Ecuador: Announced crisis measures.
Description
On August 26 2009, the President of Ecuador, Rafael Correa, proposed "Economic Measures for Production and Employment". The measures included
- The introduction of an import tariff of 12 percent on paper used by newspapers and magazines. (Previously this product exempted from import and value added taxes.)
- An increase in the currency outflow tax from 1 percent to 2 percent. In the face of increasing currency outflows (2008: USD 4.9 billion; 2009: USD 5.2 billion) the tax increase is to preserve liquidity in Ecuador.
These measures, and others, have been sent to the National Assembly for approval.
Both measures listed above will be discriminatory, if implemented: the first clearly alters the treatment of foreign commercial interests. The second measure affects the cost of paying for imports and of repatriating profits from foreign subsidaries located in Ecuador.
The Library Archive of the National Assembly does not report that the measure has ever been approved.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | Don't know |
| Is there any evidence that alternatives to the proposed measure were considered? | Don't Know |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | Don't Know |
| Was such evidence identified? | Don't Know |
| Is such evidence publicly available? | Yes |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | Don't Know |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | No |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | Don't Know |
| Did the government state its intention to review the measure within one year of implementation? | Don't Know |
Date Discovered: 27/08/2009
Implemented: No
Date of inception:
GTA Evaluation: Amber
Source:
El Ciudano. (26 August 2009). Gobierno presentó medidas económicas para incentivar la producción y el empleo. To be obtained at http://www.elciudadano.gov.ec/index.php?option=com_content&view=article&...
Government of Ecuador. (26 August 2009. MEDIDAS ECONÓMICAS PARA LA PRODUCCIÓN Y EL EMPLEO [Presentation]. To be obtained at
http://www.presidencia.gov.ec/pdf/Medidas%20Agosto09%20final%20final.pdf
Government Response:
- 675 reads
