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'Strategic Economic Cooperation Agreement' similar to FTA…Auto tariffs to be abolished within 15 years
Tariffs on major export items such as cosmetics, K-food, and pharmaceuticals also to be gradually abolished
Ecuadorian agricultural products like bananas to enter duty-free
Ecuador ratified the Strategic Economic Cooperation Agreement (SECA) with South Korea on the 14th (local time).
SECA is an agreement with the same content as an FTA but supplemented with various economic cooperation elements such as environment, labor, supply chain, and healthcare.
The Ecuadorian Parliament ratified SECA with 83 votes in favor and 57 against. This is the first strategic agreement Ecuador has concluded with an Asia-Pacific economic bloc.
South Korea and Ecuador first began SECA negotiations in 2016, but after 9 rounds of official negotiations due to differences in positions, the overall negotiations were concluded in October 2023, and both governments signed last September.
According to this agreement, tariffs on South Korean automobiles, currently subject to high tariffs of up to 40%, will be completely abolished within 15 years after SECA takes effect.
In particular, for small and medium-sized hybrid cars, which are rapidly growing due to Ecuador's eco-friendly vehicle support policy, the 35% tariff will be abolished within 5 years.
Tariffs on 'K-food' items gaining attention in Latin America, including cosmetics (20% tariff rate, abolished within 10 years), ramyeon (30%, 10 years), gim (seaweed, 5%, 5 years), and health drinks (20%, 7 years), will also be abolished sequentially.
The markets for construction heavy equipment, pharmaceuticals, and medical devices, as well as crude oil and refined oil, will also be mutually opened.
Ecuador can export 98.9% of its exportable items to South Korea duty-free.
Items such as bananas, currently subject to a 30% tariff, will see tariffs gradually reduced over the next 5 years. Locally, agricultural exports are expected to increase significantly.
When the South Korean government temporarily abolished tariffs on bananas in 2024 and 2025, banana exports tripled, reported local daily El Universo today.
Representative Lucía Jaramillo (ADN) stated, "This trade agreement includes not only traditional agricultural products such as coffee, shrimp, bananas, and cocoa but also non-traditional agricultural products such as dragon fruit, blueberries, and passion fruit-like fruits."
The South Korean National Assembly is reportedly preparing for the ratification of SECA.
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