Aebe anticipates that annual shipments will double following the ratification of the free trade deal between the two countries
The approval of a free trade agreement between Ecuador and South Korea marks a milestone in Ecuador’s trade policy and will bring significant opportunities to the country’s banana sector, according to national banana association Aebe.
Seca, the Strategic Economic Cooperation Agreement, was ratified on 14 April. It gives Ecuadorean exporters access to a country that imports around 70 per cent of its food. The agreement with South Korea is the result of a strategy initiated in 2022, when Ecuador redefined its trade policy with a shift toward Asia, seeking to reduce its dependence on traditional markets. The Ecuadorean Banana and Plantain Cluster played a key role in the negotiation process.
The deal means 98.8 per cent of Ecuador’s exportable goods will enter South Korea with zero tariffs, either immediately or progressively. In the case of bananas, the tariff reduction will be gradual.
“The banana sector will be one of the main beneficiaries of the agreement,” Aebe said. “In recent years, Ecuador has consolidated its presence in South Korea, increasing its market share from 6 per cent in 2021 to 11 per cent in 2025.”
In that year, Ecuador shipped 3.57mn boxes of bananas worth US$49.28mn to South Korea. The increase was largely due to tariff factors: in 2024, exports surged by 207 per cent in 2024, when South Korea temporarily reduced tariffs on bananas. However, with the reinstatement of the 30 per cent tariff, exports plummeted by 65.89 per cent at the beginning of 2026.
Ecuadorean bananas currently face a 24 per cent tariff, which will be gradually reduced to 0 per cent within five years. This reduction will close the gap with competitors such as Peru, Colombia, and Vietnam, which already have tariff-free access to the Asian country.
“This would translate into revenues of approximately US$100mn annually from banana exports alone, in addition to a multiplier effect on employment, investment, and foreign exchange earnings,” Aebe stated.
