The ACP countries will continue to enjoy preferential access to the EU market,
although the preferential margin vis-à-vis the major exporters, such as Colombia
and Costa Rica, will be shrinking over time as the free trade agreements with these
countries enter into force. Unless Ecuador enters into new negotiations with the
EU, it will continue paying higher tariffs than its major competitors, undermining
Ecuador’s export opportunities. While the gap between the MFN tariff and the
preferential tariff of Colombia, for example, was not that high in 2013 (132 euros/
tonne versus 124 euros/tonne), the difference will increase substantially by 2020,
unless a new reduction on the MFN tariff is achieved as part of multilateral trade
talks on agriculture. At current import prices in the EU, by 2020 Ecuador would
be paying 18 percent in ad-valorem tariff equivalent, while the preferential rate for
Colombia, Peru and Central America would be 12 percent.