Ecuador's National Chamber of Aquaculture (CNA) is calling on the government to halt trade talks with Brazil following Brazil's recent suspension of shrimp imports, which was announced during a meeting of its Ministry of Agriculture and Ministry of Fisheries and Aquaculture. The import ban, effective from December 9, was justified by Brazil as being based on alleged findings from inspections of Ecuadorian shrimp facilities; yet, no official inspection reports were provided.
CNA's Executive President, José Antonio Camposano, remarked on the situation, stating, "Brazil is the most protectionist country on the continent, this was coming." He added, "Historically, it has sought to block the entry of Ecuadorian shrimp with a series of excuses, all illegal and anti-technical, to benefit its local producers." This move by Brazil marks yet another chapter in what has been a challenging history between the two countries with respect to shrimp trade.
This recent suspension is not Brazil's first attempt to limit imports of Ecuadorian shrimp; back in 2018, Brazil's Supreme Court upheld the Brazilian Shrimp Producer Association's injunction to stop the importation of Ecuadorian shrimp. At the time, Ecuador was seen as capable of supplying up to half of Brazil's shrimp demand, approximately 45,000 metric tons (MT). Although the courts halted imports back then, Ecuador managed only USD 6 million (EUR 5.8 million) worth of shrimp sales to Brazil, significantly less than the country's overall shrimp export revenue of USD 441 million (EUR 428 million) reported for October alone.
Despite the challenges posed by these trade disputes, Ecuador’s shrimp exports appear to have seen some recovery. Preliminary data from CNA revealed Ecuador exported 118,000 metric tons (260.1 million pounds) of shrimp just last month—representing a 37% increase from October and nearly 21% more than the same month last year.
The announcement of the shrimp import suspension by Brazil has stirred concerns within Ecuador's aquaculture industry. While the immediate financial impact may be minimal compared to overall export figures, the long-term repercussions could hinder Ecuador's position as one of the leading shrimp suppliers in the global market.
Navigators of Ecuadorean trade suggest the necessity of diversifying markets to mitigate concentration risks. CNA's calls for stopping trade negotiations echo sentiments among local producers who face uncertainties from Brazil’s protectionist policies. The fear looms large as Brazil has effectively served as one of Ecuador's traditional shrimp markets, and any barriers to market access can threaten livelihoods tied to shrimp farming.
With Brazil's shrimp industry facing its performance pressures, the actions of the Brazilian government reiterate the intertwined fates of regional economies. It remains to be seen how Ecuador will adapt to the trade climate and whether the government can negotiate pathways to restore market access, especially as local producers feel the pinch of reduced sellable shrimp.
Given the persistent political and economic tensions surrounding trade, it is likely the CNA and Ecuador's government will ramp up their efforts to seek alternative markets or seek to engage Brazil diplomatically. They may also exploit the opportunities presented by rising global demands for shrimp, pushing for initiatives aimed at fortifying capacity and response strategies within local aquaculture.
The closure of Brazilian markets, albeit significant, reveals the broader dynamics at play within international trade. Ecuador's shrimp trade may navigate through troubled waters, but the hope is to return to smoother sailing conditions with enhanced resilience and strategies moving forward.
Overall, the shrimp industry has navigated peaks and valleys over the years, and tough times also provide learning opportunities. The situation with Brazil can serve as both caution and motivation as Ecuador continues on its path to carve out its place within the global seafood market.