Monthly Archives: July 2013

Treaty Issue with Ecuador

Florists and floral industry professionals are dealing with the reality of a potential increase in flower prices. The ATPDEA (Andean Trade Preference and Drug Eradication Act) treaty is about to expire between the United States and Ecuador. Take a look at some of the effects this treaty issue has on the American Floral Industry and make a choice about what you feel should be done.

Ecudorian Farms

1. A new duty tax will increase the flower cost per stem. All flower prices from Ecuador will increase on both the grower and wholesale level, especially the Ecuadorian roses!

2. Without the treaty, many Ecuadorian farms would likely go out of business. This will ultimately  reduce the amount of competition in the market and drive up prices for florists. So on top of the tax the actual cost of the rose will increase.

3. Market pricing in Ecuador will affect the market prices in competing countries. Since Ecuador is notably recognized for their low prices, other countries will increase the price of flowers to match the new market value produced by Ecuadorian competitors. Columbia in specific will hike prices up to match their competitors in the south. Keep in mind that Columbia and Ecuador are two of the largest sources of flowers in North America.

4. Some believe that if we do not sign the  treaty we will be more inclined to create our own domestic flower resources. This would mean increasing the economy and building jobs, even if that means a higher flower cost.

5. There are a lot of theories about what is best for the flower industry, our country and the APTDEA. Do some research and form an opinion, but most importantly spread the word. Send your opinions to your politicians; the vote happens on July 31st. Click the source below for some links to other opinions on the topic.

Roses-of-Ecuador

Source: Flower Chat