In the intricate world of international relations, few individuals possess the acumen and dedication to bridge gaps, foster collaboration, and champion sustainable partnerships. One such luminary is Sonsoles García, Ecuador’s Minister of Production and Foreign Trade, investment and Fisheries.
Throughout her professional journey, García has held pivotal roles. As the director of the Ecuadorian Federation of Exporters (FEDEXPOR) at its Guayaquil headquarters, she navigated the complexities of international trade. Her tenure as director of the OAS Program within Ecuador’s National Customs Service (SENAE) and her leadership in the Association of Ecuadorian Fruit and Vegetable Producers underscore her commitment to advancing economic ties.
García’s influence extends beyond borders. As the president of the Foreign Trade, Customs, and Investment Policy Commission of the International Chamber of Commerce (ICC) – Ecuador, she shapes policies that resonate globally. Her passion for education led her to teach law and commerce at universities in Quito and Guayaquil, nurturing the next generation of diplomats.
A prolific columnist for El Universo newspaper, García’s insights reach millions. But her impact transcends ink and paper. As a member of Global Americans—an organization dedicated to promoting democracy, human rights, social inclusion, development, and foreign policy in the Americas—she champions a more interconnected and equitable world.
Join us as we sit down with Minister García. Together, we explore the corridors of diplomacy with UAE, where every handshake holds promise, and every word echoes across borders. Her vision, experience, and unwavering commitment promise to illuminate the path toward a more sustainable, prosperous, and interconnected future.
The UAE and Ecuador recently signed a joint declaration to begin negotiations for a Comprehensive Economic Partnership Agreement (CEPA). Could you share the significance of this agreement and its potential impact on bilateral trade and investment between two nations?
The signing between the UAE and Ecuador marks a significant milestone in our trade agenda of trade openness. President Noboa’s vision aims to make Ecuador attractive to investors, not solely from a tax incentive perspective, but also by offering various benefits. With trade agreements already in place with major partners such as China, South Korea, and the EU, the addition of the UAE as a strategic partner reinforces Ecuador’s position on the global trade map.
The UAE’s emergence as a natural ally for Ecuador is evident in the increasing trade volumes between our two nations. Over the past three years, Ecuadorian exports to the UAE have surged by more than 40%, reaching approximately $600 million last year. Key exports include gold, minerals, bananas, plantains, shrimp, cacao, and coffee.
Our agriculture sector presents significant potential for further growth in trade with the UAE. A recent visit by a UAE delegation, led by Dr. Thani Al Zeyoudi, underscored Ecuador’s abundant food resources and potential contribution to food security. With our stable climate and complementary economies, we envision a mutually beneficial exchange wherein Ecuador can provide agricultural products while sourcing fossil fuels and medicines from the UAE.
While Ecuador boasts the rich biodiversity of the Amazon region and serves as a source for medicinal molecules, our country lacks the research and development infrastructure necessary for pharmaceutical production. Therefore, our focus lies in establishing partnerships to procure finished pharmaceutical products from the UAE. This strategic collaboration allows Ecuador to leverage its strength in agricultural exports while addressing the need for essential medicines. By importing pharmaceuticals from the UAE and exporting agricultural goods in return, we believe this symbiotic relationship strengthens bilateral trade ties between our two economies
What specific sectors or industries do you believe will benefit the most from the CEPA, and how do you envision it enhancing economic ties beyond the oil sector?
The most promising sectors for Ecuador to leverage under the Comprehensive Economic Partnership Agreement (CEPA) with the UAE include agriculture, aquaculture, and minerals. Ecuador stands poised to capitalize on its abundant natural resources, particularly in agriculture and aquaculture, to meet the UAE’s demand for high-quality products. Additionally, Ecuador boasts significant potential in the mineral sector, with recent discoveries revealing vast untapped copper reserves—one of the largest in the region.
The UAE, renowned as one of the world’s largest trading partners for minerals, presents an opportunity for Ecuador to explore and develop its mineral resources. As the UAE shifts its focus towards Latin America to diversify its sourcing, Ecuador emerges as a strategic partner offering stability and a favorable climate for agricultural production. Unlike some regions, most of Latin American countries, including Ecuador, maintain a steady climate conducive to agriculture.
Ecuador’s agricultural portfolio, comprising bananas, plantains, coffee, cocoa, shrimp, fish, and a variety of fresh and tropical fruits, stands out for its exceptional quality. The country’s unique environmental conditions—abundant water, fertile soil, ample sunlight—contribute to the superior quality of its agricultural products. Moreover, Ecuador’s commitment to fair trade practices underscores its dedication to the well-being of its people and sustainability.
In essence, Ecuador offers investors and local producers an environment conducive to success, characterized by exceptional product quality and a commitment to ethical business practices. While Ecuador may not possess vast land resources like some neighboring countries, its distinct product quality sets it apart and positions it as a prime investment destination in the region.
Ecuador has been actively engaging with Latin American countries to strain trade relations. How does the United Arab Emirates fit into Ecuador’s broader strategy for international Economic Cooperation?
Ecuador’s approach to international economic cooperation extends beyond bilateral agreements to encompass infra-regional trading alliances such as the Andean Community and Mercosur, as well as agreements with Central American and Caribbean nations. These agreements focus on enhancing access to markets, particularly for agricultural-based products, while also fostering collaboration and complementarity among Latin American countries.
The UAE aligns seamlessly with Ecuador’s vision of global openness and economic diversification. Despite Ecuador’s modest size, we recognize the nation’s immense potential beyond its renowned tourism destinations like the Amazon and the Galapagos Islands. Our country boasts high-quality products, a skilled workforce, and a conducive business environment supported by recent legislative reforms.
President Noboa’s administration has enacted several urgent economic laws, including the establishment of free zones designed to attract foreign investment. These free zones offer significant incentives for investors, including exemption from income tax for the first five years, VAT refunds on local purchases, and flexibility for shareholders to repatriate profits without taxation.
The introduction of these investment tools underscores Ecuador’s commitment to facilitating business and investment in the region. We recognize the importance of agility and responsiveness in today’s fast-paced global economy, and our government, largely composed of individuals with private sector experience, is dedicated to ensuring Ecuador remains an attractive destination for investment and trade.
Dubai Ports World’s substantial investment in Ecuador’s Port of Posorja is a significant milestone. How do you see this collaboration impacting trade flows and logistics between our countries?
DP World’s establishment in Ecuador in 2015 marked a pivotal moment in our country’s logistics landscape. As the primary port operator, DP World’s presence at the Port of Posorja has facilitated the handling of large vessels and positioned Ecuador as a strategic gateway between South America and Asia. This geographical advantage, coupled with the port’s deep-water capabilities, has elevated its prominence in the region.
However, while DP World’s investment has been transformative, we recognize the untapped potential for further collaboration between Ecuador and the UAE. Currently, Ecuador stands as the third most important port in the Pacific Orient region, underscoring our nation’s significance in global trade. With over 80% of our production destined for export markets, enhancing logistics infrastructure is paramount to maximizing trade opportunities.
We envision a direct shipping line connecting South America to the Emirates, leveraging Ecuador’s strategic location and DP World’s expertise. Such a partnership has the potential to establish Ecuador as a logistical hub for the UAE, further bolstering bilateral trade and economic cooperation.
DP World’s ongoing commitment to invest in Ecuador’s port infrastructure, with plans for additional investment in the coming years, signals a promising trajectory for our collaboration. This partnership represents just the beginning of a mutually beneficial relationship, with opportunities for growth and expansion on the horizon
As Ecuador’s Minister of Production, how do you plan to leverage the UAE’s economic strength and strategic position to boost Ecuadorian exports and attract foreign direct investment?
As part of our strategy to attract foreign direct investment (FDI) and enhance bilateral trade between Ecuador and the UAE, we recently hosted a delegation from the UAE with several key objectives in mind. Firstly, we aimed to facilitate meaningful connections between prominent figures in Ecuador, including government officials, exporters, and business leaders, and their counterparts from the UAE. Through intimate luncheons and dinners, we fostered relationships built on mutual trust and understanding, laying the foundation for future collaborations.
Secondly, we sought to showcase the exceptional quality of Ecuadorian products to our UAE partners. By treating them to a gastronomic experience featuring our finest shrimp, bananas, plantains, cocoa, and chocolate, we highlighted the diversity and excellence of our agricultural produce. Additionally, we arranged visits to local farms, allowing our guests to witness firsthand the rich abundance of our soil and the dedication of our workforce, including the significant contribution of women in the agricultural sector.
Furthermore, recognizing the UAE’s particular interest in agriculture and mining, we engaged in discussions with companies like Al Dahra to explore potential investment opportunities in these sectors. We are in the process of developing a comprehensive plan that outlines the necessary steps for UAE investors to establish their presence in Ecuador. By establishing clear timelines and requirements, we aim to expedite the investment process and capitalize on the UAE’s enthusiasm for partnership.
Looking ahead, we anticipate significant growth in bilateral trade, particularly if we successfully finalize the Comprehensive Economic Partnership Agreement (CEPA). With projected trade volumes expected to increase by approximately $15 million this year alone upon CEPA ratification, we are committed to facilitating robust trade relations between our nations. Additionally, we are exploring the possibility of bringing a delegation of Ecuadorian entrepreneurs to the UAE, further strengthening economic ties and fostering opportunities for collaboration.
In summary, our focus remains on attracting FDI and deepening trade relations with the UAE through proactive engagement and strategic planning. By leveraging the UAE’s economic strength and our shared commitment to mutual prosperity, we are confident in the potential for transformative partnerships that benefit both Ecuador and the UAE. Additionally, we are exploring the possibility of a potential visit by President Noboa to the UAE, underscoring our commitment to strengthening bilateral ties and fostering high-level dialogue between our nations
Sustainability and environmental responsibility, a critical aspect of modern trade agreement. How does Ecuador address these factors in its economic partnership, including the one with the UAE?
In addressing sustainability and environmental responsibility within our economic partnerships, including the one with the UAE, Ecuador takes a proactive approach rooted in our commitment to conservation and environmental stewardship. The UAE, with its understanding of scarcity, shares our dedication to these principles. Ecuador stands out as one of the most sustainable countries in the region due to several key factors.
Firstly, our constitution enshrines rights to the environment, granting nature constitutional protections. Secondly, Ecuador has undertaken significant conservation efforts, including the largest debt swap for conservation in the Galapagos Islands, totaling over $1 billion. Thirdly, we recognize the importance of responsible resource management to ensure the longevity of our natural assets. We understand that without careful planning and conservation efforts, we risk depleting our resources and compromising our ability to sustainably support our population and provide for other nations.
In Ecuador, businesses seeking to operate in industries that may impact the environment must adhere to stringent regulations and present remediation plans to mitigate any potential harm. We prioritize consultation with indigenous communities and local stakeholders, particularly in regions like the Amazon, where their livelihoods are closely tied to the natural environment. Environmental licenses and permits are contingent upon community alignment and the presentation of comprehensive plans for environmental protection and remediation.
Our forestry industry serves as a prime example of sustainable practices in action. By prioritizing responsible forestry management, companies can mitigate environmental damage and maintain the integrity of our ecosystems. Ecuador has become synonymous with sustainable agriculture, offering products certified for their commitment to sustainability and conservation.
Ecuador stands as a pioneer in sustainability and environmental stewardship, demonstrating our dedication to responsible resource management and conservation. Through collaborative efforts with partners like the UAE, we aim to further advance our shared goals of sustainability and environmental responsibility on the global stage.
Could you share any success stories or specific examples of Ecuadorian companies that have already benefited from trade relations with the UAE?
Indeed, we have several success stories of Ecuadorian companies benefiting from trade relations with the UAE. One notable example is SERTECPET, an Ecuadorian oil and gas company specializing in providing solutions for the industry. Over the past 2-3 years, SERTECPET has established a presence in the UAE market and engaged with key players such as ADNOC and Aramco, showcasing their commitment to success in the region.
Additionally, we have international companies, including Canadian and Australian mining firms based in Ecuador, exporting gold to the UAE. While these are not exclusively Ecuadorian companies, their operations in Ecuador contribute to our bilateral trade relations with the UAE.
In terms of specific sectors, the banana and shrimp industries are emerging as significant players, known for their quality products. The UAE has shown interest in further exploring opportunities within these sectors and beyond. With over $2.5 trillion in assets outside the UAE, investing in land and companies abroad is a natural step for them. Ecuador remains open to fostering deeper partnerships and exploring avenues for investment that benefit both parties
Lastly, what message would you like to convey to potential investors and entrepreneurs considering Ecuador as their next business destination?
To potential investors and entrepreneurs considering Ecuador as their next business destination, I would like to convey a message of opportunity and promise. Ecuador offers a stable and dollarized economy, ensuring low inflation and a predictable currency valuation. Our country boasts highly skilled and trained personnel, abundant natural resources, and a strategic geographical position bridging South America and Asia.
For those seeking to explore the South American market, Ecuador stands out as a prime destination. Our recent efforts in establishing free zones and enhancing the legal framework demonstrate our government’s commitment to facilitating foreign direct investment (FDI) and fostering a conducive business environment.
Moreover, I encourage investors to leverage resources such as Pro Ecuador, our dedicated agency for attracting FDI. With Pro Ecuador’s support, companies can access comprehensive information, navigate the legal landscape, and fulfill necessary requirements to establish a presence in Ecuador.
Looking ahead, we are working diligently on initiatives like the single investment window in collaboration with the Inter-American Development Bank (IDB), slated for completion by 2025. This streamlined process will simplify procedures, providing investors with a seamless experience and expedited access to vital information and licenses.
In essence, Ecuador offers a gateway to opportunity and prosperity. By investing in Ecuador, you not only gain access to a dynamic market but also contribute to the growth and development of our nation. We welcome you to explore the possibilities and embark on a transformative journey with us
(C) Latin&Gulf 2024.-
