Ecuador and Canada sign free trade deal, slashing tariffs on most exports

Ecuador and Canada have signed a Free Trade Agreement (FTA) aimed at significantly boosting bilateral trade and market access. The pact eliminates tariffs on 99.6% of Ecuador's exportable goods, placing Ecuadorian products on equal footing with regional competitors like Colombia and Peru in the Canadian market.

The agreement covers 29 chapters, including trade in goods and services, investment, e-commerce, labor, environmental standards, gender, indigenous peoples, and dispute resolution. Key Ecuadorian exports set to benefit include bananas, cocoa and its derivatives, shrimp, tropical fruits, broccoli, asparagus, and quinoa. The FTA also opens doors for sectors previously facing tariffs, such as flowers, chocolates, tuna products, fruit juices, palm oil, textiles, and furniture.

Canada, with its large consumer base and high per capita GDP, is seen as a strategic partner for Ecuador's export diversification and North American presence. The Ecuadorian government emphasized that the FTA includes special protections for 227 sensitive agricultural products, such as rice, corn, milk, and meat, safeguarding domestic production and employment in these sectors.

Furthermore, the agreement is expected to improve Ecuador's access to Canadian raw materials and capital goods, thereby enhancing the productivity and competitiveness of its industries. Ecuador also affirmed its sovereign right to maintain regulations for public health, environmental protection, product quality, and animal and plant health, while upholding its ban on used clothing imports.