A partial trade agreement with the Dominican Republic appears on the horizon of Ecuador’s trade agenda, following the signing of a memorandum of understanding in November 2020, which established a joint working group to boost and promote trade, investment and productive linkages between the two countries.
The Minister of Production, Julio José Prado, met this week with the Minister of Foreign Affairs of the Dominican Republic and his team, in order to review the progress of the memorandum with a view to a future negotiation of an agreement.
Ecuador has historically maintained a positive trade balance with the Dominican Republic
With the Dominican Republic, Ecuador historically maintains a positive trade balance: in 2021, non-oil exports to this destination reached US$106 million, showing growth of 21.1% compared to the same period in 2020 (more than US$18 million).
The main export products were raw tobacco; other metal manufactures; leather, plastic and rubber manufactures; vegetable extracts and oils; and natural flowers. In 2021, according to Senae’s database, there are 448 Ecuadorian companies exporting to the Dominican Republic; it is also noted that non-oil exports represent 99.9% of Ecuador’s total shipments to this destination.
Meanwhile, the Ministry informed that Prado held meetings with the Ministry of Industries, Commerce and Mypimes, Prodominicana; with the National Council of Free Zones and the Office of Agricultural Treaties, to address issues of bilateral interest.
Prado presented Ecuador’s current trade policy to the productive sectors of the Caribbean country, with the presence of representatives of the National Council of Private Enterprise (Conep), the Association of Industries of the Dominican Republic (AIRD), the Dominican Association of Free Zones (Adozona), the Dominican Association of Exporters (Adoexpo), the Chamber of Commerce and Production of Santo Domingo, as well as the Chamber of Commerce and Production of Santiago.
At the end of the meeting, the Ecuadorian delegation visited the DP World Caucedo facilities in the Caribbean country, to learn about the operation of its free zones and the importance they can have for a potential implementation.
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