Round Table: Ecuador, China and FTAs in South America

Photo: Signing of agreements at the Great People’s Palace in the capital of China, with the presence of Ecuadorian President Rafael Correa and his ministers, together with his counterpart Xi Jinping. Credit: Carlos Rodríguez/ANDES. Wikimedia Commons.

The free trade agreement (FTA) between Ecuador and China has generated diverse opinions and concerns among experts and citizens. Although Ecuador was the last Latin American country to approve its FTA with China, the reception has not been uniform.

While some people see significant economic opportunities, others express concerns about possible negative impacts on local businesses and the environment. China has emerged as a crucial trading partner for Latin America, with a focus on importing raw materials and natural resources. China has signed FTAs with several Latin American countries, including Chile, Peru, Nicaragua and now Ecuador. However, the benefits of these agreements are not without their critics.

In the case of Chile, the FTA with China has led to significant growth in bilateral trade, but has also raised concerns about excessive economic dependence on China. Similarly, Peru has experienced a trade surplus with China, but the textile sector has suffered due to competition from low-priced Chinese products.

In Ecuador, the FTA with China is perceived as an opportunity for economic growth and job creation. However, there are legitimate concerns about its impact on sensitive sectors such as local production and agriculture. The agreement includes exclusions to protect these sectors, but also poses environmental and social challenges.

The lack of transparency in the FTA negotiations has generated criticism in Ecuador, especially with regard to the participation of environmental organizations. There is concern about the possible increase in natural resource exploitation and the lack of specific provisions to address environmental impacts.

Of particular concern are projects such as the Mirador mine and oil extraction in Yasuní National Park, where implementation of the FTA could conflict with local people’s wishes and environmental concerns.

In summary, while the Ecuador-China FTA offers economic opportunities, it also poses significant challenges in terms of economic dependence, environmental protection, and citizen participation in the decision-making process. Its implementation will require a careful balance between economic momentum and the protection of the country’s social and environmental interests.

Main source:

Mesa redonda: Ecuador, China y los TLC en Sudamérica / Dialogue Earth (2024, 19 de abril).

Other related sources:

China y Ecuador: Influencia mediática del nuevo TLC. (1 de mayo de 2024).