According to terms of the trade agreement signed earlier this month between Ecuador and the European Union (EU), 76% of imports to Ecuador will come into the country duty free. In all, 2,565 products are covered under the agreement.
Tariffs will be reduced gradually over a five-year period on 11% of imports while the remaining 13% will see a 7-year to 10-year phase out.
Among the products that will see no tariffs beginning next month are materials used by Ecuadorian manufacturers and agriculture, including building supplies, chemicals and fertilizers. “The cost reduction of these products will be passed on to Ecuadorian consumers and should be available to the public within coming months,” said Jorge Esteban, of the Ecuador trade office.
Among consumer goods that will come into Ecuador in January duty free are liquors, wine, and cosmetics.
Medicines and machinery are among the group of imports with the five-year tariff phase, although duty will drop by 20% in January.
Duties on European cars and trucks will be eliminated over a seven-year period.
Ecuador continues bilateral trade negotiations with several countries, including South Korea, Japan, and China. All eight presidential candidates support expanding trade agreements.