Ecuador will become this year the 25th country in the world and the third in South America to sign a trade agreement with China. This, according to information from the Ministry of Production, Foreign Trade, Investment and Fisheries, which highlighted that in the Ecuador region it will join Chili Y Perucountries that already have a trade agreement with the Asian giant.
Meanwhile, in Europe, China has trade agreements in force with Iceland. In Eurasian with Georgia; in Asia with Cambodia, Maldives, Korea, Pakistanthe Association of Southeast Asian Nations (ASEAN) consisting of Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. It also has agreements with Hong Kong Y macauThese two have the Closer Economic Partnership Arrangement (CEPA) or Closer Economic Partnership Agreement in force.
Three teams are in charge of negotiating Ecuador’s trade agreements. Get to know who their heads are
In Central America, the only country that has an agreement with China is Costa Rica, a country with which Ecuador will also sign an agreement at the beginning of March in San José. In Africa, China has a trade agreement with Mauricio, an island nation in the Indian Ocean; and in Oceania with Australia Y New Zealand.
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.
🇪🇨🇨🇳 The trade agreement between Ecuador and China was a high-level technical process negotiated in less than a year. Learn more about the stages that the country has followed to strengthen ties with this market of 1.4 billion consumers.#MoreEcuadorInTheWorld
– Ministry of Production (@Produccion_Ecu) January 30, 2023
Meanwhile, the entry into force of this trade agreement will allow preferential access for 99% of Ecuador’s current exports to China, said the State portfolio, which highlighted mainly agricultural and agro-industrial products such as shrimp, bananas, roses and flowers. , cocoa, coffee, among the main ones, but it will also open the doors of exports of non-traditional products such as pitahaya, pineapple, mango, blueberries, quinoa, processed foods, fresh and canned fruits, and a large number of other products on offer agricultural and agro-industrial.
However, the Ministry clarified that sensitivities in the agricultural and industrial sectors have also been precautionary, establishing around 800 exclusions, particularly in the manufacturing field, as well as long periods of tax relief of up to 20 years.
Agreement with China excludes about 800 highly sensitive products; and includes relief with terms of up to 20 years for sectors of medium sensitivity
On the other hand, tariff-free access to raw materials, inputs, tools and equipment reduces production costs for the Ecuadorian industry and will offer greater variety and quality for Ecuadorian consumers.
After 10 months of negotiation, which culminated at the beginning of January with the technical closure, it is projected that by next February the legal review of the texts of the agreement will be carried out to define more clearly the specific dates in which a final document could already exist. for closing.
Source: Eluniverso
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