act: Impact on U.S. Industries and Consumer and on Drug Crop Eradication and Crop Substitution, 2011, U.S. International Trade Commission, Investigation No. 332-352, Publication 4352 (Sept. 2012). 2 Data provided by the Central Bank of Ecuador. 3 Andean Trade Preference Act: Impact on U.S. Industries and Consumer and on Drug Crop Eradication and Crop Substitution, 2011, U.S. International Trade Commission, Investigation No. 332-352, Publication 4352 (Sept. 2012). 4 Request by the Embassy of Ecuador for Addition of Ecuadorian Artichoke Products to GSP (Oct. 5, 2012). 5 Id. at p. 7. 6 Data provided by INEC, http://www.inec.gob.ec/inec/index.php?option=com_content&view=article&id=422%3Ase-reduce-el-tamano-de-loshogares-ecuatorianos&catid=68%3Aboletines&Itemid=51&lang=es. 1


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The industry links traditional small-scale agricultural workers with the international market through the processing of the vegetable. Small-scale agricultural producers with few resources have assistance from credit programs provided by the artichoke processors, which allow them to finance the purchase of seeds, machinery, and other tools needed to enter the market.8 Eliminating the tariff benefits would have a devastating effect on this social group by heightening their vulnerability to poverty and narcotics. Artichoke is produced mainly in the provinces of Cotopaxi (41.4%), Carchi (17.4%), and Pichincha (15.9%), while a 25.52% is produced in Tungurahua, Chimborazo, Imbabura, and Bolívar. Carchi, Imbabura, and Pichincha are regions especially vulnerable to drug-trafficking. Ecuador has been able to have minimal levels of illicit drug cultivation because of trade preference programs like ATPDEA, which support this type of industries (ATPDEA is set to expire in July 2013). The artichoke industry aids counternarcotic efforts by providing positive employment alternatives in the regions.9 Production per Province and % of population with Unsatisfied Basic Needs (UBN) Province

% of national artichoke production

Poverty (% Population with UBN)

Extreme poverty (% Population with UBN)

Cotopaxi

41.4

48.6

21.7

Carchi

17.4

35.2

11.0

Pichincha

15.9

14.3

2.7

Tungurahua

14

32.2

10.9

Chimborazo

8

29.7

24.5

Imbabura

3.9

35.6%

15.0%

Bolivar

0.3

56.8%

23.3%

Incidence of drug production10 1,485 eradicated poppy plants 1.5 hectare plantation eradicated 3 eradicated marihuana plants 2,000 poppy plants eradicated 71,000 poppy plants eradicated 206 marihuana plants and 29,068 poppy plants eradicated 3,500 coca plants eradicated

SIN (National Information System), Estimates from December 2011

Request by the Ecuadorian-American Chamber of Commerce for Addition of Ecuadorian Artichoke Products to GSP (Oct. 5, 2012). 8 Request by the Ecuadorian-American Chamber of Commerce for Addition of Ecuadorian Artichoke Products to GSP (Oct. 5, 2012). 9 USITC Trade Database: US imports for consumption at Customs value for HTS 20059980. 10 UNODC, Technical Report on Indicators for Illicit Cultivation in Ecuador (2010), available at http://www.unodc.org/documents/peruandecuador//Informes/monitoreo-ecu/Ecu10_Coca_Survey.pdf. 7

Artichokes One-Pager  

Fact sheet about the imports of Ecuadorian artichokes under GSP