By Alexandra Valencia

(Reuters) – Ecuador expects a trade agreement with China that will increase commerce between them by around 35%. However, the South American nation will try to preserve some of its industries, Julio Jose Prado, the Exterior Commerce Minister, stated on Sunday.

On Saturday, the two nations announced that they will seek to conclude a trade agreement by the end the year. Guillermo Lasso from Ecuador made this announcement while on a state trip to China.

China was Ecuador’s biggest lender in the past decade. It has provided long-term credit worth millions of dollars tied to large investments in hydroelectric, mining, and other loans. China, a large buyer of Ecuadorean goods such as shrimps and bananas, is also a significant importer into the Andean countries.

Prado told Reuters via video from Beijing, “There will increase trade with China at least 30% to 35%” during Lasso’s trip. It is a wide-reaching agreement. … It covers intellectual property, public procurements, and commercial defence.

Prado explained that Ecuador will try to lower tariffs for products sent to China, but will also protect local industries like steel and textiles.

Prado explained that to ensure the market is more competitive and allows for innovation, it would be necessary to obtain large tax exemptions.

He said that some products might be excluded from the agreement.

Prado stated that a formal trade agreement will clarify the rules for import products.

According to Ecuador’s central bank, non-oil Ecuadorean imports to China in January and November of last year were $2.8 billion. While China imported $3.96 Billion during the same time period. Ecuador’s oil exports are linked to Chinese debt re-payments. Lasso seeks to negotiate.

Prado indicated that Ecuador is also looking to enter into trade agreements this year with South Korea, Mexico, and the Dominican Republic. Prado also noted that Ecuador is interested in a trade agreement with the United States.

Prado stated that Ecuador must open up to the outside world and it should also open its doors to the United States. We will continue to pursue this deal for the long-term.” While that is happening, we must continue to view Asia the same way as Europe.