The opposition has been arguing for some time that the government's dealings with China lack transparency and are detrimental for the country. In July, it struck an agreement with China for a US$1bn advance payment for 28% of the total value of oil Ecuador had agreed to export to China. Ecuador's export revenues fell sharply in the first half due to low oil prices. It needs alternative financing after a 'selective default' on foreign debt last year [WR-08-50]. On the plus side, the national tax agency is predicting that the tax take will increase by 12% in 2010 to US$7.3bn as a result of a tax reform clamping down on evasion.
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