The signing of the trade agreement with Canada, a process initiated by the previous government, will be one of the priorities of the President of the Republic, Daniel Noboa, said the Minister of Production, Foreign Trade, Investments and Fisheries, Sonsoles García. He did so during the first official meeting with representatives of the Official Spanish Chamber of Commerce and Industry of Quito (Camespa).

The minister announced the continuation of negotiations at the beginning of 2024, with the projection that the agreement will be consolidated by the end of next year. Last November, former minister Daniel Legarda indicated that Canada’s parliament was expected to approve the start of negotiations between January and February 2024. “It’s already been approved here,” Legarda said.

Trade agreements: negotiations with the Dominican Republic remain open, and on the agenda with Panama and Canada

According to ministry figures, Ecuador’s exports to Canada have grown by 22% annually over the past five years, placing the North American country among the top 20 export destinations in the non-oil country. Likewise, from 2017 to 2021, Canada was the top foreign investor in Ecuador, with foreign direct investment (FDI) of $739.4 million.

During the meeting, García also highlighted the importance of free zones as a pillar for improving competitiveness and reducing costs. He indicated that this initiative, which is part of the draft Law on Economic Efficiency and Employment presented by President Nobo to the National Assembly, is part of the government’s priorities to promote the production chain.

In this sense, obstacles such as paperwork and bureaucracy that hinder investment have been addressed. The president of Camespa, Carmen Sánchez-Laulhé, highlighted the difficulties that companies face when trying to invest, especially in terms of legal certainty. An example is public-private alliance projects, which can take years from award to signature, which is a factor that discourages international investors and limits contract closings, the Camespa leader said.

With this in mind, Minister García assured that her portfolio is working to reduce red tape and facilitate investment, working with the Inter-American Development Bank (IDB) to establish clear guidelines for investors.

Ecuador and the Dominican Republic have officially begun negotiations to reach a trade agreement

Sánchez-Laulhé highlighted the trade exchange between Ecuador and Spain. During the first half of 2023, the chamber’s data shows a trade balance with a positive trend between the two countries, as happened in 2022, when there was a significant growth that reached a record in exports from Ecuador to Spain, recording 908 million euros. The same applies to exports from the Iberian country in the amount of 576 million euros. “These figures are favorable for the Ecuadorian economy, which from 2020 concentrated a larger increase in the export of products, such as shrimp and tuna, and turned Spain into its best ally in the European Union.”