The China-Ecuador Free Trade Agreement has officially entered into force on May 1, 2024

Source: Caixin
On 29th, April, the person in charge of the International Department of the Ministry of Commerce talked about the situation that the China-Ecuador Free Trade Agreement (FTA) will enter into force on 11 May 2023, China and Ecuador formally signed the Agreement on Free Trade between the Government of the People’s Republic of China and the Government of the Republic of Ecuador.

At present, both China and Ecuador have completed their respective domestic approval procedures, and the agreement has entered into force on 1 May 2024 formally. The Chinese side’s implementation of the entry into force has been carried out normally. With regard to the implementation of other obligations and commitments under the Agreement, all relevant departments of the Chinese side have done a good job of fulfilling their obligations and commitments in accordance with the provisions of the Agreement.

Substantial trade liberalization will be achieved gradually between China and Ecuador. Now that the Agreement has entered into force, China and Ecuador have gradually eliminated tariffs on about 90 percent of tariff lines covering each other’s major exports, of which about 60 percent were eliminated immediately on the day of the entry into force of the Agreement.

When most Chinese products such as plastic products, chemical fibers, iron and steel products, mechanical appliances, electrical equipment, furniture and decoration, automobiles and parts, lithium batteries, etc. enter the Ecuadorian market, the import tariffs on the Ecuadorian side will be gradually cut from the current 5-40 percent to zero.

At the same time, when Ecuadorian bananas, prawns, fish, fish oil, fresh and dried flowers, cocoa, coffee, and other products enter the Chinese market, China’s import tariffs will also be gradually reduced from the current 5-20 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, and consumers in the two countries will also enjoy more favorable and diversified high-quality imported products.