In June, Ecuador will sign an agreement with the member countries of the European Free Trade Association (EFTA).
The EFTA is an intergovernmental organization established for the promotion of free trade and economic integration for the benefit of its member states. With the signing of this agreement, about 99 percent of the exports from Ecuador will enter duty-free.
The Minister of Foreign Trade and Investment, Pablo Campana, stated on his Twitter account that the country's products would enter a market of 12.5 million people with zero tariffs.
Increase
The country expects to increase shipments to the nations that make up this block: Switzerland, Norway, Iceland, and Liechtenstein.
According to data from the Central Bank of Ecuador (ECB), the trade balance with the EFTA is negative, that is to say, the country sells fewer products than it imports.
This agreement will benefit a portfolio of important products for the country, such as: natural flowers, bananas, tuna and fish oil, said Daniel Legarda, the president of the Ecuadorian Federation of Exporters (Fedexpor).
Once the Agreement enters into force, bananas, tuna, shrimp, bananas, flowers, panela, quinoa, mango, pineapple, pitahaya, tropical fruit juices, hearts of palm, asparagus, crude palm oil, among other products, will be totally exempt from tariffs.
The country's manufacturing industry will also immediately enjoy 100% tariff preferences, which opens opportunities for added value products.
Nowadays, shrimp enters the EFTA with a 20% tariff. Despite this, in 2017 exports increased by $30 million.
Source: eldiario.ec