With the signing of the trade agreement with China, Ecuador’s exportable supply would stop paying around USD 140 million in tariffs per year.
The successful conclusion of the negotiations of a trade agreement with China is a positive announcement for 11,212 companies that maintain commercial relations with that market.
Of the total, 632 firms export to China, which would stop paying about USD 140 million in tariffs once the treaty is signed, says the Ecuadorian Federation of Exporters (Fedexpor).
“Tariff-free access to raw materials, inputs, tools and equipment reduces production costs and represents greater variety and quality for Ecuadorian consumers,” says the Ministry of Production.
China is one of the main destinations for Ecuador’s exports, representing 18% of the total supply.
Between January and October 2022, Ecuadorian exports to that market totaled USD 5,005 million, according to the Central Bank.
The most exported products are shrimp, lead and copper concentrate, raft, bananas and animal feed.
Imports from China
In contrast, imports from China reached USD 4.58 billion in the first 10 months of 2022.
From this market, Ecuador imports, above all, productive inputs such as raw materials and capital goods.
The list includes electrical and mechanical machines and appliances, vehicles and auto parts, iron and steel casting, and pharmaceuticals.
“China is the main supplier of raw materials and capital goods necessary to
modernize national production,” says Fedexpor.