Ecuador signs bilateral trade agreement with the post-Brexit UK

Jul 29, 2020 | 4 comments

President Lenín Moreno announced Tuesday that Ecuador and Great Britain have signed a trade agreement that maintains most of the conditions of the European Union agreement signed in 2016. Britain is in the process of severing its relations with the EU, requiring the new pact.

Whisky is Ecuador’s number one import from Great Britain.

According to Moreno, 95 percent of Ecuadorian exports will not pay UK tariffs. In 2019, almost $300 million in goods were traded between the two countries, with Ecuador maintaining a positive trade balance. The majority of goods shipped from Ecuador to the UK are bananas, tuna, shrimp and cut flowers.

Major imports to Ecuador from the UK include liquor, cars, medicines and industrial machinery and chemicals.

UK’s ambassador to Ecuador, Katherine Ward, says she expects no disruption in trade between Ecuador and Britain. “The amount of trade has increased impressively each year in the four years the old agreement was in effect and we don’t expect that to change,” she said, adding that the impact of the coronavirus on both countries would have a temporary economic impact on trade.

“The intent of the new treaty is to replicate the favorable and preferential conditions that the parties agreed to under the agreement with the European Union,” she said.

According to numbers released by Ecuador’s trade ministry, liquor is the top import from the UK, amounting to more than $75 million annually. Prior to the EU trade agreement, a typical bottle of Scotch sold for $62 in Ecuador while today it sells for $23 or $24.

CuencaHighLife

Expat Community News

Dani News

Google ad

FAAN News

Google ad

The Cuenca Dispatch

Week of February 25

Cuenca Finally Gets to Experience Van Gogh Like Never Before.

Read more

Ecuador lost just over a million hectares of forest formations in 38 years.

Read more

Drone Plants 1,500 Trees in 15 Minutes to Combat Deforestation.

Read more

Hogar Esperanza News

Gypsy News

Fund Grace News

Veronica Arpi News

Subscribe to our newsletter

Cuenca High Life offers on-line publications, local translated news, and reports about the expat life and living in Ecuador. 

You have Successfully Subscribed!