China has a free-trade deal with Ecuador. Why has the U.S. failed to secure one? | Opinion

Here’s the question many in Washington are asking following Ecuador’s President Guillermo Lasso’s decision to call early elections amid an impeachment process that was likely to lead to his ouster: Has the United States abandoned one of its closest allies in the region?

It’s a valid question. Ecuador has been trying to sign a free-trade agreement with the United States for years, with no luck. Both the Biden and Trump administrations failed to actively push for such a deal, in part because of opposition from anti-free-trade lawmakers in Congress.

Now, in an effort to expand its export markets, the Lasso government has signed a free-trade agreement with China.

The new trade deal, signed May 11, is expected to further expand China’s influence in Latin America. China already has free-trade deals with Peru, Chile and Costa Rica and it is the biggest trading partner of Brazil and several other South American countries.

Ecuadorean officials tell me that China already became their country’s largest non-oil trading partner last year, and that it will become an even bigger one once the new trade deal goes into effect.

The trade agreement has yet to be ratified by Ecuador’s National Assembly, which Lasso dissolved Wednesday until the new presidential and legislative elections later this year.

Curious about why Ecuador’s right-leaning government signed a deal with China before it did so with the United States, I called Ecuador’s production minister Julio José Prado.

“Unfortunately, Ecuador is the only country of Latin America’s Pacific coast that doesn’t have a free-trade agreement with the United States,” Prado told me. “Because of that, many of our products have to pay tariffs to get into the U.S. market.”

He added that, by comparison, “Thanks to the new deal with China, we will be able to export 99.6% of our non-oil goods to China with preferential access.” Ecuador’s main non-oil exports include shrimp, bananas, cocoa, flowers and minerals.

The Biden administration is considering including Ecuador in the USMCA free-trade agreement with Mexico and Canada or adding Ecuador to the Caribbean Basin Initiative trade agreement with Caribbean countries.

But Biden faces strong opposition to free-trade deals from the Democratic Party’s left wing.

Five congressmen, led by progressive Democrat Raúl. M. Grijalva, D-Arizona, issued a public letter on April 12 calling on the Biden administration to “re-evaluate our government’s close relations with the Lasso government” because of opposition claims of high-level corruption in Ecuador.

Ivonne Baki, Ecuador’s ambassador to Washington, told me that the Biden administration “is doing what it can to sign a free-trade deal with us, but it’s not enough.” She added that some in Washington are opposed to signing free trade agreements with any country, including traditional allies such as the United Kingdom.

“Now is the moment to do it,” Vaky told me. “The best way to help solve Ecuador’s social convulsion, react to China’s entry and stop the growing migration would be for the United States to sign a trade deal with Ecuador at this very moment.”

I agree. Free-trade agreements like the one China just signed with Ecuador are important, because they draw investments, create jobs in exporting countries and benefit consumers in importing countries like the United States. U.S. firms would be much more willing to invest in Ecuador under a U.S.-Ecuador free-trade deal, which would protect them from potential political risks.

Right now, Ecuador is at a big disadvantage with its Pacific Coast neighbors that have such deals with the United States.

Regardless of whether Lasso remains in power until the end of his term in 2025 — his chances of winning the upcoming elections are dubious, given his low popularity rate — now is the moment for the Biden administration to support Ecuador.

With U.S. unemployment at an almost six-decade record low of 3.4%, and growing numbers of Ecuadorans trying to cross the border to the United States, there is no good excuse for not giving Ecuador preferential access to the U.S. market.

Next time a U.S. official complains about China’s growing presence in Latin America, be sure to ask: Have you done anything for Ecuador?

Don’t miss the “Oppenheimer Presenta” TV show on Sundays at 8 p.m. E.T. on CNN en Español. Blog: www.andresoppenheimer.com