Colombia and Ecuador, as brother and neighboring countries, represent a natural market when betting on the international trade of the States. However, despite these conditions, Bogotá did not enter the ‘top 5’.
(The nationalities that most request asylum in Colombia).
This is a situation that changed due to the war in Ukraine, since trade with Russia, a key partner of Ecuador, was reduced due to the war implications. Hence, Colombia is now the fourth largest trade country.
This was stated by Priscila Flores, director of the ProEcuador promotion agency for Colombia and Venezuela, who also added that the future entry of her country into the Pacific Alliance (in negotiations with Mexico), will allow strengthening the commercial network that Quito already has with the economies on this side of the world.
What is ProEcuador?
ProEcuador is Ecuador’s export promotion and investment attraction agency. We are currently within the Ministry of Production, Foreign Trade, Investments, and Fisheries. We started activities in 2012 and from that same year we started operations in Colombia.
We have one of the most important functions, which is to promote our exports in all markets; also to accompany entrepreneurs, from the time they are constituted as an MSME until they are exporters. At the same time, also in recent years we have placed a lot of emphasis on attracting investment.
How is the relationship between Colombia and Ecuador?
Colombia has always been our natural market. Along with Peru, they are our main partners not only in trade but also in cooperation. We share an extensive land border that has linked us beyond the commercial issue. Now, during the pandemic, we had several initiatives, including joint vaccination programs for border populations.
(Immigration amnesty, Ecuador’s option for Venezuelan immigrants).
The commercial, social and cultural relationship between both countries is much closer than what we had before with Peru. The mentality was always more linked to the Colombian issue, we are historically closer and without a doubt, for Ecuadorian companies it is a primordial market. We would love to say that the scales are balanced but it is not like that, we have been deficient, but we are very complementary and that is very interesting.
For example, in the export of coffee, we export coffee to Colombia, which has a high demand due to its international position, which sometimes cannot be sustained with national production. So, of course, Ecuador exports to Colombia and we make an issue of accumulation of origin.
How is the product offer?
We have done an interesting task of diversifying our products. 96% of the shrimp consumed in Colombia are Ecuadorian, for example. Among other products, we also highlight that 94% of the tuna in the country is Ecuadorian.
How is the general balance of bilateral trade?
So far this year, Colombia has exported close to US$1,038 million to the Ecuadorian market and we, on the other hand, close to US$534 million. Last year we had figures around US$830 million, one of the main products being wood boards. We are a very complementary market.
Has trade been affected by the war?
We do not have an FTA with the United States, we are left behind in those negotiations. We are just renegotiating a process and obviously, being isolated, exporters had to make a great effort to diversify their markets. In that sense, they sought to enter Asian markets, Turkey, Russia or Ukraine.
In this sense, the war had an impact on two specific sectors of Ecuadorian exports: flowers (roses) and bananas. Our exports to those markets were strongly affected.
(The Government of Ecuador gives in to the reduction of fuel prices).
Thus, other countries such as the United States or the European Union doubled their purchases; and Colombia ranked as the fourth trading partner, from sixth place, replacing Russia.
How is Ecuador preparing to enter the Pacific Alliance?
Ecuador already has business and a fairly solid and full relationship with Japan, China, Korea and several Asian countries. On the issue with the Pacific Alliance, we are very interested in strengthening the relationship by bloc and encouraging other countries to cooperate, invest, and exchange good practices.
We are also interested in exploring the issue of accumulation of origin to supply the Asian markets, which are often looking for volume. We will seek to strengthen the ties between the private sector of the bloc because governments are transitory.
The objectives and commercial relationships that can be generated between the private parties are essential for us.
We have binational committees among the private sector so that these long-range relationships can take place. We hope to close the agreement with Mexico very soon (remaining requirement) and then immediately be admitted to the Pacific Alliance.
Roberto Casas-Lugo
