Ecuador and China formalize the entry into force of a Free Trade Agreement

2024-05-02 02:10:03

QUITO (AP) — The Free Trade Agreement between Ecuador and China, the first of the Andean country with an Asian country, came into effect on Wednesday, allowing Ecuadorian products to enter an estimated market of 1.4 million without tariffs. consumers, the authorities highlighted in an official ceremony.

The trade agreement will allow 99.6% of Ecuador’s non-oil exports to enter the new partner and, according to the Minister of Foreign Trade and Production, Sonsoles García, said Wednesday night, exports “might grow between 3,000 and 4,000 million dollars” in 10 years.

Among the products that will be able to enter immediately with zero tariff are chocolate, cocoa powder, tuna and preparations, hearts of palm, jams, tea, among others. An opening is expected for new products such as yogurt, frozen meats and non-traditional fruit such as blueberries, among others.

828 products such as fabrics, footwear, clothing and clothing, white goods, wood, tires, auto parts have been excluded from the agreement. Other products will have a progressive tax reduction period of 20 years.

Sectors that oppose the trade agreement with China have indicated that it will be detrimental to small and medium-sized Ecuadorian producers due to unequal competition.

China’s ambassador to Ecuador, Chen Guyou, described the agreement as a “historic milestone in bilateral relations.” Ecuador becomes China’s fourth Latin American trading partner, following Costa Rica, Chile and Peru and twenty-seventh in the world, the diplomat highlighted.

In 2023, Ecuador exported 5,292 million dollars to China and imported 5,536 million dollars, that is, the trade balance is negative for the South American country of 244 million dollars, according to the Central Bank.

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