On Wednesday, the governments of South Korea and Ecuador concluded negotiations on a Strategic Economic Cooperation Agreement (SECA), a type of free trade agreement, according to the Ministry of Trade, Industry and Energy. Industry Minister Bang Moon-kyu and Ecuador’s Trade Minister Daniel Legarda signed the joint statement in Seoul.
The two countries had been discussing the details of the Free Trade Agreement (FTA) since 2016 and held nine official rounds of talks. When the deal is officially signed in the first half of next year, it will be South Korea’s 23rd FTA.
The agreement will reduce or eliminate tariffs on 96.4 percent of all items traded between the two countries, and 92.8 percent of all products traded, respectively. South Korean exports such as vehicles, food items, and cultural contents are expected to increase to Ecuador, as well as stronger cooperation on cross-border trade in services and intellectual property rights.
Ecuador is South Korea’s seventh-largest export destination among Central and South American nations, with bilateral trade volume reaching approximately US$980 million in 2020. Ecuador has adopted the U.S. dollar as its official currency and has implemented various market-friendly policies.
After the signing ceremony, a business forum was held, in which officials from around 100 companies from both countries discussed ways to boost cooperation and explored business opportunities. South Korea hopes that Ecuador will become a major partner for stable supply chains of critical raw materials, as well as a crucial foothold for advancing into the broader South American market.