These are the 10 products that Ecuador imports and exports the most to and from China, the country with which it will sign an FTA

In 2023, China will become the new destination for Ecuadorian exports that have a Free Trade Agreement, after this Tuesday, January 3, the President of the Republic, Guillermo Lasso, announced the successful conclusion of negotiations with the Asian giant . According to figures from the Ecuadorian Federation of Exporters (Fedexpor), in 2021 the total trade balance with China was $1,292 million in deficit, with a surplus in the oil trade balance of $260 million and a deficit in the non-oil trade balance of $ 1,552 million.

In the latter, from January to October 2022, according to the latest data from the Central Bank, Ecuador exported products to China for $4,929 million and imported $5,205 million, still generating a trade balance deficit of $276 million, although much less than that of the same period of 2021 that was located at $ 1,457 million.

Ecuador announces successful completion of the FTA negotiation with China

This is due to the growth of non-oil exports by 77%.

Shrimp, with $3.39 billion in exports, is the Ecuadorian product with the greatest presence in the Chinese market and leads the 10 main products most in demand by that country, which has 1.4 billion inhabitants. Compared to what was exported from January to October 2021, the crustacean increased its arrival in the Asian giant by 97% in foreign currency and 63% in volume.

These are the ten most exported products to China from Ecuador and their values:

1. Shrimp: $3.390 million.
2. Minerals and metals: $1,256 million.
3. Manufactured wood: $114 million.
4. Banana and plantain: $86 million.
5. Animal feed: $33 million.
6. Fishing products and crustaceans: $14 million.
7. Fruits: $6 million.
8. Leather and manufacturing: $3 million.
9. Flowers: $4 million.
10. Other manufactured goods: $2 million.

Regarding non-oil imports, according to figures for 2021, they totaled $5,216 million, with a growth of 44% compared to 2020 ($3,618 million). That year, imports of productive inputs (raw materials and capital goods) made up 77% of non-oil imports that arrived from China, totaling $4,034 million in 2021.

Meanwhile, from January to October 2022, the most imported products were machines and mechanical devices with $908 million, 20% more in value and 14% more in volume than the same period in 2021.

These are the 10 most imported products from China to Ecuador and their values:

1. Machines and mechanical devices: $908 million.
2. Electrical machines and appliances: $888 million.
3. Vehicles and Parts: $809 million.
4. Iron and steel foundry: $371 million.
5. Plastic and its manufactures: $307 million.
6. Iron and steel manufacturing: $232 million.
7. Organic Chemicals: $187 million.
8. Surgical devices: $136 million.
9. Rubber and its manufactures: $118 million.
10. Pharmaceuticals: $42 million

Meanwhile, Fedexpor highlights in its report that there are competing tariffs that are charged in China and Ecuador on the main export products of each country.

For example, the exporting union indicated that Ecuador’s exportable supply pays around $140 million annually for tariffs to enter China.

These are the main export products facing tariffs in China:

• Shrimp: 2%-5%.
• Banana: 10%.
• Fishmeal: 2%.
• Copper waste: 1%.
• Non-traditional fruits: 12%-30%.
• Other fish: 7%.
• Wood in blocks: 6%.
• Leather products: 5%-7%.
• Roses: 10%

Other supplying countries for this market, such as India in shrimp, or the Philippines in bananas, enjoy tariff preferences, which for India is half the tariff rate paid by shrimp and for the Philippines it is a free entry of bananas without tariff charge.

China is already Ecuador’s number 1 partner, being the largest destination for its non-oil exports

According to Fedexpor, barely 40% of Ecuador’s exportable supply is currently covered by trade agreements, while competing countries such as Mexico, Chile, Peru, Costa Rica and Colombia have around 90% protected by trade agreements (without payment of tariffs). of its exports.

“With the signing of the FTA with China, Ecuador could expand its coverage to 60% and cover an additional 20% of the current value of its non-oil exports with a trade agreement,” Fedexpor projected.

Meanwhile, Julio José Prado, Minister of Production, Foreign Trade, Investment and Fisheries, affirmed this Tuesday, January 3, that the FTA will grant preferential access for 99% of Ecuadorian exports to China: shrimp, bananas, roses and flowers, cocoa, coffee , but also new products such as dragon fruit, pineapple, mango, blueberries, quinoa, processed foods, fresh and canned fruits, and much more.