September 2004. A possible imposition of taxes for flower imports could signify the loss

or severe contraction of the US market by the Ecuadorian flower industry. Requests

from US flower producers to protect national production are also likely to determine an

end to tariffs benefits that favor flowers from Andean countries.6

 Anther problem that the Ecuadorian flower industry has to face is the use of

pesticides. Pesticides are used to maintain the aesthetic quality of the flowers. This use

is an increasing economic burden for flowers producer who have to pay high import costs

for the pesticides they use (HOY 2004). But on the other hand, concerns have also

appeared due to the high levels of pesticide residue on the petals of roses, which

according to the US Environmental Working Group is fifty times greater than that

allowed on food imports. Ecuadorian rose producers use on average 6 fungicides, 4

insecticides, 3 nematicides, and several herbicides (Holt 2000). Moreover, an

Ecuadorian environmental group has accused flower industry of using banned pesticides

(Alerta Verde 2000). If concerns about misuse of pesticides in Ecuadorian flowers

increase, this industry could face an embargo in the US and other main markets.

 Another problem that threatens the flower industry is the high cost of transport of

flowers from Ecuador to the international markets. According to flower agribusiness

representatives, the Ecuadorian flower industry pays an average of 30% more in air

transportation to US and Europe, than Colombia (Palan and Palan 1999, and HOY 2004).



6 Section 204(d) of the Andean Trade Preference Act determines that the the US President is granted power
to suspend duty-free treatment to any articles if there is adverse affect due to the increased competition. In
addition, US producers of perishable products may also appeal to the United States International Trade
Commission for emergency relief if they are being negatively impacted by the added imports (See
Anderson 2003).
7 Embargos to products imported by US due to environmental or food security concerns are a potential
measure. Chilean grapes were embargoed in 1989, banning such fruit in US markets. Chile lost about
US$400 million due to this embargo. (See Engel Nd)