Ecuador and Chile are taking the first steps to negotiate an FTA to replac the current Economic Complementation Agreement (ACE) with the objective of increasing bilateral exchange and diversifying the exportable supply, giving the negotiations a clearer, more modern and transparent legal framework.

Last year, the exchange of goods and services between Chile and Ecuador amounted to 2.109 billion dollars, i.e. 8.6% more than in 2017. Chilean exports reached 493 million dollars, while Ecuadorian exports reached 1.616 billion.

Daniel Legarda, the president of the Ecuadorian Federation of Exporters (Fedexpor), said that having a trade agreement with Chile would be positive, as that country is one of Ecuadors 10 most important trading partners. Exporters and importers also have positive expectations because now most ACE products are taxed at 0% tariff and a broader agreement will allow incorporating more products and services, as well as technical aspects, that facilitate commercial exchange.

A segment with potential for Ecuadorian producers is that of banana derivatives. The fruit has a good reception among Chilean consumers. According to the latest data from Trade Map and the Banana Marketing and Export Association (Acorbanec), in 2018 Chile imported 231,883 tons of bananas, 229,471 of which arrived from Ecuador.