The challenge of Ecuador to seduce China

Posted On 26 Feb 2018

Ecuadornews:

Ecuador has had negative a trade balance with China throughout history. However, you can increase exports to that destination. One of the Ecuadorian products that already seduce the Chinese market are shrimps. At the beginning they entered as a replacement, because of the problem that Thailand had in providing them. An opportunity that was used to demonstrate the quality and flavor, and that is why China continues to buy Ecuadorian shrimp and has even increased.

It is the vision of José Antonio Hidaldo, president of the Ecuadorian-Chinese Chamber of Commerce, presented at a conference at the open house of Foreign Trade, Comex, organized by the Chamber of Commerce of Guayaquil.

In the talk he posed a challenge: increase non-oil exports to China, which currently represent 3.5% of international sales.

How can this percentage be increased? For this, we have to work on four goals, after the country’s president visited China. One: you must export products such as bananas and shrimp with a low tariff. “Yes, there was an initiative by China at the end of last year, when it lowered 50% of tariffs and did so because of its need to buy more food.” And here opens the great opportunity for Ecuador, a country rich in agro-industrial products.

Therefore, the second point is that foreign investment goes to the agricultural sector, to private projects.

Point three is the entry of new products. There is a great limitation in the issue of phytosanitary permits. At present, only banana and mango can be exported in fruit. Then, we must achieve the permits for more fruits.

The fourth point refers to tariff preferences for products that Ecuador does not generate, but it must be a stable tariff policy.

With these four points and having a commercial agenda, that 3.5% can be converted into three years by 15%.

The aim is to make China a priority market for non-oil exports.

To achieve this it is also necessary to pay attention to the history and culture of China, and it is even necessary to put into practice a phrase of Deng Xiaoping, president of China: it does not matter if the cat is black or white, as long as it catches mice. “That is to say, no matter what ideology we have, we are going to do business,” said Hidalgo. So China is a big exporter.

An additional point that should be taken into account is that the Chinese population will rise, because the Government already allows to have more than one child. Therefore, he will need more food, and Ecuador can sell it to him.

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