The International Trade Council (ITC) welcomes the landmark free trade agreement (FTA) between the People's Republic of China and the Republic of Ecuador, a move set to significantly enhance bilateral relations, boost trade exchanges, and create mutual benefits.
This strategic agreement, signed on May 10 by China's Commerce Minister Wang Wentao and Ecuador's Minister for Production, Foreign Trade, Investment and Fisheries Julio Prado, was the culmination of a year's worth of negotiations and marks a significant achievement for both nations.
President of Ecuador Guillermo Lasso articulated the far-reaching potential of the FTA, expressing his conviction that it will "translate into wellbeing for citizens, development and more income for thousands of families." The agreement, deemed "historic" by Minister Prado, encompasses the shared interests of both nations and expands opportunities for collaboration towards a more sustainable future.
With this FTA, Ecuador positions itself firmly on the Asian map, with China becoming its largest supplier of consumer goods, raw materials, and capital goods. This relationship is expected to elevate Ecuador's industry competitiveness significantly.
Furthermore, China's robust market, with over 1.4 billion consumers, presents lucrative opportunities for Ecuador's export, production, and consumer sectors. Minister Prado forecasts a potential increase of $3 to $4 billion in exports over the next decade as a result of this agreement, which is also predicted to bolster Ecuador's employment outlook in the export sector.
The ITC commends this strategic collaboration, recognizing China's leading role in global economic growth and its significant purchasing power. Xavier Rosero, vice-president of the Ecuadorian Exporters Federation, highlighted the resilience of China's economy, affirming the potential for this agreement to leverage exports and spur growth.
As Ecuador becomes the fourth Latin American country to sign an FTA with China, following Chile, Peru, and Costa Rica, the ITC echoes the sentiment of Alberto Acosta, an economic consultant and international analyst, who deemed the signing of the FTA as "excellent news" for Ecuador, set to increase trade and strengthen bilateral relations.
In recognizing the potential of the FTA to create closer relationships and increased exchanges, the ITC reaffirms its commitment to facilitating equitable trade practices and responsible global cooperation. The Council looks forward to observing the growth and opportunities generated by the China-Ecuador FTA in the years to come.