Ecuador's accession protocol to the multipartite free trade agreement between the EU and the countries of the Andean Community (Colombia and Peru) entered into force provisionally on Sunday 1 January.
Concluded in July 2014 (see EUROPE 11125), signed on 11 November 2016 (see EUROPE 11666) and ratified by the European Parliament on 14 December (see EUROPE 11689), the free trade agreement between the EU and Ecuador provides for the removal of customs duties on all industrial and fisheries products, and for access to the enlarged market for agricultural products, as well as for the opening up of services and public procurement markets. In addition to this, it provides for addressing technical barriers to trade.
According to the European Commission, full implementation of the agreement will enable €106 million in savings on customs duties for EU exporters annually and €248 million for Ecuadorian exporters.
The agreement is asymmetrical in order to respond to Ecuador's development needs, guaranteeing it progressive liberalisation over 17 years. From the time of the agreement entering into force, Ecuador will liberalise only 60% of its tariff lines compared with 95% for the EU.
The agreement will offer Ecuador better access to the EU market for its main exports (fisheries products, cut flowers, coffee, cocoa, fruit and nuts).
Bananas will also benefit from a preferential rate, but a stabilisation mechanism is provided for so that the European Commission can examine and plan the suspension of trade preferences if an annual threshold is reached, following the model provided for in the free trade agreements with Colombia and Peru, and with Central America. In this respect, an interinstitutional agreement on the stabilisation mechanism for bananas was reached on 13 December (see EUROPE 11689).
On the European side, the agricultural sector will benefit from better market access for its products and from protection of around a hundred geographical indications on the Ecuadorian market.
The agreement also provides for commitments on sustainable development. The application of the international conventions on workers' rights and environmental protection will be controlled by regular dialogue with civil society.
In addition, the agreement is aimed at strengthening regional integration. The door of the multipartite agreement remains open to the fourth member of the Andean Community, Bolivia.
Bilateral trade in goods between the EU and Ecuador accounted for €4.6 billion in 2015, including €2 billion in exports for the EU. (Original version in French by Emmanuel Hagry)