The FTA extends to a wide range of products, from chocolate and cocoa powder to tuna, heart of palm, and jams, among others.
Photo: Pixabay.
This May 1st marked the beginning of a new stage in the trade relations between Ecuador and China with the entry into force of the Free Trade Agreement (FTA) between both countries. This historic agreement, Ecuador’s first with an Asian nation, represents a significant milestone that promises to transform the economic landscape of the South American country.
The FTA offers Ecuador privileged access to the vast Chinese market, comprised of approximately 1.4 billion consumers eager for high-quality products. As announced by the Minister of Foreign Trade and Production, Sonsoles García, a substantial increase in Ecuador’s non-oil exports to China is expected, estimated between 3,000 and 4,000 million dollars over the next decade.
One of the main advantages of the agreement lies in the gradual and complete elimination of tariffs on 99.6% of Ecuadorian exports over a period of ten years. This benefit extends to a wide range of products, from chocolate and cocoa powder to tuna, heart of palm, and jams, among others. Additionally, an opening for additional products such as yogurt, frozen meats, and non-traditional fruits like blueberries is foreseen.
However, the treaty has also raised concerns among certain sectors, particularly those representing small and medium-sized Ecuadorian enterprises. Critics of the agreement warn of the possibility of unequal competition that could harm local businesses.
To address these concerns, 828 products considered sensitive to local production, such as textiles, footwear, and garments, among others, have been excluded from the agreement. Likewise, a progressive tariff reduction period of 20 years has been established for certain products, with the aim of protecting and strengthening the domestic economy.
The implementation of the FTA has been enthusiastically received by both Ecuadorian authorities and Chinese representatives. The Chinese Ambassador to Ecuador, Chen Guyou, has emphasized the historical importance of the agreement, further consolidating the bilateral relations between the two nations.
In addition to promoting trade exchange, the treaty also paves the way for greater cooperation in other areas, including political, cultural, and social fields. It is projected to generate thousands of new jobs, thus boosting the economic and social well-being of the Ecuadorian population.
In this context, Ecuador is preparing to participate in the China International Import Expo (CIIE), to be held in Shanghai next November. This international fair will provide an invaluable platform for Ecuador and other countries to showcase their products and strengthen their commercial ties with the Asian giant.
The FTA with China represents a crucial step in Ecuador’s trade opening strategy, aimed at diversifying its markets and maximizing global opportunities. With a focus on sustainable growth and equity, the agreement marks the beginning of a new era of cooperation and prosperity for the Andean country.
Main source:
Ecuador y China oficializan entrada en vigor de Tratado de Libre Comercio | Voz de América (May 2, 2024)
Others related source:
Ecuador y China formalizan acuerdo comercial con anuncio de feria de importaciones | América Economía (May 2, 2024)
Gran crecimiento de exportación minera y mejora en ventas de agroindustria se espera en Ecuador tras la firma del TLC con China | El Universo (May 2, 2024)