Ecuador’s President Guillermo Lasso announced the conclusion of a free trade agreement with China on Tuesday (3rd). According to him, the agreement should increase exports and boost the growth of the South American industrial sector.
“Good news for the beginning of 2023. Negotiations between China and Ecuador have been successfully concluded,” the head of state tweeted. “Thanks to the deal, Ecuadorian exports will have preferential access to China and producers will be able to purchase machinery and supplies at lower costs,” Lasso added.
“This trade deal will give preferential access to 99% of current Ecuadorian exports to China, particularly for agricultural and agro-industrial products such as shrimp, bananas, roses and flowers, cocoa and coffee,” the Ecuadorian Production Ministry said in a statement.
Ecuador began negotiations with Beijing in February 2022. Lasso had previously said the deal would secure an additional US$1 billion in Ecuadorian exports to China. He did not name current figures on Tuesday.
Between January and October 2022, Ecuadorian non-oil exports to China totaled US$4.9 billion, a figure higher than any other country with which Ecuador does export business.
Last year, Ecuador reached an agreement to restructure its debt with Chinese banks, which would provide around US$1.4 billion in debt relief through 2025.
With information from latinapress