The trade agreement signed with China can no longer be changed, but what has been signed can be discussed and this was done this Tuesday, December 26 in the Committee on International Relations and Human Mobility of the National Assembly, a continuation of what has been going on since last week , when the processing of this international instrument began.

Representatives of sectors such as electronics, textiles, export of agricultural products and automobiles appeared virtually. Although they note that the agreement could create jobs and increase exports, they also expressed their objections, such as the case of the textile industry, which stated that they feel protected by the exclusions, but that they are not on an “equal basis for competition”. with China” or the automotive industry that “only looks at the export performance, not the global performance”, which is why he believes that it should not be ratified.

The trade agreement between Ecuador and China has already started the process in the International Relations Commission

The Executive Director of the Chamber of Innovation and Technology of Ecuador (Citec), Gisela Montalvo, commented that electronic commerce is mentioned in Chapter 10 of the agreement. Among the possibilities he sees is the implementation of various technical and organizational measures that form a scheme of greater protection and development of citizens; promotion of research and knowledge; opportunities for entrepreneurs and starups digital to find a new market; development of the industry by incorporating new digital tools that will serve the growth of the sector and the implementation of good technological practices.

The CEO of Acontex, Guido Altamirano, intervened for the textile sector and they agree “as long as the exclusion is maintained, the mixed tariff is maintained and public policies are generated” to which they can contribute. “We feel protected at the moment with the exclusion of items and the maintenance of the mixed tariff, (however) we cannot say that we are in a position to compete, there is no equality because of that baggage of knowledge because of that industry so strong that the clothing and textile industry in China and you clusters that are connected.”

As an example, he stated that the Chinese can produce a product sample in seven to eight days, while in Ecuador it sometimes takes between 10 and 12 days, due to certain problems of technology, input information, availability of inputs at that time. hand. “We are not in a position to compete on an equal footing with China, but at this point we feel protected in this agreement.”

He also presented the figures for the sector: in 2019, they maintained 191,000 jobs, and currently 140,000, which represents a decrease of 30 percent due to a drop in sales and production, but this is a consequence of the smuggling of imported textiles.

The head of FLP Ecuador, Ana Cecilia Andrade, spoke about the agro-export sector, talking about the benefits because it would allow opening for 99.6% of exports to enter a market of more than 1,400 million in better conditions. . Jobs would be created, 50% of exports will enter at zero duty once the agreement becomes official, as well as the abolition of tariffs on imports of raw materials, inputs and capital goods which will help reduce production costs by around 74%. He also emphasized that sensitive products such as rice, potatoes, onions and corn will be protected.

Analysis of the free trade agreement with China begins with questions in the National Assembly

For Andrade, when exports increase, jobs will immediately increase. He also pointed out that one of the products that will have natural export growth will be pitahaya. “Pitahaya is a product that entered the market en masse only this year, so by reducing the customs duty from 20% to 0, exports will obviously increase.”

David Molina and Oswaldo Landázuri, executive director and president of the Chamber of Automotive Industry, were there for the automotive sector. Molina said that “there are 12 conclusions that should lead us to think that this free trade agreement should not be ratified”, and he gave reasons, one of the main ideas being that without the need for an agreement, bilateral trade is already taking place. with an Asian country..

“Since 2018, and if we take the previous period, we will see the trend much more clearly, that bilateral trade between Ecuador and China has systematically grown without the need for an agreement, because basically China buys food, which is what it needs. that apparently they could feed their large population.”

Although some costs have been reduced and better types of access can be obtained, he is concerned that during today’s and last week’s interventions at the Commission, “they are only looking at the export performance, not the global performance.” agreement.”

For his part, Landázuri pointed out that a road map is needed to sign a trade agreement, and since it is a small country, the negotiations had to be carried out in blocs.

The Constitutional Court received nine ‘amicus curiae’ for and four against the agreement between China and Ecuador

The speeches ended with the intervention of the Zaimella company representative, Diva Durán, who expressed concern saying that in less than three years, Chinese imports have monopolized more than 40% of the market. He pointed out that in 2021 the Chinese market share was 19 percent, by 2022 it had grown to 32 percent, and for this year to 39 percent. “We have proven unfair practices by importing from China in hygiene and personal care.”

The first problem they identified – he said – was the undervaluation of imports, for which they submitted more than 14 reports to the National Customs Service of Ecuador, then the violation of intellectual property rights, for which they submitted reports to the National Customs Service of Ecuador. National Intellectual Rights Service; and non-compliance with health regulations, for which they submitted more than 19 reports to the National Agency for Health Regulation, Control and Supervision (Arcsa).