© Agencia Press South
Subway Ecuador
The president of Ecuador, Guillermo Lasso, travels to China this Monday, January 31, after responding favorably to the invitation of the president of the Asian country, Xi Jinping, who invited Lasso to the official opening of the Beijing 2022 Winter Olympics.
But what would be a protocol visit also becomes a rapprochement with China for Ecuador to resolve important issues related to the national economy: clarify the payment of debt with China and a new trade agreement to increase investments.
China is a world power of great importance for business in Ecuador. 2021 statistics from the Central Bank of Ecuador, from January to November, indicate that non-oil exports to China reached 2,848 million dollars, 5% more than in 2020. In contrast, the sale of the Chinese to Ecuador, non-oil imports They were double. USD 4,116 million added to imports from China in the first 11 months of last year, a growth of 55% compared to the same period in 2020.
A free trade agreement
On February 5, at the People’s Palace, Xi Jinping will receive Guillermo Lasso, who will seek to start negotiations to sign a Free trade agreement with Chinese.
“The trip to China will be to discuss a free trade agreement that consolidates the markets for shrimp, bananas, pitahaya,” President Lasso has stated.
On this subject, the Minister of Production, Julio José Prado, has stated: “In China we will initiate conversations so that we can seek a commercial agreement very strategically and technically. The world’s largest market offers immense export opportunities and high-quality import technology.”
Renegotiation of the debt with China
The renegotiation of the debt with China is crucial for Ecuador. According to figures from the Ministry of Finance, the debt exceeds 5,000 million dollars, of which more than 2,000 million dollars are linked to oil sales. 42% of the total debt will mature in two years.
“President Lasso’s visit to China is important to renegotiate the debt and that Ecuador does not fall into arrears. In theory we have only two more years to pay almost 3,000 million dollars. And right now the national economy is going through one of the worst crises”, considers businessman Nicolás Blum.
For the economic analyst Alberto Acosta, it is important “to release crude oil and achieve a greater refinancing of the debt (with China). In that sense, a trade agreement with the Asian country is essential, because it is an important market for the sale of Ecuadorian products.”