Brussels, 18/07/2014 (Agence Europe) - After four sessions and six months of talks, negotiators from the European Commission and from the government of Ecuador sealed a deal in Brussels on Thursday 17 July, which will enable Ecuador to join Colombia and Peru in their multipartite free-trade agreement with the EU.
The agreement will allow Ecuador to benefit from improved access to the European market for its main exports - fisheries, bananas, cut flowers, coffee, cocoa, fruit and nuts, the Commission states in a press release. The terms of the new arrangement go beyond the EU generalised scheme of preferences, for which Ecuador is no longer eligible.
For the EU, gains in terms of market access are particularly expected in the automotive sector and for alcoholic beverages. As well as access to markets, the agreement should also create a stable and predictable environment for trade and investment.
During the latest session of talks this week, the negotiators managed to resolve all the remaining issues to reach an ambitious and balanced deal, taking account of each side's sensitivities, the Commission states. The agreement also includes an ambitious deal on market access for services, government procurement and establishment.
In order to allow Ecuador to join the agreement, a number of limited adjustments to its text were agreed with Colombia and Peru - but without resulting in any significant change of the agreement's ambition and scope, the Commission states. The EU and Ecuador will now proceed with the necessary legal examination of the documents in order to be able to submit the agreement to their respective internal ratification procedures.
“[This agreement] will boost our bilateral trade and investment, and act as an important driver for development in Ecuador”, said European Commissioner for Trade Karel De Gucht.
In 2009 Ecuador suspended its participation in the trade negotiations at that time between the EU and three of the four Andean Community countries - Colombia, Ecuador and Peru. The door of the multipartite agreement still remains open to their neighbour Bolivia.
EU exports to Ecuador stood at €2.3 billion in 2013, while its imports from Ecuador - mainly agricultural products and raw materials - were worth €2.6 billion. (EH)