Beijing/Quito. Ecuador and China have signed a memorandum of understanding to open negotiations on a free trade agreement. In this way, both countries want to strengthen their economic ties. The agreement was signed during a trip to China by Ecuadorian President Guillermo Lasso on the occasion of the Beijing Olympics. The head of the Ecuadorian government and Chinese President Xi Jinping also spoke about Ecuador’s debt to China. The Asian country is ready to negotiate new repayment terms.
The trade agreement would expand the export market by about one billion US dollars, said the Minister of Production, Foreign Trade, Investment and Fisheries, Julio José Prado. “This means that we could almost double the export of several products to China,” Prado said at a press conference. These are export goods such as shrimps, bananas and cocoa, among others.
In a joint statement with Chinese President Xi Jinping, the heads of state have promised to optimize value chains. In addition, liberalization steps were announced to enable investment and diversified trade relations.
They also want to strengthen cooperation in the fight against the Covid-19 pandemic and jointly advocate for better relations between China and the member states of the Community of Latin American and Caribbean States (Celac). Xi assured that Beijing wants to support the South American country in organizing the 15th Economic Summit between China, Latin America and the Caribbean. The international meeting is scheduled to take place in Guayaquil in November.
Talks with Chinese Prime Minister Li Keqiang have led to the establishment of a round table to negotiate easier repayment options for Chinese loans in the amount of about $ 5 billion. Lasso has stated that the central goal is to be able to withdraw from long-term oil supply contracts associated with lending. Ecuador’s government promises to be able to sell the crude oil at currently higher market prices.
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