Ecuador and Canada sign trade deal that could benefit from U.S. tariffs on Canadian exports

Ecuador and Canada have finalized a new trade accord following months of negotiations, both governments announced on Sunday. The agreement eliminates tariffs on hundreds of products, including seafood, flowers, textiles and auto parts.

Both Ecuador and Canada believe the new trade agreement will be bolstered by the U.S. decision to impose tariffs on Canadian exports.

The Canadian trade office said the agreement takes on added importance due to the U.S.’s recent decision to impose a 25% tariff on most Canadian exports. “In light of recent developments, we are increasing efforts to diversify and expand Canada’s trade relationships with other countries,” the trade office said. “We believe our agreement with Ecuador will lead to a much greater exchange of goods than originally forecast.”

Ecuador President Daniel Noboa said the new agreement will lead to higher levels of production and increased employment. “We have done it!”, Noboa said following the conclusion of the deal. “This is not just a new trade treaty; it is an agreement that will benefit the entire country. It opens doors to new opportunities, more investment and employment for thousands of Ecuadorians.”

Currently, Canada ranks eighth among destinations for Ecuadorian goods but Ecuador’s Trade Ministry expects that to change rapidly. “We anticipate Canada to move to fifth and possibly fourth position among our trading partners as a result of the agreement,” the ministry said.

The ministry acknowledged that trade between the two countries could be enhanced by new U.S. tariffs on Canadian goods. “Recent international developments may provide greater importance to this agreement, and we are revising upward our estimates of total goods to be exchaged,” the ministry said.

The Trade Ministry said Ecuador’s floriculture industry will see a “significant benefit” from the agreement, boosting total exports by as much as 15%. Frozen and canned tuna, shrimp and other seafood exports will also see increases in export totals, the ministry said.

Other sectors that will benefit are ceramics, footwear, wood products, juices and pulps, cosmetics, plastics and hats, the ministry added.

In addition to exports and imports, the bilateral agreement hopes to generate increased tourism between Ecuador and Canada, Ecuador’s Tourism Ministry reports.