Ecuadorian bananas expected to boom with FTA with China

Ecuador's banana sector is optimistic about the benefits that the Free Trade Agreement (FTA) with China could generate. According to the executive director of the Association of Banana Exporters of Ecuador, José Antonio Ugalde, bananas are the fifth most exported product to China, with an annual value of 154.5 million dollars. Thanks to the Free Trade Agreement (FTA), the current 10% tariff on bananas will gradually be reduced to zero.

 

According to a study by ECLAC (Economic Commission for Latin America and the Caribbean), the FTA could increase banana exports by 32% and create 50,000 new jobs. 

 

Although the focus is on the Chinese market, Ugalde emphasised that all markets are valuable and will not be neglected. He underlined the importance of the Russian market, which supports 25,000 hectares of banana crops in Ecuador.