US-Ecuador Reciprocal Trade Deal 'Substantially Concluded' With Full Tariff Elimination — Shrimp Sector Demands Inclusion in Final Product List

US-Ecuador Trade Deal Nears Completion

The United States Trade Representative (USTR) and Ecuador's Ministry of Production, Foreign Trade and Investment announced that negotiations for a reciprocal trade agreement have been "substantially concluded," moving the deal toward a formal signing expected in the coming weeks. The agreement would fully eliminate — not merely reduce — the 15% surcharge imposed on Ecuadorian imports since August 2025.

The development represents a significant escalation from the initial framework agreement signed in November 2025, which outlined broad principles but left specific product coverage unresolved.

Products confirmed for tariff elimination

Product	Current US tariff	New rate	2025 export value to US
Bananas	15% surcharge	0%	~$980M
Raw cacao	15% surcharge	0%	~$620M
Roses/cut flowers	21.8% (15% + 6.8% base)	0%	~$580M
Heart of palm	15% surcharge	0%	~$45M
Mango	15% surcharge	0%	~$35M
Pitahaya (dragon fruit)	15% surcharge	0%	~$28M

Products still seeking inclusion

Product	2025 US export value	Industry body	Status
Shrimp	~$2.0B	CNA	Not confirmed
Canned tuna	~$450M	Cámara de Pesquería	Not confirmed
Frozen broccoli	~$85M	CORPEI	Not confirmed
Ceramics	~$18M	Exporters association	Not confirmed
Electrical transformers	~$12M	Manufacturing sector	Not confirmed

The shrimp question

The potential exclusion of shrimp has emerged as the most contentious issue. Shrimp represents approximately 30% of all non-petroleum exports to the United States and generates ~$2 billion annually.

José Antonio Camposano, president of the Cámara Nacional de Acuacultura (CNA), stated: "Every agreement the country negotiates must include shrimp, because for every $3 Ecuador exports to the United States, one dollar is shrimp."

The sector currently faces a combined US import burden of 18.78% (15% surcharge + 3.78% countervailing duties), costing the industry an estimated $20 million per month. Exclusion from the trade deal while competitors potentially secure better terms would erode Ecuador's cost advantage against India (26%+ tariff) and Vietnam (46%+).

Trade balance context

Metric	Value (through Aug 2025)
Ecuador exports to US	$4.366B
US exports to Ecuador	$1.990B
Trade surplus (Ecuador)	$2.376B

Minister of Production Luis Alberto Jaramillo confirmed that "the proposal from the United States has been to eliminate, not reduce, the surcharge" — a stronger outcome than initially expected. FEDEXPOR president Xavier Rosero called the agreement a "very potent and strategic signal" for Ecuador's trade positioning.

What to watch

The final product list is the critical variable — track whether shrimp and tuna are included before signing. Monitor the formal signing ceremony timeline and whether the deal takes effect immediately or includes a phase-in period. Compare terms against Ecuador's existing trade relationships with the EU and China to assess trade diversion risks. Watch for CNA's direct engagement with USTR on aquaculture product inclusion.

Sources: El Universo, Primicias, USTR