Ecuador and South Korea pursue trade deal to boost value-added exports

Ecuador and South Korea are advancing a Strategic Economic Cooperation Agreement (SECA) aimed at increasing the value of Ecuadorian exports. The agreement includes the immediate removal of tariffs for 7,473 Ecuadorian subheadings, allowing products to enter the South Korean market with a 0% tariff once the instrument takes effect.

Key products benefiting from immediate zero-tariff access include shrimp, textiles, chocolate, palm almond oil, and coffee beans. For instance, shrimp currently faces tariffs of approximately 20% in South Korea. Other goods, such as instant coffee, Andean cereals, and cocoa derivatives, will see progressive tariff reductions over a three-year period.

The partnership seeks to move beyond the traditional exchange of raw materials by leveraging South Korean technology and industrial capacity. This collaboration aims to help Ecuador transform raw goods into processed items, such as processed foods and cosmetic ingredients, thereby increasing economic value through innovation and technological integration.