The historic commercial relationship with the United Kingdom has favored Ecuador more
In 2021, non-oil trade between the two countries left a favorable balance of US$163 million for Ecuador. What does England buy the most from the Andean country?
In 1839, Ecuador and the United Kingdom signed their first formal rapprochement: the Treaty of Friendship, Commerce and Navigation. This happened 113 years before Isabel II, who died on September 8, began her reign, in 1952. But the last bilateral trade agreement was signed on May 15, 2019 and entered into force on January 1, 2021, after its ratification in the National Assembly.
Read also: Check out our coverage on Ecuador
This new agreement was signed after the United Kingdom left the European Union with the intention of maintaining bilateral trade not only with Ecuador, but also with Peru and Colombia, which were included in this new agreement.
BEST NUMBERS FOR ECUADOR
But the relationship with England has historically been positive and the numbers show it. According to information provided by Fedexpor, in 2021, non-oil trade between the two countries left a favorable balance of US$163 million for Ecuador, since exports outweighed imports.
In the case of exports, this reached US$288 million, which meant an increase of 25% compared to 2020, while imports totaled US$25 million.
Likewise, in 2021, the United Kingdom will become the eighth destination for the country’s non-oil exports and currently hosts around 135 exported products.
The main products that were exported to the United Kingdom in 2021 according to the amount are the following:
- Canned tuna: US$136 million
- Shrimp: US$69 million
- Banana and plantain: US$52 million
- Textiles: US$9 million
- Flowers: US$6 million
Among these five main products, 95% of non-oil exports are concentrated. In addition, there are more than 241 companies that are linked to exports to this country.
In the case of imported products, there are: beverages (US$21 million), vehicles and parts (US$20 million), pharmaceutical products (US$15 million), machines and mechanical devices (US$15 million) and surgical devices (US$9 million). Among the first five products, 64% of non-oil imports are concentrated.
Non-oil imports from the United Kingdom increased by 32% in 2021. 47% of non-oil imports correspond to raw materials and capital goods.
INVESTMENT, ANOTHER PROP
But although the commercial exchange is not so high, something in which the United Kingdom stands out is in the investment that it has brought to Ecuador in recent years.
According to data from the Central Bank, in 2021 it ranked as the fifth country of origin of Foreign Direct Investment (FDI), with US$43 million; however, in 2020 it ranked third, with US$105.8 million. For the first quarter of this year it was listed as eighth, with US$7 million.
The largest British investment is in the exploitation of mines and quarries, with US$36 million in 2021; between January and March of this year it already registered US$7 million. It is followed by transport, storage and communications activities.
The relationship between the UK and Ecuador has been a win-win. Expectations with the recently signed trade agreement point to the country expanding its exports, but for this it will be necessary to diversify the exportable supply, with new goods and even services with higher added value.
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This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. How we use AI · Report an error