The Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development, today announced the successful conclusion of free trade agreement negotiations between Canada and Ecuador.
Once ratified in both countries, the Canada-Ecuador Free Trade Agreement is an important step in advancing Canada's trade diversification strategy, opening new markets for Canadian businesses and enhancing their ability to compete on the global stage. By making it easier to trade goods and services, this agreement will benefit importers and exporters, businesses, investors, and consumers in both countries, creating a more transparent and predictable environment for trade and investment.
In 2022, Ecuador was the sixth-largest economy in South America with a population of 18 million and a GDP of $118.84 billion (2023). From 2018 to 2023, Canadian foreign direct investment in Ecuador tripled to $4.4 billon, making Canada one of the largest foreign investors in Ecuador.
This agreement underscores Canada's commitment to diversifying its trade relationships and reducing its reliance on any single partner. Since the launch of Canada's Trade Diversification Strategy in 2017, Canada has accelerated its efforts, resulting in 15 Free Trade Agreements covering 51 countries and representing nearly two thirds of global GDP.
The Canada-Ecuador Free Trade Agreement will reflect the shared interests of both nations. It will ensure that the benefits of trade reach businesses of all sizes, as well as Indigenous and women-owned enterprises. It also includes a strong chapter on labour protections, environmental safeguards, and ethical business standards.
