According to the Ecuadorian Federation of Exporters (Fedexpor), trade with the Asian giant has been affected by the slowdown in that country's growth rate in 2024, due to a prolonged real estate crisis and a labor market that does not generate employment options. sufficient employment.
China continues to decline in its purchases of Ecuadorian non-oil and non-mining products. This, according to the latest figures shared by the Ecuadorian Federation of Exporters (Fedexpor) which reflect that the country exported US$ 1,537 million from January to May to that country, this represented a reduction of 27% compared to what was exported during the first five-month period of 2023.
These figures already include the first month of validity of the trade agreement between Ecuador and China that came into force on May 1. However, according to experts, the effects of the agreement on exports and imports will begin to be reflected from July onwards due to the transit time of the merchandise that is on its way to and from China. This drop in imports already cost the Asian giant, in the first quarter of this year, to give up its position as the main destination for Ecuadorian exports and fall to third, surpassed by the European Union and the United States.
Shrimp and bananas, the main products of Ecuador's non-oil and non-mining exportable supply, show negative values in this first five-month period in China. Fruit, for example, had a 13% drop in foreign currency with US$ 54 million and 16% less in exported volume, according to Fedexpor. However, according to the Banana Marketing and Export Association of Ecuador (Acorbanec), in that period Ecuador exported 5.2 million boxes to China, compared to the 5.5 million that were exported from January to May 2023. reflects a decrease of 6.18%.
China represents 3.24% of total Ecuadorian banana exports as a destination, whose main market as a country is Russia with 19.07%.
Felipe Ribadeneira, executive president of Fedexpor, explained that exports to China have been affected by the slowdown in that country's growth rate in 2024, due to a prolonged real estate crisis and a labor market that does not generate sufficient employment options. “The great boom that shrimp had in the Chinese market has mainly set a very high bar for the future performance of our non-oil exports, which implies that the focus on market diversification is very important, a task that is not easy because it is difficult. or almost impossible that results when a market as giant as the Asian one contracts.”
The good thing is that for Ecuador, the demand for its products in the United States and the European Union has not experienced the expected effect of the high interest rates in the first months of the year, generating room for growth for exports. According to Fedexpor, exports to the European Union (US$ 2,032 million) grew by 26% and to the United States (US$ 1,919 million) by 21%. In total, Ecuador's non-oil, non-mining exports to the world represented US$8.55 billion in these first five months of the year, a growth of 8%.
Ecuador exported more pounds of shrimp to China
These general figures also reveal a slight recovery for the Asian giant, which from January to April imported 31% less from Ecuador (US$ 966 million).
Now, from January to May, shrimp continues to be the main Ecuadorian export product to China with US$ 1,322 million and also the most affected, but to a lesser extent. The drop is 27%.
The improvement of shrimp in the Chinese market is much more noticeable in the volume exported. According to figures from the National Chamber of Aquaculture (CNA), in May 153,316,587 pounds of the crustacean were exported to the Asian giant, which meant an increase of 1.63% compared to May 2023 and around 20 million pounds more. than last April, when there were also positive balances with the export of 137,282,263 pounds, which represented an increase of 6.35%, the first of the year after negative figures: January (-13.87%), February (-21 .47%) and March (-41.86%).
The negative values of February and March coincide with the suspension of nine shrimp exporting companies by the Chinese authorities due to the detection of excess of a preservative in Ecuadorian shrimp. China lifted the sanction in the first days of June, however, the situation impacted operations for most of the first five months (February, March, April and May).
This was reflected in China's participation in total exports of Ecuadorian shrimp to the world. From January to May 2023, exports to the Asian giant represented 63.73% of total shipments of the crustacean to all its destinations, now the share has dropped and stands at 53.18%
Added to this is the drop in shrimp prices. This causes less money to be received per pound exported. According to CNA figures, the average price per pound of shrimp in 2023 was US$2.35 and so far in 2024 the price fell to US$2.21, US$0.06 less per pound. The highest peak of the price was reached in 2014 with US$ 3.75 per pound and the steepest annual drop was from 2022 to 2023 when the price collapsed by US$ 0.49 going from US$ 2.84 to US$2.35.
The United States, Europe and Russia receive more Ecuadorian shrimp
In contrast to China, in other markets Ecuadorian shrimp shows growth. In the European Union, where exports generated US$495 million from January to May, currencies grew by 14% compared to the first five months of 2023, and export volume grew by 23%.
Meanwhile, Ecuador exported US$735 million to the United States in this period, a growth of 35% in foreign currency and 37% in exported volume. The growth occurs despite the fact that an investigation into alleged dumping and subsidies for Ecuadorian shrimp is ongoing in the United States, which led to the imposition of additional tariffs. José Antonio Camposano, president of the CNA, commented that “the process continues according to the calendar. The (U.S.) Department of Commerce’s final determination will be announced in mid-October.”
The United States Department of Commerce established a rate of 10.58% for the Ecuadorian company Sociedad Nacional de Galapagos CA (Songa) in its preliminary determination for the investigation it is carrying out on antidumping duties. There is also Santa Priscila with a 1.58% dumping rate and which is considered de minimis because it is less than 2%, no deposit rate.
Regarding anti-subsidy rates, Santa Priscila was imposed 2.89%, Songa's is 1.69%. Other Ecuadorian companies have an initial rate of 2.89%.
In Russia, although it is not one of its main markets, there was also growth for local shrimp. US$58 million were exported to that country, which was reflected in an increase of 21% in foreign currency and 41% in volume.
