Trading Partner Portal: Ecuador
Ecuador is located in northwestern South America and, per it’s namesake, is dissected by the equator. Ecuador is one of 17 ‘megadiverse’ countries in the world, as it is home to many endemic plants and animals, including those of the Galapagos Islands. Ecuador’s economy is highly dependent on commodities, including petroleum and agricultural products; most notably bananas and cut flowers. The population of Ecuador in 2019 was 17.37 million and GDP totaled $107.4 billion in the same year.
The U.S. exported $5.5 billion to Ecuador in 2019. Petroleum and coal products made up 41.4% of the total at $2.29 billion. This was followed by chemicals, computer and electronic products, and oil and gas all below 10%. The U.S. imported $6.95 billion worth of products in 2019. Almost 60% of which was made up of oil and gas. This was followed by agricultural products, fish and marine products, and food manufactures.
In 2019, California exported $727 million to Ecuador. Petroleum and coal products made up 78% of the total at $568 million. This was followed by computer and electronic products, machinery except electrical, and chemicals. California was one of the top 5 exporting states to Ecuador in 2019.
Ecuador is the only country in Latin America along the Pacific that does not currently have a free trade agreement with the U.S. The “mini” trade deal brings the two countries a step closer to achieving an FTA.
>According to Politico, the new pact contains three chapters on trade facilitation, good regulatory practices and anti-corruption. It’s similar to the “mini deal” the U.S. concluded recently with Brazil. It also includes a fourth chapter on small and medium sized enterprises, which make up the bulk of Ecuador’s business community. Separately, the United States recently added roses to the list of imported goods eligible for duty-free treatment under its Generalized System of Preferences program. That has provided a major boost for one of Ecuador’s top export industries.
United States and Ecuador update Trade and Investment Council Agreement with New Protocol on Trade Rules and Transparency
U.S. Trade Representative, December 8, 2020
U.S. Chamber Welcomes Signing of Trade Protocol between the U.S. and Ecuador
U.S. Chamber, December 8, 2020