Ecuador and Costa Rica close negotiations of the Trade Association Agreement

With a phone call, President Guillermo Lasso and his Costa Rican counterpart, Rodrigo Chaves, concluded the negotiation process for the Trade Association Agreement between the two countries.

The conversation between the leaders took place this Monday, while Lasso was conducting an official visit to the United States.

“We successfully closed the FTA (Free Trade Agreement) between Ecuador and Costa Rica. A highly beneficial agreement for our agribusiness and our manufacturing sector. In addition, it allows you to bring technological products, medicines, raw materials, etc., from Costa Rica. We are advancing with the strategy of putting more Ecuador in the world and more world in Ecuador”, expressed the Ecuadorian president.

The Ministry of Production, Foreign Trade, Investment and Fisheries reported that the trade instrument will allow the objectives of regional integration to be met, as well as the strategic presence of Ecuador in Central America and the Caribbean, generating benefits for the deepening of trade between both countries.

The entity highlighted that the trade agreement was negotiated in record time, since the process began in June of this year, during the IX Summit of the Americas.

Among the areas covered by the treaty are trade in goods and services, public procurement, intellectual property, electronic commerce, trade and gender, labor and environmental rights, and the inclusion of micro, small, and medium-sized enterprises (MSMEs).

With the agreement, Ecuadorian exports to Costa Rica will enjoy 96% preferential access, mainly from the manufacturing sector, such as paper, steel wire, textiles, white goods, electrical appliances, detergents, plastics, chemicals, construction products, boards and wood products, pasta, medicines, juices, fruit preparations and jams.

Canned sardines, tuna and shrimp will also benefit, indicated the Ministry of Production.

In addition, Ecuador will be able to acquire Costa Rican products under better conditions, such as metal raw materials, iron and steel for industry, medicines for human use, medical instruments and devices, among others.

The commercial exchange between the two countries exceeds $25 million. Costa Rica is the fifteenth destination of Ecuadorian exports in the region.

Julio José Prado, Minister of Production, celebrated the closing of the negotiations. “An FTA negotiated effectively and efficiently with the highest standards. Not only access to markets, but also in terms of services, investments, cooperation, etc.”

The commercial agreement will be finalized after legal processes are fulfilled. (YO)