Brussels, 12/12/2014 (Agence Europe) - European Trade Commissioner Cecilia Malmström and Ecuadorian Trade Minister Francisco Rivadeneira initialled the memorandum of understanding in Brussels on Friday 12 December that will allow Ecuador to join the multiparty trade agreement between the EU and the Andean countries, Colombia and Peru, which came into force in 2013.
“Ecuador has made economic progress over the last few years, reducing the poverty rate and making more and more European companies interested in investing in the country. I am convinced that our agreement will help Ecuador to consolidate and build on those achievements”, said Malmström.
“The negotiating process has been fast and smooth. The next challenge is to complete procedures such as ratification, and put this agreement in practice as soon as possible. I hope businesses will enjoy the results of this agreement already in 2016”, she added.
The commissioner argued that the new trade and investment framework needed to be complemented by solid and enforceable domestic policies, including on labour rights, human rights and environmental protection.
The agreement will enable Ecuador to benefit from better access to the European market for its main export products - fisheries, bananas, cut flowers, coffee, cocoa, fruit and nuts. The terms of the agreement 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 expected in the automobile and alcoholic drinks sectors. The agreement also includes an ambitious arrangement on market access for services, on access for public procurement and on establishment. As well as market access, the agreement is expected to create a stable and predictable environment for trade and investment.
EU exports to Ecuador stood at €2.3 billion in 2013, while its imports from Ecuador - mainly agricultural products and raw materials - stood at €2.6 billion. (EH)