Search

 

Cablegate: Ecuador Econ Weekly: Rice Price Controls, Unemployment Rate

VZCZCXYZ0000
RR RUEHWEB

DE RUEHQT #0588 1851253
ZNR UUUUU ZZH
R 031253Z JUL 08
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC 9078
INFO RUEHBO/AMEMBASSY BOGOTA 7635
RUEHCV/AMEMBASSY CARACAS 3093
RUEHLP/AMEMBASSY LA PAZ JUL LIMA 2683
RUEHGL/AMCONSUL GUAYAQUIL 3659
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS QUITO 000588

SENSITIVE
SIPDIS

TREASURY FOR MEWENS

E.O. 12958: N/A
TAGS: ECON EINV EAGR ELAB PGOV EC
SUBJECT: ECUADOR ECON WEEKLY: RICE PRICE CONTROLS, UNEMPLOYMENT RATE
FALLS, NEW MINISTER OF INDUSTRIES

1. (U) The following is a weekly economic update for Ecuador that
reports notable developments that are not reported by individual
cables.

Rice Price Controls Supplement an Export Ban
--------------------------------------------
2. (SBU) On May 31, President Correa extended a September 2007
decree to banning rice exports, in an effort to increase domestic
supply and lower prices. He also issued a decree mandating that the
price for rice should be between USD 24-28 per 100 pound sack (the
domestic market price is currently USD 28-30 per sack; producers
reject the lower price). According to Julio Carchi, President of
the America Lomas Rice Association in Daule, rice producers are
furious at the GOE's rice export ban, denying them access to the
lucrative Colombian market where rice goes for USD 48-50 per sack.
Some industry experts believe Ecuadorian rice producers are
stockpiling rice in order to export it to Colombia later, creating a
rice shortage in the domestic market and further exacerbating price
increases. On June 17, President Correa, the Minister of
Agriculture Walter Poveda, and a team of advisors met with 800 rice
producers to negotiate a compromise rice price. To date, no
compromise has been reached, and rice producers still reject the
prices proposed by the GOE.

Unemployment Rate Falls
-----------------------
3. (U) On June 19, the Central Bank reported an unemployment rate of
6.9% for May, covering Ecuador's five main cities of Quito
Guayaquil, Cuenca, Ambato and Machala. According to Finance
Minister Fausto Ortiz, this is much better than last March, when the
rate reached 10.28%. Ortiz also noted that unemployment has fallen
since April, when the rate reached 7.93% due to major spring floods.
Among cities, Guayaquil has the largest unemployment rate (9.10%)
and Ambato has the lowest (4.05%).

New Minister of Industries
--------------------------
4. (U) On June 19, President Rafael Correa dismissed Raul Sagasti as
Minister of Industries and Competitiveness and replaced him with
businessman Xavier Abad Vicua. Sagasti was the last original
member of Correa's economic cabinet.

5. (U) Correa said that Abad will be in charge of the management of
a new project to supply natural gas to Cuenca. In 2006, Abad was
administrator of the Corporation "Much Better Ecuador," which
promotes Ecuadorian-made products. In 2005, he served as Executive
President of Cuenca's Chamber of Industries. In 2003 he was Vice
Minister of Industries under the Lucio Gutierrez administration.
Abad was also part of Ecuador's official negotiating team during the
Free Trade Agreement negotiations with the United States.

JEWELL

© Scoop Media

 
 
 
 
 
World Headlines

 

Werewolf: Gordon Campbell On North Korea, Neo-Nazism, And Milo

With a bit of luck the planet won’t be devastated by nuclear war in the next few days. US President Donald Trump will have begun to fixate on some other way to gratify his self-esteem – maybe by invading Venezuela or starting a war with Iran. More>>

Victory Declared: New Stabilisation Funding From NZ As Mosul Is Retaken

New Zealand has congratulated the Iraqi government on the successful liberation of Mosul from ISIS after a long and hard-fought campaign. More>>

Gordon Campbell: On The Current US Moves Against North Korea

If Martians visited early last week, they’d probably be scratching their heads as to why North Korea was being treated as a potential trigger for global conflict... More>>

ALSO:

Gordon Campbell: On The Lessons From Corbyn’s Campaign

Leaving partisan politics aside – and ignoring Jeremy Corbyn’s sensational election campaign for a moment – it has to be said that Britain is now really up shit creek... More>>

ALSO:

Another US Court: Fourth Circuit Rules Muslim Ban Discriminatory

ACLU: Step by step, point by point, the court laid out what has been clear from the start: The president promised to ban Muslims from the United States, and his executive orders are an attempt to do just that. More>>

ALSO:

 
 
 
 
 
 
  • Pacific.Scoop
  • Cafe Pacific
  • PMC