Ecuador looks to Japan to expand trade and exports through a free-trade deal

Ecuador is looking to Japan for a new trade opening, but the government has not yet turned its political interest into formal negotiations.

President Daniel Noboa and Foreign Minister Roberto Kury outlined the strategy during a radio interview in Guayaquil. Noboa said Ecuador wants to move toward a free-trade agreement with Japan, while also exploring Singapore as a platform for reaching consumers across Southeast Asia.

“The private sector in Japan is asking the government for a free-trade agreement with Ecuador,” Noboa said. The statement came after Ecuador and Japan agreed on Aug. 6 to deepen talks about a possible economic partnership agreement, following a meeting in Quito between Noboa and Japan's foreign minister, Toshimitsu Motegi.

A trade deal could reduce or eliminate tariffs on selected goods, but access to the Japanese market would also depend on sanitary requirements, technical standards, transport costs, logistics and the products ultimately included in negotiations. Ecuador wants better access to one of Asia's largest economies, with possible effects for exporters and related activities such as transport, packaging, logistics and employment.

Singapore would serve a different purpose. Kury said the country imports about 95% of the products it consumes, while Ecuador has food production capacity exceeding domestic needs. The government sees that combination as an opportunity to place Ecuadorian food products in Singapore and use the country as a gateway to other Southeast Asian markets.

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The private sector in Japan is asking the government for a free-trade agreement with Ecuador.