Ecuador will see trade agreement with China at the end of the year, debt issues begin With Reuters

Author Alexandra Valencia

QUITO (Reuters) – Ecuador hopes to forge a trade agreement with China later this year and will resume talks with Asia, Ecuadore President Guillermo Lasso said on Saturday, after visiting Beijing with his counterpart Xi. Jinping.

China became the top lender in Ecuador over the past decade, with millions of dollars in long-term debt tied to the handover, large investments in hydro-electric and mining operations and other loans.

“In China we had a good meeting with President Xi Jinping,” Lasso wrote on Twitter (NYSE :). “We have had good results in opening trade, cooperation in health and debt negotiations.”

At the summit the two countries signed a memorandum of understanding to open a trade agreement at the end of the year, which would benefit Ecuadorean shrimp, bananas, cocoa, fruit and salt products.

China said on Sunday the two countries had agreed to open talks on free trade agreements. The Ministry of Commerce, in its statement on their page, did not elaborate on the planned talks.

At a conference on the sidelines of the 2022 Winter Olympics in Beijing, Xi said China and Ecuador should use free trade talks as an opportunity to deepen genuine ties between the two countries, China’s Xinhua news agency reported.

Xi was quoted as saying that he believes Ecuador will continue to provide a good business environment for Chinese companies to sell and operate in Ecuador, while China says it will continue to help Ecuador fight COVID-19.

Lasso, who took office in May, said more trade and foreign exchange were needed to boost South America’s economy, which is plagued by COVID and economic poverty.

“It could increase the market by about $ 1 billion in additional exports,” trade minister Julio Jose Prado told a news conference. “And that means we can almost double what we export to China for a variety of things.”

The countries have agreed that their finance ministers will hold a preliminary round of debt negotiations, while Ecuador seeks to fix repayment and interest rates.

Ecuador also wants to curb the remaining $ 2.08 billion outstanding debt owed by Chinese banks, according to Foreign Minister Juan Carlos Holguin, which could free up $ 400 million a year on spending.

China will provide 2.5 million COVID-19 vaccine for children ages 3 to 5, the Ecuadorean government added.