Links 56 | Trade Agreement Ecuador-European Union
Since the 1st January 2017, the Multi-Party Trade agreement between the European Union and Ecuador has been in effect, following ten days of uninterrupted negotiations. The agreement represents a historic step in the relations between the EU and Ecuador, giving the countries the status of being equal and privileged partners and deepening traditional bilateral relations.
Businesses, suppliers, importers and exporters have been expressing their optimism toward the trade agreement, as well as its importance for the development of the country, at events organised by the EU Delegation and Eurocámaras on the 24th and 26th of January in Quito and Guayaquil. They don’t only recognize the advantages of the agreement in terms of reducing tariffs but also those in the opening of markets for services and government procurement and for the transfer of technology and innovation that will allow the country to create a diversified, exportable supply where the EU can help within a legal, stable, predictable and permanent framework.
The European Union Embassy has emphasised that the trade agreement is a “win-win” deal for everyone, providing both parties fulfil the commitments outlined in the agreement and policies are adopted to encourage trade. It also indicated that there are challenges to confront in the private sector: to know, invest and take advantage of the opportunities that the agreement offers.
The treaty has opened areas of discussion about the best way to benefit in terms of encouraging Andean industry and looking to increase economies of scale in the interior of the country and also with neighbouring countries in order to lower costs and increase regional competitiveness. One outcome has also been the recognition of the need for greater cooperation between public institutions, the private sector and academia. In doing so, the country will be better equipped to respond to demand from the European market. Without doubt, the agreement is generating new forms of interaction between public and private institutions; a new way of working in a culture of producing quality goods for export.
It is still early to comment on the impact of the trade agreement. However, the EU is maintaining close contact through video conferences to assist the relevant authorities in the process of implementing the agreement.