The world leader in banana exports, Ecuador, is not resting on its laurels as it seeks to enhance the trading conditions in the key growth markets of Asia. While they have access to South Korea, import tariffs of 30% are hobbling sales growth. Ecuador has also reportedly done all the paperwork and is waiting to sign a free trade agreement (FTA) with China, where they also face high tariffs.
The signing of the FTA’s will drastically reduce import duties and allow Ecuador's bananas and other fruit and vegetables to trade on a more equal footing to neighbouring countries, those who supply to China and have much more favourable tariffs due to the trade agreements.
José Antonio Hidalgo, Executive Director of the Association of Banana Exporters of Ecuador (AEBE), is currently part of an official delegation together with Ecuadorian government officials visiting South Korea, where they are working to have the Asian country lower the prohibitive 30% import tariff.
The latest statistics for February 2023 shows Ecuador’s banana exports to Asia decreased by 11.73% with a combined 2.7 million boxes compared to 3.09 million boxes exported during the same time last year. If restrictive import tariffs are lifted to Asia, Ecuador’s banana industry could not only recover these latest lower volumes, which amounts to about 300,000 boxes, but could increase closer to 5 million or more boxes.
Ecuador’s top Asian export markets are China that receives 1.8 million boxes, South Korea receiving 125,000 boxes, Japan receiving 778,000 boxes, Singapore only 3,240 and Taiwan receiving nothing until February 2023.
The banana producing country is recovering from cooler weather that slowed production a bit. Warmer weather will see them ramping up production and exports. Producers and exporters say they are hoping for their government to sign the FTA with China soon so that they can compete better in Asia and supply those markets where there is huge demand.
For more information:
Jose Antonio Hidalgo,
AEBE
Tel: +593 96 402 9141
Email: communications@aebe.com.ec
www.aebe.com.ec