Improving the legal framework to attract more investment to the country, as well as resuming talks to lift the yellow card for Ecuador’s fishing sector, are among the challenges pointed out by the ambassador of the European Union in Ecuador, Charles-Michel Geurtsduring a press conference, together with the Ecuadorian Federation of Exporters (Fedexpor).
On the first topic, the EU representative He reiterated the need to “capitalize on the achievements of the trade agreement to stimulate investment.” According to data offered by the ambassador, the European bloc became the largest investor in Ecuador in 2017, 2018 and 2019 with 22%, 33% and 38% of the total foreign investment that arrived in the country. Especially in activities such as agriculture, services, commerce and mines.
In this way, he said, it is necessary to work with the current government to improve the legal framework and legal certainty that are pillars to stimulate more investment. For Geurts, although Ecuador is making progress in adjusting its regulations to international standards, it is essential to achieve a correct application of this legal framework that derives in the injection of capital both national and international.
Walnuts, olives, carpets and prepared soups enter with 0% tariff in the sixth year of validity of the agreement with the European Union
On the other hand, Ambassador Geurts said that Another challenge that the country has is to lift the yellow card that the fishing sector has and resume the dialogue. “We have a yellow card process, which is an alert to improve the legal framework and its fight against illegal fishing.”
On this subject, he mentioned that there is a delay in the implementation of the bilateral action plan and in the adoption of the regulations of the Organic Fisheries Law. “We see an initiative to change the Law, despite the fact that there are no implemented regulations. It is a challenge, at the beginning of the year, to revitalize the dialogue so that the color change process does not go towards the color red”, Geurts pointed out.
A positive balance in five years of validity of the agreement between Ecuador and the EU
The EU ambassador to Ecuador He reiterated that the trade balance between the European bloc and Ecuador continues to be favorable for the Andean country, reaching a trade surplus in 2020.
He mentioned that the growth in commercial exchange It has been possible thanks to the establishment of a legal framework with clear rules. In this sense, another of the achievements of this instrument is the reduction in prices of imported products thanks to the progressive tariff reduction, which in 2022 will be applied to 1,326 products that will enter from the EU with a zero tariff. Tax-reduced products include vegetables, dairy products, meat products, plastics, wool, tractors, instruments and toys.
Fedexpor points out that The European Union is one of the few trading partners with which Ecuador has a favorable and sustained trade balance over timewith which a surplus of more than $5.9 billion has been accumulated in the last five years.
Philip Ribadeneira, President of the union, mentioned that the deepening of the commercial relationship through the Multipart Agreement has allowed bilateral trade to increase by 31% in the last five years. “Ecuador has climbed in the position of supplier of certain products, such as the case of flowers or the case of cocoa beans, which was positioned from being sixth to fifth,” said the leader, who highlighted the fact that Ecuador remains as the main supplier of bananas and plantains and shrimp in the European Union.
In addition, among other effects of the agreement, it is that the generation of more than 22,000 new jobs has materialized, with an export business fabric that is made up of 65% of MSMEs, where the non-traditional offer is the main letter of introduction of the latter companies. Some 200 new companies have managed to export to the European Union, within which the majority are exporters of flowers, bananas and plantains and wood and its manufactures.
Main points of the eighth meeting of the Trade Committee between the EU-Colombia/Ecuador/Peru
At the meeting, held on December 2 and 3, 2021, the EU emphasized in the importance of solving the problems of access to the Ecuadorian market for European agricultural products, in the need to address issues such as intellectual property rights and geographical indications and solve deficiencies in the application of the chapter on trade and sustainable development, specifically, on the right of association of workers.
While, from the Ecuadorian side more information was requested on the impact of the European Green Deal and the Farm to Fork Strategy on agricultural exports; understand how the EU sets maximum residue limits for agricultural imports from third countries; understand the consequences of new European policies, for example the new proposal for European legislation on deforestation; and understand the legal framework to negotiate a future agreement for the recognition of equivalences in organic products and the possible consequences of the new European legislation on organic products for Ecuadorian exports. (I)
Source: Eluniverso
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