The first batch of vehicles with a certificate of origin under the Free Trade Agreement (FTA) between China and Ecuador set sail from the port of Ningbo, in eastern China. Its destination is Guayaquil. It is estimated that the value of this first batch, which has a total of 69 vehicles from the automotive company Chery, amounts to 883,846 dollars, reported the Xinhua news agency.
Chery aims to export more than 6,000 vehicles to Ecuador in total. The value will be 83 million dollars.
One of the main benefits of the FTA for the chinese export companies is the exemption of tariffs, which will allow Chery to save for each vehicle exported to Ecuadorhe assured Cai Wenwen, representative of the Chinese automobile company.
The validity of the agreement with China
The FTA between China and Ecuador It came into force on May 1, 2024. Vehicles of Chinese origin are among those benefiting from the tariff relief.
In this first phase, the reduction is 2.3 percentage points, on average. The tariff reduction schedule establishes that vehicles have a period of between 15 and 20 years to be exempt from this tax.
Each year the tariff reduction will be, on average, 2.3%. The next one will apply on January 1, 2025. The Chinese automotive sector grew considerably in the world. The Chinese Passenger Vehicle Association indicated that in 2023 China surpassed Japan as the largest automobile exporter in the world. In 2023, 132,388 vehicles were sold in Ecuador, 35% of which were of Chinese origin. “In 2024, the market share is expected to be maintained,” says Genaro Baldeón, executive president of the Association of Automotive Companies of Ecuador. EFE
#batch #Chinese #cars #leave #Ecuador #tariffs #FTA
