The Effect of China-Ecuador Free Trade Agreement 

Since its implementation on May 1, the China-Ecuador Free Trade Agreement (FTA) has facilitated tariff reductions and trade liberalization, leading to a surge in Ecuador's exports of premium products to China. Bilateral economic and trade cooperation has flourished. Ecuadorian producers and exporters highlight how the FTA has opened opportunities for products like pitahaya (dragon fruit), bananas, and shrimp, expressing hopes to deepen collaboration with China and introduce more Chinese consumers to the unique products of the "Equator Country."

Trade Growth Bolstered by the FTA

According to data from China's General Administration of Customs, bilateral trade between China and Ecuador reached approximately $7.585 billion from May to October this year, an increase of about 8.43% compared to the same period in 2023. China's imports from Ecuador accounted for $4.407 billion, marking a year-on-year growth of 12.77%.

Palora, a city in Ecuador's southern Morona-Santiago province, is one of the main production areas for pitahaya. Fernando Castillo, a local producer, shared that his company exported its first batch of 500 kilograms of pitahaya to Shanghai in July, receiving a positive market response. In December, the company plans to increase its exports to 2.5 tons. "The Chinese market places a high value on product quality. Ecuador's pitahaya is large, juicy, and sweet, aligning perfectly with Chinese consumers' pursuit of a high-quality lifestyle," Castillo said. With the increase in export volume, he has begun collaborating with other local farmers to meet the growing demand in China.

Banana Industry Reaps Benefits from Tariff Reductions

Ecuador's banana industry has also benefited from the FTA. Eduardo Manrique, Executive Director of the Ecuadorian Banana Export Association, described the FTA as a "wise decision." He noted that tariff reductions have significantly eased the entry of Ecuadorian bananas into the Chinese market. "Not only fresh bananas, but also processed banana products are very popular in China," Manrique said, adding that the growing demand for banana-based snacks and frozen products in China has created new business opportunities for local exporters.

Confidence in Expanding Non-Traditional Exports

Gustavo Cáceres, President of the Ecuador-China Chamber of Commerce, stated that since the FTA's implementation, Ecuador's traditional products have performed well in the Chinese market, boosting confidence for non-traditional products to make inroads. "As the FTA continues to advance, Ecuador's overall export dynamism to China will increase," Cáceres said. He emphasized that China's "rapid development" and growing consumer demand will drive Ecuadorian producers to enhance product quality, fostering healthy development in the country's production industries.

Strategic Opportunities with Regional Infrastructure

Milton Reyes, Director of the China Studies Center at Ecuador's National Higher Institute for Research, highlighted the strategic opportunities brought by the opening of Peru's Chancay Port for South America's trade with China. "The Chancay Port is expected to significantly reduce the time it takes for Ecuadorian exports to reach China," Reyes said. Over the long term, the port will work synergistically with the Ecuador-China FTA to promote bilateral economic and trade development.

Strengthening Customs Cooperation

On December 19, Wang Lingjun, Deputy Commissioner of China's General Administration of Customs, met with Iván Romero, Director General of Ecuador's Customs Administration, and his delegation. The two sides discussed topics including mutual recognition of "Authorized Economic Operator" (AEO) programs, the development of a single window for international trade, anti-smuggling enforcement, and smart customs initiatives. They also signed a mutual recognition agreement for AEO programs. Ecuador's Ambassador to China, Carlos Larrea Cordova, attended the meeting.