In the coming weeks, the chief negotiators of China and Ecuador will define the date and place for the signing of the FTA

Ecuador advances with the schedules of the bilateral negotiations with different countries focused on defining the signing of the agreements technically closed with some, such as China and Costa Rica; and progress in talks with other markets such as Canada and South Korea.

The latter is the closest in the work schedule of the Ecuadorian negotiating team, as indicated by the Vice Ministry of Foreign Trade. A series of intersectional meetings between the two teams is expected to take place virtually between January 16 and February 2, and by the end of next March the IX round of negotiations in Seoul.

The President of the Republic, Guillermo Lasso, indicated last week that he hopes that by the end of that month the technical negotiations with South Korea will be closed, a country with which there would be talks to build a vehicle assembly plant in Ecuador.

With the trade agreement with South Korea, a new vehicle assembly factory is projected in Ecuador

The last round was held in Quito, from November 22 to 25, and culminated in a 70% advance and the closing of 7 chapters of the trade instrument called the Strategic Agreement for Economic Cooperation between Ecuador and Korea (SECA, for its acronym in English). ).

In 2021, Korea was the 18th destination for Ecuadorian non-oil exports to the world and is the first Asian country with which Ecuador began negotiations to reach a trade agreement. This market represents 51.3 million inhabitants and a GDP per capita of $32,143.

The main non-oil export products from Ecuador to Korea are shrimp, metal waste, bananas, fishmeal, other metal manufactures, cocoa and banana products. Regarding the products that have the potential to be exported to Korea, we find the raft, chocolate bars, specialty coffee, refrigerated and frozen dorado, broccoli, frozen swordfish, snacks vegetables and cocoa beans.

In the case of China, the country with which the agreement was technically closed at the beginning of this year, after ten months of negotiations, the Vice Ministry indicated that in the coming weeks there will be a meeting at the level of Chief Negotiators, although it is not yet date defined. At that meeting, it is projected that both representatives agree on the date and place for signing the agreement.

Before, the processes of formalizing the offers, translation and legal review must be completed, the date of which will be announced by both governments.

Agreement with China excludes about 800 highly sensitive products; and includes relief with terms of up to 20 years for sectors of medium sensitivity

Currently, joint trade between Ecuador and China exceeds $10,000 million. Until the first half of 2022, the People’s Republic of China became Ecuador’s main non-oil trade partner.

Similarly, in the case of Costa Rica, the country with which the legal review was completed on December 23, the coordinators of both countries are expected to define the date on which the Agreement will be signed. According to the Vice Ministry, both officials are in talks.

The Vice Minister of Foreign Trade, Daniel Legarda, indicated this Tuesday in a radio interview that the agreement with Costa Rica is part of a regional integration and also includes state-of-the-art disciplines such as gender and trade, commitments related to the environment, the participation of MSMEs and electronic commerce.

“A small country but not for that reason, less important. For Ecuador it is vital to have a presence in Central America, part of the deepening of regional integration,” explained Legarda, who added that Ecuador’s particular interest in Costa Rica is the entry of non-traditional products from the manufacturing sector such as appliances, ceramics, boards wood, construction products, textiles, among others.

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

It is expected that 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, iron and steel raw materials for industry, medicines for human use, medical instruments and devices, among others.

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

In what has to do with Canada, a market that began internal consultations last week to advance to a negotiation process for an FTA with Ecuador, the Vice Ministry indicated that meeting dates have not yet been defined.

“These will be given according to the requirements of Canada within its internal process of exploratory dialogues,” reported the entity, which on Panama and the Dominican Republic have not yet shared information on their schedules for the advancement of their respective bilateral agreements. (YO)