He Free Trade Agreement (FTA) between Ecuador and China It will come into force this May 1, complying with all the established requirements and deadlines, the Ministry of Production, Foreign Trade, Investment and Fisheries reported this Tuesday.
The agreement is expected to generate thousands of new jobs and an increase of between $3 billion and $4 billion in Ecuadorian non-oil exports to China in the coming years, the ministry said in a statement.
He added that the entry into force of this commercial instrument will open “multiple benefits” for Ecuadorian exports, such as preferential access to a market of 1.4 billion consumers with high purchasing power.
In addition, the immediate and gradual elimination of tariffs for 99.6% of Ecuadorian exports within a maximum period of 10 years.
Several Ecuadorian products would stop paying tariffs when entering China, such as dragon fruit, which currently has a tariff of 20%, cocoa powder 15%, tuna and preparations 5%, and toquilla straw hats 8%, among others.
Along the same lines, there are great opportunities for foods such as pineapple, guaba, papaya, avocado, blueberries, mango, quinoa, stevia, hearts of palm, asparagus, broccoli, frozen meats, pepper, guayusa, yogurt, butter, cheeses and more, he listed. the ministry.
The pitahaya export process involves the work of 15,000 related families.
The tariff reduction will also benefit artisans linked to the weaving of the toquilla straw hat, a product that generates work for 2,500 Ecuadorians mainly in the provinces of Cañar, Azuay, Manabí and Santa Elena.
In addition, it was ensured that the negotiation protected local production, excluding from the tariff reduction 828 products from China, such as textiles, clothing, school footwear, metalworking, rice, sugar, and milk, among others, the statement said.
The ministry noted that the agreement will make it possible to equalize competitive conditions with Ecuador’s neighboring countries that already have agreements with China, as well as with other Asian countries that are competitors in that market.
Likewise, he highlighted that “it represents the first agreement between China and a Latin American country that includes an electronic commerce chapter, which will allow taking advantage of the technological development of the Asian giant, with a stable and reliable legal framework.”
Fourth Latin American country
Ecuador will become the fourth country in Latin America to launch a free trade agreement with the Asian giant after Chile, Peru and Costa Rica.
In the days prior to the ratification of the agreement by the National Assembly of Ecuador, last February, business associations had emphasized the multitude of opportunities that would open up for Ecuador by applying this treaty, while indigenous groups, environmentalists and ecologists They expressed their fears that it will open the door to the entry of toxic waste and Chinese fishing fleets into Ecuadorian waters.
The free trade agreement was signed in May 2023 under the presidential mandate of Guillermo Lasso (2021-2023), and his successor, Daniel Noboa, supported its ratification supported by other conservative groups in the Legislature.
This agreement will boost Ecuador’s relations with China, which since 2022 has become its first trading partner by overtaking the United States as the first destination for non-oil exports, especially shrimp and lead and copper concentrate. EFE
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