Expat Life: Immigration and Tariffs from an Expat's Perspective

Although we live in Ecuador, we follow what’s going on in the United States with great interest. We know expats who are so unhappy with the direction of the country that they declare no desire to ever return.

We are not in that camp. We love our home country. Our family lives there and we visit them often. Whoever occupies the office of the presidency, we want nothing but the best for the nation.

Immigration and tariffs have dominated the news in recent months. As U.S. citizens residing in a foreign country, we perhaps have a different perspective on these issues that we would like to share.

Disclaimer ~ These are our thoughts only, for as we indicated above, others have widely different views on the current state of affairs.

Immigration

We find the controversy about this subject to be thought-provoking. When we arrived in Cuenca in 2010 (we celebrated our 15th expat anniversary in May), we needed to obtain Ecuadorian legal residency before our 90-day tourist visa expired.

Otherwise we would become — wait for it — “illegal immigrants.”

So we hired an attorney, gathered all the necessary documents, and went through the process of becoming temporary residents. After receiving our cédula, the national ID card of Ecuador, we were not allowed to leave the country for more than 90 days each year during the next two years before gaining the status of permanent residents.

None of this was a surprise. We were totally aware upfront of all the requirements and restrictions, and there were no thoughts of how we could somehow circumvent the system. These were the rules of our new country that we were obligated to follow.

One of the required documents was a police report to demonstrate a clean criminal history. Why would any country welcome convicted criminals onto its soil? Well…

There is widespread support from Democrats, Republicans, and Independents to deport illegal immigrants with criminal records from the U.S. The situation is murkier concerning those who came seeking a better life and have caused no trouble since their arrival.

Should some sort of path to obtaining a Green Card (Permanent Resident Card) be offered for this circumstance?

Or is the issue cut and dry — if you came illegally, out you go no matter what?

Ironically, our move to Ecuador was also to create a better life for ourselves. Certainly not for employment opportunities, but because of the need for a lower cost of living. Although citizenship is an option for us, we have seen no need for a second passport and are satisfied with our status as permanent residents.

It is easy to see why comprehensive immigration reform has proven elusive, as both sides of the debate offer compelling cases. On one hand, amnesty advocates argue it is heartless to uproot people who, not qualifying for a Green Card or visa, have nonetheless entered the country and peacefully lived for many years.

Some claim that because “undocumented immigrants” are guilty of only a civil offense due to their physical presence in the United States without proper authorization, deportation is too harsh of a punishment.

This is somewhat of a red herring that really only applies to those who have overstayed an expired or revoked visa. But even this violation is grounds for deportation under current law.

Title 8 of the United States Code concerning immigration (8 U.S.C. § 1325) declares it a misdemeanor crime to unlawfully enter the United States, which applies to anyone who crossed the border outside an entry point, provided false information, or failed to report for a court date under the now-terminated “catch and release” program.

Section 1326 of Title 8 ups the ante to a felony for unlawfully reentering, attempting to unlawfully reenter, or to be found in the United States after having been deported, ordered removed, or denied admission.

Supporters of deportation also point to the unfairness of granting any form of favoritism to illegal immigrants over the millions who have gone through the process of applying legally.

This same line of thinking was reflected in the Supreme Court’s decision to void Biden’s student loan forgiveness program. Where is the fairness in granting an exemption to one group over all those who dutifully repaid their obligations?

The flow of illegal immigrants into the United States has quickly been brought to a stop. All seeking entry from this point forward will, as we did, be required to follow the rules and go through proper vetting. Criminals are being apprehended and deported.

It will be fascinating to see how the story plays out, as immigration reform has been attempted by Congress for over 50 years. Will our current representatives finally find a way to forge an acceptable compromise?

Tariffs

When President Trump first started talking about tariffs and how other countries were treating the U.S. poorly, we didn’t know exactly what he meant. We quickly discovered that “tariffs” is just another way of saying “import taxes,” and, boy, do we know about those.

When you are an expat, it is a given that you are going to pay more for imported goods. Sometimes a lot more.

Examples: A jar of Jif Extra Crunchy peanut butter, Edd’s favorite, in the U.S. costs around $3.00. In Ecuador we pay over $7.00. You spend about $12.00 for a bottle of Apothic Red wine, while our price is over $26.00.

Speaking of wine, would you believe that because of Ecuador’s import taxes, we pay more here for Malbec produced in Argentina and Carménère from nearby Chile than you do when the same stuff is shipped thousands of miles to your supermarket?

Conversely, much of Trader Joe’s business model seems to be based on taking advantage of low tariffs to offer fun, affordable products from abroad that you won’t find anywhere else.

We understand the impact of trade deals as well. Ecuador became part of the Comprehensive Trade Agreement with the EU in 2017. For quite awhile afterwards — crickets. These things apparently take time to manifest.

Slowly wine from France and Spain appeared. Scandinavian cheeses. Canned tomatoes from Italy. All at reasonable prices compared to what we pay for U.S. imports.

Here’s the way we look at all this. For years there was no Jif peanut butter on our shelves. So when it magically showed up, we didn’t mind paying the higher price because a) one jar lasts for months in our pantry and, more importantly, b) Edd wanted Jif instead of the local brands he tolerated.

The same is true for everything from European cheeses to panko breadcrumbs from Asia now available in our stores. In the vast majority of cases, we save money by “buying local.” But for products with no equivalent in Ecuador like Heinz Sweet Relish, or items we simply enjoy such as Giovanni Rana pastas and sauces, we gladly pay extra.

The shifting sands of international trade may soon require you to rethink shopping habits you have long taken for granted. And if prices for some foreign products inch up, just as we do, you’ll either buy them or not.

To wrap this up, here is what these two expats hope will happen:

1. ICE continues to get the scumbags out of the U.S. as quickly as possible.
2. A reasonable solution is found for the decent, hard-working illegal immigrants who are grateful to be in the country.
3. Ecuador reaches a better trade deal with the United States so prices come down and more products are available. Who knows, the bananas, shrimp, and cut flowers you currently buy that come from here may be cheaper too!