US trade agency raps Ecuador over Chevron pollution lawsuit

[Bacchus4.0]

http://thehill.com/blogs/global-affairs/trade/235899-us-trade-agency-raps-ecuador-over-chevron-pollution-lawsuit

By Julian Pecquet - 07/02/12 01:06 PM ET
U.S. energy giant Chevron is applauding the U.S. Trade Representative for taking Ecuador to task over its refusal to obey an international tribunal in an $18 billion pollution lawsuit.

Ecuador wants Congress to renew its duty-free access to the U.S. market under the 1991 Andean Trade Preference Act, which expires next year. Chevron and several U.S. business groups however argue Ecuador is violating the terms of the deal and felt vindicated by a USTR report late Friday that raised similar concerns.

The report could make it harder for lawmakers to renew the program, which currently only applies to Ecuador after Colombia and Peru signed free-trade agreements with the United States and Bolivia lost its preferences after a diplomatic spat. The program aims to fight drug trafficking by providing duty-free access to the U.S. market for thousands of rural products, especially flowers.


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The Ecuadorian government requested in 2009 that the National Assembly terminate Ecuador's Bilateral Investment Treaty with the United States, but the vote has yet to take place. The judgment against Chevron represents a massive windfall for the country, but losing duty-free access to the U.S. market would come with a heavy price: Ecuadorian exports under ATPA represented 61 percent of total exports to the United States between 2000 and 2010, according to the Ecuadorian embassy's own comments to USTR, and the trade deal supports 320,000 Ecuadoran jobs and helps maintain political stability


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"free trade for the rich" opponents should be happy that Ecuador will likely lose preferential trade status.