On Wednesday 14 December, the European Parliament gave its approval in Strasbourg – by 544 votes in favour to 114 against and 44 abstentions – to Ecuador joining the multiparty free trade agreement between the EU on one side, and Colombia and Peru on the other. This paves the way for provisional implementation of the memorandum of understanding that was signed by the four parties on 11 November (see EUROPE 11666).
The agreement concluded between the EU and Ecuador in 2014 (see EUROPE 11125) provides for the removal of customs duties on all industrial and fisheries products, broader market access for agricultural products, and the opening of services and public procurement markets.
According to the Commission, full implementation of the agreement will enable annual savings in customs duties of €106 million for exporters from the EU and of €248 million for exporters from Ecuador.
The agreement is asymmetrical in order to respond to Ecuador's development needs, ensuring its progressive liberalisation over 17 years. When the agreement enters into force, Ecuador will liberalise only 60% of its tariff lines, as opposed to 95% for the EU.
The agreement will offer Ecuador better access to the EU market for its key exports (fisheries products, cut flowers, coffee, cocoa, fruit and nuts).
Ecuador will also benefit from preferences for its bananas, but the agreement provides for a stabilisation mechanism that will reportedly enable the EU to suspend its preferences when an annual import threshold is reached. The Council and European Parliament concluded a political agreement on this stabilisation mechanism on Tuesday (see other article).
On the EU side, the agricultural sector will benefit from better market access for its products, and from the protection of around a hundred geographical indications on Ecuador's market. Gains are also expected for the automobile and machines sectors.
In addition, the agreement provides for commitments on sustainable development. The application of international conventions on workers' rights and on environmental protection will be controlled in regular coordination with civil society.
Bilateral trade in goods between the EU and Ecuador stood at €4.6 billion in 2015, including €2 billion in exports for the EU. (Original version in French by Emmanuel Hagry)