The recent trade agreement between Ecuador and Canada, concluded on January 31, 2025, has significant implications for Ecuadorian trade. This agreement opens the doors to a market of approximately 39.8 million Canadian consumers, which represents a considerable opportunity to diversify and expand Ecuadorian exports.

One of the most important benefits is the equalization of tariff conditions with neighboring countries such as Colombia, Peru and Chile, which have already had trade agreements with Canada for more than fifteen years. This will allow Ecuador to compete on equal terms in products such as roses, which currently face a 10.5% tariff in the Canadian market, as well as canned tuna and canned fruit, which have tariffs of between 4% and 7%. In terms of bilateral trade, trade between Ecuador and Canada currently amounts to approximately $1.1 billion, with Ecuadorian exports of around $470 million. It is projected that, in the short and medium term, Ecuadorian exports could increase by approximately $170 million, especially in sectors such as flowers, food, tuna, textiles, auto parts, ceramics, footwear, wood, juices and pulps, cosmetics and plastics.

In addition, the agreement encourages Canadian investment in key sectors of the Ecuadorian economy, such as mining, where Canada is already a major investor. This stable business framework could attract more capital for responsible and sustainable projects in the country.

It is important to note that while the agreement offers multiple benefits, it also presents challenges. Ecuadorian companies will need to adapt to the quality standards and regulations of the Canadian market in order to maximize the opportunities that this agreement offers. In addition, the need to diversify the exportable supply and add value to products must be considered in order to improve competitiveness in the international market.