Ecuador signs Free Trade Agreement with Canada

Ecuador has signed a Free Trade Agreement (FTA) with Canada, which will allow nearly all of the country’s export products to enter the North American market duty-free and on equal footing with regional competitors such as Colombia and Peru.

Among the main products benefiting from the deal are bananas, cocoa and its derivatives, shrimp, tropical fruits, broccoli, asparagus, hearts of palm, quinoa, and frozen fruits and vegetables.

Likewise, the agreement opens new opportunities for sectors that currently face tariffs in Canada, including flowers, chocolates, confectionery, prepared and preserved tuna, fruit juices, palm oil, mineral water, textiles, apparel, ceramics, furniture, wood products, auto parts, tires, footwear, and cosmetics.

The Ecuadorian Ministry of Production, International Trade, Investments, and Fisheries emphasized that local producers, family farming, agribusinesses, and Indigenous ventures will benefit most, gaining preferential access to nearly 40 million consumers.

According to the government agency, the agreement also aims to diversify the Latin American country’s exports and includes specific provisions to support SMEs in competing effectively in North American markets and ensuring local businesses benefit from the trade deal.

An agreement that benefits Ecuador across multiple sectors

The treaty also includes measures to protect domestic production. A total of 227 strategic agricultural products were excluded or will have special protection mechanisms.

Among them are rice, corn, milk, meats, and sugar. Additionally, the agreement also puts in place limited quotas for certain livestock products aimed at preventing impacts on local production.

The FTA will also facilitate the importation of raw materials, capital goods, and inputs from Canada under more favorable conditions, which officials say will strengthen the productivity and competitiveness of Ecuadorian industry.

The treaty consists of 29 chapters covering trade in goods and services, investments, e-commerce, transparency, labor and environmental issues, gender, SMEs, Indigenous peoples, and dispute settlement.

*Main image is AI-generated; other images by Ecuador's Ministry of Production, International Trade, Investments, and Fisheries.

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