Ecuador bananas

The president of the Association of Ecuadorian bananaexporters, Eduardo Ledesma, has claimed that the Ecuadorian government’splanned creation of a national banana export company could threaten theexistence of private firms in the country.

Speaking on Ecuadorian radio station Citynoticias, MrLedesma claimed that the establishment of a state banana company was only “thetip of the iceberg”, arguing that the move could see government-owned groupscompeting with private companies.

The association’s managing director said that the Ecuadoriangovernment’s steps appeared to be “extremely communist” and claimed that thecreation of the company could lead to the state taking charge of exports,reported news agency Efe.

Mr Ledesma’s claims followed the recent announcement by thegovernment of Ecuador of the creation of a state banana export company as a meansof tackling what it described as “abuses” and tax avoidance in the sector.

Speaking at an official press conference, Ecuadoreanpresident Rafael Correa told reporters that “many abuses” were being committedby banana exporters at the present time, with some “un-registered companies”avoiding paying export duties.

Mr Correa said the solution to these difficulties was thecreation of a state banana export company, which could apply “clearregulations” for the sale and export of Ecuadorean bananas.

The Ecuadorian president claimed that several unnamed banana exporters had committed tax evasion after reporting sales ofbetween US$200m and US$300m per year, but only paying US$20,000 in taxes.