In the last decade, trade between Ecuador and the European Union has increased significantly – amounting to €4.6 billion in 2015 – making the EU bloc Ecuador’s second most important trading partner.
Ecuador’s new Trade Agreement with the EU will provide an ideal environment for progressive and shared liberalisation, which will further benefit trade between the two parties, attract investment to Ecuador and help local businesses develop sufficient strength to expand internationally.
Ecuador and the EU have been negotiating a Trade Agreement since 2014 that will enable them to benefit from preferential trade arrangements and to obtain better access for Ecuador’s main exports to the EU, including its fisheries and aquaculture products, bananas, cut flowers, coffee, cocoa, fruit and nuts.
Essentially, the 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. Once fully implemented, the estimated savings for EU exporters will be at least €106 million in tariffs annually, and Ecuadorian exports will save up to €248 million in removed duties.
As fish and shrimp farming ranks among Ecuador’s leading and fastest growing business sectors, the country’s National Chamber of Aquaculture (Cámara Nacional de Acuacultura – CNA) has been widely recognised as one of the guilds most committed to the negotiation process and moving the agreement with the EU to the point of implementation.
The EU has a comprehensive Trade Agreement with Colombia and Peru, which has been provisionally applied with Peru since 1 March 2013, and with Colombia since 1 August 2013. Once fully applied to Ecuador, this EU-Andean agreement will open up markets on both sides as well as increase the stability and predictability of the trade and investment environment.
Carlos Miranda, General Manager of Skretting Ecuador and also Vice-President of CNA, confirms that CNA has been heavily involved in multiple processes related to shrimp tariff arrangements, including meetings at the highest level with members of the European Parliament and the Commissioner for Trade. Indeed, the authority’s prominent involvement in the process was acknowledged by its presence at the official signing of the Protocol of Accession of Ecuador to the Trade Agreement with the EU, Colombia and Peru on 11 November.
“The negotiation process has been a long but thoroughly worthwhile endeavour. This agreement will have the scope to benefit many commercial sectors in Ecuador. While our shrimp farming industry has been going from strength to strength in recent times, I believe these new arrangements have the potential to be a genuine game changer for all producers,” said Mr Miranda.
