Get to know the Free Trade Agreement between Ecuador and China

On May 11, 2023, the Minister of Commerce of China, Wang Wentao, and the Minister of Production, Foreign Trade, Investment and Fisheries of Ecuador, Julio José Prado, formally signed the Free Trade Agreement (FTA) between both countries.

The Ecuadorian government published the full text of the trade agreement that covers almost all of the products exchanged between Ecuador and China. According to official reports, the agreement allows preferential access for 99% of exports to China, particularly agricultural and agro-industrial products such as shrimp, bananas, cut flowers, cocoa and coffee. Excludes 800 products to protect local manufacturing.

In 2022, the bilateral trade volume between China and Ecuador reached 13.1 billion US dollars, an increase of 19.7% year-on-year, with more than double-digit growth for two consecutive years. China is Ecuador’s second trading partner. Ecuador is an important economic and commercial partner of China in Latin America and a source of imports of agricultural, fishing, energy and mineral products.

After the signing of the FTA, the two countries will carry out their respective legal approval procedures so that the agreement enters into force as soon as possible.

The Asian giant, after signing this agreement, continues to deepen its influence in Latin America. It has already signed FTAs ​​with Chile, Peru and Costa Rica, to which Ecuador has joined. Official Honduran sources have already indicated that they are in talks to begin negotiations with China for an FTA.

In turn, Mercosur, although distant, has the idea of ​​getting closer to China for these purposes, something that Uruguay has already done individually. Colombia, Nicaragua, Panama, could be other nations seeking similar agreements in the near future.

Here the text complete of the FTA between Ecuador and China:

Collaborator in ReporteAsia.