Despite the fact that the declaration of the death cross has shortened the days of Guillermo Lasso’s government, to just over halfway through its four-year term, its trade record is positive, even the regime is setting dates to begin negotiations with Panama and the Dominican Republic.

The Ministry of Production, Foreign Trade, Investment and Fisheries confirms that “negotiations will continue normally, the start dates remain to be defined. These days, the dates will be defined once the meetings are held with the counterparts”.

This is in addition to the results already achieved in previous negotiations. Since May 24, 2021, when Lasso took office as the first president, Ecuador – in an aggressive program – has signed two trade agreements, with Costa Rica and China; it closed technical negotiations with South Korea last April, and also initiated the process with Canada for the start of negotiations.

Crusader death suspends validity of trade deal with China

The signing of the agreement with South Korea is expected until next June.

However, there have also been setbacks like the one that occurred with negotiations for a trade deal with Mexico stalled at 99% progress and now depends on the political will of the Aztec country to complete it. . Mexico opposes the entry of Ecuadorian shrimps and bananas, star products in its exportable basket.

In turn, Mexico’s refusal jeopardized Ecuador’s entry into the Pacific Alliance, a process that began in 2017 under Lenín Moreno. Ecuador had to have signed agreements with all members of the bloc (Chile, Peru, Colombia and Mexico) to enter as a full member.

The first agreement to enter into force, and so far the only one, in the Lasso era was the one signed with Chile, which has been in force since May 2022. It is the Economic Complementarity Agreement (ACE 75), which updated the ACE No. 65, valid since 2010.

Ecuador and Chile officially launch their new trade agreement which includes gender issues, SMEs and exports to third parties

Negotiations for this agreement began in 2019 and the signing took place in 2020, under the Moreno government.

While the first agreement negotiated and signed by the government of Guillermo Lasso was that of Costa Rica, signed on March 1, 2023 in San José. The negotiation process took place in four rounds between August and December 2022, virtually and in person, during which 20 disciplines were discussed.

In terms of goods, trade between the two countries reached around $110 million in 2022. Exports amounted to $40 million, highlighting conversations on tuna and sardines, shrimps, medicines , white goods, porcelain and sanitary ware, food, forestry and metal. mechanical products, among others. Imports for an approximate amount of 70 million dollars were recorded in products such as waste and scrap iron or steel, medicines, medical supplies, food supplements, tires, among others.

The agreement still needs to be reviewed and approved by the Constitutional Court and the National Assembly in Ecuador for it to enter into force, similar to what is happening with the agreement signed with China on May 10.

Negotiations for this agreement began with President Lasso’s visit to Beijing on February 5, 2022. After that, four rounds and several technical meetings took place, developed over the months of April to December 2022, virtually.

This trade agreement, focused on goods, envisages a total of 17 disciplines and is considered to be at the cutting edge of technology, since it contains a chapter on electronic commerce.

In terms of goods, trade between the two countries reached around $12,000 million in 2022. Exports amounted to $5,823 million, highlighting products such as shrimp, lead concentrate and copper, other mining products, bananas, balsa, wood and its derivatives, cocoa. , among others. Imports of approximately $6,353 million were recorded in products such as fabricated metal goods, automobiles, cell phones, computers, machinery and their parts, among others.

Canada and Ecuador have agreed to begin the process of a trade agreement

With this negotiation, access was obtained for 99.6% of Ecuador’s current supply to China in baskets with immediate tax relief or less than ten years.

For Alberto Acosta Burneo, editor-in-chief of weekly analysis, The commercial sector is the one that has made the most progress under the Lasso government.

“Trade is where there has been the most progress, these are negotiations that take time and are put in place after a few years, it is not something immediate, but there is had very important negotiations, the agreement with China is fundamental for the country, concluding the negotiation with South Korea, trying to negotiate with Canada and the agreements that have been concluded in Central America, that is to say that there have been many important advances in terms of trade,” says Acosta.

He stresses that these agreements will be very relevant for the future of Ecuadorian production by ensuring that they will generate great potential for growth in employment and the country’s economy, although he warns that the implementation of these agreements will take time.

“For them to be put into practice, they require the approval of the Constitutional Court, the Assembly, and later they demand that the tariffs be gradually lowered”, explains the editor of weekly analysis, which qualifies the management as a very adequate political reform and the main achievement of the Government that will have the greatest impact in the country in the medium and long term. (YO)