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Full Breakdown

Ecuador and Canada Set to Finalize Free-Trade Pact

7/24/2026, 8:39:07 PM

Agreement Overview

Ecuador and Canada are scheduled to sign a comprehensive free-trade agreement on July 24. According to the Ecuadorian government, the pact will grant duty-free access to 99.6 % of Ecuador’s exportable goods once it enters force. The agreement spans trade in goods and services, investment, e-commerce, labor standards, environmental protections, Indigenous peoples’ rights, and dispute-resolution mechanisms.

Product Coverage and Exclusions

The deal will open tariff-free markets for more than 600 Ecuadorian products, notably bananas, cacao, shrimp, tropical fruits, vegetables, flowers, tuna preparations, textiles, footwear, and cosmetics. At the same time, it preserves protection for 227 sensitive agricultural items, including rice, corn, milk, meat and sugar, which remain excluded from the tariff-free schedule.

Regional Benchmarking

By aligning with the trade frameworks of its neighbors, Ecuador aims to maintain competitive parity in North-American markets.

Expected Economic Impact

Ecuador anticipates that the agreement will broaden market access for its exporters, potentially boosting sales to Canada across the listed sectors. The government highlights the inclusion of services and investment chapters as avenues for deeper economic ties beyond traditional commodity trade.

Next Steps

Following the scheduled signing, the agreement will undergo ratification procedures in both countries before becoming operational. Details on the timeline for implementation were not disclosed.