The EU-Ecuador Trade Agreement: What You Need to Know
The European Union and Ecuador signed a trade agreement in November 2016 that went into effect in January 2017. This agreement is aimed at strengthening trade ties between the two entities and increasing economic growth in both regions. Here`s what you need to know about the EU-Ecuador trade agreement.
What`s included in the agreement?
The agreement allows for Ecuador to export duty-free to the EU, which includes a wide range of products such as bananas, flowers, seafood, and coffee. On the other hand, the EU can export industrial and manufactured goods, technology, and services to Ecuador duty-free. The agreement also includes additional regulations on intellectual property, investment, and public procurement.
How will it benefit Ecuador?
The agreement will provide Ecuadorian businesses with easier access to the EU market, which is the second-largest in the world. According to the European Commission, the agreement is expected to increase Ecuador`s exports to the EU by up to 17%. This will allow Ecuador to diversify its export market and reduce its dependence on other countries.
Furthermore, the agreement will promote economic growth in the country. By providing more opportunities for trade, the agreement will create jobs and increase investment in Ecuador. Additionally, the agreement will provide Ecuadorian consumers with access to a wider variety of products at a lower cost.
How will it benefit the EU?
The agreement is also expected to benefit the EU by providing new avenues for trade and investment. By exporting more products to Ecuador, EU businesses will be able to increase their revenue and profits. Additionally, the agreement will make it easier for EU businesses to invest in Ecuador, which can lead to job creation and economic growth.
In conclusion, the EU-Ecuador trade agreement is aimed at strengthening trade ties between Ecuador and the EU. By eliminating tariffs on products and services and promoting investment, the agreement is expected to boost economic growth in both regions. Ecuadorian businesses are expected to benefit from easier access to the EU market, while EU businesses will benefit from new avenues for trade and investment.
