These are the countries with which Ecuador seeks to establish trade agreements

The current Government, led by President Guillermo Lasso Mendoza, has as one of its main goals: the signing of trade agreements with ten countries, which in turn are some of the main powers on a world scale, in the next three years.

For the president, achieving these far-reaching trade instruments will promote investment and, consequently, job creation. In addition to expanding the exchange of products that already exist with these nations.

Currently, according to information from the Ministry of Production, Foreign Trade, Investments and Fisheries (Mpceip), Ecuador has about ten trade agreements in force among which are the European Free Trade Association (EFTA), Chile, the European Union (EU), Guatemala and the United Kingdom.

1. Mexico

With this country there are already advances to reach an agreement. In fact, in January, authorities from both countries met in Mexico for the VI round of negotiations, which concluded with positive progress. Until now, Ecuador has closed thirteen work groups and maintains eight open related to telecommunications, financial services, general, commercial defense, competition, intellectual property, market access, and origin.

In March, a new round of face-to-face negotiations is planned in Quito, in which it is hoped that the tables will be closed.

The commercial exchange of the non-oil basket between Ecuador and Mexico is asymmetric. In other words, the Andean country buys more than it sends. Between January and November 2021, Ecuador exported $145 million in cocoa, canned fish, metal manufacturing; while it bought $626 million, mainly in non-durable consumer goods.

2.Chinese

The intention to sign an agreement with this country materialized in the last trip of President Guillermo Lasso by signing a Memorandum of Understanding to begin negotiations for a Free Trade Agreement.

Although Ecuador maintains a non-oil deficit trade balance with China, with the possibility of an agreement there is an expectation of doubling the number of shipments of products such as shrimp, bananas, cocoa, chocolate and snacks. In addition, there is an opening for the entry of pitahaya fruit.

Between January and November of the previous year, the total trade balance with China was in deficit in $1,593 million, with a surplus in the oil trade balance of $257 million and a deficit in the non-oil trade balance of $1,851 million.

3. United States

With $3,509 million exported between January and November 2021, the northern country concentrates 22% of the country’s non-oil exports. In the last three years, with this destination, Ecuador has had a favorable non-oil trade balance. In the eleven months of 2021 alone, there was a surplus of $1.14 billion.

The main products exported to the North American nation are shrimp, bananas, flowers, fresh fish and cocoa. Of these products, the crustacean is one of those with the greatest participation in that country. In fact, in the last year, the shrimp sector was supported in this destination with the shipment of a greater volume, including shrimp with added value. The United States, for aquaculture activity, is the second commercial destination.

Since August 2021, Ecuador has in force with that country a protocol to the Agreement of the Trade and Investment Council. The instrument, signed between the two countries in 2020, began a stage of deepening the commercial relationship with a view to negotiating a broader trade agreement in the future.

4. Panama

Ecuador sends to Panama products such as canned fish, medicines, beverages, leather, plastic and rubber manufactures, paper and cardboard manufactures, among others.

Until November 2021, imports from Panama exceeded exports from Ecuador. Last year, $53 million worth of non-oil goods were shipped, while $56 million was purchased. With that country, in 2021, the update of the Terms of Reference to start the process towards a Partial Scope Agreement between both nations.

5. Canada

Coffee beans, shrimp, broccoli, flowers, and minerals and metals are among the Ecuadorian products that are exported to Canada. Some $172 million were sold to this destination until November 2021.

Canada is a market of 38 million inhabitants, more than twice the population of Ecuador.

With this country, in the period from January to November of the previous year, a deficit was registered in the non-oil trade balance of $223 million. This is $104 million more than 2020 and an additional $25 million to the deficit recorded in 2019, the pre-pandemic year.

Ecuador mainly buys raw material from Canada.

6.Costa Rican

Costa Rica is another of the countries that appear in the list of nations with which it seeks to strengthen bilateral relations through broad trade agreements.

Although the amount of exports is not high, compared to other countries on the list, there is a negative balance for Ecuador in the non-oil balance. The country imports more than it exports. Citing the period of January and November 2021, Ecuador sent $19 million in fish products, chemicals, textiles, minerals, canned tuna, among others. Meanwhile, Costa Rica sent Ecuador $55 million, in the same period, in raw materials, capital and consumer goods.

With this country, Ecuador signed a Memorandum of Understanding on Fisheries and Aquaculture Cooperation that was signed in February 2021. The objective of the document was to promote joint actions aimed at the conservation and sustainable use of fisheries and aquaculture resources.

7. Russia

Russia is another of the countries with which Ecuador has a positive balance in its non-oil trade balance. Driven, mainly, by the shipment of bananas; This nation captures 6% of the non-oil supply with products such as shrimp, coffee, fresh fish and flowers.

In the last three years, the surplus has gone from $662 million in 2019 to $700 million at the end of January 2021.

In September 2021, the Minister of Production Julio José Prado met with the ambassador of the Russian Federation in Ecuador, with whom he exchanged information to motivate a possible bilateral agreement on commercial matters.

8. South Korea

The non-oil trade balance with South Korea remained negative for Ecuador in the last year. Through 2021, the gap was -$230 million; a figure higher than that of 2020, but lower than that of 2019. Minerals and metals, shrimp and bananas are part of the basket of products that are marketed to the Asian nation.

South Korea captured $74 million from Ecuador’s shrimp exports alone (nearly 65% ​​of what was sent to that country), some $24 million more when compared to January and November 2017.

9. Japan

Japan is one of the main destinations for Ecuadorian broccoli. Between January and November 2021, Ecuador sent $54 million in this product to that country alone, a high figure considering that in 2017 sales were $33 million.

Driven by broccoli and bananas, exports to this destination reached $195 million in 2021. However, Ecuador’s purchases from Japan exceed the amount exported. In recent years there has been a deficit in the non-oil balance. For example, in 2021, the deficit was $189 million since imports in that year reached $384 million for the acquisition of raw materials and capital goods.

Japan is a market of 125 million people.

10. Dominican Republic

Ecuador and the Dominican Republic They signed a Memorandum of Understanding in 2020 during the government of Lenin Moreno, through which a kind of roadmap was established to boost and promote trade, investment and the productive chain of the two countries.

With this nation Ecuador maintains a positive non-oil trade balance. In 2021, $92 million was exported, some $12 million more than in 2020. The main export products to the Dominican Republic are black unstemmed tobacco, crude palm oil, fresh cut roses, among others.