From January to April, shipments of Ecuadorian products to Mexico increased by 100%, with a general export growth of 5% to all destinations.
Two and a half months after the police raid on the Mexican Embassy—which happened on April 5, 2024— in Quito to capture the former Vice President of the Republic, Jorge Glas, diplomatic relations between the two nations were strained, transcending the commercial sphere. Mexico declared broken trade relations with Ecuador. Now, with the latest consolidated foreign trade figures available thru last April, we can assess the commercial exchange between both nations post-incident.
According to the Ecuadorian Federation of Exporters (Fedexpor), non-oil exports to Mexico in April reached $24 million, an increase of 181% compared to the same month the previous year. Conversely, imports from Mexico in April amounted to $51 million, a slight decrease of 0.4% compared to April 2023.
Key Ecuadorian Exports and Imports
The main Ecuadorian exports to Mexico in that month were vegetable fats and oils, totaling $10 million, a 100% increase compared to April of last year. Other products that performed well, each with 100% growth, included food preparations, cocoa derivatives, plastics and their manufactures, electrical machines and appliances, and wooden panels.
The primary products Ecuador imported from Mexico in April were machines and mechanical devices ($8 million), pharmaceutical products ($7 million), electrical machines and devices ($6 million), cosmetics ($5 million), vehicles and parts ($3 million), aircraft ($3 million), and iron and steel manufactures ($2 million). Among these, the top five products constituted 57% of Ecuador’s non-oil imports from Mexico.
Analyzing the cumulative figures from January to April, the trade balance for Ecuador was favorable. According to Fedexpor, during the first four months of 2024, exports grew by 100% compared to the previous year when non-oil trade between Mexico and Ecuador had an unfavorable balance of $499 million, with imports outweighing exports. In 2023, exports reached $202 million, marking a 9% increase compared to 2022.
In 2023, Mexico ranked eighteenth on the list of destination market for Ecuador’s non-oil exports. Currently, this market receives more than 320 export products. Non-mining and non-oil exports grew by 5%, with shrimp leading despite a 13% drop in its export value.
In general, Ecuadorian non-oil, non-mining exports to all destinations between January and May 2024 experienced a 5% year-on-year increase, reaching $6,596 million and representing 60% of total exports, according to Fedexpor. In this period, shrimp was the main exported product of the non-oil, non-mining category, though its export value decreased by 13%. Banana and plantain exports decreased by 3% in value, while exports of canned fish, and tuna and fish increased by 17% and 1%, respectively. Cocoa exports performed notably well, recording $704 million, a 100% increase in value and 23% in volume.
Regarding primary destinations, the European Union solidified its position as the top market for Ecuador’s non-oil, non-mining exports, with a 21% increase. The United States, the second-largest destination, saw a 16% increase. Together with China, these three markets accounted for 63% of the non-oil, non-mining export value. Meanwhile, non-oil imports decreased by 6%, mainly due to a 10% reduction in the import of raw materials.
Not surprised. Emotional response, followed by practical decisions.