RIO DE JANEIRO, BRAZIL – This Monday, May 16, the Trade Integration Agreement (ACE75) between Ecuador and Chile entered into force.
It was announced through a joint statement by the Vice Minister of Foreign Trade of Ecuador, Daniel Legarda, and the Undersecretary of International Economic Relations of Chile, José Miguel Ahumada.
Thus, the new document replaces the Chile-Ecuador Economic Complementation Agreement ACE 65.
With the subscription and ratification of this agreement, both parties agree on the importance of the processes of trade opening, regional and global integration as tools for the economic and social development of the countries, and the strengthening of trade relations as a central axis of foreign policy.
The Ministry of Production, Foreign Trade, Investment, and Fisheries explained that the new agreement benefits the Ecuadorian productive and export sector. There are already 710 companies exporting products to Chile, generating 16,000 jobs in the agricultural and industrial sectors alone.
Ecuador’s projection is to generate a 5% growth in exports. In addition, as a result of taking full advantage of the quotas and preferences achieved through the agreement, an increase of approximately US$12.6 million in Ecuadorian exports to this market is estimated.
Legarda indicated that the commercial exchange in 2021 between both nations exceeded US$1.4 billion and that in the first quarter of 2022, Ecuadorian exports to Chile grew 30%, placing the country as the eighth most important destination for national exports.
The agreement, which has 24 chapters, includes state-of-the-art disciplines and incorporates additional standards in trade facilitation, regulatory aspects, services, and electronic commerce.
It also included new issues with an inclusive approach, such as gender, micro, small and medium-sized enterprises, environment, labor issues, regional and global value chains, and productive linkages, thus taking the bilateral relationship to the deepest level of integration.
Both countries also made progress in trade liberalization.
For all of the above, the chapters include the creation of bilateral commissions responsible for the implementation and follow-up of the provisions of this new trade agreement.