Ecuador has been the country that best took advantage of the Agreement with the European Union in 2020, says Ambassador Geurts

Four years after the country entered the Multiparty Agreement with the European Union, an evaluation of the results is made.

Ambassador Charles-Michel Geruts (c) was present during the event to publish the results of the analysis of the Agreement. The event was in the Chambers Auditorium Photo: U.E.

Ecuador has been the country that has best taken advantage of the Multiparty Agreement with the European Union in 2020.While the Agreement generated acontribution to the Gross Domestic Product (GDP) of Ecuador of 0.16% for Ecuador,in the case ofColombia was 0.01%and in that ofPeru of 0.03%.This is how he explained itambassador of the European Union in Ecuador, Charles-Michel Geurtsby making public the main results obtained after a study carried out on the trade agreement between Ecuador, Colombia and Peru with the European Union, over the last four years of the Agreement's validity.

Ecuador just entered the agreement four years ago, although its neighbors Peru and Colombia did so 7 years ago. Geurts explained that although in the year of the pandemic (2020) Bilateral exchange with Ecuador was reduced by 13.6%, Ecuador's exports grew and allowed Ecuador to have a historic surplus of $1.6 billion. What Ecuador exported the most to Europe were agricultural and fishing products, and what it brought the most from the European bloc were goods and capital inputs.

Geurts explained that it is important for the country to diversify its exportable offer, but nevertheless, he considers that the success obtained in 2020 has to do with the quality and regularity of delivery of the products that Europe needed.

From Ecuador there are some1,120 companies that export to the European bloc. The majority are small and medium-sized companies. He also recalled that popular and solidarity economy companies have preference for the agreement as they have 0% tariff.He also said that according to Fedexpor data, at least 250 products have been added to the exportable basket, including fruit and vegetable derivatives.

For the diplomat, it is also important to emphasize that Ecuador has benefited from the lower prices of various products, due to the reduction or elimination of tariffs. As an example, he named thevehicles and trucks that have registered a price drop of between 11% and 34%.

In this context,Elena Madrazo, ambassador of Spain, commented that the Agreement has been a success,He said that there has been a mutual flow and that in the particular case of his country, Ecuador has exportedfood, and Spain has sold products derived from crude oil, such as oils and lubricants, to the country.

Regarding social issues, the Ambassador also gave figures. There is evidence ofincrease in employment in various sectors as a result of the Agreement. For example, the agricultural and fishing sector increased by 2%; fruits 1.2% and nuts and cereals, 2.7%. Employment in the food products sector rose 3.9%.

The EU constantly monitors that there is compliance with theinternational regulations on labor issues. On the environmental issue,said the ambassador,there is no evidence of involvement, such as deforestation problems.