A truck carrying containers is seen at the container dock of Shanghai's Yangshan Port in east China, April 27, 2022.(Photo: Xinhua)

The negotiations between China and Ecuador on a bilateral free trade agreement (FTA) have proceeded smoothly, Mao Ning, Chinese Foreign Ministry spokesperson, said on Wednesday during a press conference.

The response came after the ministry was asked if it could confirm that the two countries may sign an FTA.  

With the deal, Ecuador's exports will get preferential access to China, and the South American country's manufacturers will be able to acquire machinery and other products at a lower cost.

The agreement will allow preferential access for 99 percent of Ecuador's exports to China, especially agricultural products such as shrimps, bananas, roses and flowers, cocoa and coffee, Ecuador's production ministry said in a statement.

Jiang Shixue, professor at the Center for Latin American Studies at Shanghai University, said that the deal gives full play to the economic complementarities of both countries.

"It will help Ecuador's agricultural products get easier access to the massive Chinese market," Jiang told the Global Times on Wednesday.

For China, Ecuador offers an opportunity to diversify sources of strategic minerals, such as copper and iron ore, Jiang said. "It is expected that more Chinese companies will expand investment in Ecuador following the agreement," Jiang said.

China and Ecuador began negotiations in February 2022, according to Chinese Ministry of Commerce (MOFCOM). Bilateral trade rose by 44.5 percent to reach $10.95 billion in 2021 and China remained the second-largest trading partner for Ecuador.

Ecuador is an important partner of China in investment and trade in Latin America. Their cooperation covers a wide range of areas, including electricity, energy, mining and transportation.

The FTA deal would also have a spillover effect to deepen cooperation between China and other Latin American countries, Jiang said.

The conclusion of the China-Ecuador free trade negotiations comes as the latest FTA deal between China and a Latin American country. 

China previously signed free trade agreements with Chile, Costa Rica and Peru.

In October 2006, the China-Chile FTA came into effect, the first free trade agreement signed between China and a Latin American country. Subsequently, the China-Peru FTA entered into force in March 2010, and the China-Costa Rica FTA went into effect in August 2011.

Since the agreements took effect, the three countries have seen their annual exports to China grow by double-digits, according to the MOFCOM.