( Spanish) — The Government of Ecuador and the Ministry of Commerce of China reported this Wednesday that the signing of the free trade agreement between the two countries was finalized after ten months of negotiations. The signing of the agreement took place last night in a simultaneous event that brought together the main commercial authorities of the two countries both in Quito and in Beijing. President Guillermo Lasso also participated.
Lasso said on Twitter on Wednesday that this is “good news” for the country and a sign of the strengthening of relations with China.
“Today we signed the trade agreement with China that opens up a market of 1.4 billion consumers,” said Lasso.
Meanwhile, the Ministry of Commerce of China indicated in a statement that the free trade agreement will allow greater opening, and a more favorable, convenient and stable commercial environment.
“It will further stimulate the potential of trade and investment cooperation between the two countries and promote the comprehensive improvement of economic and trade cooperation between China and Ecuador,” the Chinese authorities specified.
The Ecuadorian Ministry of Communication pointed out that with the agreement it is estimated that there will be a growth in non-oil exports of between US$3,000 million and US$4,000 million additional in the next seven years.
The agreement is considered by the Ecuadorian authorities as a “milestone in the country’s trade policy.”
“The FTA with China will transform several agro-export sectors and lower production costs in the industry,” said Ecuador’s Minister of Production, Julio José Prado, on Wednesday.
The treaty with China will allow Ecuador’s exportable supply to have better access conditions, for new products to enter China with lower tariffs, access to technology at a better price, cheaper raw materials, among other points highlighted by the Ecuadorian Government in your statement.
After signing the free trade agreement, the two countries will continue with the internal procedures so that this treaty can enter into force.
In the case of Ecuador, the Constitutional Court must review the document, and subsequently the National Assembly must vote for the ratification or rejection of the text signed by the commercial authorities of China and Ecuador.
Ratification of the agreement will allow it to be implemented.
