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Ecuador-China trade agreement comes into force

Quito, May 2 (Prensa Latina) The trade agreement between Ecuador and China came into force on Wednesday and will imply a tariff reduction for most of products.

The commercial sector has high expectations on the agreement, especially for agricultural and agro-industrial products that will enjoy a tariff reduction.

However, we also see an opening for processed products and cocoa byproducts. We also think that the banana market can grow as well, the president of the Ecuador-China Chamber of Commerce, Dario Regalado, told Teleamazonas.

According to the Ministry of Production, the agreement is expected to increase the value of Ecuador’s non-oil exports between three and four billion dollars, since the treaty provides for tariff relief for 99.6 percent of the products exported to China.

On the other hand, more than 4,600 types of products imported from China will enter Ecuador without paying tariffs, because they will have an immediate tariff reduction, according to the Ministry of State.

For the Ecuadorian Executive, the agreement is a door to unprecedented commercial opportunities, given that China is one of the world’s largest and most dynamic markets and a strategic destination for non-oil exports. The agreement was signed on May 10, 2023, by authorities from both States, but it was paralyzed after then President Guillermo Lasso (2021-2023) declared cross death and dissolved the National Assembly (Parliament) amid an impeachment trial against him.