The China-Ecuador Free Trade Agreement took effect on May 1. Just after midnight, customs officials at the Qingdao SCODA Approval Center for Certificates of Origin issued the first China-Ecuador FTA Certificate of Origin to Shandong Kaiyi Food, facilitating the export of a batch of garlic powder to Ecuador that marks Shandong's first certificate under the agreement since its official implementation.

"With this Certificate of Origin, our products exported to Ecuador will enjoy a reduced tariff rate from 25% to 23.3% upon customs clearance," stated Shandong Kaiyi Food Sales Manager Zhang Chengzheng. He also added that this reduction translates to nearly a thousand yuan in saved taxes for the batch of garlic powder destined for Ecuador. Ecuador represents a burgeoning market for the company in recent years based on statistics and the tariff reductions would see the Shandong-based food and spices provider to save up to 26,000 yuan in this year alone. With tariffs set to eventually reach zero after 14 years, annual savings could soar to nearly 400,000 yuan. The tariff reductions under the free trade agreement have bolstered the competitiveness of the Shandong Kaiyi Food's products, with orders already booked through the end of this year and export volumes expected to grow by around 20% year-on-year.

The China-Ecuador Free Trade Agreement marks China's 20th such agreement signed with foreign nations, positioning Ecuador as China's fourth trade partner in Latin America, following Chile, Peru, and Costa Rica. Under the agreement's provisions, both countries will mutually eliminate tariffs on 90% of goods, with approximately 60% of these tariffs immediately eliminated starting May 1 this year. Tariffs on Chinese exports such as plastic products, steel, machinery, electrical equipment, automobiles, as well as parts and components entering the Ecuadorian market will gradually decrease. Similarly, tariffs on Ecuadorian products like bananas, shrimp, fish, cocoa, and coffee entering the Chinese market will gradually phase out to zero.

According to statistics from Qingdao Customs, Shandong's imports and exports to Ecuador reached 2.22 billion yuan in Q1 2024. With the official implementation of the China-Ecuador Free Trade Agreement, foreign trade enterprises can enjoy greater tariff reduction benefits, facilitating the continual expansion of international market share.

Fresh produce from Ecuador have been highly favored by consumers in recent years and the implementation of the China-Ecuador Free Trade Agreement has seen China lowering tariffs on 94 categories of Ecuadorian-origin fruits. "We primarily import bananas from Ecuador, and with the agreement in effect, import tariffs immediately decreased by 1 percentage point and will continue to decline annually. This not only reduces our import costs but also allows domestic consumers to purchase high-quality imported fruits at lower prices," stated Yu Wenhui, a fruit vendor at the Dongfang Dingxin International Agricultural and Nonstaple Products Trading Center. The reduction in import costs is expected to stimulate fruit sales, with Yu's import volume projected to increase by about 20% this year.