Ecuador has expressed interest in negotiating a trade agreement with India to further boost commercial ties between the two nations. The South American country seeks to negotiate a Preferential Trade Agreement (PTA).
Under a PTA, trading partners reduce or eliminate customs duties on a certain number of products traded between them. A PTA between India and Ecuador could help boost bilateral trade with the South American nation. Trade between the two countries was valued at USD 716 million in 2015-16.
The matter was recently discussed during the meeting between Commerce Secretary Rita Teaotia and Ecuador’s Vice Minister of Trade Humberto Jimenez. Teaotia led an official and a business delegation to Ecuador and Colombia from May 16 to 19.
Both the sides also agreed to deepen the cooperation between their respective investment promotion agencies to promote a greater exchange of information on investment and business opportunities in both the countries.
In Colombia, the commerce secretary held a bilateral meeting with Francisco Echeverri Lara, Vice-Minister Multilateral Affairs Bogota.
The statement said that businesses of both the sides can explore opportunities in sectors like telecommunication, infrastructure, hydrocarbons, IT, pharma, textiles and auto. India’s bilateral trade with Colombia stood at USD 1.7 billion in 2015-16.
The secretary’s visit to these two South American countries assumes significance as it holds huge potential for exports and investments.
India has recently expanded a PTA with Chile. It has also concluded a joint study on the feasibility of such a pact with Peru. Besides, New Delhi is aggressively engaged in the expansion of its PTA with MERCOSUR, a six-country trade bloc including Brazil, Argentina, Paraguay and Uruguay.