The International Trade Council (ITC) is pleased to announce the signing of a Free Trade Agreement (FTA) between China and Ecuador. This landmark agreement, facilitated by the Chinese Ministry of Commerce, is set to enhance bilateral trade and strengthen business ties between the two nations.
As per the agreement, Ecuador joins the ranks as China's 27th FTA partner, further consolidating Beijing's trading relationships in Latin America, which already includes Chile, Peru, and Costa Rica. The virtual signing ceremony saw Chinese Commerce Minister Wang Wentao and Ecuador's Minister of Production, Foreign Trade, Investments, and Fisheries, Julio Jose Prado, seal the deal after a year-long negotiation process.
The FTA is designed to facilitate a high-standard mutual opening, create an improved business environment, and unlock the potential in trade and investment cooperation. This will foster the sustainable, stable, and diversified development of bilateral trade. Once enacted, the FTA will see up to 90% of the goods traded between China and Ecuador exempt from tariffs, with 60% of goods enjoying zero tariffs immediately.
The commerce ministry has indicated that China and Ecuador will expedite their domestic procedures to ensure the FTA is operational at the earliest. Furthermore, the two sides are committed to further negotiations on areas of mutual interest to enhance the FTA continually.
In 2022, China and Ecuador marked double-digit growth in trade for the second consecutive year. With bilateral trade amounting to $13.1 billion, a significant 19.7% year-on-year increase, China is Ecuador's second-largest trading partner.
This FTA is a significant milestone in fostering international trade and represents a model for future trade agreements.