The Canadian government earlier this week announced the successful conclusion of free trade agreement negotiations with Ecuador, calling it an important step in advancing its trade diversification strategy.
The agreement – which comes at a time of rising trade tensions between Canada and its largest trading partner, the US, - underscores Canada’s commitment to diversifying its trade relationships and “reducing its reliance on any single partner,” said a government statement on Tuesday.
Under the terms of the agreement, Ecuador will provide preferential treatment for Canada’s key agricultural exports such as grains and oilseeds, cereals, meat, pulses, processed foods, and sugar-containing products.
Ecuador has committed to tariff rate quotas and partial duty eliminations for a few sensitive products. Meanwhile, Canada protected its sensitive agricultural sectors, ensuring no additional market access was granted for supply-managed products such as dairy, poultry, and eggs.
When the Canada-Ecuador Free Trade Agreement is ratified by both countries and comes into force, Canada will have trade agreements with all the countries on the South American Pacific coast.
Since the launch of Canada’s Trade Diversification Strategy in 2017, Canada has accelerated its efforts, resulting in 15 free trade agreements covering 51 countries and representing nearly two thirds of global GDP.
The US and Canada appeared headed for a trade war this week until US President Donald Trump agreed to suspend a possible 25% tariff on all imports of Canadian goods until March in exchange for improved Canadian security on the border.
