RE: Trade deal6 Jan 2023 07:37
In addition to loans from Chinese state-owned banks and politicians, Ecuador was the first Latin American country to receive financing from the Chinese-controlled Asian Infrastructure Investment Bank.
Prior to beginning talks with Ecuador, China had already signed a number of free trade agreements in the region, most notably with Peru, Costa Rica, and Chile. The FTA with Chile came into force in October 2006; with Peru in March 2010; and with Costa Rica in August 2011.
So far, China’s objective seems to be to establish preferential trade relations with countries that look toward the Pacific, as evidenced by the talks it has held with Colombia and El Salvador, for example.
The most striking case is that of Uruguay, where there have already been certain announcements and technical meetings with a view to a possible FTA, which would be in line with China’s approach toward Latin America. According to Uruguayan specialist Ignacio Bartesaghi, “geopolitically, it is very convenient for China to sign an FTA with Uruguay.”
Ecuador is China’s next step in Latin America; it remains to be seen which country will come after that.