Non-oil non-mining exports grew in January 2023
The first month of this year, non-oil non-mining exports grew 4% in sales compared to January 2022.
Sales represented USD 1,475 million and constitute 63% of total exports, the Federation of Exporters of Ecuador (Fedexpor) indicates in its bulletin. They also had a volume growth of 11%, which means 1,049 tons of products.
Exports of the 10 main products of the Ecuadorian offer reached USD 1,290 million in January 2023. Most of them are concentrated in the food sector.
Shrimp is the main product and its export value increased by 4% in January. The commercialization of bananas and plantains grew by 18% in their export value.
The data shows that the fruit was well positioned at the beginning of the year in the European Union, the United States and China. In all these markets, bananas recovered remarkably, especially in Europe.
Fedexpor details that USD 177 million in bananas of the total USD 303 million exported to that common market were sold to the European Union. Its good performance is reflected in the 29% increase in both volume and sales.
Other products such as canned fish and cocoa and its preparations reduced their export value by -6% and -22% respectively.
The three export markets
Exports by destination also showed growth. China was the first market for Ecuador’s non-oil, non-mining supply.
During that month, non-oil non-mining exports to the Asian country grew by 8%. The United States, as the second commercial destination, participated with 6% of the sales.
Together with the European Union, the three main destinations concentrated 66% of the non-oil non-mining exported value.
In this period, the country’s total exports were USD 2,338 million, a lower figure of 5%, compared to the same period in 2022.
Non-oil non-mining shipments concentrated 63% of the total exported. The 4% increase in sales equates to more than USD 57 million in foreign exchange earnings.
Asia, North America and Europe are the markets where most of the consumers of Ecuadorian exports are.
Price pressure and inflation
Felipe Ribadeneira, Executive President of Fedexpor, analyzes that the first two months of 2023 saw strong price pressure in the destination markets, inflation from the great economic powers, as well as the collateral effects of the Russia-Ukraine war. Also, insecurity in cargo transportation influenced.
These factors hit the performance of exports at the beginning of the year. For this reason, the completion of trade agreements is essential for him.
The Trade Agreement with Costa Rica has already been signed, which regardless of the local situation, is progress in that direction.
The trade agreement with Costa Rica contemplates the reduction of 96% of the current exported value. The main Ecuadorian products that will benefit are industrialized products and sea products where the tariff is 15% average.
This constitutes a direct injection of competitiveness once it enters into force. Costa Rica is seen as an important gateway to Central America which, due to its characteristics, should be the new destination for manufactured exports that predominate in the Andean Community of Nations.
The formal closure with China should be promoted in 2023, the negotiations with South Korea finished, and the negotiations with Canada, Panama and the Dominican Republic started.
When this happens, six out of every USD 10 will come from exports. For now, it is barely 4 out of every USD 10.