Ecuador and the Dominican Republic Launch Trade Talks

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Ecuador and the Dominican Republic Launch Trade Talks.

Agreement between Ecuador and the Dominican Republic

Photo: X/LassoGuillermo

Latin American Post Staff

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Leer en español: Ecuador y República Dominicana inician conversaciones comerciales

Negotiating a New Horizon: Ecuador and Dominican Republic Forge Trade Agreement

Ecuadorian President Guillermo Lasso announced on Wednesday that his government, in collaboration with the Dominican Republic, has initiated negotiations to establish a "partial scope" trade agreement. This development marks a significant step in bilateral relations between the two countries.

The decision to commence these negotiations follows President Lasso and his Dominican counterpart, Luis Abinader, signing an instrument to open bilateral trade dialogues. This move signifies a deepening of diplomatic ties and a commitment to enhancing economic interactions between Ecuador and the Dominican Republic.

In a statement released on the social network X (formerly Twitter), President Lasso expressed gratitude towards President Abinader and his administration, noting, "Thanks to the excellent relationship we have had with President Luis Abinader and his government, today we signed the instrument with which we start negotiations for a Partial Scope Agreement with the Dominican Republic."

Pioneering Possibilities for Ecuador

This proposed agreement, if finalized, would be a pioneering venture for Ecuador. "If the agreement is signed, we will be the first country in South America to have such a trade agreement with a Caribbean country," emphasized Lasso, who is in the final days of his presidency, with President-elect Daniel Noboa set to take office on November 23.

President Lasso pointed out that the Dominican Republic would join a growing list of countries with which Ecuador has established commercial agreements, including China, South Korea, and Costa Rica. He emphasized that these agreements are instrumental in promoting trade exchange, investment, and productive chain integration, reflecting a broader economic strategy.

The "partial scope agreement" represents the countries' most fundamental trade agreement. It typically involves a general understanding of tariff matters and a basic basket of goods from each country's commercial offerings. However, such contracts often pave the way for broader negotiations and more comprehensive open trade discussions.

Expanding Trade Footprint

President Lasso, who began his term in May 2021, has been vocal about his administration's foreign trade policy, which he describes using the slogan: "More Ecuador in the world and more world in Ecuador." This approach underlines the nation's intent to expand its global trade footprint and integrate more fully into the international economy.

During his presidency, Ecuador signed trade agreements with China, South Korea, and Costa Rica pending ratification. The responsibility for this ratification falls to the National Assembly, which is set to convene starting Friday. These agreements, once ratified, will mark a significant milestone in Ecuador's trade history, broadening its economic horizons and opening new markets for its products.

Diversifying Trade Relationships

The negotiation with the Dominican Republic is a testament to Ecuador's dedication to diversifying its trade relationships and expanding its economic network. It also highlights the importance of South American nations in forging new paths in global trade, particularly with countries in the Caribbean region.

The trade talks between Ecuador and the Dominican Republic could lead to increased economic opportunities, a boost in bilateral trade, and stronger diplomatic ties. This move is seen as a strategic effort by both nations to enhance their global presence and leverage their unique geographical and economic positions for mutual benefit.

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As the world economy evolves, such agreements underscore the importance of adaptability and forward-thinking in international relations. The potential trade agreement between Ecuador and the Dominican Republic represents a milestone in South American diplomacy and a model for future trade partnerships across diverse regions.