The session of the 887th plenary session of the National Assembly was adjourned this Thursday afternoon, January 11, pending the approval or not of the trade agreement between Ecuador and China, whose discussion began today in the legislature.

During the debate, there were interventions by members of parliament for and against the contract that was signed with the Asian giant in May 2023 and which received a positive opinion from the Constitutional Court on November 1 last year. After the adjournment of the session, the President of the Assembly, Henry Kronfle, announced that the return would be announced in due course.

The extension of this step towards the validity of the agreement worries the manufacturing sectors, which in the case of exporters, through the Corporation of Exporters Guilds of Ecuador (Cordex), called on the Assembly not to delay the approval of the agreement.

“Cordex, which represents 75% of the country’s export supply, insists on the approval of the trade agreement between Ecuador and China because it represents an excellent opportunity for growth for Ecuadorian products,” said the corporation, which announced that discussions on the agreement will continue next week.

Approval of a free trade deal with China is in jeopardy due to a lack of votes, putting the government and its allies in trouble

He reminded that China, with a population of 1.4 billion inhabitants and a constantly growing middle class of 800 million people, represents new consumer trends both online and in traditional stores. China’s food balance stands out, with fruit consumption per capita of 60 kilograms, of which 60% is imported, which represents an opportunity that Ecuador should not miss.

According to the exporters’ union, the agreement is crucial for Ecuador, as it reduces tariffs from 30% to 5% through progressive tariff reductions, saving the country $140 million. “This pact seeks to facilitate access to a market of more than 1.5 billion Chinese consumers,” they said.

For José Antonio Camposano, Chairman of the Board of Directors of Cordex and Executive President of the National Chamber of Aquaculture (CNA), the trade agreement with China will create mechanisms for the exchange of technical and health information that will facilitate compliance with the necessary standards to access that market.. “For the shrimp sector , this mechanism will bring security to commercial relations with that country,” he pointed out.

Meanwhile, José Antonio Hidalgo, Vice President of the Cordex Board of Directors and Executive Director of the Association of Ecuadorian Banana Exporters (Aebe), indicated that the approval of the agreement, plus other initiatives across Asia, will allow for an immediate recovery of Ecuadorian bananas in the Chinese market, strengthening Ecuador’s position in East Asia . “Banana exports to the area would increase to 53.6 million boxes with an FOB value of $506 million,” a leading exporter predicted.

The agreement excludes sensitive sectors, such as textiles, to protect local industry. It also includes rules of origin, improvements in customs procedures, trade facilitation, trade defence, sanitary and phytosanitary protocols, reduction of technical barriers, investment cooperation, promotion of electronic commerce, competition, transparency, dispute settlement and economic cooperation.

The treatment of the trade agreement signed with China is entering the final stage in the International Relations Commission

In addition, Cordex points out that the text will bring transparency in sanitary and phytosanitary protocols between both countries, facilitating the exchange of criteria to guarantee the efficiency and fluidity of exports. Furthermore, the importance of cooperation for the transfer of technology to our country is emphasized.

According to Gustavo Cáceres, member of the Cordex board of directors and president of the Ecuadorian Chinese Chamber of Commerce (CCECh), the agreement with China would create benefits for 99.6% of current exports. “Our sales are expected to increase by 20% in the first year of operation,” he calculated.

Regarding the suspension of the debate, Cáceres said: “We call on our representatives in the Assembly to analyze its content in a pragmatic and non-political way. “Don’t miss this historic opportunity to develop the country.”

There are also voices from the commercial sector in favor of the contract. Juan Carlos Díaz Granados, executive director of the Guayaquil Chamber of Commerce (CCG), described the agreement as a historic event for China and Ecuador. “It is the first trade agreement that Ecuador signs with an Asian country and represents a significant opportunity for Ecuador’s economic growth and the development of bilateral relations,” the leader pointed out.

He emphasized that the agreement provides for the elimination of tariffs on a wide range of products, which will benefit Ecuadorian consumers and make products made in Ecuador more competitive.

Impact on food sovereignty, among the arguments of detractors of the agreement

On the other hand, there are opposing viewpoints that hope that the Assembly will not ratify the text of the agreement. Acción Ecológica indicated that the agreement with China would deepen Ecuador’s dependence on Chinese geopolitics, affecting food, economic, political and technological sovereignty.

They also assured that the agreement “opens the door to Ecuador to allow the entry of electrical and electronic waste, waste, batteries, plastic waste, among others.”

The Confederation of Indigenous Nationalities of Ecuador (Conaie) also spoke out against the ratification of the agreement. “The free trade agreement with China is a trade agreement that Guillermo Lasso negotiated and signed behind the backs of the Ecuadorian people to favor transnational companies and not the interests of the country,” the organization said on its X account after learning of the suspension of the session. plenary sessions.

The National Confederation of Peasant, Indigenous and Black Organizations (Fenocin) also showed its rejection of the agreement. “We are strongly in favor of rejecting the Free Trade Agreement with China, due to the serious damage this agreement will cause to the environment, to our agricultural producers, especially small and medium-sized producers”, they also pointed out after the suspension of the discussions.