Ecuador says Yes to End of Variable
Tariff in Reciprocal Trade Agreement Framework with US
Purpose and Impact
·
The agreement
aims to increase market access for U.S. exporters into Ecuador, strengthen
national and economic security, and help reduce the U.S. trade deficit with Ecuador.
·
In 2024, U.S.
exports to Ecuador reached $10.2 billion, with total two-way trade in goods
and services at $90.4 billion.
Key Provisions
·
Tariff Barriers: Ecuador will remove or decrease tariffs on key sectors
(e.g., tree nuts, fruit, pulses, wheat, wine, distilled spirits), and eliminate
the Andean Price Band System variable tariffs for many agriculture products.
·
Non-Tariff
Barriers (Agriculture): Ecuador will
reform its import licensing and facility registration, ensuring transparent and
predictable systems. Market access for U.S. products using terms like fontina, gruyere,
mozzarella, parmesan, etc., is protected.
·
Non-Tariff
Barriers (Industrial): Ecuador will
streamline regulatory requirements and approvals for imports of U.S. remanufactured
goods, vehicles, automotive parts, medical devices, and pharmaceuticals—accepting
U.S. standards and FDA findings.
·
Trade Facilitation: Ecuador will eliminate pre-shipment inspection mandates,
enhance its Single Window contingency plans, and expand the Authorized Economic
Operator program for express delivery.
·
Digital Trade: Ecuador commits to preventing barriers to digital services
and refraining from discriminatory digital service taxes, supporting a moratorium
on customs duties for electronic transmissions.
·
Intellectual
Property: Ecuador will
address IP issues from the 2025 Special 301 Report, improve border enforcement,
and criminalize unauthorized camcording.
·
Labor Protections: Ecuador will uphold international labor rights, strengthen enforcement, and prohibit goods produced
by forced labor.
·
Environmental
Protections: Ecuador will
raise environmental law standards, combat illegal logging and wildlife trade, implement
WTO fisheries subsidy obligations, and improve resource efficiency.
·
Economic Security: The framework will strengthen cooperation on supply
chains and innovation, address unfair policies, and prevent duty evasion.
Benefits
·
MFN Tariff
Treatment: The United
States will offer Most Favored Nation tariff status to
qualifying Ecuadorian goods that cannot be produced domestically.
·
The deal highlights
efforts to eliminate unfair trade practices, advance U.S. agricultural interests,
and bring balanced, reciprocal trade.
Next Steps
·
The two nations
are working to finalize and implement the agreement, aiming to lock in long-term
benefits for businesses and workers.
Fact Sheet: The United States and Ecuador Agree to a Framework for Agreement
on Reciprocal Trade
ACHIEVING RECIPROCAL TRADE: On 13
November, 2025, President Donald J. Trump announced a trade deal that will provide
Americans with increased market access in Ecuador. The United States and the Republic of Ecuador
(Ecuador) agreed to a Framework for an Agreement on Reciprocal Trade, which will
strengthen American exporters’ access to Ecuador’s market while bolstering U.S.
national and economic security.
·
The Agreement on Reciprocal Trade will help U.S. farmers,
ranchers, fishers, small businesses, and manufacturers to increase U.S. exports
and expand business opportunities, and help reduce the goods trade deficit with
Ecuador.
·
U.S. goods and services exports to Ecuador reached $10.2
billion in 2024, and the agreement will substantially facilitate increased opportunities
for U.S. exporters.
GROUNDBREAKING TERMS: The Framework
includes new terms to expand preferential market access, particularly for America’s
agricultural exporters, while also lowering tariff and non-tariff barriers. The
key terms of the U.S.-Ecuador Agreement on Reciprocal Trade will include:
·
Addressing Tariff Barriers: Ecuador will
remove or decrease a range of tariff barriers across key goods sectors, including
tree nuts, fresh fruit, pulses, wheat, wine, and distilled spirits, and fully eliminate
a variable tariff on many agricultural products it had imposed through the Andean
Price Band System. These actions will create commercially meaningful market access
opportunities for U.S. exports, supporting high-quality American jobs.
·
Breaking Down Non-Tariff Barriers for U.S. Agriculture
Exports: Ecuador is reforming its import licensing and facility
registration systems for food and agricultural products to enhance transparency
and predictability and reduce onerous barriers to U.S. agriculture exports. Ecuador
has also committed to ensuring that market access will not be restricted due to
the mere use of certain cheese and meat terms, including fontina, gruyere, mozzarella,
parmesan, provolone, black forest ham, prosciutto, salami, and others.
·
Breaking Down Non-Tariff Barriers for U.S. Industrial
Exports: Ecuador will address a range of non-tariff barriers,
including by streamlining regulatory requirements and approvals for U.S. exports,
such as: (1) accepting remanufactured goods from the United States; (2) accepting
vehicles and automotive parts built to U.S. motor vehicle safety and emissions standards;
(3) accepting U.S. medical devices marketed in the United States, and Medical Device
Single Audit Program audit reports or certificates for medical device manufacturing
facilities; and (4) accepting U.S. pharmaceutical products marketed in the United
States, and surveillance findings by the U.S. Food and Drug Administration (FDA)
for U.S. manufacturing facilities in the United States.
·
Advancing Trade Facilitation: Ecuador will
continue to advance trade facilitation measures, including by ending pre-shipment
inspection mandates, establishing contingency plans for its Single Window, and expanding
the Authorized Economic Operator program to include express delivery carriers within
three months.
·
Preventing Barriers for Digital Trade: Ecuador will
prevent barriers to services and digital trade with the United States, and refrain
from imposing discriminatory digital service taxes. Ecuador will support a permanent
multilateral moratorium on customs duties on electronic transmissions.
·
Protecting and Enforcing Intellectual Property: Ecuador has
committed to ensure transparency and fairness regarding geographical indications
and to address issues identified in the 2025 Special 301 Report, including enhancing
cooperation among enforcement agencies, providing ex officio authority for border
enforcement, and criminalizing unauthorized camcording.
·
Strengthening Labor Protections: Ecuador has
committed to protect internationally recognized labor
rights and strengthen enforcement of its labor laws. In
addition, Ecuador will adopt and implement a prohibition on the importation of goods
produced by forced or compulsory labor.
·
Strengthening Environmental Protections: Ecuador has
committed to adopt and maintain high levels of environmental protection and to effectively
enforce its environmental laws. Ecuador has also committed to take measures to improve
forest sector governance and combat illegal logging; encourage a more resource efficient
economy; fully implement the obligations of the WTO Agreement on Fisheries Subsidies;
strengthen enforcement of its fisheries-related measures; and combat illegal wildlife
trade.
·
Strengthening Economic Security Alignment: The United
States and Ecuador are committed to strengthening economic and national security
cooperation and enhancing supply chain resilience and innovation through complementary
actions to address non-market policies as well as combatting duty evasion and cooperating
on investment security and export controls.
THE PROSPEROUS PATH FORWARD: The United
States and Ecuador are working to finalize the Agreement to lock in benefits for
American businesses and workers. Total two-way trade in goods and services with
Ecuador amounted to approximately $90.4 billion in 2024.
·
As a result of this deal, the United States will provide
Most Favored Nation (MFN)-tariff treatment to Ecuador
for certain qualifying goods from Ecuador that cannot be grown, mined, or naturally
produced in the United States.
LIBERATING AMERICA FROM UNFAIR TRADE
PRACTICES: Since Day One, President Trump challenged the assumption
that American workers and businesses must tolerate unfair trade practices that have
disadvantaged them for decades and contributed to our historic trade deficit.
·
On April 2, President Trump declared a national emergency
in response to the unprecedented threat caused to the United States by the large
and persistent trade deficit caused by a lack of reciprocity in our bilateral trade
relationships, disparate tariff rates and non-tariff barriers, and U.S. trading
partners’ economic policies that suppress domestic wages and consumption.
·
President Trump continues to advance the interests of
the American people and our agricultural sector by removing tariff and non-tariff
barriers and expanding market access for American exporters.
·
Today’s announcement provides a tangible path forward
with Ecuador that underscores the President’s dedication to bringing balanced, reciprocal
trade with an important trading partner.