Ecuador increases goods subject to tariff hike

QUITO — Ecuador may hike import duties on 940 goods to protect domestic producers as its economy slows.

It wasn't clear how much tariffs would increase, but the Industry Ministry on Thursday said the higher rates would boost government revenue by $86 million a year.

The Ministry said that $1.1 billion-worth of the goods have been sold so far this year. They include candy, butter, mobile phones and sunglasses.

Ecuador's chamber of commerce warned the move would inflate prices and cause shortages and smuggling.

President Rafael Correa had vowed to raise tariffs on 800 goods.

World leaders pledged at a summit last week to avoid projectionist tariff hikes amid the current world financial crisis. Correa did not attend that meeting.

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