Ecuador Wants To Increase Trade With China By 35%

On Sunday, Foreign Trade Minister Julio Jose Prado said that Ecuador expects a planned trade deal with China to increase trade between the two countries by about 35%, but that the South American country will seek to protect some local industry. On Saturday, the two countries said they would try to reach a trade agreement by the end of the year. The announcement was made during the state visit of Ecuadorian President Guillermo Lasso to China. China has been Ecuador's top lender over the past decade, with millions of dollars in long-term loans tied to the crude oil era, large investments in hydropower and mining projects, and other loans. China is one of the leading buyers of Ecuadorian products, including shrimp and bananas. Accompanying Lasso on the trip, Prado said, "There will be an increase in trade with China that is at least 30 to 35% of what we have today. It's a broad reach agreement. ... It will cover intellectual property, public procurement, commercial defence." Prado said that while Ecuador will try to minimize tariffs on products shipped to China, it will also seek to protect local industries such as steel, textiles, footwear and assembly jobs sensitive to competition from imports. Prado said, "For these products, we will need to seek large tax exemption periods to allow the industry to be more competitive, to reinvent. Having a formal trade agreement will make the rules of the game clearer for imported products." Ecuador expects to sign trade agreements with Mexico, South Korea and the Dominican Republic this year, Foreign Trade Minister Prado said. Prado added that he wants to conclude a trade deal with the United States. Prado said, “Ecuador needs to open itself up to the world, it needs to open itself up to the United States, and we will continue to seek this agreement over the long term.”