On January 2, China and Ecuador celebrated a significant milestone: 45 years of diplomatic relations. This partnership has not only strengthened ties between the two nations but has also brought substantial benefits to Ecuador’s economy and development.
In 2023, the two countries signed a Free Trade Agreement (FTA) that will gradually eliminate tariffs on 90% of traded goods. Starting May 1, 2024, tariffs on about 60% of items were immediately canceled.
Ecuador, a major exporter of agricultural products like bananas, shrimp, fish, cocoa, and coffee, now has greater access to China’s vast consumer market. The reduction in tariffs means these products can be more competitive in China, boosting Ecuador’s export revenues.
The FTA also helps Ecuador diversify its trade partnerships, reducing reliance on a single region or market. This diversification provides stability and shields the economy from fluctuations in global demand.
Access to Chinese machinery, raw materials, and technology will bolster Ecuador’s manufacturing and industrial sectors. This collaboration can lead to reduced production costs, enhanced technological capabilities, and increased competitiveness on the global stage.
China’s vision for increased globalization and cooperation among countries in the Global South integrates Ecuador into the global supply chain. This integration promises more export opportunities, job creation, and a stronger industrial sector for Ecuador.
Furthermore, the partnership promotes sustainable practices in industries like agriculture and mining. Ecuador can learn from China’s experiences with renewable energy and environmental resilience, aiding its own sustainable development.
Under the Belt and Road Initiative, China invests in long-term infrastructure projects across Latin America, including Ecuador. Notable projects are the Coca Codo Sinclair hydroelectric plant, which can meet 75% of Ecuador’s domestic power demand, and the Quininde-Las Golondrinas Highway, enhancing connectivity between provinces.
These developments mark a new chapter in China and Ecuador’s relationship. As they celebrate 45 years of cooperation, both nations look forward to a future of diversified collaboration and shared prosperity.
Reference(s):
cgtn.com
