Ecuador's National Assembly approves the free trade agreement between Ecuador and China on February 7, 2024. The approval marks the completion of all legal approval procedures for the agreement on the Ecuadorian side. Photo: VCG
The free trade agreement (FTA) between China and Ecuador will be effective from May 1, China's Ministry of Commerce (MOFCOM) said on Monday, aiming to further unleash the potential of trade and investment cooperation between the two countries.
According to the agreement, China and Ecuador will cancel tariffs on 90 percent of tax items, of which about 60 percent will be canceled immediately after the agreement comes into effect.
When most Chinese products such as plastic products, chemical fibers and steel products enter the Ecuadorian market, Ecuadorian import tariffs will be gradually cut to zero from the current 5 to 40 percent.
When Ecuador's major export products such as bananas, shrimps, fish and fish oil enter the Chinese market, China's import tariffs will be gradually reduced from the current 5 to 20 percent to zero.
The gradual elimination of tariffs between China and Ecuador will play an important role in expanding bilateral trade, promoting industrial chain integration and mutual investment, MOFCOM said.
The effective implementation of the FTA will enhance the level of trade and investment liberalization and facilitation between the two countries, further stimulate the potential of trade and investment cooperation, promote the all-round improvement and upgrading of bilateral economic and trade cooperation, MOFCOM added.
The biggest advantage of the FTA signed between China and Ecuador is its significant reduction or exemption of bilateral trade tariffs and the cutting of trade barriers, Wang Youming, director of the Institute of Developing Countries at the China Institute of International Studies in Beijing, told the Global Times on Monday.
Ecuador will gain numerous benefits. As a country with a much smaller economic stature compared to China, the ability to establish such an agreement with such a vast market undoubtedly presents "huge advantages" for Ecuador, Wang said.
On February 7, Ecuador's National Assembly approved the agreement between Ecuador and China, Xinhua News Agency reported, citing local authorities.
The approval marks the completion of all legal approval procedures for the agreement on the Ecuadorian side.
China and Ecuador signed the FTA in May of 2023, after a year of negotiations, making Ecuador China's 27th free trade partner, and China's fourth FTA partner in Latin America, after Chile, Peru and Costa Rica.
China is Ecuador's second-largest trading partner. In 2022, bilateral trade reached $13.1 billion, up 19.7 percent year-on-year, according to data from the General Administration of Customs.
MOFCOM also said on Monday that there will be new institutional arrangements established for bilateral cooperation after the agreement comes into effective.
The two sides will establish a closer communication and cooperation mechanism in the areas such as rules of origin, customs procedures and trade facilitation, MOFCOM confirmed.
中国与厄瓜多尔自由贸易协定于2024年5月1日生效的。该协定旨在进一步释放两国之间贸易和投资合作的潜力。根据协定，中国与厄瓜多尔将取消90%的税目关税，其中约60%的税目将在协定生效后立即取消。在此期间，中国的塑料制品、化纤和钢铁产品等大部分产品进入厄瓜多尔市场时，厄瓜多尔的进口关税将逐步从当前的5%至40%降为零。相应地，当厄瓜多尔的主要出口产品如香蕉、虾、鱼及鱼油进入中国市场时，中国的进口关税也将逐步从当前的5%至20%降为零。此次贸易协定的逐步取消关税将有助于扩大双边贸易、促进产业链融合和相互投资。
该协定的生效将加强中厄两国之间的贸易和投资自由化与便利化水平，进一步激发贸易和投资合作潜力，促进双边经贸合作的全面提升与升级。厄瓜多尔将从中获得诸多好处，尤其是作为与中国相比经济体量较小的国家，与如此庞大市场达成此类协议无疑为厄瓜多尔带来了巨大优势。
厄瓜多尔国民议会于2024年2月7日批准了与中国签署的协定，这标志着厄瓜多尔方面对该协定的所有法律批准程序已全部完成。此前，中国与厄瓜多尔于2023年5月签署了该自由贸易协定，经过一年的谈判。这一协定使厄瓜多尔成为中国的第27个自由贸易伙伴国，也是中国在拉丁美洲签署的第四个自由贸易协定伙伴，前三个分别是智利、秘鲁和哥斯达黎加。
中国是厄瓜多尔的第二大贸易伙伴。根据中国海关总署的数据，2022年，中厄双边贸易额达到131亿美元，同比增长19.7%。
此外，中国商务部还表示，协定生效后将建立新的机构安排，以促进双边合作。双方将在原产地规则、海关程序和贸易便利化等领域建立更紧密的沟通和合作机制。
