Ecuadorian President Gave in to IMF Policy Pressures: CONAIE

On Thursday, Ecuadorian Indigenous peoples, farmers, environmental and feminist activists rejected the proposals made by President Daniel Noboa to reduce the fiscal deficit and secure resources for the "Internal Armed Conflict" against groups linked to drug trafficking.

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Noboa seeks to increase the value-added tax (VAT) from 12 to 15 percent, and postpone for a year the closing deadline of the "Ishpingo, Tambococha, and Tiputini" Block (43-ITT), which is one of the main oil fields in the Amazon region.

During a referendum in August 2023, however, over 60 percent of Ecuadorians voted in favor of avoiding crude oil extraction in the Yasuni National Park, an area with high biodiversity.

Leonidas Iza, the president of the Confederation of Indigenous Nationalities of Ecuador (CONAIE), anticipated that they would appeal to the Constitutional Court and the Inter-American Commission on Human Rights if Noboa delays the closure of Block 43-ITT.

He also recalled that the Constitutional Court gave the Executive Branch a one-year deadline from the proclamation of the referendum results to dismantle the facilities in that oil block.

In the Block 43-ITT, however, there are still oil reserves worth US$13.8 billion for the next 20 years, which is why Noboa suggested the possibility of extending oil operations for a year to boost the Ecuadorian economy.

"The Noboa administration is the continuation of the governments of Guillermo Lasso, Lenin Moreno... he has bowed his head and accepted the impositions of the International Monetary Fund," Iza said, insisting that tax exemptions for the largest companies should be eliminated.

Harsh criticisms of Noboa's proposal were also voiced by Yasunidos, the environmental organization that promoted the 2023 referendum after a ten-year legal battle.

"We remind the President that it is not his decision to disregard a ruling of the Constitutional Court, and even less the mandate of all Ecuadorians," said Yasunidos spokesperson Pedro Bermeo, who warned that non-compliance with the Constitutional ruling has administrative, civil, and criminal consequences, including a potential impeachment.

Micaela Camacho, a member of the feminist organization 'Cholas Valientes,' pointed out that the Noboa administration is contradicting itself when, on the one hand, it proposes a VAT increase and oil exploitation in the Yasuni park, and on the other hand, it forgives millions in tax debts to large entrepreneurs.