The Government of Ecuador reported that the signing of the Free Trade Agreement with China was completed this Wednesday (10.05.2023/XNUMX/XNUMX).
The instrument, signed virtually, constitutes "a demonstration of mutual trust and the implementation of the consensus reached by the Heads of State in 2022," according to the statement.
The agreement, which includes a total of 17 disciplines, is considered state-of-the-art, as it contains a chapter of E-commerce.
The Ecuadorian Government highlighted the real access to a wide range of exportable offer of 1.400 billion consumers, “with high purchasing power.” He also pointed out that the trade initiative will allow an immediate tariff reduction or less than 10 years for 99,6% of the current Ecuadorian supply to China.
This will allow level the playing field with countries neighbors (Peru and Central America) that already have an agreement with the Asian giant, and other Asian countries that compete in that market.
According to official figures, trade in goods between Ecuador and China reached a total of 12.000 billion dollars in 2022. Exports amounted to 5.823 billion dollars, highlighting products such as shrimp, lead and copper concentrate, other mining products, bananas, balsa, wood, cocoa, among others. Imports were recorded for an approximate amount of 6.353 billion dollars in products such as metal manufactures, automobiles, cell phones, computers, machines and parts, among others. Meanwhile, China imported 77% of raw materials, inputs, capital goods and fuels, elements necessary for production.
Both countries will now continue with the internal procedures to bring this treaty into force.
In the case of Ecuador, the Constitutional Court will have to review the document, and subsequently the National Assembly will have to vote on whether to ratify or reject the text signed by the trade authorities of China and Ecuador.
Ratification of the agreement will allow it to be implemented.
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