Impact of the Trade Agreement with China: An Economic Boost for Ecuador or a Merely Extractivist Approach?

Abstract

The trade agreement between Ecuador and China has sparked extensive debate regarding its impacts on the country’s economy. This article examines the trade relationship between the two nations, focusing specifically on the implications of the agreement for Ecuador’s productive sectors. It explores the potential benefits for Ecuador's economy, such as increased exports and the attraction of investments, as well as the possible risks associated with dependence on natural resources. Throughout this analysis, the terms of the agreement, its effects on bilateral trade, and the opportunities it could offer to diversify Ecuador's economy are reviewed, along with an examination of the impacts of other free trade agreements with China in the region. Furthermore, the possible consolidation of an extractivist model is discussed, wherein the country remains a supplier of natural resources without significant development of value-added industries. Ultimately, this article seeks to answer the question: What is the impact of the trade agreement between Ecuador and China on Ecuador’s economy, and to what extent does this agreement promote sustainable economic growth instead of perpetuating an extractivist approach?.