Free trade agreement between China and Ecuador will enter into force on May 1

The Ministry of Commerce of China announced this Monday that the free trade agreement (FTA) with Ecuador will enter into force on May 1, after both countries complete the necessary internal approval processes.

It is expected that the implementation of the treaty “unlock business and investment potential“between the two nations and”promote a comprehensive improvement of bilateral economic and trade cooperation“, the portfolio reported in a statement.

The agreement, signed in May 2023, establishes that approximately 90% of the products exchanged between China and Ecuador They will be exempt from tariffs, according to data cited by the official Xinhua agency.

Ecuador will thus become the fourth country in Latin America to launch a free trade agreement with the Asian giant, after Chile, Peru and Costa Rica.

The agreement was ratified last February by the Ecuadorian Parliament after a tense session in the chamber: businessmen had highlighted the multitude of opportunities that would open up for Ecuador by applying this treaty, while indigenous and environmental groups showed their fear that it would open the gateway to the entry of toxic waste and Chinese fishing fleets into Ecuadorian waters.

The treaty was signed under the presidential mandate of the previous president, Guillermo Lasso (2021-2023), but his successor, Daniel Noboa, supported its ratification supported by other conservative groups in the legislative chamber.

This agreement will provide a boost to relations Ecuador with Chinawhich since 2022 became its first trading partner by overtaking the United States as the first destination for non-oil exports, especially shrimp and lead and copper concentrate.

Trade between both countries in 2022 reached US$ 12,295 million. While Ecuadorian exports to China reached US$5,843 million in 2022, Chinese sales to Ecuador amounted to US$6,452 million.