China and Ecuador signed a free trade agreement (FTA) after a year of negotiations. Both countries will eliminate tariffs on 90% of their products, with about 60% to be eliminated immediately after the FTA deal comes into force, Chinese local news reported. All of Ecuador's major exports to China will be tariff-free under the FTA. The tariff rate on Ecuador's agricultural and agro-industrial products including shrimp, bananas, cut flowers, cocoa and coffee will be reduced from the current 5-20% to zero.
Tariffs on China's exports to Ecuador, including plastics, chemical fibers, steel products, machinery and appliances, electrical equipment, furniture decoration, automobiles and spare parts, will be gradually reduced to zero.
Through the FTA, China and Ecuador will open up to each other at a substantially high level, and create a favorable, convenient, transparent and stable environment for the businesses, according to a statement by China's Ministry of Commerce (MOFCOM).
The two sides will implement domestic procedures to ratify the deal and enable the deal to become effective at an earlier date. China and Ecuador will conduct further negotiations on areas of common interest and upgrade the FTA in the future, MOFCOM said.