Ecuador and Mexico to begin Free Trade talks “immediately” – Foreign Minister

RIO DE JANEIRO, BRAZIL – Negotiations for a free trade agreement (FTA) between Ecuador and Mexico will begin “immediately” with the aim of incorporating the Andean country into the Pacific Alliance, confirmed Ecuadorian Foreign Minister Mauricio Montalvo.

On Wednesday, Ecuador’s “Minister of Production Julio José Prado’s team will begin talks and, in fact, he has been talking with his counterpart, Mexican Minister of Economy Tatiana Clouthier. So this is imminent,” Foreign Minister Mauricio Montalvo said.

And he added that “we are ready and we will work formally,” although “I cannot say exactly when, but we are ready to do so immediately.”

THE WAIT IS OVER

Over the past two months, Ecuador had been waiting for a crucial decision from Mexico to restart these negotiations, after it rejoined the ICSID mechanism for the settlement of international investment disputes in June.

Now the parties must set up the 11 negotiating tables to address each of the aspects involved in the FTA and settle their differences on investment, tariffs, products, technicalities and other issues.

Together with “vaccine diplomacy” to expedite the inoculation of 9 million Ecuadorians by September 1, the agreement with Mexico has been one of the key points of president Guillermo Lasso’s foreign policy and that of his Ministers Montalvo and Prado, who are also in Mexico.

The opening of the longed-for path towards the Pacific Alliance depends on this agreement, as the country already has agreements with Chile, Peru and Colombia.

“The presidents agreed that the negotiating teams should resume their talks immediately, this is a specific result of the presidential meeting,” the Foreign Minister said.

CLIMATE OF EMPATHY

Lasso was president Andrés Manuel López Obrador’s guest on Tuesday at the 200th anniversary celebration of the signing of the Treaties of Córdoba, which established the withdrawal of Spanish troops from Mexico and served as a prelude to the country’s Act of Independence, considered the founding document of the Mexican State.

López Obrador emphasized that “with the decision to resume negotiations and bring them to a successful conclusion, we are confident that Ecuador will become a full member of the Alliance in the very short term.”

Montalvo confirmed that “the logical consequence of the bilateral agreement will be Ecuador’s accession as a full member,” which “was also pointed out by both presidents,” and that, in the meantime, his country will be incorporated as an “associate state.”

The presidential meeting was held in “a climate of great empathy,” with “an immediate favorable atmosphere between the two presidents,” which “greatly favored dialogue, rapprochement and understanding,” according to the Minister.

Lasso’s stated goal in this official trip had been to discuss the negotiation process with Mexico and to relaunch bilateral trade relations and investments in his country.

MEETING DIPLOMACY

With a private portfolio of over US$3 billion in various sectors, some of them strategic, Mexico is one of the main investors in the Andean country, Montalvo said.

The agreement between the two has been on the table since the Ecuadorian center-right politician came to power on May 24, although “there were some aspects that had stalled” and “there was a lack of willingness on the Mexican side to sit down at the negotiating table.”

Asked about deadlines, Montalvo said that “it is always speculative to discuss deadlines,” although “Ecuador is committed to complete negotiations as soon as possible.”

“We hope that this progress will be smooth, that the agreement will be quickly finalized. Every negotiating table is a give and take, proposals must be made, certain concessions must be made and understandings must be reached.”

In any event, he sees yesterday’s achievement as a direct result of Lasso’s “policy of openness,” that “his ‘Ecuador del Encuentro’ program is also for abroad” and that, “beyond the potential political or ideological differences, there is a willingness for understanding that led him to hold this meeting with President López Obrador and reach an understanding.”

And in this respect he recalled the rapprochement initiated with the U.S., China or Russia to secure more vaccines, or with Israel to learn about entrepreneurship and innovation.

“Ecuador is not afraid to sit down and talk with any other international player (…) and will continue to do so in the terms that are most convenient for the country,” the Foreign Minister added.