Tariff Reform and Its Impact on Artisanal Textile Production Costs

Abstract

This academic study focuses on the transformation of the textile sector in Ecuador, with special emphasis on the tariff reforms implemented, particularly Resolution No. 009 - 2021 that establishes a 0% tariff for imported textile products. The main objective is to analyze the impact of these reforms on the international competitiveness of the Ecuadorian textile industry, exploring their political, commercial and economic implications. The importance lies in understanding how these measures influence Small and Medium Enterprises (SMEs), considered key to the dynamism of the manufacturing sector. The research was applied in the year 2022, to a total of 62 artisans accredited within the Artisan Board of the city of Guaranda, it was developed under a quantitative approach, of descriptive exploratory depth level in order to understand how tariff reforms affect the costs of artisan textile production and its improvement in competitiveness within the city and the province. The results highlight the need to address challenges such as tax evasion and lack of import culture that affect supply and production costs. Internationalization, despite its benefits, faces obstacles that require attention, and the importance of establishing strategic alliances between countries to boost the economy and improve production is highlighted. In conclusion, the study sheds light on the key factors that have shaped the transformation of the productive sector in Ecuador, underscoring the urgency of addressing specific challenges to ensure sustainable development and long-term competitiveness in the textile industry.