The bilateral business sector emphasizes that, following the nearing trade agreement between the U.S. and Ecuador, the focus should shift to enhancing Ecuador's internal conditions for competitiveness.
Following the announcement that the U.S. and Ecuador have substantially concluded negotiations for a reciprocal trade agreement, the binational business sector has pointed out the internal challenges Ecuador faces. American Chamber of Commerce (AmCham) and local businesses believe that for the agreement to be successful, Ecuador needs to improve its competitiveness, secure legal frameworks, and establish clear regulations. The discussions were sparked by the U.S. imposing a 15% tariff on Ecuadorian goods under the Trump administration, pushing both countries towards rekindling their trade relations.
The U.S. Trade Representative's office first announced the outcomes of the negotiations earlier in February, indicating that a significant portion of non-oil exports would see tariffs reduced to zero once the agreement comes into effect. Minister of Production and Foreign Trade, Luis Alberto Jaramillo, shared insights that this agreement may impact around $3.2 billion in export business for Ecuador. This represents a critical opportunity for the Ecuadorian economy, allowing businesses to increase their competitiveness on a global scale.
The emphasis on internal structural adjustments alongside the trade agreement highlights a crucial aspect of economic policy in Ecuador. Ensuring that businesses can thrive in a competitive environment, backed by secure legal structures, will be essential for maximizing the benefits of this upcoming trade deal. As negotiations conclude, the focus now shifts to how Ecuador can rebuild its trade health and economic well-being in a manner that benefits both local and binational firms alike.
