Ecuador is set to launch a historic free-trade agreement with China.
Negotiated by President Guillermo Lasso in May 2023 and ratified by the Assembly in February under President Daniel Noboa Azín, this pact marks a pivotal moment.
Today, the government announced its imminent implementation.
“On May 1st, Ecuador-China trade agreement activates,” announced Minister Sonsoles García at the trade congress.
This date marks a significant milestone, as reported by El Universo.
However, this deal phases out tariffs on half of Ecuador’s exports to China immediately, with nearly all (99.6%) enjoying this benefit within ten years.
China, as Ecuador’s second-biggest export destination and top buyer of non-oil goods, plays a crucial role. In 2023, exports to China will hit $5.673 billion.
In addition, imports from China were valued at $5.151 billion, showcasing a positive trade balance of $522 million for Ecuador.
García, after parliamentary approval, described the treaty as a golden chance for diverse sectors, notably benefiting small and medium-sized enterprises (SMEs) and the social economy.
She underscored the treaty’s potential to boost access to a vast market of 1.4 billion people, aiming to elevate export earnings to at least $8 billion and create 50,000 jobs in five years.
Former President Lasso emphasized the deal’s focus on Ecuadorian welfare, predicting a $3 to $4 billion rise in non-oil exports.
The agreement ensures that 99.6% of Ecuadorian exports will enter China tariff-free. To protect Ecuador’s industries, officials deliberately excluded over 800 Chinese items.
In short, the agreement boosts Ecuador’s economy, jobs, and protects industries, opening new markets for its products.