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Ecuador arrests shopkeepers for price rises, protests rage

Reuters logo Reuters 10/6/2019 By Alexandra Valencia
a group of people running on a track with smoke coming out of it: Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Lasso © Reuters/CARLOS GARCIA RAWLINS Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Lasso

By Alexandra Valencia

QUITO (Reuters) - Ecuadorean authorities have begun arresting shopkeepers for raising food prices as indigenous groups clashed with security forces on Sunday in a fourth day of protests against President Lenin Moreno's austerity measures.

Ecuadoreans complain consumer prices have risen sharply as a knock-on effect of Moreno's abolition of fuel subsidies, which has also triggered the nation's worst unrest in more than a decade.

"Everyone's raising prices with the excuse of the gasoline price rise," said disgruntled pensioner Camilo Salazar, 65, at a food market in the coastal city of Guayaquil where prices had risen up to a third in just a few days.

The government said 20 people were detained over the weekend for over-charging for products including corn, onions, carrots and potatoes, which are all subject to price controls.

a group of people standing around a fire: Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Lasso © Reuters/CARLOS GARCIA RAWLINS Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Lasso

"There is no justification for raising the prices," Interior Minister Maria Romo said in a statement.

Ecuador's dollarized economy had seen inflation of just 0.27 percent in 2018.

After a two-day strike by transport unions, indigenous groups have now taken the lead in demonstrations against Moreno's economic measures. Roads were blocked in various places again on Sunday with burning tires, branches and rocks.

Some protesters threw stones at security forces, who responded with tear gas. The CONAIE umbrella indigenous group published one video showing spear-wielding inhabitants blocking a road and shouting "Down with the government!"

The 66-year-old Moreno won the 2017 election and has set the oil-producing nation on a centrist track after years of socialist rule under predecessor Rafael Correa.

a group of people wearing military uniforms: Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Lasso © Reuters/CARLOS GARCIA RAWLINS Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Lasso

STATE OF EMERGENCY

Moreno has declared a two-month state of emergency.

Though he enjoys the support of businessmen and the military, Moreno's popularity has sunk to under 30% - compared to 70% after his election - and Ecuador has a volatile history.

Indigenous-led protests toppled three presidents in the decade before Correa took power in 2007.

a fire hydrant on the side of a road: Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Lasso © Reuters/CARLOS GARCIA RAWLINS Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Lasso

Struggling with a large foreign debt and fiscal deficit, Quito this year reached a $4.2 billion loan deal with the International Monetary Fund that requires belt-tightening economic reforms.

a man that is on fire: Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Lasso © Reuters/CARLOS GARCIA RAWLINS Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Lasso

As well as ending fuel subsidies, the government is reducing the state workforce and planning some privatizations. Moreno says the fuel subsidies, in place for four decades, had distorted the economy and cost $60 billion.

Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Lasso © Reuters/CARLOS GARCIA RAWLINS Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Lasso

Though transport unions stopped their action after being allowed to raise fares, other sectors have called a national strike for Wednesday.

Moreno, who uses a wheelchair after a 1998 shooting during a robbery that left him paraplegic, has refused to overturn the fuel measure but said the government will increase benefits for the poor to compensate its impact.

a large crowd of people: Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Lasso © Reuters/CARLOS GARCIA RAWLINS Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Lasso

Ecuador hopes to save about $1.5 billion a year from ending fuel subsidies. Along with tax reforms, the government would benefit by about $2.27 billion annually.

a group of people standing in front of a crowd: Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Lasso © Reuters/CARLOS GARCIA RAWLINS Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Lasso

Correa, who lives in Belgium, calls Moreno, his one-time protégé and vice-president, a "traitor."

(Reporting by Alexandra Valencia in Quito, Alberto Fajardo in Cayambe, Yury Garcia in Guayaquil, Carlos Garcia Rawlins in Lasso; Writing by Andrew Cawthorne; Editing by Sandra Maler)

a group of people standing in front of a crowd: Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Cangahua

Protests after Ecuador's President Lenin Moreno's government ended fuel subsidies, in Cangahua
© Reuters/IVAN ALVARADO
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