Trade Agreement between Ecuador and European Union has been signed
After several years of negotiation Ecuador and the European Union have finally signed a Trade Agreement last December. With the signing of the agreement Ecuador has joined the already existing Trade Agreement between the EU, Colombia and Peru. Starting January 1st 2017, the Trade Agreement will cover 2,565 products – over 60% of imported goods from the EU will come into Ecuador duty free as of immediately. The rest of the goods – 11% will see gradually reduced tariffs over a five-year period, whilst the remaining 13% will see a 7-year to 10-year phase out.
Products from the EU entering Ecuador duty free are Processed foods, Pharmaceuticals, Liquors, Wine, Cosmetics, Clothing, Foodwear, Renewable energy and Software among others.
In return, the EU has immediately removed tariffs on 95% of the imported goods from Ecuador such as Bananas, Mangoes, Pineapples, Tropical Fruit juices & concentrates, Shrimps, Tuna, Broccoli, Roses & Flowers, Coffee and Cacao,
The Trade Agreement does not only imply favorable tariffs, it also includes rules and regulations ensuring better market access in both regions – in the private and the public sectors – creating a reliable, predictable and even playing field for European and Ecuadorian entrepreneurs.
Would you like to know more about opportunities in Ecuador? Contact our office in Ecuador.