Ecuador's banana, one of the country's main non-oil export products, is one of its first products to benefit from the recent trade agreement with China, which entered into force on May 1. According to Richard Salazar, executive director of Ecuador's Banana Marketing and Export Association (Acorbanec), banana shipments arrived in China between June 5 and 8, after approximately 35 to 38 days.
Thanks to this agreement, the tariff for Ecuadorian bananas has decreased by 1%, dropping from 10% to 9%. The tariff is scheduled to reach 0% in 2033. From January to May, banana exports to China experienced a 4% cumulative increase, reaching 5.2 million boxes. However, the increase in spot prices has limited these exports' growth.
In the first quarter of 2024, bananas were the second-most-exported product to China. These exports amounted to $37 million and grew by 13% in value and 9% in volume.
According to Felipe Ribadeneira, president of Fedexpor, the agreement has also benefited other products such as cocoa and pitahaya. However, he said, it's too early to evaluate their impact on exports. Gustavo Cáceres, president of the Ecuadorian-Chinese Chamber of Commerce, highlighted logistical and transport cost challenges that have affected the speed at which exports were expected to grow under the new agreement.
Source: americaeconomia.com