Ecuador President: Free Trade Agreement between Ecuador and China will be reached

According to news from Reuters on the 15th, Ecuadorian President Guillermo Lasso said that Ecuador is about to reach a free trade agreement with China, which will promote the development of the South American country's manufacturing industry and drive local employment.

"In less than 10 months, the two sides have conducted efficient negotiations, and I can confirm that the agreement has basically been reached," Russo told a China-Latin America business conference in Guayaquil, Ecuador, the report said. "

From February 3 to 6 this year, Laso was invited to visit China and attend the opening ceremony of the Beijing Winter Olympics. Meanwhile, China and Ecuador issued a statement, agreeing to start negotiations on a China-Ecuador free trade agreement, tap trade potential, optimize the value chain, promote trade and investment liberalization and facilitation, and promote the sustained, stable and diversified development of bilateral trade.

On February 10, at a regular press conference held by the Ministry of Commerce, spokesman Gao Feng introduced that China and Ecuador have officially launched negotiations on a free trade agreement. Gao Feng said that since the establishment of diplomatic relations between China and Ecuador 42 years ago, bilateral economic and trade relations have continued to develop steadily and healthily. In 2021, the bilateral trade volume will increase by 44.6% against the trend, reaching US$10.94 billion. China will continue to maintain the second largest trading partnership with Ecuador. Ecuador is also an important investment and project contracting partner of China in Latin America. The cooperation between the two parties involves many fields such as electric power, energy and mining, and transportation.

Ecuador is located in the northwest of South America, with a total population of 17.94 million. The oil industry is the mainstay of the country's economy. In an exclusive interview with Chinese media recently, Laso said that China is a huge market. Ecuador can provide China with white shrimp, bananas, cocoa, coffee and other special products, and China can provide Ecuador with many products that can improve the living standards of local people.

From January to September this year, Ecuador's non-oil exports to China totaled $4.45 billion, which Lazo expects will increase by 51% by the end of 2022 compared to 2021. According to Reuters, the new crown pneumonia epidemic has hit Ecuador's economy hard. Laso, who took office as president in May last year, has the first task of stimulating the recovery and development of the country's economy by attracting foreign trade and investment.