QUITO — In 1839, Ecuador and Britain signed their first formal rapprochement: the Treaty of Amity, Commerce, and Navigation. This was 113 years before Elizabeth II, who died on September 8, began her reign, in 1952. But the last bilateral trade agreement was signed on May 15, 2019 and entered into force on January 1, 2021, after ratification in the National Assembly.

This new agreement is signed after the UK left the European Union with a view to maintaining bilateral trade not only with Ecuador, but also with Peru and Colombia, which are included in this new agreement.

BEST NUMBERS FOR ECUADOR

But relations with Britain have been historically positive and the numbers show it. According to information provided by Fedexport, in 2021, non-oil trade between the two countries will end favorable balance of US$163 million to Ecuadorbecause exports are more dominant than imports.

In terms of exports, it reached US$ 288 millionwhich means an increase of 25% compared to 2020, while imports reached US$ 125 million.

Also, in 2021, Great Britain became the eighth destination for non-oil and gas exports and currently accommodates around 135 exported products.

The main products exported to the UK in 2021 by numbers are as follows:

• Canned tuna: US$136 million
• Shrimp: US$69 million
• Bananas and plantains: US$ 52 million
• Textiles: US$9 million
• Interest: US$6 million

These five main products account for 95% of non-oil and gas exports. In addition, there are more than 241 companies related to exports to this country.

In the case of imported products are: drink (US$21 million), vehicles and spare parts (US$20 million), pharmaceutical products (US$15 million), mechanical machines and equipment (US$15 million) and surgical equipment (US$9 million). Among the first five products, 64% of non-oil and gas imports are concentrated.

Non-oil and gas imports from the UK to increase by 32% in 2021. 47% of non-oil and gas imports are related to raw materials and capital goods.

INVEST, SICK AGAIN

But although the commercial exchange is not that high, Something that has stood out in the UK is the investment it has brought to Ecuador in recent years. According to Central Bank data, in 2021 it will rank fifth as the country of origin of Foreign Investment (FDI), with US$ 43 million; However, in 2020 was ranked third, with US$105.8 million. For the first quarter of this year, it was ranked eighth with US $ 7 million.

The UK’s largest investment is in mine and quarry exploitation of US$ 36 million in 2021; between January and March this year, US$ 7 million was recorded. Followed by transportation, storage and communication activities.

Relations between the United Kingdom and Ecuador have been a win win. Expectations with a recently signed trade agreement suggest the country is expanding its exports, but it needs to be done to diversify that exportable supplieswith new goods and even services with greater Value added.