Ecuador has signed a trade agreement with the EU which will, according to the European Commission, open up markets on both sides while increasing stability and predictability for trade and investment in both directions.
It will also promote inclusive and sustainable development.
In signing the deal, Ecuador becomes the third member of the group known as the Andean Community to accede to the agreement, alongside Colombia and Peru.
Bilateral trade in goods between the EU and Ecuador was €4.6 billion in 2015. The EU exported €2 billion worth of goods to the South American country and imported €2.6 billion.
The new agreement will eliminate tariffs for all industrial and fisheries products, increase market access for agricultural products, improve access to public procurement and services, and further reduce technical barriers to trade.
Commission estimates suggest that, once it is fully implemented, the agreement will see EU exporters save at least €106 million in tariffs each year. Exports from Ecuador to the EU should benefit from a reduction of some €248 million in duties.
For the EU, sectors expected to benefit from the deal include agriculture, cars and machinery. The agreement will allow Ecuador to benefit from improved access for its main exports to the EU, including cut flowers, coffee, cocoa, fruits and nuts.
Ecuador originally entered negotiations in January 2009, but suspended talks just a few months later. Negotiations for an EU-Colombia/Peru trade agreement were concluded in March 2010 and it was provisionally applied with Peru as of March 2013, and with Colombia from August 2013.
After Ecuador resumed negotiations in January 2014, a deal was concluded in July. Bolivia – the fourth member of the Andean Community – is also eligible to join the agreement should it wish to.
Before it can be implemented provisionally, the agreement with Ecuador must be approved by the European Parliament. For more details, see theEuropean Commission website.
