Stakeholder debrief reports

Canada-Ecuador negotiations - Round 4

October 15-25, 2024 (Quito, Ecuador)

General overview

The 4^th round of negotiations towards a Canada-Ecuador Free Trade Agreement took place in two parts from October 15-25. Virtual negotiations took place from October 14-18, with a Canadian delegation then travelling to Quito for in-person negotiations October 21-25. The Canadian delegation was led by Chief Negotiator (CN) Doug Forsyth, Director General, Market Access. Ecuador’s delegation was led by their CN, Mr. Edwin Vasquez de la Bandera, Undersecretary for Trade Negotiations and Economic Integration of Ecuador, Ministry of Production Foreign Trade Investments and Fisheries.

Round 4 of negotiations covered 23 issue areas over 81 negotiating sessions, with most sessions taking place in-person. The following issues were discussed: National treatment and market access; rules of origin; origin procedures (virtual); customs and trade facilitation (virtual); trade remedies; sanitary and phytosanitary measures (virtual); technical barriers to trade; investment; Non-conforming measures; cross-border trade in services; development and administration of measures; financial services; temporary movement of business persons (virtual); telecommunications; digital trade; government procurement (virtual); state-owned enterprises; labour; environment; gender; trade and Indigenous Peoples; dispute settlement and legal and institutional.

Key takeaways from round 4

The tone at round 4 was very positive, with constructive engagement across all tables. Three chapters were closed—digital trade, telecommunications, and trade and gender—bringing the total number of chapters closed to eight. (Chapters on temporary movement of business businesspersons (text only), competition policy, good regulatory practices, trade and small and medium-sized enterprises, and an annex on intellectual property closed previously). Two additional chapters—dispute settlement and transparency, anti-corruption and responsible business conduct—are substantively closed, with only issues linked to another negotiating areas pending.

The 5^th round of negotiations will take place in Ottawa the week of December 9-13.  Parties are aiming to close most of the remaining chapters at this round with only the most challenging tables continuing into 2025. Parties are aiming to conclude substantive negotiations before Ecuador’s presidential elections (1^st round voting begins in February 2025).

Key developments from the tables

Tariff negotiations are ongoing, and progress is being made on a few remaining provisions of the National treatment and market access for goods text, including on agricultural trade. Canada has reiterated the mutual goal of a balanced, high-ambition outcome in which tariffs are eliminated on all but the most sensitive goods.

All other goods-related tables made solid progress, including rules of origin, origin procedures, trade facilitation, sanitary and phytosanitary measures (SPS) and technical barriers to trade (TBT). Parties concluded key provisions in all of these chapters, and most could conclude at round 5.

Parties continue to move forward on services and investment, although investment negotiations are rendered more complex due to the need to respect Ecuador’s constitutional restrictions. Parties held a first discussion of the schedules of services and investment non-conforming measures, which both sides tabled ahead of the round. Parties agreed to send a list of questions on each Party’s respective schedule by early November and exchange requests and second offers by mid-November.

Parties made excellent progress on services-adjacent topics, advancing the Annex on development and administration of measures, and closing the professional services annex and the guidelines for mutual recognition agreements or arrangements for professional services.  Financial services was also able to agree to a number of key articles.

Good progress was made at the labour and environment tables, with Ecuador agreeing to key elements of Canada’s approach.

Finally, Parties engaged in text-based discussions and had productive exchanges, at the state-owned enterprises, trade and Indigenous Peoples, legal and institutional, and government procurement tables.

Canada-Ecuador negotiations - Round 5

December 09-13, 2024 (Ottawa, Canada)

General Overview

The 5^th round of negotiations towards a Canada-Ecuador Free Trade Agreement took place from December 9-13, with several Ecuadorian officials travelling to Ottawa for in-person negotiations while others met online with their counterparts. The Canadian delegation was led by Chief Negotiator (CN) Doug Forsyth, Director General, Market Access. Ecuador’s delegation was led by their CN, Mr. Edwin Vasquez de la Bandera, Undersecretary for Trade Negotiations and Economic Integration of Ecuador, Ministry of Production Foreign Trade Investments and Fisheries.

Round 5 of negotiations covered 17 issues areas over 71 negotiating sessions, with most sessions taking place in-person. The following issues were discussed: national treatment and market access; rules of origin; origin procedures; sanitary and phytosanitary measures; technical barriers to trade; investment; non-conforming measures; financial services, temporary movement of business persons; government procurement (virtual); state-owned enterprises; labour; environment; trade and Indigenous Peoples; dispute settlement (virtual); transparency, anti-corruption and responsible business conduct; and legal and institutional (virtual).

Key Takeaways from Round 5

The tone at round 5 was very positive and highly productive, with constructive engagement across all tables. Fourteen chapters were closed — environment; national treatment and market access; state owned enterprises; sanitary and phytosanitary measures; temporary movement of business persons; financial services, trade and Indigenous Peoples; labour; transparency, anti-corruption and responsible business conduct; origin procedures; technical barriers to trade; government procurement; and dispute settlement — bringing the total number of chapters closed to 27, leaving only rules of origin and investment with substantive elements to close. The schedules of non-conforming measures, annexed to the services and investment chapters, also require further negotiation. 

Key Developments from Tables

Tariff negotiations have been substantively concluded and progress is being made on the few remaining provisions of the national treatment and market access for goods text. Canada has reiterated the mutual goal of a balanced, high-ambition outcome in which tariffs are eliminated on all but the most sensitive goods.

All other goods-related tables, including sanitary and phytosanitary measures and technical barriers to trade reached conclusion, leaving only the rules of origin table with outstanding provisions.

Parties continue to move forward on investment and are making good progress towards conclusion. Discussions on non-conforming measures were productive, with the expectation that the few remaining elements can be addressed intersessionally.

Parties made good progress on services-adjacent topics, with the temporary movement of business persons and financial services chapters being closed.

Excellent progress was made at the labour and environment tables, with both chapters reaching conclusion.

Lastly, Parties made good progress at the state-owned enterprises, trade and Indigenous Peoples, institutional, and government procurement tables, with all chapters closing except for certain institutional chapters.