Increase fuelled by the temporary elimination of import tariffs and lower supply from the Philippines
South Korea was the fastest growing market for exports of Ecuadorean bananas in the first half of 2024, according to the latest trade data shared by industry associations Aebe and Acorbanec.
Shipments to the Asian country grew 271 per cent to 2.2m boxes between January and June of this year compared to the year-earlier period, as exporters were able to take advantage of the elimination of tariffs – which came into effect in January – and production problems in the Philippines.
In all, Ecuador shipped almost 189m boxes in the first half of the year, around 1 per cent fewer than in the same period of 2023.
In January, the South Korean government to the decision to scrap tariffs on 28 fruits and vegetables, among them Ecuadorean bananas, for a six-month period as a deflationary measure. During that time, production in the Philippines – Korea’s main supplier – decreased due the impact of Panama Disease TR4 and Sigatoka.
Richard Salazar, executive director of Acorbanec, said he believes the zero-tariff rate will be extended until the second half of the year. And he says the Free Trade Agreement between Ecuador and South Korea, due to be signed in the second half of 2024, will further propel an increase in banana shipments to the Asian country. Under the agreement, tariffs on Ecuadorean bananas will be cut by 6 per cent a year, reaching 0 per cent in 2030.
Together with Japan, South Korea is one of the markets that Acorbanec is targeting for growth in Asia. Shipments of Ecuadorean bananas to Japan grew 7 per cent in the six months to June.
However, it has not all been smooth sailing in Asia. Exports to China fell by 14 per cent in the first half of this year to 6m boxes. Salazar puts this down to the contraction of the Chinese economy along with other factors like the increase in maritime freight costs and the high spot price.
