Canada began internal consultations to advance negotiations for an FTA with Ecuador

After about a month and a half since Ecuador and Canada announced that they will begin exploratory talks for a possible Free Trade Agreement (FTA) between both nations, Mary Ng, Minister of International Trade, Export Promotion, Small Businesses and Economic Development of Canada , announced that his country started with internal consultations or “Exploratory Talks”.

According to the Minister of Production, Foreign Trade, Investment and Fisheries, Julio José Prado, this official announcement from the North American country is that a “process will eventually lead us to start a FTA negotiation with Canada.”

Ecuador explores a possible FTA with Canada, where purchasing power is nine times more than that of local consumers

“Excited to launch consultations towards a potential Free Trade Agreement between Canada and Ecuador. This is your chance to make her voice heard on Canada’s priorities and help us achieve inclusive growth for our two countries,” the minister posted on her official Twitter account.

Bilateral merchandise trade between Ecuador and Canada reached approximately $759 million in 2021. In addition, on December 1, Ecuador reopened its commercial office in Ottawa.

However, the non-oil trade balance is favorable to Canada, although from 2021 to 2022 the gap has shown a reduction.

According to figures presented by the Ecuadorian Federation of Exporters (Fedexpor), from January to September 2021 the difference was favorable to the North American country for $195 million ($126 million in exports and $321 in imports).

In the same period of 2022, Ecuadorian exports to Canada grew 60%, reaching $201 million, shortening the difference with imports that were also reduced to $273 million (-15%), which was reflected in a trade balance of only $72 million in favor of Canada.

Ecuador reopened its commercial office in Canada, a country with which it seeks a commercial agreement

In 2021, Canada became the thirteenth destination for the country’s non-oil exports. Currently, this market hosts around 239 exported products, including minerals and metals, flowers, cocoa beans, shrimp and broccoli; which concentrates 78% of non-oil exports to this country. In addition, 396 local companies are linked to exports to this market.

While Canada imports mostly cereals, fertilizers, machines and mechanical devices, vegetables, and electrical machines and devices; that concentrate 91% of non-oil imports. Non-oil imports from Canada increased by 70% in 2021. (I)