The Ecuador-EU Free Trade Agreement: What You Need to Know
In July 2019, Ecuador and the European Union finalized a free trade agreement that aims to boost economic relations between the two regions. This agreement is significant for both parties, as it will eliminate tariffs on most goods and services, increase investment opportunities, and address non-tariff barriers.
Here are some key points that businesses and consumers should know about the Ecuador-EU Free Trade Agreement:
1. Tariff Elimination
The agreement will gradually eliminate tariffs on 99% of the goods traded between Ecuador and the EU. This will make it easier and cheaper for businesses to trade with each other, and will also benefit consumers by reducing prices on imported goods.
2. Investment Opportunities
The agreement will also provide better protection for investors from both regions, including improved dispute resolution mechanisms and non-discriminatory treatment. This will encourage more investment in both directions, which could lead to job creation and economic growth.
3. Non-Tariff Barriers
The agreement includes provisions to address non-tariff barriers such as technical regulations, sanitary and phytosanitary measures, and intellectual property rights. These provisions will help ensure that trade is conducted fairly and that products meet the necessary standards and regulations.
4. Sustainability
The agreement also includes commitments to promote sustainable development, including environmental protection, social rights, and decent work. These commitments will help ensure that the economic benefits of the agreement are shared by all, and that trade does not come at the expense of people or the planet.
In conclusion, the Ecuador-EU Free Trade Agreement is a significant development in the economic relations between these two regions. It will bring benefits for businesses, consumers, and investors, while also protecting the environment and promoting social rights. As the agreement enters into force, businesses and consumers should take advantage of the new opportunities it provides, while also being aware of the potential challenges and risks.