Despite the fact that the declaration of the death cross shortened the days of Guillermo Lasso’s government, to a little more than half of his four-year term, his balance in commercial matters is positive, even the regime defines the dates for the start of negotiations with Panama and the Dominican Republic.

The Ministry of Production, Foreign Trade, Investments and Fisheries confirms that “negotiations will proceed normally, the start dates will still be defined. These days, the dates will be defined after meetings with colleagues have been held”.

This is in addition to the results already achieved in previous negotiations. Since May 24, 2021, when Lasso took office as the first president, Ecuador has – in an aggressive agenda – signed two trade agreements, with Costa Rica and China; it closed technical negotiations with South Korea last April and also began the process with Canada to begin negotiations.

Death on the cross puts the validity of the trade deal with China on hold

The signing of the agreement with South Korea is expected by June next year.

However, there have also been setbacks like the one that occurred with the trade agreement negotiations with Mexico that have stalled at 99% progress and now depend on the political will of the Aztec country to complete it. Mexico opposes the entry of shrimp and Ecuadorian bananas, the main products in its export basket.

On the other hand, Mexico’s refusal compromised Ecuador’s entry into the Pacific Alliance, a process that began in 2017 under Lenin Moreno. Ecuador had to have signed agreements with all members of the bloc (Chile, Peru, Colombia and Mexico) in order to enter as a full member.

The first agreement that entered into force and so far the only one in the Las era was the one signed with Chile, which is in force since May 2022. It is the Agreement on Economic Complementation (ACE 75), which updated the ACE Not. 65, in force since 2010.

Ecuador and Chile officially launch their new trade agreement that includes gender issues, small and medium enterprises and exports to third parties

Negotiations for that agreement began in 2019, and the signing took place in 2020, during the Moreno government.

While the first agreement negotiated and signed by the government of Guillermo Lasso was that of Costa Rica, signed on March 1, 2023 in San José. The negotiation process took place in four rounds from August to December 2022, virtually and in person, in which 20 disciplines were discussed.

In terms of goods, the trade exchange between the two countries reached about 110 million dollars in 2022. Exports amounted to 40 million dollars, highlighting conversations of tuna and sardines, shrimps, medicines, white goods, porcelain and sanitary ceramics, food, forestry and metals. mechanical products, among others. Imports of an approximate amount of $70 million were recorded in products such as iron or steel scrap and scrap, drugs, medical supplies, food supplements, tires, among others.

The agreement still needs to be reviewed and approved by the Constitutional Court and the National Assembly in Ecuador to enter into force, similar to the agreement signed with China on May 10.

Negotiations for this agreement began with President Lasso’s visit to Beijing on February 5, 2022. After that, four rounds and several technical meetings took place during the months of April to December 2022, virtually.

This trade agreement, focused on goods, considers a total of 17 disciplines, and is considered the most modern since it contains a chapter on electronic commerce.

In terms of goods, the trade exchange between the two countries reached about 12,000 million dollars in 2022. Exports amounted to 5,823 million dollars, highlighting products such as shrimp, lead and copper concentrates, other mining products, bananas, balsa, wood and its products. , cocoa tree, among others. Imports of an approximate amount of $6.353 million were recorded in products such as metal products, automobiles, mobile phones, computers, machinery and their parts, among others.

Canada and Ecuador have agreed to start the process for a trade deal

Through these negotiations, access was achieved for 99.6% of Ecuador’s current supply to China in baskets with current tax benefits or less than ten years.

For Albert Acosta Burne, Editor weekly analysis, The commercial sector is the one that has progressed the most during Laso’s government.

“Trade is where the most progress has been made, these are negotiations that last and are carried out after several years, it is not something immediate, but there were very important negotiations, the agreement with China is fundamental for the country, the closing of negotiations with South Korea, the attempt to negotiate with Canada and the agreements that were concluded in Central America, that is, there were many important developments in commercial matters”, confirms Acosta.

He emphasizes that these agreements will be very relevant for the future of Ecuadorian production because they will provide a great potential for employment growth and the country’s economy, although he warns that the implementation of these agreements will take time.

“In order to be implemented in practice, they need the consent of the Constitutional Court, the Assembly, and later they ask for the tariffs to be gradually lowered,” says the editor. weekly analysis, which qualifies management as a very adequate political reform and the main achievement of the Government, which will have the most influence in the country in the medium and long term.