Ecuador-South Korea SECA Agreement Poised to Boost Exports with Significant Tariff Reductions

The Strategic Economic Cooperation Agreement (SECA) between Ecuador and South Korea, signed in March 2025, is set to significantly reduce tariffs on Ecuadorian goods entering the Korean market. Ecuador has completed all its internal institutional stages for the agreement, including approval by the Constitutional Court, the National Assembly, and ratification by President Daniel Noboa. However, the agreement's implementation is pending approval by the National Assembly of the Republic of South Korea.

Upon its effective date, the SECA will allow 7,473 subheadings of Ecuadorian goods to enter the Korean market with an immediate 0% tariff. Products slated for immediate tariff reduction include shrimp, which currently faces a 20% tariff, textiles and apparel (13% tariff), chocolate, palm kernel oil, and coffee beans. Additionally, a short-term tariff reduction group, phased over three years, will benefit instant coffee, Andean cereal products, cocoa, and preparations, which currently have tariffs ranging from 2% to 13%.

Deputy Secretary María Fernanda Cruz noted during a seminar in Quito that Ecuador aims to diversify markets, achieve competitive access for its products, attract investments, and involve micro, small, and medium-sized enterprises (MSMEs). South Korea, an advanced economy with approximately 51 million inhabitants, is considered a relevant strategic partner in Asia. When fully implemented, 98.8% of Ecuador's exportable supply will enter Korea with some form of benefit, with 61% of non-oil trade receiving a zero tariff.

Trade data between January and July 2026 shows Ecuador exported $121 million to Korea and imported $281 million, resulting in a non-oil deficit of $160 million. Non-oil exports from Ecuador to Korea increased by 91% between 2024 and 2025, and by another 27% during the first five months of 2026. Ecuadorian imports from Korea grew by approximately 12% between 2024 and 2025 and 17.36% in the first five months of 2026. Korea is also positioned to contribute to industrialization and value addition, potentially transforming Ecuadorian products into flavored foods or cosmetic ingredients.

What to watch

Businesses should monitor the progress of the SECA agreement through the South Korean National Assembly. The timeline for approval will dictate when the outlined tariff reductions and market access benefits become effective, impacting export strategies for key Ecuadorian products.

Sources: eluniverso.com.