The ruling of the Constitutional Court is a step prior to the final approval of the Free Trade Agreement with the Asian giant, which will now remain in the hands of the next National Assembly. Exporters ask that the FTA enter into force “as soon as possible.”
Former Minister of Production, Julio José Prado, presents President Guillermo Lasso with the Free Trade Agreement signed with China, on May 10, 2023.
The Constitutional Court ruled the formal and material constitutionality of the Free Trade Agreement (FTA) between the government of Ecuador and the People’s Republic of China.
He did it on Wednesday, November 1, 2023.
After the constitutionality ruling, the FTA with China must be approved by the new National Assembly, which will be installed on November 20.
Daniel Legarda, Minister of Production, Foreign Trade, Investments and Fisheries, celebrated the ruling as the possibility of “putting more Ecuador in the world.”
“This is a very important step prior to its final approval in the next National Assembly,” Legarda said in a video on his X account.
The resolution was adopted unanimously by the nine constitutional judges in an opinion signed on October 30 and November 1.
“It is also a clear sign that the negotiation was in accordance with all constitutional provisions and with total transparency for the benefit of our country,” added the minister.
This is one of the most important trade agreements reached during the government of Guillermo Lasso, according to the minister, since China is the main destination of Ecuador’s non-oil exports.
Exporters react to the ruling.
According to article 120, paragraph 8, of the Constitution, it is now up to the President of the Republic to send the text of the treaty to the Assembly, which will have the responsibility of reviewing and deciding its approval or disapproval.
The Corporation of Exporters Guilds of Ecuador (Cordex) reacted positively to the ruling, as an “active manager” of a process that seeks to “promote trade in Ecuadorian products with the Asian giant.”
Furthermore, the entity said in a statement that it will remain vigilant and hopes that, once the National Assembly is positioned, the FTA with China will be one of the priority issues to be discussed, “so that it comes into force as soon as possible.”
According to the Corporation, the agreement means progress in the competitiveness and sustainability of exports, it implies alternatives to reduce costs and improve the productivity of Ecuadorian products.
*This note was originally published at 3:06 p.m. this Wednesday, November 1, 2023 and was updated at 4:31 p.m. with the reaction of the exporting unions.
