The trade relations between India and Ecuador are growing vigorously in terms of benefits for both the countries.

One of the factors behind the increase of trade balance on part of Ecuador is the sale of petroleum while India is leading with other products not only in terms of volume of exports but also for the diversification of its exports items.

Ecuadorian Export offer

Ecuador within its priorities of trade strategies as a country promotes the followings products:

Ecuador’s exports include petroleum, banana, shrimp, coffee and cacao but also a series of new products, which have won widespread acceptance in international markets. These include fresh fruits: strawberries, mango, passion fruit, melon, papaya, pineapple, etc.; processed fruits: preserves, dried fruits, juices, concentrates, candied fruits, marmalades and jellies; flowers: roses, baby’s breath, carnations, chrysanthemums, etc.; sea food: shrimp, jumbo shrimp, fresh fish, tuna; vegetables: string beans, asparagus, artichokes, peas, cauliflower, palm heart, broccoli, etc.; herbs and plants; herbals and medicinal teas: mint, boldo, retania, valerian, etc.; industrial products: ceramics; wood derivatives in bulk, board, sheets and plywood; textile products etc. ; craft products: T-shirts, tagua figurines and buttons, palmetto straw hats, decorative ceramics, balsa wood figures, etc.

There are products of special interest for Indian markets as fragrance Cacao which because of its unique characteristics of aroma along with chocolate color has acquired the fame and feel of the world; rose flower whose stem may reach up to 1m long plus, which also offer a great variety of colors, teak Wood (with twenty years of) balsa Wood, plywood. Taking into account the panorama of Indian products market e.g. chocolate; Ecuadorian fragrance cacao can contribute and compliment the standards of Indian chocolate market by providing it high quality values, in addition canned palmito vegetable can be an accompanying appeal for Indian kitchen. Currently India is the biggest importer of teak wood from Ecuador. In the wood sector other opportunities are emerging in the Balsa wood and other tropical wood. Ecuador distinguishes India as a potential partner for the distribution and supply of its products in Asia and especially in Indian subcontinent. In order to achieve the commercial goals it is somehow mandatory to bring together the business community along with the manpower of both the countries and include them in the course of action and strategic plans.

Investing in Ecuador

Ecuador is open to receive foreign investment, and in order to make it happen more dynamically, the Government of Ecuador has recently institutionalized an Agency of Investment Promotion in the Ecuador to attract the FDI. This Agency depends on the Ministry of Competitivity and its main function is to explore the areas of investment and enhance the projects while making them lucrative to attract the flows of foreign capitals into Ecuador.

Additionally, in recent years Ecuador started development of its mining industry. And with an objective of complying with and coming up with an adequate and clear legal framework, the Government has passed a new mining law. Now onwards the organizations interested in mining in Ecuador will have to comply with the high standards of established environmental and social laws and their acts of mining will be subject to scrutiny and auditing of State and Community Agencies. Hereafter all mining activities and others related to mining are open for foreign direct investment while offering ample opportunities in mining sector

Trade Opportunities for India in Ecuador

India has a great alternative in the market of generic pharmaceutical products in Ecuador. Similarly following the same path the Indian elaborated chemicals constitutes another great opportunity for the supply of agro chemicals and raw materials for emerging units of manufacturing industry in Ecuador

For Ecuador it is important to gain high quality technology at comparatively economical prices offered by the countries, which are traditionally dominant in this sector. It is also in the interest of Ecuador to develop to come up with the units of production of bio fuels and metal machinery in Ecuador. It would be interesting to acquire the know-how of the production of bio fuels; initially Ecuador would like to develop this with jatropha.

Currently the tendency for the production of bio fuels in Latin America is concentrated in the extraction of Sugar canes; Ecuador has also followed the same path.

One of the main concerns of Ecuador and its Government is the conservation of its flora and fauna. Consequently, one of the measures taken by the Government consists in the low customs tariffs for the import of electric vehicles instead of conventional fuels vehicles to be used in farming and agriculture.

Obstacles to be surpassed

With an objective to increase the trade links between India and Ecuador and promote trade relations with Pacific coast of South America, it is necessary to develop distribution channels, increase capital flows and volumes of exchange of commercial goods.

Regional integration process Andean Nations community, a solid process of integration

This process gets its roots in 1969 with signing of Cartagena Agreement. In that period, the prevailing economic model in the region was that of substitution of imports goods, under the proposed ideological scheme by CEPAL (Economic Commission for Latin America and Caribbean Countries-UNO). This phase gave birth to multiple integration mechanisms, which consequently were resulting into focus to economic related issues.

Through the specialization of each country, this was favorable to each country exchange of goods started while it was also strengthening the internal structure of each member country.

Since 1995 when the focus got changed towards a free economic market, under this scheme institutions and schemes were formed and reformed. One of them was the establishment of Andean Court of Justice; which is of Supra national and permanent character with the goal of declaring the right of sub regional integration and to ensure its interpretation and uniform applications.

The CAN counts with a different custom tariff system whose main characteristic is the flexibility to adapt to different realities of the nations while favoring the exchange of commercial goods within the intercommunity.

From 2004 general politics for the block has been of implementation of global economic system while boosting the development of human beings along with the vision to create and strengthening the integration of Latin America.

Apart from the economic related issues, there exists a dialogue and joint working for social and political issues like culture, security, migration, fighting narco trafficking, agriculture, tourism, defense, human rights, health, rights of indigenous people, fighting corruption, aids in case of natural calamity, infrastructure. In each one of these topics, the minimum requirements have been defined which serve as a base for the bilateral relations with the countries, which are not members of CAN and sustain the position in multilateral forums.