Analysis of the Perspectives of Foreign Trade of Ecuador in the Face of the Free Trade Agreement (FTA) with China.

Abstract

This research work deals with an analysis of the Ecuador-China FTA, signed virtually on 10.05 in Quito and 11.05.23 in Beijing, after an 8-month negotiation in 2022, with four rounds and several technical meetings., with four rounds and several technical meetings. The FTA enters into force on May 1, 2024, complying with all the established requirements and deadlines, is projected to generate thousands of new jobs and increase USD 4000 million in non-oil exports from Ecuador to China. It is considered state-of-the-art, contains 17 disciplines, an additional chapter for E-Commerce, Ecuador is the first Latin American country to include such a chapter with China, it will allow to take advantage of its technological development, it includes the immediate and gradual elimination of tariffs on 99.6% of exports in a maximum of 10 years, equal conditions in competition with countries such as Peru and Chile. In the commercial exchange carried out by the two countries, Ecuador before the agreement came into force, exporters paid tariffs of USD140 million and importers USD300 million per year. With the FTA, the first benefit received in exports was the direct access of the current and potential exportable supply in excellent conditions to a market of 1,412 million consumers, who have high purchasing power.