Arturo Cabrera: Australia and New Zealand are hotspots for Southeast Asia

Arturo Cabrera is ambassador of Ecuador in Australia, concurrent in New Zealand and Fiji. The official analyzes the opportunities to strengthen relations with countries in Oceania, with which Ecuador has little exchange, driven by commercial diplomacy inspired by the formula “More Ecuador in the world and more world in Ecuador.” Until 2020, exports to Australia closed at $13 million, while with New Zealand they reached $33 million.

How do you evaluate Ecuador’s commercial exchange with Australia and New Zealand?

With both countries there is no positive trade balance and, furthermore, the exchange is minimal. But with the approach made by the Government to bring more Ecuador to the world, more can be reached in these two countries where we do not have a strong presence. We must consider that we have successfully reached other regions and countries of the world and it is possible to reach them as well.

But why hasn’t the exchange to these destinations been strengthened?

There are reasons that can explain why we are not like Ecuador in this potential market and potential cooperator, an ally in many multilateral elements. The main one is because we have the idea that Australia is very far away and this is not true. For example, if you depart from Santiago, it is a twelve-hour flight, which is the same as for Amsterdam. Distance should not be considered as an element for not having a privileged relationship. Much more work can be done on issues of logistics, strategic rapprochement, and we could be much closer to countries with a good social, economic, and legal reality.

What is the profile of consumers in those countries?

Entry per capita in Australia it’s over $50,000 on average, to name a few. It is a company that has the resources to acquire products that are star in Ecuador. We have the quality that other countries in the world do not have regarding tropical fruits and roses. The level of income allows us to project that other products such as chocolate and coffee, which have a high level of quality, can enter and be desired. In addition, an extra point is that Australia is among the countries where it is easiest to do business.

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

So, reaching these countries would be a kind of springboard for other markets?

These countries should be seen as a gateway to Southeast Asia. But not only on the commercial issue. For example, Ecuador is interested in strengthening relations because there are fourteen countries (if all of Oceania is counted) that can be translated into fourteen votes in international forums, support so that the Trans-Pacific Agreement can be entered, which is an aspiration of this Government. At the same time, Ecuador is supporting New Zealand and Australia in their interest to be part of the Pacific Alliance. There is an important element that is already being worked on to strengthen that relationship with Australia and New Zealand and that is to bring an airline from New Zealand and a freighter from Australia (Qantas cargo). Could Ecuador become a hub towards other regions, considering that it is also an objective of Ecuador in its search to diversify and expand the air cargo issue.

Is this the first time that you seek to strengthen the relationship with these two countries?

There have been approaches, but now they are looking more aggressively to strengthen relations with potential strategic partners. You need to plan, establish what the information needs are and process that information. With market intelligence studies we can establish scenarios, advantages and disadvantages. All this information can then be transmitted in an understandable way to different sectors so that their roadmaps can be established. I have prepared a work plan that will allow these roadmaps to be established. Ecuador at this moment is a strategic ally and why not for the other countries.

There is a visa called Work and Holiday, that allows young people up to 30 years old to go to Australia with permission to work or study. It is important to develop this type of agreement in order to recover the know how of Ecuadorians who traveled to that country for work or study.

So, it aims to reach an agreement with these two countries…

It is important to have agreements with Australia and New Zealand, but also to target these broader structures that facilitate trade in other areas, such as the transpacific.

What are the actions in the short term?

We have a work plan that seeks to anchor strategic associations, pilot projects, placing the right actors face to face. All these actions based on studies of the needs of both parties potentially extend them in the sectors in which there is a certain relationship. (I)