On Wednesday, South Korea and Ecuador inked a Strategic Economic Cooperation Agreement (SECA), a type of free trade deal, that is projected to increase bilateral trade and investment and diversify South Korea’s trade portfolio, the Ministry of Trade, Industry and Energy declared.
Industry Minister Bang Moon-kyu and Ecuador’s trade minister, Daniel Legarda, signed the joint statement and plan to sign the agreement officially in the first half of next year following domestic procedures.
Under the deal, South Korea will eliminate tariffs on 96.4 percent of all items, and Ecuador will eliminate tariffs on 92.8 percent of all products traded. South Korea is looking forward to increased exports of vehicles, food items, and cultural contents to Ecuador, and the two countries have agreed to cooperate on cross-border trade in services and intellectual property rights.
The agreement could be beneficial for South Korea as Ecuador is rich in natural resources, such as copper, zinc, and silver, and could be a major supplier of raw materials. It could also be a key base for South Korea to expand into the broader South American market.
Bilateral trade between the two nations totaled around $980 million last year. Ecuador uses the U.S. dollar as its official currency and has implemented several market-friendly policies.
After the signing ceremony, a business forum was held, where companies from the two countries discussed ways to cooperate and explore business opportunities.