Chevron Statement Regarding USTR Announcement on Ecuador
Chevron petitioned the Office of the U.S. Trade Representative (USTR) to reconsider Ecuador’s trade preferences, given Ecuador’s failure to recognize and enforce “in good faith” arbitral awards handed down by an international tribunal in The Hague under the U.S.-Ecuador Bilateral Investment Treaty. That conduct is inconsistent with mandatory criteria Ecuador must meet in order to stay eligible for preferential duty-free treatment under the Generalized System of Preferences (GSP).
By publicly and flagrantly rejecting multiple rulings from the international tribunal, the government of Ecuador has demonstrated a complete disregard for the rule of law. Ecuador cannot repeatedly defy the eligibility requirements that govern GSP and still expect to receive trade preferences. Ecuador has made it clear that it wants all the privileges and preferences of international trade agreements, without having to abide by the most basic practices and protocols of international trade. Today’s decision by the USTR sends a message that the U.S. government takes the GSP criterion seriously and that Ecuador’s behaviors have warranted a review of its suitability to remain in the GSP program.