China and Ecuador successfully conclude the negotiation of a trade agreement

Ecuador’s President Guillermo Lasso said on Tuesday that his government’s negotiations with China for a free trade agreement were concluded successfully, thanks to which he hopes to increase exports and guarantee employment in its manufacturing industry.

In mid-December, the president reported that the trade pact was “practically closed” after talks that lasted ten months, and said that the move will mean $1 billion more in sales to the Asian giant.

“Good news to start 2023. The FTA negotiation between China and Ecuador has been successfully concluded,” Lasso said on his Twitter account. “Our exports will have preferential access to the largest market in the world, our industries will be able to acquire machinery and inputs at lower costs,” he added.

Over the past decade, China has become Ecuador’s main financial partner with million-dollar loans tied to long-term crude oil delivery contracts, freely available loans, and million-dollar investments in hydroelectric dams and mining.

Last year, the Andean country reached an agreement to restructure its debt with Chinese banks, providing relief of about $1.4 billion through 2025.

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