On April 7, the negotiations leading up to the signing and validity of the trade agreement between Ecuador and South Korea ended in Seoul. From our side, what follows is for what was agreed in Seoul to be confirmed by the Constitutional Court and approved by the National Assembly. Both entities must go in favor of the validity of the agreement, since in comparing the export opportunities with the threats to the national industry that this agreement represents, its convenience is unquestionable.

The economies of both countries are complementary. In addition to oil (the main import), South Korea increasingly imports agricultural products such as meat, grains, fish, shrimp, wood, prepared foods, edible oils and fats, fruits, beverages, and dairy products. On the other hand, 90% of South Korean exports are electrical and electronic equipment, vehicles, petroleum products, plastics, metals, chemical products, optical, medical, pharmaceutical and rubber instruments and devices. The price of Korean clothes does not threaten the national industry, and its rice is too different to be adopted in Ecuador. However, the national government should promote options for jobs that may be lost in the automotive and home appliance industries.

What Ecuador buys and what it sells to South Korea, before the door of a new trade agreement

Since it is a “strategic economic cooperation agreement”, the transfer of Korean investments and services would be facilitated to improve the competitiveness of Ecuador’s manufacturing sectors. Our supply chains would have the opportunity to leap to new levels of productivity and added value thanks to better access to Korea’s range of technology solutions.

The Korean consumer demands quality. Its 52 million inhabitants have an income of $35,000 per capita (World Bank, 2021), value quality and are ready to pay for it. As is often the case with highly informed consumers, Koreans are sensitive to brand perception, interested in products that include health benefits and value after-sales service (Euromonitor Report, 2022). Therefore, this is an ideal market for high-value products from Ecuador’s various industries.

In order for these possibilities to materialize soon, it is necessary to speed up the sanitary certification of Ecuadorian food exports. The Korea Importers Association recommends that Ecuador request the approval of the health certificates that Ecuadorian products have in the US from the Korean health authorities, as the certification processes of both countries are very similar. This would save the time required to start sanitation certification from scratch.

Thanks to the negotiation team. South Korea is an irresistible business opportunity. Ecuador has its ambassador in South Korea a guide with strategic clarity, patriotism and the ability to build relationships. Let’s start with him from successful diplomatic management to winning promotion and sales. We have products and exporters up to the challenge. We’re going to Ecuador. (OR)