By Diplomacy Journal Kayla Lee 

Minister for Trade Yeo Han-koo met with Ecuador’s Minister of Production, Foreign Trade, Investments, and Fisheries Luis Alberto Jaramillo in Seoul on September 2. The two sides held bilateral talks and formally signed the Strategic Economic Cooperation Agreement (SECA).

Since launching negotiations in 2016, Korea and Ecuador have held nine rounds of formal discussions, concluding the agreement in October 2023. With the official signing completed, the SECA will enter into force following remaining procedures, including ratification by the National Assembly.

As Latin America’s third-largest crude oil producer, Ecuador is rich in energy and mineral resources (such as crude oil and copper) and maintains political stability among its neighbors.

Along with its use of the US dollar and commitment to free trade, these factors make Ecuador a promising market with lower investment risks. The Korean government plans to leverage its partnership with Ecuador to accelerate export diversification into Latin America.

Once the SECA takes effect, Ecuador will phase out tariffs of up to 40 percent on Korean automobiles within 15 years, including eliminating the 35-percent tariff on hybrid vehicles within five years. This is expected to give Korea an advantage over major competitors, including China and Japan. Ecuador will also eliminate tariffs on Korean pharmaceuticals and consumer goods, such as cosmetics and instant noodles.

Exports of these products are expected to grow, driven by the Korean wave’s expanding influence throughout Latin America. In addition, the opening of sectors such as online gaming, distribution, film, and music raises prospects for growth in local consumption and exports of Korean cultural content.