- February 5, 2022
- Posted by: medium
- Category: National
The head of Fedexpor and the EU ambassador analyzed the impact of the agreement between Ecuador and the European bloc. In 2021, bilateral trade grew by 16%.
Improving the legal framework to attract more investments to the country, as well as resuming dialogue to lift the yellow card for Ecuador's fishing sector are amongthe challenges pointed out by the ambassador of the European Union in Ecuador, Charles-Michel Geurts, during a press conference, together with the Ecuadorian Federation of Exporters (Fedexpor).
On the first topic, the representative of the EUHe reiterated the need to “capitalize on the achievements of the trade agreement to stimulate investments.”According to data provided by the ambassador,The European bloc became Ecuador's largest investor in 2017, 2018 and 2019with 22%, 33% and 38% of the total foreign investment that arrived in the country. Especially in activities such as agriculture, services, commerce and mining.
In this direction, he said, it is necessary to work with the current government to improve the legal framework and legal security that are pillars to stimulate more investment. For Geurts, although Ecuador is making progress in adjusting its regulations to international standards,It is essential to achieve a correct application of this legal framework that results in the injection of capitalboth national and international.
On the other hand, Ambassador Geurts said that Another challenge that the country has is to lift the yellow card that the fishing sector has and resume dialogue. “We have a yellow card process, which is an alert to improve the legal framework and its fight against illegal fishing.”
On that topic, he mentioned that There is a delay in the implementation of the bilateral action plan and in the adoption of the regulations of the Organic Fisheries Law. “We see an initiative to change the Law, despite the fact that there are no regulations in place. It is a challenge, at the beginning of the year, to revitalize the dialogue so that the color change process does not go towards the color red,” Geurts pointed out.
A positive balance in five years of validity of the agreement between Ecuador and the EU
The EU ambassador in Ecuador He reiterated that the trade balance between the European bloc and Ecuador continues to be favorable for the Andean country by reaching a trade surplus in 2020.
He mentioned that the growth in commercial exchangeIt has been possible thanks to the establishment of a legal framework with clear rules.In this sense, another of the achievements of this instrument is the reduction in prices of imported products thanks tothe progressive tariff reduction, which in 2022 will be applied to 1,326 products that will enter from the EU with a zero tariff.Among the tax-reduced products are vegetables, dairy products, meat, plastics, wool, tractors, instruments and toys.
Fedexpor points out thatThe European Union is one of the few trading partners with which Ecuador has a favorable trade balance that is sustained over time., with which a surplus of more than $5.9 billion has been accumulated in the last five years.
Felipe Ribadeneira, president of the union, mentioned that the deepening of the commercial relationship through the Multiparty agreement has allowed bilateral trade to increase by 31% in the last five years. “Ecuador has risen in the position of supplier of certain products, such as flowers or cocoa beans, which rose from being sixth to fifth,” said the leader, who highlighted the fact that Ecuador remains as the main supplier of bananas and shrimp to the European Union.
Furthermore, among other effects of the agreement, the generation of more than 22,000 new jobs has materialized, with an export business network that is made up of 65% MSMEs, where the non-traditional offer is the main letter of introduction of these latter companies.Some 200 new companies have achieved exports to the European Union, most of which are exporters of flowers, bananas, and wood and their manufactures.
Main points of the eighth meeting of the Trade Committee between the EU-Colombia/Ecuador/Peru
At the meeting, held on December 2 and 3, 2021,the EU emphasizedin the importance of resolving problems of access to the Ecuadorian market for European agricultural products, in the need to address issues such as intellectual property rights and geographical indications and resolve deficiencies in the application of the trade and sustainable development chapter, specifically, on the right of association of workers.
While,from the Ecuadorian sideMore information was requested on the impact of the European Green Deal and the Farm to Fork Strategy on agricultural exports; understand how the EU sets maximum residue limits for agricultural imports from third countries; understand the consequences of new European policies, for example the new proposed European legislation on deforestation; and understand the legal framework to negotiate a future agreement for the recognition of equivalences in organic products and the possible consequences of the new European legislation on organic products for Ecuadorian exports.