Ecuador and China sign a historic Free Trade Agreement

Foto: FIRMA_DE_CONVENIOS_ECUADOR-CHINA Por: Agencia de Noticias ANDES. Fuente: WikiCommons.

The Free Trade Agreement (FTA) between Ecuador and China will be signed this week, marking the most significant trade agreement during the government of Guillermo Lasso. Although the agreement covers the liberalization of trade in goods and includes topics such as rules of origin, sanitary and phytosanitary measures, investment cooperation, and e-commerce, it does not include labor or environmental aspects.

This treaty will allow preferential access for 99% of Ecuador’s current exports to China, primarily in agricultural and agro-industrial products such as shrimp, bananas, roses, flowers, cocoa, and coffee. It will also open opportunities for non-traditional products such as pitahaya, pineapple, mango, blueberries, quinoa, processed foods, and fresh and canned fruits.

However, the absence of disciplines such as intellectual property, public procurement, environmental standards, and labor rights in the agreement is noted. While an increase in trade flow is expected, caution is advised, and other factors need to be considered. This includes the possibility that tariff reductions may not translate into benefits for consumers and the importance of including environmental and labor safeguards in the FTA. Additionally, cases like Peru are mentioned, where despite having a trade agreement with China, effective diversification of the export basket was not achieved. It is emphasized that establishing acceptable standards and fostering civil society participation are crucial to avoid potential excesses in the trade relationship with China.

The signing of the Free Trade Agreement (FTA) between Ecuador and China is intended to reduce barriers and tariffs, with Ecuador being one of the Latin American countries seeking to benefit from the opportunities offered by the Chinese market.

Top headline:

Primicias . (2023, Mayo 2). Acuerdo con China no contempla temas laborales ni ambientales.

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El Observador. (2023, Mayo 11). Ecuador y China sellaron en tiempo r茅cord un tratado de libre comercio.

V谩sconez, L. (2023, May 10). Nueve cosas que debe saber del acuerdo comercial entre Ecuador y China