CNEC promotes exports and imports between both countries

Ecuador Begins Exporting Canned Tuna to China

ECUADOR
Tuesday, February 18, 2025, 00:10 (GMT + 9)

Ecuador has started exporting canned tuna to China after these became tariff-free thanks to the trade agreement between both countries that came into force last year, as reported this Friday, February 14, 2025, in a statement by the Ministry of Production, Foreign Trade, Investments and Fisheries.

The entry into force of the free trade agreement between Ecuador and China eliminated the 5% tariff that Ecuadorian canned tuna previously faced when entering the Chinese market.

Thus, tuna joins other Ecuadorian products that already reach China, such as shrimp, coffee, cocoa, and bananas.

Trade with China in the Last Five Years

In the last five years, bilateral trade between Ecuador and China has increased by an average of 23% each year, the ministry stated in the release.

This has led the Asian giant to displace the United States as the main non-oil trading partner of the Andean country since 2022.

However, despite the entry into force of the trade agreement, Ecuadorian exports to China had fallen by almost 12% until November 2024, compared to the first eleven months of 2023, according to data from the Government itself.

This is mainly due to the decrease in shrimp prices, of which China is Ecuador's main buyer, and the electricity crisis that led to a period of more than two months of daily blackouts and the suspension of activities of Ecuador's industrial mines, such as Mirador, operated by the Chinese company Ecuacorriente, which caused copper shipments to fall.

Between January and November 2024, Ecuadorian exports recorded revenues of 2.972 billion dollars (about 2.832 billion euros), 17.3% less than in the same period of 2023, while copper shipments were 1.032 billion dollars (983.4 million euros), 7.7% less than in the first eleven months of the previous year. (I)

Tecopesca Becomes the First Ecuadorian Company to Export Canned Tuna to China

The first shipment to China was carried out by Tecopesca, a tuna company based in Manta, which markets the canned tuna brand Tunalia. This was confirmed by José Ramírez, a partner at ChinaEcuador – CNEC, the firm that provided advisory services to facilitate the export.

Initially, Tecopesca will enter the Chinese market under a contract manufacturing arrangement for a client in China, who will distribute the products under a new commercial brand in Beijing. According to Ramírez, Tecopesca could send between three and ten containers per month, depending on demand from the Chinese client.

Tecopesca already had a commercial relationship with China, as it imports tuna loins from the country. According to its 2023 external audit report submitted to the Superintendence of Companies, "the supply of raw materials is secured through negotiations with both international and local suppliers."

The company sells domestically and exports to the United States, Argentina, Brazil, and Chile, as well as to the European market, with destinations including Spain, France, the Czech Republic, Portugal, Italy, Belgium, Germany, and the United Kingdom, as detailed in the audit report.

Tecopesca reported revenues of approximately $150 million, reflecting an 8.4% increase compared to 2023, according to the information submitted to the Superintendence of Companies.

Benefits of the Agreement

Ecuador and China are among the world's leading tuna exporters, with the market being dominated by Thailand. Consequently, during negotiations for the trade agreement, Ecuador successfully secured the exclusion of Chinese tuna from its market, ensuring that Chinese tuna can only enter Ecuador subject to a 35% tariff. However, China agreed to allow Ecuadorian canned tuna to enter its market with a 0% tariff. Previously, Ecuadorian canned tuna was subject to a 5% tariff, though exports to China had not yet begun.

In 2024, Ecuador's tuna industry experienced a recovery in exports, shipping 177,000 tons of canned tuna—its flagship product—representing a 30.5% increase compared to 2023. This volume equated to a value of $1.015 billion, marking a 26% growth.

editorial@seafood.media
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