Ecuador sees trade deal with China later in the year as debt talks begin for Reuters

By Alexandra Valencia

QUITO (Reuters) – Ecuador is expected to reach a trade deal with China by the end of this year and will begin formal debt renegotiation with the Asian country, Ecuador’s President Guillermo Lasso said on Saturday after a visit with Xi Jinping. Jinping.

China has become a major lender in Ecuador over the past decade, with millions of dollars in long-term loans, credit lending, large investments in hydroelectric projects and mining, and other loans.

“We had a fruitful meeting with President Xi Jinping in China,” Lasso posted on Twitter (NYSE :). “We have achieved excellent results in trade openings, health cooperation and debt renegotiation.”

At the meeting, the two countries signed an agreement to pave the way for a trade agreement by the end of the year, which will benefit Ecuador’s exports of shrimp, bananas, cocoa, other fruits and minerals.

China said on Sunday that the two countries had agreed to open negotiations for a free trade agreement. The Ministry of Commerce, in a statement on its website, did not provide details on the planned talks.

At a side meeting of the 2022 Beijing Winter Olympics, Xi said China and Ecuador should use negotiations on a free trade agreement to deepen practical cooperation between the two countries, China’s Xinhua news agency reported.

Xik expressed Ecuador’s hope that it would continue to provide a business environment for Chinese companies to invest and operate in Ecuador, while China said it would continue to help Ecuador cope with COVID-19.

Lasso, who took office in May, said more trade and foreign investment were key to reviving the South American country’s anti-COVID and low-liquidity economy.

“The market would increase by almost $ 1 billion more in export options,” Trade Minister Julio Jose Prado said in a virtual press conference. “And that means we can almost double our exports to China in a variety of products.”

The countries have agreed that their finance ministries will hold initial talks on debt renegotiation as it seeks to improve Ecuador’s payment terms and interest rates.

Ecuador also wants to disconnect the $ 2.08 billion gross transfer to Chinese banks, according to Foreign Minister Juan Carlos Holguin, which would release $ 400 billion a year in potential spending.

China will provide 2.5 million doses of COVID-19 vaccine for vaccination to children between the ages of 3 and 5, the Ecuadorian government has added.