(KPL/Yonhap) Republic of Korea and Ecuador plan to sign a formal bilateral Strategic Economic Cooperation Agreement (SECA) on Tuesday to expand ties amid global trade uncertainties, Seoul's industry ministry said.

The agreement is scheduled to be signed during a meeting between Korean Trade Minister Yeo Han-koo and his Ecuadorian counterpart, Luis Alberto Jaramillo, in Seoul later in the day, according to the Ministry of Trade, Industry and Energy.

SECA is an economic cooperation agreement that covers broader areas than a free trade agreement, extending beyond trade in goods and services to include investment, technology transfer, energy and supply chain security, and infrastructure development.

Republic of Korea and Ecuador agreed to establish a SECA in October 2023 following nine rounds of negotiations, which began in 2016.

The deal requires approvals from the countries' legislatures to take effect.

"We hope the SECA will help Korean and Ecuadorian companies expand exports and diversify their markets, and the two countries will form partnerships in supply chains in times of crises, as well as in the IT sector," Yeo said.

Under the envisioned SECA, Republic of Korea agreed to eliminate 96.4 percent of all its tariffs on Ecuadorian goods, while Ecuador will remove 92.8 percent of tariffs on Korean goods, according to the ministry.

In particular, Ecuador agreed to gradually eliminate the current 35 to 40 percent tariffs on Korean-made passenger cars and trucks within 15 years of the agreement's entry into force, the ministry said.

For hybrid models in particular, Republic of Korean cars will face zero tariffs in Ecuador within five years of the SECA taking effect thanks to the Latin American country's policy to promote the use of eco-friendly vehicles.

Ecuador will also lift the 20 percent and 30 percent duties on Korean cosmetics and instant noodles within 10 years, 5 percent duties on Korean seaweed products within five years and 20 percent duties on health drinks within seven years, according to the ministry.

For Korean pears, Ecuador agreed to instantly abolish the 15 percent tariffs when the SECA takes effect.

The ministry said such measures will help Republic of Korea expand its foothold in Ecuador, a prominent market with abundant energy and mineral resources, as well as the broader Latin American region.

Republic of Korea traded US$802 million worth of goods with Ecuador in 2024, exporting diesel, engines and auto parts, while importing crude oil, fruit and shrimp.

The envisioned SECA will also help Korea export financial, communications and digital services, including media content, to Ecuador, while breaking into the country's public procurement market, the ministry said.

KPL