Ecuador Looks to China for a Commercial Future
Published in El Comercio
(Ecuador) on 24 August 2022
by (link to original)
China is consolidating its position as Ecuador's main trading partner. During the first two quarters of 2022, China accounted for 81% of the exports of the entire 12 months of the previous year — excluding oil and mining products. Thus, we believe that by the end of next December, we will reach an all-time record.
We did not realize that high of a percentage with the rest of our main trading partners: 56% with the U.S., approximately 53% with the EU, and with Colombia and Peru, 54% and 53% respectively.
During these quarters, sales to China doubled, while they only increased 16% with the U.S. An increase in the export of shrimp, currently Ecuador's largest foreign sales item, accounts for the increase with the Asian power. In addition, consumers in that nation demanded more bananas, fishery products and shellfish. A total of $2.19 billion was exported, $1.13 billion more than in the same half of last year.
This growth has led to the reduction of our historical trade deficit with China. In the first half of 2021, it had reached $1.15 billion. Between January and June of 2022, it had dropped to $785 million. In addition to higher sales, Ecuador did not increase its purchases from China in the same proportion.
That nation is our main supplier of machinery and mechanical appliances, vehicles and their parts, electronic equipment and iron and steel castings. In other words, China prioritizes raw materials or equipment for productive activities.
Ecuador seeks to close a trade agreement with China by the end of this year, emulating those already made by Chile, Peru and Costa Rica. From Nov. 31 to Dec. 2, Guayaquil will host the China-Latin America-Caribbean Business Summit, which will address issues of digital economy, financial cooperation, e-commerce and technological innovation. The goal is to announce an agreement at that event.
We did not realize that high of a percentage with the rest of our main trading partners: 56% with the U.S., approximately 53% with the EU, and with Colombia and Peru, 54% and 53% respectively.
During these quarters, sales to China doubled, while they only increased 16% with the U.S. An increase in the export of shrimp, currently Ecuador's largest foreign sales item, accounts for the increase with the Asian power. In addition, consumers in that nation demanded more bananas, fishery products and shellfish. A total of $2.19 billion was exported, $1.13 billion more than in the same half of last year.
This growth has led to the reduction of our historical trade deficit with China. In the first half of 2021, it had reached $1.15 billion. Between January and June of 2022, it had dropped to $785 million. In addition to higher sales, Ecuador did not increase its purchases from China in the same proportion.
That nation is our main supplier of machinery and mechanical appliances, vehicles and their parts, electronic equipment and iron and steel castings. In other words, China prioritizes raw materials or equipment for productive activities.
Ecuador seeks to close a trade agreement with China by the end of this year, emulating those already made by Chile, Peru and Costa Rica. From Nov. 31 to Dec. 2, Guayaquil will host the China-Latin America-Caribbean Business Summit, which will address issues of digital economy, financial cooperation, e-commerce and technological innovation. The goal is to announce an agreement at that event.
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