Ecuador’s government intends to negotiate trade agreement with U.S.

RIO DE JANEIRO, BRAZIL – The Government of Ecuador on Monday (12) stated that it intends to negotiate a free trade agreement with the United States, its main trading partner, as its neighbors Colombia and Peru have already done.

The announcement was made by Ecuadorian president Guillermo Lasso during an online speech at the inauguration of the “Business Future of the Americas BFA-2021,” considered one of the most important business meetings in the region.

“We will continue to take the necessary steps towards a free trade agreement with the United States. We seek an alliance that will not only cover trade issues, but also labor law, intellectual property, gender equity, environmental sustainability,” among other aspects, the president said in statements published by his office.

These aspects are now part of Lasso’s government policies, whose administration began last May 24 when he replaced Lenín Moreno, who failed to negotiate a free trade agreement with the United States.

Peru in 2009 and Colombia in 2011 signed free trade agreements (FTA) with the United States, after long negotiations from which Ecuador dropped out.

Lasso, a former center-right banker, said on Tuesday that Ecuador aims to attract more foreign capital investment, as well as a higher volume of exportable supply to other nations, which implies Ecuador’s greater insertion in international markets, particularly in the United States.

The President also pointed out that this strategy will be key for the country’s economic recovery, which deteriorated due to the impact of the coronavirus pandemic.

Consequently, he stressed that the current vaccination plan against Covid-19 being conducted by his administration, which plans to immunize 60% of the population (9 million people) by the end of August, will be key to the full resumption of economic activities in the country.

Lasso also assured that the “BFA-2021” forum will promote investment, trade and, most importantly, strengthen the sustainable business environment between the United States and the region.

“Ecuador is confident that integration is the way forward and is indispensable for economic and social recovery,” the Ecuadorian head of state said.

The United States is Ecuador’s main trading partner with a bilateral exchange of over US$10 billion last year, according to official figures.

Ecuador also ships 30% of its exports to the United States, according to Debra Hevia, Minister Counselor of the Ecuadorian Embassy in Washington.