WT/TPR/S/383/Rev.1  
5 April 2019 
(19-2169) Page: 1/174 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
ECUADOR  
Revision  
This report, prepared for the third Trade Policy Review of Ecuador , has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing 
the World Trade Organization), sought clarification from Ecuador  on its trade policies and pra ctices.  
 
Any technical questions arising from this report may be addressed to M r Angelo Silvy 
(tel.: 022 739 5249) and Ms  Eugenia Lizano (tel.: 022  739 6578) and Ms Ana Cristin a Molina  
(tel.: 022 739 6060).  
 
Document WT/TPR/G/ 383 contains the policy statem ent submitted by Ecuador.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note:  This report was drafted in  Spanish.  WT/TPR/S/383/Rev.1 • Ecuador  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  8 
1  ECONOMIC ENVIRONM ENT ................................ ................................ .........................  14 
1.1  Main features of the economy  ................................ ................................ ......................  14 
1.2  Recent economic developments  ................................ ................................ ....................  18 
1.2.1  Production and employment  ................................ ................................ ......................  18 
1.3  Fiscal policy  ................................ ................................ ................................ ...............  20 
1.4  Monetary and exchange rate policy  ................................ ................................ ...............  23 
1.5  Balance of payments  ................................ ................................ ................................ ... 24 
1.6  Developments in trade and investment  ................................ ................................ .........  27 
1.6.1   Trends and patterns in merchandise and services trade  ................................ ................  27 
1.6.1.1   Composition of merchandise trade  ................................ ................................ ..........  27 
1.6.1.2   Direction of trade  ................................ ................................ ................................ .. 29 
1.6.1.3   Trade in services  ................................ ................................ ................................ ... 30 
1.6.2   Trend s and patterns in FDI  ................................ ................................ .......................  32 
2  TRADE AND INVESTM ENT REGIMES  ................................ ................................ ...........  35 
2.1  General framework  ................................ ................................ ................................ ..... 35 
2.2  Trade policy formulation and objectives  ................................ ................................ .........  38 
2.3  Trade agreements and arrangements  ................................ ................................ ............  40 
2.3.1   WTO ................................ ................................ ................................ ......................  40 
2.3.2   Regional and preferential agreements  ................................ ................................ ........  41 
2.3.2.1   Andean Community  ................................ ................................ ...............................  41 
2.3.2.2   LAIA ................................ ................................ ................................ ....................  41 
2.3.3   Trade agreement with the European Union  ................................ ................................ . 42 
2.3.4   Other trade agreements and arrangements  ................................ ................................ . 42 
2.4  Investment regime  ................................ ................................ ................................ ..... 42 
3  TRADE POLICIES AN D PRACTICES BY MEASU RE ................................ .........................  47 
3.1  Measures directly affecting imports  ................................ ................................ ...............  47 
3.1.1   Customs procedures and requirements, and customs valuation  ................................ ..... 47 
3.1.2   Rules of origin  ................................ ................................ ................................ .........  49 
3.1.3   Tariffs  ................................ ................................ ................................ ....................  49 
3.1.3.1   Tariff structure  ................................ ................................ ................................ ..... 49 
3.1.3.2   Tariff bindings  ................................ ................................ ................................ ...... 52 
3.1.3.3   Tariff quotas  ................................ ................................ ................................ .........  53 
3.1.3.4   Tariff preferences  ................................ ................................ ................................ .. 54 
3.1.3.5   Tariff concessions  ................................ ................................ ................................ . 55 
3.1.4   Other charges affecting imports  ................................ ................................ .................  57 
3.1.5   Import prohibitions, restrictions and licensing  ................................ .............................  60 
3.1.6   Anti-dumping, countervailing and safeguard measures  ................................ .................  63 
3.1.6.1   Anti-dumping and countervailing measures  ................................ ..............................  63 WT/TPR/S/383/Rev.1 • Ecuador  
 
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  3.1.6.2   Safeguard measures  ................................ ................................ .............................  63 
3.1.6.3   Balance -of-payments safeguards  ................................ ................................ ............  65 
3.1.7   Other measures affecting imports  ................................ ................................ ..............  68 
3.2  Measures directly affecting exports  ................................ ................................ ...............  68 
3.2.1   Customs procedures and requirements  ................................ ................................ ....... 68 
3.2.2   Taxes, charges and levies  ................................ ................................ .........................  69 
3.2.3   Minimum export prices  ................................ ................................ .............................  70 
3.2.4   Export prohibitions, restrictions and licensing  ................................ ..............................  70 
3.2.5   Export support and promotion  ................................ ................................ ...................  73 
3.2.5.1   Export support  ................................ ................................ ................................ ...... 73 
3.2.5.2   Drawback regimes and other incentives  ................................ ................................ ... 73 
3.2.5.3   Free Zones and Special Economic Development Zones (ZEDEs)  ................................ .. 74 
3.2.5.4   Export promotion  ................................ ................................ ................................ .. 75 
3.2.6   Export finance, insurance and guarantees  ................................ ................................ ... 75 
3.3  Measures affecting production and trade  ................................ ................................ ....... 76 
3.3.1   Incentives  ................................ ................................ ................................ ...............  76 
3.3.2   Standards and other technical requirements  ................................ ...............................  78 
3.3.3   Sanitary and phytosanitary requirements  ................................ ................................ .... 82 
3.3.4   Competition policy and price controls  ................................ ................................ .........  86 
3.3.4.1   Competition policy  ................................ ................................ ................................  86 
3.3.4.2   Price controls  ................................ ................................ ................................ ....... 88 
3.3.5   State trading, state -owned enterprises and privatization  ................................ ..............  89 
3.3.6   Government procurement  ................................ ................................ .........................  91 
3.3.7   Intellectual property rights  ................................ ................................ ........................  95 
3.3.7.1   General feature s ................................ ................................ ................................ ... 95 
3.3.7.2   Industrial property  ................................ ................................ ................................  96 
3.3.7.3   Trademarks  ................................ ................................ ................................ ..........  98 
3.3.7.4   Geographical indications  ................................ ................................ ........................  99 
3.3.7.5   Plant varieties  ................................ ................................ ................................ ...... 99 
3.3.7.6   Copyright and related rig hts ................................ ................................ ..................  100 
3.3.7.7   Enforcement of IPRs  ................................ ................................ .............................  100 
4  TRADE POLICIES BY  SECTOR  ................................ ................................ ....................  102  
4.1  Agriculture  ................................ ................................ ................................ ................  102 
4.1.1   Border measures  ................................ ................................ ................................ .... 104 
4.1.2   Domestic support measures  ................................ ................................ .....................  108 
4.2  Fisheries ................................ ................................ ................................ ...................  110 
4.3  Mining and energy  ................................ ................................ ................................ ..... 112 
4.3.1   Mining  ................................ ................................ ................................ ...................  112 
4.3.1.1   Regulatory framework  ................................ ................................ ..........................  113 
4.3.1.2   Institutional framework  ................................ ................................ ........................  113 WT/TPR/S/383/Rev.1 • Ecuador  
 
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  4.3.1.3   Ecuador’s mining regime  ................................ ................................ .......................  114 
4.3.2   Hydrocarbons  ................................ ................................ ................................ .........  117 
4.3.2.1   Character istics of the sector  ................................ ................................ ..................  117 
4.3.2.2   Regulatory and institutional framework  ................................ ................................ ... 119 
4.3.3   Electricity  ................................ ................................ ................................ ..............  121 
4.3.3.1   Performance of the electricity sector during the period 2011 -2017 .............................  121 
4.3.3.2   Regulatory and institutional framework  ................................ ................................ ... 122 
4.4  Manufactures  ................................ ................................ ................................ ............  124 
4.4.1   Institutional framework  ................................ ................................ ...........................  126 
4.4.2   Border measures  ................................ ................................ ................................ .... 127 
4.4.3   Domestic measures  ................................ ................................ ................................ . 128 
4.5   Services  ................................ ................................ ................................ ..................  128 
4.5.1    Financial serv ices ................................ ................................ ................................ ... 128 
4.5.1.1    Regulatory framework  ................................ ................................ .........................  129 
4.5.1.2    Institutional framework ................................ ................................ ........................  130 
4.5.1.3    Banks and other entities of the financial system ................................ ......................  131 
4.5.1.4    Insurance  ................................ ................................ ................................ ..........  134 
4.5.1.5    Securities market  ................................ ................................ ................................  136 
4.5.2    Telecommunications  ................................ ................................ ...............................  138 
4.5.3    Transport  ................................ ................................ ................................ ..............  143 
4.5.3.1    Air transport and airports  ................................ ................................ .....................  143 
4.5.3.2    Maritime transport and ports  ................................ ................................ ................  146 
5  APPENDIX TABLES  ................................ ................................ ................................ ... 149  
 
CHARTS  
 
Chart 1.1 Merchandise trade by main products, 2011 and 2017  ................................ ..............  28 
Chart 1.2 Merchandise trade by trading partner, 2011 and 2017  ................................ .............  30 
Chart 3.1 Frequency distribution of MFN tariff rates, 2018  ................................ ......................  52 
Chart 3.2 Import prohibitions by HS Chapter, 2018  ................................ ...............................  60 
Chart 3.3 Automatic and non -automatic licensing by HS Chapter, 2018  ................................ ... 62 
Chart 3.4 Tariff lines subject to the surcharge by W TO product category, 2015  .........................  66 
Chart 3.5 Export prohibitions by HS Chapter, 2018  ................................ ...............................  71 
Chart 3.6 Export restrictions by HS Chapter and type of restriction, 2018  ................................  72 
Chart 3.7 Standardization process  ................................ ................................ .......................  80 
Chart 3.8 Imports subject to technical regulations, by Chapter, 2018  ................................ ...... 81 
Chart 3.9 Imports subject to sanitary and phytosanitary measures, by HS Chapter, 2018  ..........  86 
Chart 3.10 Gover nment procurement, 2012 -2018 (July)  ................................ ........................  94 
Chart 4.1 Institutions responsible for the electricity, hydrocarbon and mining sectors  ...............  114 
Chart 4.2 Monthly price trend of Ecuadorian and WTI crude oil, 2011 -2018 .............................  118 WT/TPR/S/383/Rev.1 • Ecuador  
 
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  Chart 4.3 Oil and non -oil exports and imports, 2011 -2017 ................................ ....................  119 
Chart 4.4 Production and exportation o f crude oil by public - and private -sector enterprises  ....... 120 
Chart 4.5 Gross production and demand for electricity 2011 -2017 ................................ .........  122 
Chart 4.6 Electric energy trade balance 2011 -2017 ................................ ..............................  122 
Chart 4.7 Contribution of the manufacturing sector to GDP and the growth rate (%), 
2012-2017 ................................ ................................ ................................ ......................  125 
Chart 4.8 Exports and imports of non -agricultural products (excluding crude oil), 2011 -2017
 ................................ ................................ ................................ ................................ ..... 126 
Chart 4.9 Benchmark and maximum rates (%) in force as of July 2018  ................................ .. 134 
Chart 4.10 Total authorized securities issues, 2011-2017 ................................ ......................  137 
Chart 4.11 Payment to the State in respect of market concentration  ................................ ...... 142 
Chart 4.12 Exports and imports of non -oil cargo in the national port system, 2011 -2017 ..........  148 
 
TABLES  
 
Table 1.1 Structure of GDP and employment, 2011 -2018 Q2  ................................ ..................  14 
Table 1.2 GDP of Ecuador by expenditure, 2011 -2018 (first half)  ................................ ............  19 
Table 1.3 Non -Financial Public Sector (NFPS) Operations, 2011 -2018 (first half)  .......................  21 
Table 1.4 Projection of Consolidated Central Government finances 2018 -2021 ..........................  23 
Table 1.5 Standardized balance of payments, 2011 -2018 Q2  ................................ ..................  24 
Table 1.6 International reserves (end of period), 2011 -2018a ................................ .................  27 
Table 1.7 Trade in services, 2011 -2018 Q2  ................................ ................................ ..........  31 
Table 1.8 Direct investment by activity, 2011 -2018 Q2  ................................ ..........................  32 
Table 1.9 Direct investment by country, 2011 -2018 Q2  ................................ .........................  33 
Table 2.1 Hierarchy of legislation in Ecuador  ................................ ................................ ........  36 
Table 2.2 Principal institutions involved in trade policy (31  July 2018)  ................................ ..... 39 
Table 2.3 Investment incentives  ................................ ................................ .........................  44 
Table 2.4 Types of Special Economic Development Zones (ZEDE)  ................................ ...........  46 
Table 3.1 Tariff l ines with compound tariffs and ad valorem equivalent (AVE), 2018  ..................  50 
Table 3.2 Structure of MFN tariffs, 2011 and 2018  ................................ ................................  51 
Table 3.3 Products for which applied MFN tariff rates exceed the bound rates, 2018a .................  52 
Table 3.4 Products subject to tariff quotas, 2018  ................................ ................................ .. 53 
Table 3.5 Analysis of tariff preferences applied to countries with which Ecuador has 
negotiated trade agreements, 2018  ................................ ................................ .....................  54 
Table 3.6 Tariff def errals/reduction to 0%, 2012 -2018................................ ...........................  56 
Table 3.7 ICE, 2011 and 2018 (29 October)  ................................ ................................ .........  58 
Table 3.8 Timetable for the removal of the balance of payments safeguard measure, 2017  ..........  67 
Table 3.9 Comparison of tariff lines before and after imposition of the safeguard (2015 -2018)
 ................................ ................................ ................................ ................................ ...... 67 
Table 3.10 BanEcuador financial products, 2018  ................................ ................................ ... 77 
Table 3.11 State -owned enterprises, 2018  ................................ ................................ ...........  89 
Table 3.12 Government procurement procedures, 2018  ................................ .........................  92 WT/TPR/S/383/Rev.1 • Ecuador  
 
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  Table 3.13 Thresholds and preferences by government procurement procedure  ........................  93 
Table 3.14 Government procurement indicators, 2012-2018................................ ...................  95 
Table 3.15 Compulsory licences  ................................ ................................ ..........................  97 
Table 4.1 Principal indicators for the agricultural sector, 2011 -2017 ................................ ....... 102 
Table 4.2 Principal legal instruments governing the marketing of bananas  ..............................  103 
Table 4.3 Andean Price Band System (APBS) for Ecuador  ................................ ......................  104 
Table 4.4 Distribution of tariff surcharge  rates ................................ ................................ ..... 106 
Table 4.5 Agricultural products subject to non -automatic licences  ................................ ..........  107 
Table 4.6 Assistance by product for the agricultural kit, 2017  ................................ ................  109 
Table 4.7 Products for which "minimum support prices" and/or an "absorption commitment" 
are required  ................................ ................................ ................................ ....................  110 
Table 4.8 Main indicators for the fisheries sector, 2011 -2017 ................................ ................  111 
Table 4.9 Main legal instruments governing the mining sector  ................................ ...............  113 
Table 4.10 Mining regimes, 2018  ................................ ................................ .......................  114 
Table 4.11 Main legal instruments governing the hydrocarbons sector  ................................ .... 119 
Table 4.12 Main legal instruments regulating the electricity sector  ................................ .........  123 
Table 4.13 Main legal instruments regulating the financial sector  ................................ ...........  129 
Table 4.14 Structure of the national financial system (May 2018)a ................................ .........  131 
Table 4. 15 Licences for the provision of telecommunications and audiovisual services  ..............  140 
Table 4.16 Main legal instruments that regulate the air transport sector  ................................ . 143 
Table 4.17 Main legal instruments regulating the maritime transport sector  ............................  146 
 
BOXES  
 
Box 1.1 Organic Law on the Promotion of Production, Attraction of Investment and 
Generation of Employment, and Fiscal Stability and Bal ance ................................ ...................  22 
Box 1.2 Balance -of-payments safeguard, 2015 -2017 ................................ .............................  26 
Box 2.1 Legislative procedure  ................................ ................................ .............................  37 
Box 3.1 Import regimes  ................................ ................................ ................................ ..... 47 
Box 3.2 Imports exempted from foreign trade levies  ................................ .............................  55 
Box 3.3 Export regimes  ................................ ................................ ................................ ..... 69 
Box 3.4 Financial instruments for exporters, 2012 -2018 ................................ ........................  75 
Box 3.5 Regulation of the Standardization System, 2018  ................................ .......................  78 
Box 3.6 Main legislation governing sanitary and phytosanitary measures  ................................ . 82 
Box 3.7 Regulations governing phytosanitary measures, 2012 -2018 ................................ ....... 84 
Box 4.1 Auction or public bidding pr ocess  ................................ ................................ ...........  116 
Box 4.2 Changes in the insurance oversight and supervision body  ................................ ..........  130 
Box 4.3 Financial system funds and insurance  ................................ ................................ ..... 131 
Box 4.4 Evolution of the aircraft fuel discount since 2011  ................................ ......................  146 
 WT/TPR/S/383/Rev.1 • Ecuador  
 
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  APPENDIX TABLES  
 
Table A1. 1 Total merchandise exports by HS section, 2011 -2017 ................................ ..........  149 
Table A1. 2 Total merchandise imports by HS section, 2011 -2017 ................................ ..........  151 
Table A1. 3 Total merchandise exports by trading partner, 2011 -2017 ................................ ... 154 
Table A1. 4 Total merchandise imports by trading partner, 2011 -2017 ................................ ... 156 
 
Table A2. 1 Notifications submitted to the WTO as at 31 July 2018  ................................ .........  158 
 
Table A3. 1 Summary analysis of the MFN tariff (excluding AVEs), 2018  ................................ . 161 
Table A3. 2 Summary analysis of the MFN tariff (including AVEs), 2018  ................................ .. 163 
Table A3. 3 Preferential quotas, 2018  ................................ ................................ .................  165 
Table A3. 4 Financial instruments of the National Finance Corporation (CFN), 2018  ..................  166 
Table A3. 5 State enterprises under the EMCO EP, 2 018 ................................ .......................  169 
Table A3. 6 Overview of intellectual property rights, 2018  ................................ .....................  172 
 
  WT/TPR/S/383/Rev.1 • Ecuador  
 
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  SUMMARY  
1. The social structure of the Ecuadorian economy underwent considerable changes during the 
period under review (2011 -2018). In particular, there was a notable decline in the oil sector's share 
of GDP, which decreased from 13.2% in 2011 to barely 4.8% in 2017. At the same time, there was 
a growth in the share of services in GDP, driven above all by construction, trade and education, and 
health and social services. The fastest growing sector during the review period was aquaculture and 
shrimp fishing. The negative effects of the balance -of-payment s crisis caused several sectors and 
branches of economic activity to contract in 2015 and 2016, and led to the adoption of safeguard 
measures and a cut in spending. The economic contraction triggered by the crisis had an impact on 
oil operations and repercussions in most industries.  
2. In 2017, per capita GDP reached USD  6,217, compared to USD  5,193 in 2011. The rate of 
poverty fell during the review period from 29.6% in June  2011 to  24.5% in June  2018, while extreme 
poverty declined from 12.4% to 9%. Nevertheless , poverty rates are still high and represent a 
significant economic challenge for Ecuador.  
3. The Ecuadorian economy grew at an annual average rate of 3.3% between 2011 and 2017 , 
although unevenly , fluctuating between a GDP growth rate of 7.9% in 2011 and a 1.3% contraction 
in 2016. Inflation remained moderate during the period under review. The growth in the Consumer 
Price Index (CPI) began to slow down in 2012, and has remained  below 4% since then. In 2017 the 
economy entered a deflationary phase, with the CPI decreasing slightly, by 0.2%, over the year. 
This phase continued in the first half of 2018, with the CPI contracting by 0.7% over the 12-month 
period ending in June  2018.  
4. The US dollar has been the currency of legal tender in Ecuador since March  2000. 
Consequently, Ecuador cannot implement an active and independent monetary policy, which limits 
its ability to respond to external risks, although it does contribute to securi ng macroeconomic 
stability. Because Ecuador has a dollarized economy, fiscal policy is its main tool for macroeconomic 
adjustment. The Organic Law on Fiscal Responsibility, Stabilization and Transparency sets a limit on 
the annual growth of primary Central  Government expenditure of 3.5% in real terms (excluding 
capital spending), and stipulates that the fiscal deficit as a percentage of GDP (excluding oil export 
revenue) must decrease by 0.2% each year. A limit is also set for the public debt at 40% of GDP.  
However, these objectives have not been attained, since public spending has continued to increase 
while revenue has fallen. As a result, Ecuador posted a fiscal deficit every year from 2011 to 2017. 
In 2017, the fiscal deficit was 4.5% of GDP. The Organic  Law on the Promotion of Production, 
Attraction of Investment, Generation of Employment , and Fiscal Stability and Balance of 2018 aims 
to achieve fiscal adjustment and progressively reduce the fiscal deficit to 2.3% of GDP by 2021.  
5. The current account of E cuador's balance of payments is marked by certain specific structural 
characteristics, such as a deficit in the services balance, a substantial deficit in the income account 
balance and a strong reliance on current transfers, in particular remittances. The  merchandise trade 
balance varied considerably under the influence of crude oil price fluctuations. The deficit in the 
income account balance was due mainly to payments relating to direct investment and other 
investments in Ecuador largely linked to the pe troleum sector and to mining activities. Remittances, 
which totalled USD  2,840  million in 2017, are a significant source of funding for private consumption 
in Ecuador, and are an important source of support for domestic demand. The current account of 
Ecuad or's balance of payments posted  moderate deficits in the period between 2011 and 2014. 
In 2015, however, the deficit increased to the equivalent of 2.2% of GDP , owing in particular to a 
sharp fall in exports caused primarily by lower oil prices.  
6. In order t o offset the Central Bank's loss of assets, in March  2015 Ecuador adopted a 
balance -of-payments safeguard that affected 38% of tariff lines and resulted in a significant 
reduction in imports. It remained in effect until 1  June 2017. Ecuador traditionally r uns a capital and 
financial account surplus.  The main source of capital flows into the country has traditionally been 
direct investment , usually  – but not always  – related to the oil sector. However, since 2014 this type 
of investment has dwindled and been  replaced by portfolio investment, primarily relating to foreign 
debt securities issued by Ecuador. The public sector's consolidated external debt reached 
USD 39,500  million at the end of 2017 (37.9% of GDP), up from its 2011 level of USD 15,200  million, 
or 19.2% of GDP.  WT/TPR/S/383/Rev.1 • Ecuador  
 
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  7. Despite the sharp fall in their prices, mineral products, in particular oil , are Ecuador's main 
export goods. In 2017, they accounted for some 36.7% of total exports, compared to 57.9% in 
2011. Agricultural products are the second largest export category, accounting for almost a quarter 
of total exports. Ecuador's main agricultur al export is bananas. Exports of fish and crustaceans, 
especially shrimp, increased substantially, accounting for 17 .2% of to tal exports in 2017 compared 
to 6.6% in 2011. Manufactured goods accounted for more than two  thirds of Ecuador's imports. 
Although Ecuador  is a major oil producer, it lacks the refining capacity to meet domestic demand for 
refined products and imports oil derivatives: fuel imports accoun ted for 17% of total imports in  2017.  
8. The principal destinations for Ecuador's merchandise exports continue to be its trading 
partners in the Americas, although their share of the total declin ed from 79.1% in 2011 to 59% 
in 2017. The main destination for Ecuador's exports is the United  States, which received 31.7% of 
total exports in 2017, followed by t he European  Union (28) (16.6%), Peru (6.7%), and Chile (6.5%).  
Over the review period, Ecuador's exports have managed to penetrate or gain a foothold in 
non-traditional markets  such as China, and the  Russian  Federation  and Viet  Nam. The main sources 
of imp orts in 2017 were the United  States (20% of the total), China (18.6%), the EU (28) (13.1%), 
Colombia (8.1%)  and Panama (4.5%).  
9. The general outline and objectives of Ecuador's trade policy are set out in the Constitution, 
which stipulates  that the State sha ll have sole control of "strategic" sectors: energy in all its forms, 
telecommunications, non -renewable natural resources, transport and refining of hydrocarbons, 
biodiversity and genetic heritage, the radio spectrum and water. The National  Development  Plan 
(PND) establishes targets and general objectives to be achieved. Amendments to trade policy and 
to the actual trade measures, which can be quite frequent, are implemented by means of laws, 
regulations and resolutions depending on the level of the issuing  state entity. Transparency and 
predictability of trade policy would benefit from regulatory streamlining and consolidation in order 
to make it easier to implement the measures adopted and provide some policy continuity.  
10. Ecuador participates actively in the multilateral trading system, and believes that trade should 
be fair and inclusive, so that it s benefits extend to both large enterprises and small craft businesses, 
promoting development and offering greater employment opportunities. Ecuador is of the vi ew that 
any outcome from the multilateral negotiations should prioritize development and special and 
differential treatment, and to take into account flexibilities for developing and least developed 
countries.  During the review period, Ecuador submitted a significant number of notifications to the 
WTO Secretariat.  
11. Regional integration with Latin  American and the Caribbean countries is a strategic objective 
of the Ecuadorian  State. Ecuador is a member of the Andean Community (CAN) and the 
Latin American Inte gration Association (LAIA), and has agreements with other Latin  American 
countries. The review period saw the entry into force of agreements with Guatemala (2013), 
Nicaragua (2017) and El  Salvador (2017). The Protocol of Accession of Ecuador to the Trade 
Agreement betw een the European Union and its me mber States, of the one part , and Colombia and 
Peru, of the other part, also entered into force in 2017 as the only agreement that Ecuador has 
signed outside of the region.  
12. Ecuador's C onstitution stipulates tha t the State reserves the right to administer, regulate, 
monitor and manage strategic sectors and that in those sectors, foreign investment must be in 
addition to national investment. There are no restrictions on foreign investment in the other sectors 
and foreign investors must undergo the same procedures and obtain the same authorizations as 
Ecuadorians. Ecuador grants general tax incentives for investments in any part of the country. It 
also grants sectoral incentives  for new businesses that are set up in  priority sectors, incentives for 
investments in "depressed areas", and, since 2015, incentives for public projects implemented by 
public -private partnerships. There is also an incentives regime for Special Economic Development 
Zones (ZEDE s), which are cus toms destinations in delimited zones in th e national territory that enjoy 
specific tax incentives.  
13. As of December 2018, Ecuador had not yet submitted its instrument of ratification of 
the Agreement on Trade Facilitation. However, since 2012 it has taken me asures to facilitate trade, 
including the implementation of an electronic customs system, ECUAPASS, and the  Ecuadorian 
Single Window (VUE) in 2018; the introduction of risk management as the procedure for carrying 
out checks; the use of automatic inspectio ns and X -ray inspections; and the Authorized Economic 
Operator (AEO) programme. But though it has adopted measures to facilitate trade, Ecuador uses a WT/TPR/S/383/Rev.1 • Ecuador  
 
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  number of pre -import control documents, including the register of importers, permits, prior import 
author ization, certificates of inspection or verification of classification issued at origin, the customs 
destination document, certificates of recognition, and automatic and non -automatic licensing. In 
addition, some of the products subject to technical regulat ions issued by the Ecuadorian 
Standardization Service (INEN) require a "Certificate of Recognition" as a supporting document for 
importation, and products subject to phytosanitary and animal health requirements need the 
appropriate certificates. The Foreig n Trade Committee (COMEX) determines what accompanying 
documents or import permits are required, which vary according to the product, and is responsible 
for issuing rules on import procedures other than customs procedures.  
14. Ecuador applies both ad valorem  and compound tariffs. The latter apply to 418 tariff 
subheadings, or 5% of the total, primarily clothing. The simple average of Ecuador's applied 
MFN duties increased between 2011 and 2018 from 9.3% to 10.9%, excluding ad valorem  
equivalents (AVEs), or 12.2 % if they are included. Tariff protection for agricultural products (WTO 
definition) is substantially higher than that for non -agricultural products. In 2018, the average tariff 
on agricultural products was 18.5%, compared to 17.3% in 2011, whereas the ave rage tariff on 
non-agricultural products, which was 8.2% in 2011, rose to 9.7% in 2018 excluding AVEs, or 11.2% 
including them. The increase in the average tariff is due to in part to the proportional decrease in 
the number of tariff lines subject to a zer o tariff rate from 46.7% of the total in 2011 to 37.3% 
in 2018, and an increase in tariff lines with rates higher than 20% from 14.2% of the total in 2011 
to 19.8% in 2018.  
15. Ecuador continues to apply the Andean Price Band System (SAFP) to a 189 ten -digit t ariff lines 
(HS 2017) (roughly 2.5% of its entire tariff schedule).  
16. Ecuador has bound its entire tariff schedule at rates ranging from 5% to  85.5%. Comparing 
the applied MFN tariff in 2018 with the bound tariff, and taking into account only the lines that are 
strictly comparable in view of the change in nomenclature, the MFN applied tariff exceeds the bound 
rate for eight subheadings and six items.  
17. Ecuador is not a frequent user of trade defence measures. During the period 2012 -2018 it 
neither adopted nor m aintained any anti -dumping or countervailing measures, nor did it initiate any 
investigations in that respect. In 2012, Ecuador issued new regulations governing safeguard 
investigations. In 2015, it imposed a definitive global safeguard meas ure (WTO) for a  period of 
three  years, consisting of an additional, non -discriminatory tariff surcharge on top of the current 
tariff. Also, in the Andean Community framework, Ecuador imposed an exchange -rate safeguard for 
products originating in Peru and Colombia, which was eliminated in 2015. A further two safeguard 
measures were also imposed in the CAN Framework, one relating to imports of powder for the 
preparation of detergents, and the other to sugar imports. In addition, Ecuador maintains a system 
of "surveillance" of products which consists in monitoring import trends that could cause threat of 
injury to the domestic industry and where necessary adopting appropriate surveillance measures. 
During the review period, Ecuador adopted four surveillance measures to analys e import conditions.  
18. In 2015, in accordance with paragraph 9 of the Understanding on the Balance -of-Payments 
Provisions of the General Agreement on Tariffs and Trade 1994, Ecuador notified the WTO that it 
had introduced a temporary and non -discriminatory ad valorem  tariff surcharge in order to regulate 
the general level of imports and thereby resolve its critical balance -of-payments problems and 
remedy the lack of liquidity in its economy. The tariff surcharge covered almost 40% of Ecuador's 
tariff schedule  and affected only imports for consumption. The safeguard was in place from 
March  2015 to June  2017, and was progressively dismantled according to a timetable that had been 
proposed and discussed in the Committee on Balance -of-Payments Restrictions. During  the 
imposition of the tariff surcharge, a number of changes were made in the way it was applied. Some 
of these changes were made in the interests of consistency with other government policies and in 
accordance with the needs of domestic industry or the go vernment. Thus, certain rates were 
modified, certain products were exempted and others were excluded.  
19. Ecuador uses a number of prior documents to accompany the export customs declaration 
(DAE) for definitive exports, including export authorization, export registration, export certificates, 
export permits and export licences. In general, Ecuador guarantees the free export of goods with 
the exception of those that may affect public health, environmental conservation, animal and plant 
health, and the cultural heritage. COMEX may also regulate and/or restrict exports to ensure the 
supply of raw materials for th e domestic industry and thus promote the incorporation of value added, WT/TPR/S/383/Rev.1 • Ecuador  
 
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  pursuant to the country's industrial development policy. These measures may be imposed ex officio  
or at the request of an industry.  
20. During the period under review, Ecuador suspended the  export levy collected on some of its 
main export products, such as bananas and coffee. In 2015, it eliminated minimum reference prices 
for coffee, but continued to use minimum reference prices for bananas and cocoa. The reference 
price for bananas is set on the basis of the support price that exporters must pay producers.  
21. Ecuador implements various export promotion schemes, but exporters may avail themselves 
of only one scheme at a time. The granting of Tax Credit Certificates (CATs) was reactivated betwee n 
2013 and 2016 to support exporters whose access to international markets had become more 
difficult. COMEX was responsible for identifying the beneficiaries of the CATs, fixing the maximum 
annual amount of the benefit for each exporter, and determining th e international markets to which 
Ecuadorian exports had lost access. Exporters of goods that use or incorporate imported packaging 
or packing, raw materials or inputs are eligible under the conditional drawback scheme that provides 
for the total or partial  refund of foreign trade levies paid on imports of goods that are subsequently 
exported. Between 2015 and 2016, a simplified conditional drawback scheme was applied which 
enabled certain imported products to benefit from a fixed percentage for the drawback  of up to 5% 
of the export value.  
22. The Free Zones were replaced by Special Economic Development Zones (ZEDEs). The 
administrators and operators who set up in ZEDEs are eligible for specified tax incentives. Goods 
produced in the ZEDEs should, inter alia , contribute to diversifying the domestic supply for export, 
and be specifically export -oriented. However, they may exceptionally be authorized to enter the 
national territory for sale on the domestic market in limited percentages, depending on the product.  
23. Ecuador grants fiscal incentives for the development of production in general, as well as for 
specific sectors such as agriculture and basic industry, and also for the popular, solidarity and 
community -based economy. The micro, small and medium -sized enterpr ises (MSMEs) are also 
granted incentives in the form of preferential financing and access to government procurement, and 
by facilitating the setting -up of business.  
24. Technical regulations as well as phytosanitary measures are issued to protect human, animal  
and plant life, preserve the environment, and ensure consumer safety and protection. Technical 
regulations must be in the interests of the national economy and in line with the current state of 
development of science and technology as well as the country' s climatic and geographical 
specificities. During the period under review, a number of changes were introduced in the regulatory 
framework governing plant and animal health in order to update the country's legislation and bring 
it into line with the intern ational legal framework. The entities operating in this area were also 
reformed. Ecuador requires a certificate of recognition or Conformity Verification Certificate as a 
supporting document for the import customs declaration for certain goods subject to t echnical 
regulations when the value exceeds USD  2,000. For textiles, clothing and footwear, there is no 
threshold, and the Conformity Verification Certificate is required in all cases.  
25. Competition legislation applies across all economic sectors, including the strategic sectors and 
those for which regulatory bodies exist. The technical body in charge of competition policy may 
initiate an investigation ex officio , at the request of another body of the public administration, or in 
response to a complaint by an y public or private person showing a legitimate interest. Generally 
speaking, however, prices in Ecuador are market -driven. However, the State has the obligation to 
regulate, control and intervene, when necessary, to define a price policy aimed at protecti ng 
domestic production.  
26. State -owned enterprises are entrusted with a major role in the Ecuadorian economy: under 
the Constitution, the State reserves the right to administer, regulate, control and manage strategic 
sectors. Accordingly, State -owned enterpri ses have been set up in different areas such as the 
management of strategic sectors, the provision of public services , and the sustainable supply of 
natural resources or public goods. There are currently no government support programmes directly 
aimed at p ublic enterprises. However, State -owned enterprises are exempt from income tax (25% 
of the tax base) and the advance payment of income tax. In 2014 and 2018, Ecuador notified that 
it had a State -trading enterprise falling within the definition of GATT Arti cle XVII. This enterprise is 
responsible for the temporary storage and domestic marketing of agricultural products (especially WT/TPR/S/383/Rev.1 • Ecuador  
 
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  yellow  flint maize, rice and cereals),  the management of strategic food reserves, and support for the 
marketing and distribution of inputs. It is involved only in domestic marketing, and does not import 
or export.  
27. Ecuador is not a party to the WTO Agreement on Government Procurement and does not 
participate as an observer in the Committee on Government Procurement. Through its natio nal Public 
Procurement System, Ecuador seeks, inter alia , to ensure the quality and transparency of public 
expenditure and avoid discretionary action in government procurement, as well as to promote 
domestic production and the participation of craftworkers  and MSMEs. Ecuador uses government 
procurement as a strategic element of public policy to achieve some of the objectives established in 
the National Plan for Good Living 2013 -2017, such as, for example, changing the production matrix 
through public invest ment and procurement. In order to achieve the objective of changing the 
production matrix, public procurement policy promotes import substitution and reserves markets, in 
particular for MSMEs and the popular and solidarity economy (EPS).  
28. During the review period, a number of changes were made in the legal framework governing 
intellectual property rights (IPRs). In 2016, the Organic Code of the Social Economy of Knowledge, 
Creativity and Innovation (Code of Knowledge) was promulgated, replacing the earlier I ntellectual 
Property Law (LPI) of 1998. The Code of Knowledge contains provisions governing both industrial 
property and copyright and related rights, as well as plant varieties and traditional knowledge. Its 
implementing regulations were adopted in 2017. However, they do not regulate all IPR matters. 
Those not governed by the Regulations to the Code of Knowledge continue to be governed on a 
transitional basis by the 1998 LPI Regulations.  
29. The Agricultural Sector is of considerable importance for Ecuador bec ause of its contribution 
to GDP and employment, and as the second -largest generator of foreign exchange after petroleum. 
Ecuador is a net exporter of agricultural products, and its principle  export product is bananas. One  of 
its main public policy objectiv es is to achieve food sovereignty, and to that end it has introduced 
preferential financing mechanisms for small and medium -sized producers, facilitating their access to 
inputs and promoting productivity in the agricultural sector. In 2018, Ecuador notifie d a series of 
domestic support measures for agriculture in relation to pest and disease control, research, 
marketing and promotion services, and inspection and infrastructure services, and a State 
programme to promote the use of agricultural insurance. Gen erally speaking, these programmes do 
not target specific products. Ecuador has notified to the WTO that, during the period 2012 -2016, it 
did not grant any export subsidies for agricultural products.  
30. Agricultural products (WTO definition) received more tari ff protection that non -agricultural 
products. Ecuador uses the Andean Price Band System (APBS) for certain agricultural products with 
a view to stabilizing their import price. In general, imports of agricultural products require a sanitary 
or phytosanitary  import permit and may also require other prior control documents. During the 
review period, certain agricultural products were subject to non -automatic import licences. These 
licences are granted to permit importation in the event of shortages when it is necessary to 
supplement domestic production in order to be able to keep the country permanently supplied with 
food. Under the legislation in force, import licences are not granted in periods when domestic goods 
are being produced. Ecuador intervenes in the  marketing of certain agricultural commodities by 
establishing "minimum support prices" to ensure that the producer gets a "fair price". For some of 
these products, a domestic crop "absorption commitment" is also required.  
31. The share of the fisheries and aq uaculture sector in GDP is modest (1.1% in 2017) and did 
not vary substantially during the period from 2011 to 2017. However, the sector is considered 
fundamental to the economy as a generator of foreign exchange. Fisheries and aquacultural exports 
account ed for 24.1% of total exports in 2017. Shrimp is the fisheries and aquaculture sector's main 
export product and has become the largest generator of foreign exchange, excluding petroleum. The 
authorities have notified that with the exception of training pro grammes, there are no specific 
incentives to promote the fisheries and aquaculture sector.  
32. The mining sector, made up of artisanal and small -scale operations, accounted for 1.5% of 
GDP in 2017. Since this sector was declared strategic in 2009, a number of regulatory and 
institutional reforms have been introduced to help with its development. One of the principal changes 
was the opening up of the sector to foreign investment, which is permitted up to 100% in small, 
medium and large -scale operations. It is pr ohibited only in the artisanal mining regime.  WT/TPR/S/383/Rev.1 • Ecuador  
 
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  33. The hydrocarbons sector remains the pillar of the Ecuadorian economy. It is the chief 
contributor to the State budget and the largest foreign exchange earner. As the country's leading 
export product, crude oil is the most important item. The sector was badly affected by the slump in 
international prices between 2014 and 2016, which was a major shock to government income and 
the trade balance. State -owned companies account for a considerable share of the hydrocar bons 
market, since they are the country's main producers and exporters. In 2017 they produced 78% 
and exported 86% of the country's oil.  
34. On the energy consumption front, Ecuador is aiming for self -sufficiency as well as a reduction 
in its use of fossil fue ls and substitution of non -renewable sources. Consequently, public investment 
in the energy sector was significant during the review period. The result was an improvement in the 
infrastructure and an increase in production. State participation in the secto r remains considerable. 
In the specific case of electricity, private investment is permitted only for generation and, in some 
cases, transmission, while all other activities are reserved for the State.  
35. The share of services in GDP increased during the peri od under review from 60.8% in 2011 to 
64.6% in 2017. Services generated 62.2% of total employment in 2017, as compared to 61.1% in 
2011. Although the balance of services in Ecuador has traditionally posted a deficit, during the review 
period a sharp increa se in travel earnings helped to reduce the deficit from 2014 onwards.  
36. During the review period, Ecuador made significant regulatory and institutional changes to 
strengthen the financial system, increase lending to the production sector, promote microcredit  and 
develop the securities market, among other things. In spite of the large number of banking and 
insurance institutions, these markets continue to be dominated by just a few companies. Foreign 
investment is generally allowed, albeit subject to requireme nts mainly relating to setting up a 
business and its legal structure. In the insurance market sector, restrictions apply to cross -border 
trade, except for the commitments made with the European Union and EFTA on maritime transport 
and aviation insurance.  
37. The telecommunications sector underwent various regulatory and institutional changes during 
the review period, including the enactment of a new law in 2015 which seeks to modernize the 
sector, and the creation of a regulation agency. The new law promotes th e provision of the universal 
telecommunications service, including Internet, and contains provisions on authorizations for the 
supply of communication and audiovisual services, consumer rights, service fees, conditions of 
competition, and penalties. In add ition to a number of private firms, two public companies operate 
in the sector. One of these companies (CNT EP) has a share in all of the telecommunications service 
markets and competes with the other companies. However, it has a dominant market share in t he 
fixed-line telephony (85%) and fixed Internet (51%) markets.  
38. As regards the provision of air transport services, one of the most important changes during 
the review period was the adoption, in 2018, of a policy to deregulate air traffic, except for cabo tage, 
along with more detailed and flexible provisions on charter flights. For the most part, the provision 
of air transport services may be delegated to national or foreign private companies. Only domestic 
air transport services (cabotage) are reserved fo r Ecuadorian nationals. In general, foreign 
investment is allowed in the maritime transport and port sector, albeit subject to certain 
requirements. Certain activities are the exclusive responsibility of the State, such as the 
transportation of hydrocarbon s, and others are reserved for Ecuadorian flag vessels, such as inland 
waterway transport for passengers and cargo.  
 
 WT/TPR/S/383 /Rev.1 • Ecuador  
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  1  ECONOMIC ENVIRONMENT  
1.1  Main features  of the economy  
1.1.  The sectoral structure of the Ecuadorian economy underwent considerable changes during the 
period under review (Table 1.1). The period was marked by a notable decline in the oil sector 's share 
of GDP, which decreased from 13.2% in 2011 to barely 4.8% in 2017, and by a growth in the share 
of services, whi ch collectively accounted for 64.6% of GDP in 2017 (at current prices) compared to 
60.8% in 2011 (including construction and water and electricity supply services). The manufacturing 
share (excluding oil refining) grew moderately over the period, increasin g from 12.2% of GDP in 
2011 to 13.3% in 2017. Agriculture, livestock, hunting and forestry, which dipped between 2011 
and 2013 and then picked up again over the following years, accounted for a slightly smaller share 
of GDP in 2017 (8.2%) than in 2011 (8.5 %). The biggest contributors to GDP within the services 
sector were construction (11.6% in 2017), trade (9.5%) and education, health and social services 
(8.9%).  
1.2.  Aquaculture and shrimp fishing was the fastest growing subsector, in constant terms, between 
2011 and 2017, with an average annual growth rate of 16.8% over that period, but its share of GDP 
remains small. At the other end of the spectrum, the worst performance came from the oil refining 
industry, whose average annual growth rate shrank to 1.6%. The  negative effects of the 
balance -of-payments crisis caused several sectors and branches of economic activity to contract in 
2015 and 2016 and led to the adoption of safeguard measures and a cut in spending. The economic 
contraction triggered by the crisis had an impact on oil operations and repercussions in most 
industries.  
1.3.  The services sector continued to play a key role in employment, providing 62.2% of all jobs in 
2017, compared to 61.1% in 2011 (Table 1.1). The trade subsector, in particular, accounted for 
19.1% of jobs in 2017; it was followed by education, health and social services, which contributed 
6.8% of all jobs, and construction, which contributed 6.7%. Manufacturing accounted for 11.3% of 
all jobs in 2017, up from 10.5% in 2011. Over the review  period, the proportion of jobs provided by 
agriculture, fisheries, and mining and quarrying declined from 27.9% in 2011 to 26.1% in 2017.  
Table 1.1 Structure of GDP and employment, 2011 -2018 Q2  
 
2011  2012  2013 2014  2015  2016  2017a 2018 
Q2a 
Current GDP (USD  million)  79,277  87,925  95,130  101,726  99,290  99,938  104,296  54,096  
Per capita GDP (USD)  5,193  5,665  6,031  6,347  6,099  6,046  6,217  .. 
Real GDP growth rate  
(%, at 2007 prices)  7.9 5.6 4.9 3.8 0.1 -1.2 2.4 1.3 
By branch of economic activity (% of GDP at current prices)  
Agriculture  8.5 7.5 7.6 8.0 8.5 8.4 8.2 8.0 
Aquaculture and shrimp 
fishing  0.5 0.5 0.5 0.6 0.4 0.5 0.6 0.7 
Fisheries (except shrimp)  0.6 0.7 0.6 0.6 0.5 0.6 0.5 0.5 
Oil and mining  13.2 12.9 12.5 11.1 4.7 3.8 4.8 5.4 
Oil refining  0.8 0.7 0.5 0.3 0.8 0.9 1.1 0.9 
Manufacturing (except oil 
refining)  12.2 12.2 12.6 13.5 13.6 13.6 13.3 13.2 
Electricity and water supply  1.2 1.2 1.1 1.2 1.5 1.7 1.8 1.7 
Construction  10.2 10.7 10.5 10.7 11.2 12.0 11.6 11.4 
Trade  10.6 10.3 10.5 10.4 10.3 9.6 9.5 9.6 
Accommodation and food 
services  1.8 1.9 2.0 2.0 2.1 2.1 2.1 2.1 
Transport  4.7 4.4 4.5 4.3 4.8 5.4 5.2 4.9 
Mail and communications  2.3 2.2 2.1 2.1 2.0 1.9 1.9 1.8 
Financial service activities  2.9 3.1 2.7 3.1 3.2 3.1 3.4 3.4 
Professional, technical and 
administrative activities  6.4 6.5 6.9 6.9 6.9 6.6 6.8 7.4 
Education, health and social 
services  7.6 7.9 7.9 7.7 8.5 8.8 8.9 9.0 
Public administration, 
defence; compulsory social 
security  6.3 6.3 6.4 6.6 6.7 6.9 6.8 6.5 
Domestic services  0.4 0.4 0.4 0.4 0.4 0.5 0.5 0.5 
Other servicesb 6.4 6.1 5.9 5.9 6.4 6.6 6.2 6.7 
All services  60.8 60.8 60.9 61.3 64.1 65.2 64.6 64.8 
Other GDP elementsc 3.5 4.6 4.8 4.7 7.3 6.9 6.9 6.5 WT/TPR/S/383 /Rev.1 • Ecuador  
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2011  2012  2013 2014  2015  2016  2017a 2018 
Q2a 
Real growth rate by branch of economic activity (%, based on GDP at 2007 prices)  
Agriculture  7.5 -0.5 6.4 5.9 2.1 -0.2 4.4 3.1 
Aquaculture and shrimp 
fishing  21.7 7.3 9.1 40.0 18.6 8.2 15.9 9.8 
Fisheries (except shrimp)  3.0 11.1 7.9 -0.1 -5.2 3.5 3.5 -4.3 
Oil and mining  2.8 2.6 2.9 6.6 -2.1 1.5 -2.8 -3.5 
Oil refining  10.9 9.4 -25.4 -34.0 -6.5 27.4 9.5 -23.2 
Manufacturing (except oil 
refining)  5.8 3.4 6.2 3.7 -0.4 -2.6 3.1 0.8 
Electricity and water supply  27.1 17.9 11.5 6.5 9.0 0.5 9.6 7.2 
Construction  17.6 12.2 7.4 4.7 -0.8 -5.8 -4.4 0.9 
Trade  5.8 4.7 6.8 3.5 -0.7 -4.0 5.4 4.1 
Accommodation and food 
services  6.0 4.0 4.8 2.3 -3.7 -0.6 5.8 6.4 
Transport  5.5 6.1 10.2 2.6 4.6 1.3 0.1 0.5 
Mail and communications  12.1 8.8 6.5 5.2 -1.1 -0.8 1.1 0.6 
Financial service activities  13.5 16.5 -2.0 10.8 -0.7 -1.2 6.3 2.6 
Professional, technical and 
administrative activities  7.8 6.9 5.7 4.5 -1.3 -2.1 1.1 0.5 
Education, health and social 
services  4.6 6.8 2.3 4.5 4.0 0.5 3.8 4.5 
Public administration, 
defence; compulsory social 
security  10.4 6.4 7.9 3.3 4.4 2.7 1.1 0.6 
Domestic services  -3.5 -1.4 1.8 4.8 -2.4 8.6 7.9 3.2 
Other servicesb 3.9 0.3 3.4 2.5 1.0 -2.2 -4.7 -1.8 
Other GDP elementsc 12.7 5.1 0.2 -6.0 -19.5 -12.6 31.4 3.9 
Employment          
Unemployment rate (%) 4.2 4.1 4.2 3.8 4.8 5.2 4.6 4.1 
Economically active 
population (EAP) (%)  62.5 61.7 62.1 64.5 65.8 67.3 67.7 66.4 
Employment by branch of 
activity (%)          
Agriculture, livestock, hunting 
and forestry and fishing  27.9 27.4 24.8 24.4 25.0 25.6 26.1 29.4 
Oil and mining  0.5 0.5 0.7 0.8 0.7 0.6 0.4 0.4 
Manufacturing (including oil 
refining)  10.5 10.6 11.4 11.3 10.6 11.2 11.3 11.1 
Electricity and water supply  0.6 0.5 0.8 1.0 0.7 0.6 0.7 0.5 
Construction  6.1 6.3 7.6 7.4 7.3 7.1 6.7 6.5 
Trade  20.4 19.9 18.3 18.9 18.8 19.0 19.1 18.0 
Accommodation and food 
services  4.9 5.1 5.3 5.5 6.1 6.5 6.4 6.3 
Transport  5.6 5.6 5.5 5.9 6.2 5.7 5.9 5.7 
Mail and communications  1.1 1.2 1.2 1.2 1.2 1.0 1.0 0.9 
Financial service activities  1.1 0.9 1.1 1.0 0.8 0.6 0.7 0.7 
Professional, technical and 
administrative activities  4.0 4.4 4.6 4.3 4.5 4.2 4.5 4.3 
Education, health and social 
services  7.9 8.0 7.6 6.8 7.1 6.9 6.8 6.2 
Public administration, 
defence; social security  3.8 3.7 4.0 4.4 4.4 4.2 4.3 3.6 
Domestic  services  2.3 2.5 3.1 3.3 2.7 2.8 2.5 2.6 
Other services  3.5 3.5 4.1 3.8 3.9 3.9 3.6 3.8 
Services  61.1 61.6 63.1 63.4 63.8 62.6 62.2 59.1 
Other indicators          
Monetary indicators          
M1 (end of period, 12 -month 
change)  12.2 20.0 12.1 14.9 1.9 18.9 8.4 5.4 
M2 (end of period, 12 -month 
change)  19.7 16.4 13.4 14.4 -1.1 16.5 10.0 8.0 
Interest rates          
Passive reference rate (end  of 
period)  4.5 4.5 4.5 5.2 5.1 5.1 5.0 5.1 
Active reference rate (end  of 
period)  8.2 8.2 8.2 8.2 9.1 8.1 7.8 7.3 
Inflation          
Consumer price index (end  of 
period, % change)  5.4 4.2 2.7 3.7 3.4 1.1 -0.2 -0.7 WT/TPR/S/383 /Rev.1 • Ecuador  
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2011  2012  2013 2014  2015  2016  2017a 2018 
Q2a 
Exchange rate          
Real effective exchange rate 
(2014=100)  108.1  104.6  103.5  100 88.6 86.4 89.1 87.1 
Total foreign external debt 
(USD billion)  15.2 15.9 18.7 24.1 27.8 34.5 40.0 42.0 
Foreign external debt as 
share of GDP %  19.2 18.1 19.7 23.7 28.0 34.5 38.3 77.7 
Gross international reserves 
(USD million, end of period)  2,958  2,483  4,361  3,949  2,496  4,259  2,451  3,167  
Gross international reserves, 
(USD million, year average)  3,830  3,738  4,088  5,011  3,767  3,548  3,793  4,527  
Population (thousands)  15,266  15,521  15,775  16,027  16,279  16,529  16,777  .. 
a Provisional data.  
b Includes  real estate, entertainment, recreation and other services.  
c Other GDP elements include other taxes on goods, subsidies on goods, tariffs and value added tax 
(VAT).  
Source:  Central Bank of Ecuador.  
1.4.  In current terms, Ecuador 's per capita GDP increased rapidly between 2011 and 2014, and then 
decreased, reflecting the lower rate s of economic growth brought on by the reduction in oil revenue 
that led to the country 's balance -of-payments crisis (see  below). In 2017, Ecuador 's per capita GDP 
was USD  6,217, more than USD  1,000 above the 2011 level (USD  5,193). During the review perio d, 
the poverty rate decreased from 29.6% in June 2011 to 24.5% in June 2018; extreme poverty 
declined from 12.4% in June 2011 to 9% in June 2018.1 Poverty levels are, however, still high and 
continue to represent a significant economic challenge for the co untry.2 According to the World Bank, 
Ecuador 's Gini coefficient was 0.45 in 2 016, one of the lowest in Latin  America, which indicates a 
relatively equitable distribution of income by the standards of the region.3 
1.5.  The Government has continued implementing p olicies to improve income distribution. As part 
of that effort, National Development Plan 2017 -2021 "A Lifetime" seeks to promote economic and 
social inclusion and fight all aspects of poverty so as to guarantee economic, social, cultural and 
territorial e quity.4 Through structural reforms, it aims to strengthen the production system, generate 
value added and spur innovation in order to reduce external vulnerability. One of the Plan 's 
challenges is to transform the production matrix and encourage new production in order to move 
beyond a commodity export model.5 To achieve this, it encourages production chains with a view to 
stimulating the production of higher value -added goods, and promotes institution -building to ensure 
market transparency and effici ency by nurturing competition. There is a recognition of the need to 
promote private investment in a predictable environment to help improve current conditions and 
expectations. There is also an effort to implement comprehensive and inclusive fiscal polici es to help 
make tax collection more efficient and progressive, reduce tax evasion and avoidance, optimize 
expenditure quality and improve the maturity profile of public financing. With respect to the external 
sector, the objective of the Plan is to achieve  a balance -of-payments surplus by promoting and 
                                                
1 Central Bank of Ecuador, Programming and Regulation Division, National Directorate for 
Macroeconomic Study, Estadísticas Macroeconómicas. Presentación Coyuntural , August 2018. Viewed at: 
https://contenido.bce.fin.ec//documentos/Estadisticas/SectorReal/Previsiones/IndCoyuntura/EstMacro082018 .
pdf. 
2 Online information from the World  Bank, "Countries: Ecuador". Viewed at: 
http://datos.bancomundial.org/pais/ecuador . 
3 Central Bank of Ecuador, Programming and Regulation Division, National Directorate for 
Macroeconomic Study, Estadísticas Macroeconómicas. Presentación Coyuntural , August 2018. Viewed at: 
https://contenido.bce.fin.ec//documentos/Estadisticas/S ectorReal/Previsiones/IndCoyuntura/EstMacro082018 .
pdf. See also online information from the World Bank. Viewed at: 
https://data.worldbank.org/indicator/SI.POV.GINI . 
4 Government of Ecuador (2 017), Plan Nacional de Desarrollo 2017 -2021, Toda una Vida , adopted on 
22 September  2017 pursuant to Resolution No. CNP -003-2017. Viewed at: 
http://www.planificacion.gob.ec/wp -content/uploads/downloads/2017/10/PNBV -26-OCT-
FINAL_0K.compressed1.pdf . 
5 Government of Ecuador (2017 ), Plan Nacional de Desarrollo 2017 -2021, Toda una Vida , adopted on 
22 September  2017 pursuant to Resolution No. CNP -003-2017. Viewed at: 
http://www.planificacion.gob.ec/wp -content/uploads/downloads/2017/10/PNBV -26-OCT-
FINAL_0K.compressed1.pdf . WT/TPR/S/383 /Rev.1 • Ecuador  
- 17 - 
  increasing exports and discouraging imports that negatively affect domestic production or the 
environment or that involve unnecessary foreign exchange outflows.6 
1.6.  Ecuador 's macroeconomic policy is directed tow ards addressing structural imbalances so as to 
achieve macroeconomic sustainability and advance the country 's development. The National 
Development Plan 2017 -2021 identifies a set of policies for reaching those objectives, with the main 
ones being to:  
• ensure the smooth functioning of the monetary and financial system through efficient 
liquidity management;  
• channel resources into the production sector, promoting alternative sources of financing 
and long -term investment, with coordination between the public b ank, the private 
financial sector and the popular and s olidarity financial sector;  
• promote access to credit and to the services of the national financial system and 
encourage financial inclusion;  
• increase tax collection and make the tax system more efficient and progressive;  
• optimize public spending through sustainable management of public financing;  
• strengthen the dollarization system, promoting greater foreign exchange inflows, 
encouraging non -oil exports and attracting foreign direct investment so  as to ensure a 
sustainable balance -of-payments situation;  
• create incentives for long -term foreign and domestic private investment to help create 
jobs and promote technology transfer and with a strong domestic component;  
• enhance value added and the role of  the domestic component in government 
procurement, ensuring greater participation of MSMEs and participants in the popular 
and solidarity economy;  
• support participants in the popular and solidarity economy through reduced formalities 
and preferential acces s to financing and government procurement so as to effectively 
include them in the economy;  and 
• promote market competition through the efficient regulation and control of monopolistic 
practices, concentrations of power and market failures.  
1.7.  The 2021 targets  set by the Plan include:  
• maintaining the cash -to-GDP ratio at around 15.64%;  
• increasing the total value of domestic financial sector trade - and production -related 
lending from 12.1% of GDP to 15.2%;  
• increasing the total value of public -housing -related len ding operations from 12.6% to 
20% of the total value of all housing -related lending operations;  
• increasing the number of microcredit operations from 10.34% to 11.44% of the total 
number of new operations i n the national financial system;  
• reducing  the non -financial public sector deficit to 0.41% of GDP in 2021;  
                                                
6 Government of Ecuador (2017), Plan Nacional de Desarrollo 2017 -2021,  Toda una Vida , adopted on 
22 September  2017 pursuant to Resolution No. CNP -003-2017. Viewed at: 
http://www.planificacion.gob.ec/wp -content/uploads/ downloads/2017/10/PNBV -26-OCT-
FINAL_0K.compressed1.pdf . WT/TPR/S/383 /Rev.1 • Ecuador  
- 18 - 
  • increasing the trade balance from 1.26% of GDP to 1.65% by 2021;  
• increase the popular and solidarity economy 's share in government procurement;  
• increase direct taxes collected as a percentage o f total  taxes collected by 2021;  and 
• maintain the ratio  of net taxes collected to GDP.  
1.8.  In connection with its 2018 Article IV consultations with Ecuador, the International Monetary 
Fund (IMF) highlighted that the Ecuadorian authorities had been taking important s teps recently to 
strengthen fiscal institutions and re -establish a competitive private -sector driven economy. The IMF 
pointed out in particular that the new Law on the Development of Production, approved by 
the National  Assembly in June 2018 (see below), c ontained marked improvements in the fiscal policy 
framework that went in the right direction though further refinements were possible, and that, in 
addition, efforts were underway to increase fiscal transparency. The effort to implement measures 
aimed at i mproving the legal framework for investors and facilitating trade was also recognized. 
However, it was noted that Ecuador was still adjusting to external shocks that had exposed 
underlying structural imbalances in the country 's economy and would have to de al with challenges, 
such as a high fiscal deficit and rising public debt, an overvalued real effective exchange rate, and 
vulnerabilities in the country 's balance of payments. The IMF indicated that, although higher oil 
prices and measures such as cuts in capital spending and a public sector hiring freeze could help 
reduce the fiscal deficit, a more balanced and frontloaded fiscal consolidation was needed to reduce 
the deficit to more sustainable levels. It was also recommended that Ecuador 's external posit ion be 
strengthened by, among other things, building up adequate reserve cushions and adopting further 
supply -side reforms to improve competitiveness, foster job creation and raise productivity.7 
1.2  Recent economic developments  
1.2.1   Production and employment  
1.9.  Ecuad or's economy went through as many as three clearly differentiated phases during the 
period under review (2011 -2018). First there was a phase of economic expansion supported by high 
international crude oil prices from 2011 to 2014 (the economic expansion ac tually began in 2009). 
This was followed by a phase in which oil prices fell, hampering economic activity and leading to a 
balance -of-payments crisis in 2015, flat GDP that year and a drop in it the next. The economy picked 
up in 2017, thanks in large part  to the rise in oil prices and renewed domestic demand.  
1.10.   Ecuador 's constant GDP grew more than 7% in 2011 and more than 5% in 2012, driven by 
investment, public and private consumption and exports, mostly of petroleum products. The 
economy slowed down sligh tly in 2013 and 2014, with growth rates of 4.9% and 3.8%, respectively. 
This slowdown was due in part to slower growth in domestic demand, particularly private 
consumption; net exports of goods and services contributed negatively to GDP growth in 2015 and 
positively in 2016 (Table 1.2). In 2015, the first year of the balance -of-payments crisis, Ecuador 's 
economy stalled and then entered a downturn: in 2016, Ecuador 's GDP fell by 1.2%. After 
five consecutive quarters of contraction, the economy began to grow  again in late 2016, and in 2017 
GDP rebounded by 2.4%. However, the recovery remains weak: GDP contracted by 1% in the 
first quarter of 2018 compared to the previous quarter, but expanded 0.4% in the second quarter. 
In the first half of 2018, GDP grew 1.3 % compared to the same period the previous year.  
                                                
7 IMF (2018), IMF Staff Completes 2018 Article IV Mission to Ecuador , 5 July 2018, Press release 
No. 18/278. Viewed at: https://www.imf.org/en/News/Articles/2018/07/05/pr18278 -imf-staff-completes -2018-
article -iv-mission -to-ecuador . 
 
 WT/TPR/S/383 /Rev.1 • Ecuador  
- 19 - 
  Table 1.2 GDP of Ecuador by expenditure, 2011 -2018 (first half)  
Growth rate by expenditure (%), based on GDP at 2007 prices   
2011  2012  2013  2014  2015  2016  2017  2018a 
Real GDP  7.9 5.6 4.9 3.8 0.1 -1.2 2.4 1.3 
Domestic demand  7.1 4.2 6.2 3.4 -2.2 -4.3 5.5 3.6 
 Household final 
consumption 
expenditure  5.1 2.9 3.9 2.7 -0.1 -2.4 3.7 2.9 
 General government 
 final consumption
 expenditure  8.7 11.1 10.3 6.7 2.1 -0.2 3.2 2.6 
 Gross fixed capital 
 formation  14.3 10.6 10.4 2.3 -6.2 -8.9 5.3 3.2 
 Changes in inventories  -13.3 -70.2 -31.3 80.3 -126.1  361.7  -168.3  844.5  
Exports of goods and 
services (f.o.b.)  5.7 5.5 2.6 6.2 -0.6 1.4 0.7 0.8 
Imports of goods and 
services (f.o.b.)  3.6 0.8 7.0 4.8 -8.2 -9.6 12.2 9.1 
a First half.  
Source:  Central Bank of Ecuador.  
1.11.   The increase in domestic demand between 2011 and 2013 resulted from the implementation 
of policies to facilitate the allocation of credit and keep its cost under control. These policies and the 
growth in domestic demand led to an increase in imports, which, in the case of merchandise trade, 
practically doubled during that period. The high growth in domestic absorption (including imports) 
during the period contribut ed to higher deficits in the current account of the balance of payments. 
In 2015 and 2016, domestic demand, mainly private consumption and gross capital formation, 
contracted considerably as a result of measures taken to respond to the balance -of-payments crisis 
– in particular the higher prices of imports after tariff surcharges were initially applied on 38% of all 
tariff headings (see below) – and to cut public spending. In 2017, domestic demand picked up, 
expanding by 5.4%, primarily because of a sharp r ise in private consumption and public spending, 
while gross capital formation continued to decline.  
1.12.   In the phase from 2011 to 2014, growth in consumption was supported by injections of 
liquidity into the financial sector and the introduction of interest ra te caps. This was reflected in the 
average 4% growth in imports of goods and services between 2011 and 2014. In the same period, 
exports of goods and services increased at an average annual rate of 5%. Public spending also 
contributed significantly to grow th during that period, with an average annual growth rate of 9.2%. 
Growth in general government spending was especially strong between 2011 and 2013, but it slowed 
down considerably in 2015 and shrank in 2016. In 2015, consumption and investment weakened, 
in part because of worsening expectations as the balance -of-payments current account deficit 
increased, and a higher cost of borrowing as interest rates went up. In 2017, private consumption 
and public spending were back on the upswing, expanding 4.9% and 3.8%, respectively.  
1.13.   From a sectoral point of view, growth has been unevenly distributed across sectors during the 
period under review. Between 2011 and 2017, the most dynamic productive sectors were electricity 
and water, aquaculture and shrimp, and educat ion, health and social services, while the 
manufacturing and agricultural sectors posted lower growth rates and the oil -refining sector 
contracted sharply.  
1.14.   The upward economic trend in Ecuador from 2011 to 2014 helped keep the rate of job creation 
up. As a  result, Ecuador 's unemployment rate decreased to 3.8% in 2014. After that year, however, 
it began to increase, partly reflecting lower investment and the effects of the crisis: it was 4.8% in 
2015 and rose to 5.2% in 2016 before decreasing again to 4.6% i n 2017.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 20 - 
  1.15.   Inflation remained moderate during the period under review. The Consumer Price Index (CPI) 
rose by 5.4% in 2011, increased at a slower rate in 2012 and 2013 (4.2% and 2.7%, respectively), 
and then picked up again slightly in 2014, rising 3.7%. The CPI incr eased by 3.4% in 2015 and then 
rose only 1.1% in 2016, reflecting the weakness of domestic demand.8 In 2017, the economy 
entered a deflationary phase, with the CPI decreasing slightly, by 0.2%, over the year. This phase 
continued in the first half of 2018;  the CPI contracted by 0.7% over the 12 -month period ending 
June 2018. The recent trend of a strong US dollar is likely to help keep inflation low, or even negative 
in the near future. This will allow Ecuador to regain some of the competitiveness it lost i n 
third markets because of the rise of the dollar.  
1.3  Fiscal policy  
1.16.   Because the country has a dollarized economy, which leaves limited scope for any monetary 
policy initiative, Ecuador 's main tool for macroeconomic adjustment is fiscal policy. The Constitutio n 
mandates that the State maintain a disciplined fiscal policy. The Organic Law on Fiscal Responsibility, 
Stabilization and Transparency (Law No. 72, Official Register of 4 June 2002) sets fiscal deficit limits: 
annual growth of primary Central Government expenditure must not exceed 3.5% in real terms 
(excluding capital spending); and the fiscal deficit as a percentage of GDP (excluding oil export 
revenue) must decrease by 0.2% each year. A limit is also set for the public debt at 40% of GDP. 
However, as wi ll be discussed later, in practice these goals have not been met . 
1.17.   In accordance with Article 294 of the Constitution of the Republic of Ecuador of 2008, the 
Ministry of Finance prepares a Four Year Budget Programme each year. The programme brings 
together an institutional vision of overall macroeconomic performance in the medium term, fiscal 
policy and an analysis of the sustainability of public finances, and it presents tax expenditure 
estimates.  
1.18.   The main fiscal policy tools identified in the Four Year Bud get Programme are the use of 
incomes policies, expenditure management and public sector financing. The incomes policy is 
associated with the strengthening of tax and tariff management. With respect to the latter point, 
during the review period the authorit ies have sought the implementation of a tariff policy that 
provides adequate and proper protection for the national production sectors.9 The Budget 
Programme also calls for the use of tax incentives to promote the development of productive 
activities. Public expenditure policy is concerned with guaranteeing the provision of public goods and 
services. It also seeks to ensure a link between the role of fiscal policy as a stabilizer of short -term 
growth and the financing of long -term development objectives, wh ile adhering to the conditions that 
ensure the time consistency of fiscal policy .10 
1.19.   Between 2011 and 2014, total non -financial public sector (NFPS) spending increased 
considerably, from 39.5% of GDP to 43.6% (Table 1.3). Spending during that period was rela tively 
inflexible, despite the practice of earmarking tax income to different areas and levels of government 
being discouraged.11 Revenue, on the other hand, went from 39.3% of GDP in 2011 to 38.4% in 
2014. Revenue began falling sharply in 2015, mainly owin g to the drop in oil -related revenue, which 
decreased from 16.3% of GDP in 2011 to 5.6% in 2017. Tariff revenue accounted for 1.4% of GDP 
in 2017, after reaching a peak of 2% in 2015, when the balance -of-payments safeguard was 
adopted.  
                                                
8 Online information from the Central Bank of Ecuador. Viewed at: 
http://www.bce.fin.ec/index.php/component/k2/item/754 . 
9 Ministry of Finance (2012), Programación Presupuestaria Cuatrianual 2012 -2015. Viewed at: 
http://www.finanzas.gob.ec/wp -
content/uploads/downloads/2012/08/PROGRAMACION_PRESUPUESTARIA_2012 -2015.pdf . 
10 Ministry of Finance (2016), Programación Presupuestaria Cuatrianual 2016 -2019. Viewed at: 
https://www.finanzas.gob.ec/wp -content/uploads/downloads/2015/11/34 -Programaci%C3%B3n -
Presupuestaria -Cuatrianual -2016-2019.pdf . 
11 Ministry of Finance (2012), Programación Presupuestaria Cuatrianual 2012 -2015. Viewed at: 
http://www.finanzas.gob.ec/wp -
content/uploads/downloads/2012/08/PROGRAMACION_PRESUPUESTARIA_2012 -2015.pdf . WT/TPR/S/383 /Rev.1 • Ecuador  
- 21 - 
  Table 1.3 Non-Financial Public Sector (NFPS) Operations, 2011 -2018 (first half)  
(% of GDP)   
2011  2012  2013  2014  2015  2016  2017  2018a 
Total revenue  39.3 39.3 39.2 38.4 33.6 30.3 32.0 18.6 
Oil revenue  16.3 13.9 12.0 10.7 6.5 5.4 5.6 3.3 
 Exportsb 16.3 13.9 12.0 10.7 6.5 5.4 5.6 3.3 
 Sale of derivatives  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Non-oil revenue  20.8 22.5 23.8 23.5 25.9 24.3 24.4 13.6 
 VAT 5.3 6.2 6.4 6.3 6.4 5.4 5.7 3.0 
 ICE 0.8 0.8 0.8 0.8 0.8 0.8 0.9 0.5 
 Income  3.8 3.8 4.0 4.1 4.8 3.6 3.6 2.3 
 Import tariffs  1.5 1.4 1.4 1.3 2.0 1.6 1.4 0.7 
 Other taxes  1.0 1.8 1.8 1.7 1.6 2.6 1.9 0.8 
 Social Security contributions  5.0 5.4 4.8 4.6 5.1 4.7 5.2 2.8 
 Other  3.5 3.2 4.6 4.7 5.1 5.5 5.7 3.5 
Non-financial public enterprises ' 
operational surplus  2.2 2.9 3.4 4.1 1.1 0.6 2.0 1.7 
Total Expenditurec 39.5 40.3 43.7 43.6 39.5 37.7 36.5 16.6 
Current expenditure  27.7 27.8 28.4 28.5 27.7 26.6 27.2 14.0 
 Interest  0.6 0.7 1.0 1.0 1.4 1.6 2.1 1.2 
 External  0.6 0.6 0.8 0.8 1.2 1.3 1.8 1.0 
 Internal  0.1 0.1 0.3 0.2 0.3 0.2 0.3 0.2 
 Salaries  9.2 9.5 9.4 9.3 10.0 10.0 9.9 4.8 
 Goods and services  3.2 3.9 4.7 5.2 5.1 4.7 4.8 2.0 
 Social Security benefits  4.0 3.8 3.6 3.6 4.3 4.7 4.8 2.4 
 Otherd 10.6 9.8 9.7 9.3 6.9 5.7 5.5 3.5 
Capital expenditure  11.8 12.5 15.4 15.1 11.8 11.0 9.3 2.6 
 Gross fixed capital formation  11.4 11.7 14.8 13.7 10.3 10.3 8.3 2.3 
 General State Budgetf 6.7 7.0 8.9 8.1 5.6 6.1 4.9 0.9 
 Non-financial public enterprises  2.7 2.8 4.2 4.1 3.2 2.5 1.8 0.8 
 Local government  1.9 1.8 1.6 1.4 1.5 1.4 1.2 0.6 
 Other  0.0 0.1 0.0 0.0 0.1 0.3 0.4 0.0 
 Other capital expenditure  0.4 0.7 0.6 1.4 1.5 0.7 1.0 0.3 
Treasury adjustmente 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
OVERALL BALANCE  -0.1 -0.9 -4.6 -5.2 -6.0 -7.3 -4.5 2.0 
Overall balance + Reduction + 
Enhancement  -0.1 -0.9 -4.6 -5.2 -6.0 -7.3 -4.5 2.0 
Primary Balance  0.5 -0.2 -3.5 -4.2 -4.6 -5.8 -2.3 3.2 
a First half.  
b Includes CEREPS and FEISEH Fund resources to April 2008 and CFDD funds from January 2008.  
c Records of expenditure on an accrual basis.  
d Includes CFDD funding with oil revenues from 2008.  
e Represents unexecuted expenditures reversed in favour of the Central Government.  
f Public sector structure as per the Constitution of the Republic of Ecuador  of 2008.  
Sources:  Ministry of the Economy and Finance, non -financial public sect or entities and Central Bank 
of Ecuador.  
1.20.   Ecuador posted a fiscal deficit every year from 2011 to 2017. The NFPS deficit increased from 
0.1% of GDP in 2011 to 7.3% in 2016. The  fiscal situation deteriorated considerably between those 
years, mainly as a result of decreasing oil revenues amidst continued expenditure growth, and 
despite the increase in the traditional surplus of the non -financial sector public enterprises 
(Table  1.3). In 2017, the fiscal deficit was 4.5% of GDP.  
1.21.   The fiscal policy of the current Government is guided by the principles of the Organic Law on 
the Promotion of Production, Attraction of Investment, Generation of Employment, and 
Fiscal  Stability and Balance  of 2018 (Box 1.1), which aims to achieve fiscal adjustment and boost 
private activity in three stages: stabilization, convergence, and long -term sustainability. 
Implementation of the Law rests on five strategic pillars: (a) government fiscal and policy di scipline; 
(b) strict observance of international commitments; (c) institutionalization of efficiency and 
transparency in management; (d) an emphasis on social policies; and (e) an improved framework 
for public -private partnerships.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 22 - 
  Box 1.1 Organic Law on the Promotion of Production, Attraction of Investment and 
Generation of Employment, and Fiscal Stability and Balance  
The Organic Law on the Promotion of Production, Attraction of Investment, Generation of Employment, and 
Fiscal Stability and Balance was approved by the National Assembly in June 2018, but the executive branch 
raised some objections. These were taken into account by the Assembly, which approved an amended 
version of the Law on 7 August 2018. As of September 2018, regulations to implement the Law were not yet 
in place.  
The Law puts forward a plan for long -term economic stability and introduces incentives to attract new 
investment to the country, from both domestic and foreign sources, with the  aim of promoting employment 
and reinvigorating production and the economy. The Law broadens the scope of the priority sectors 
identified in the Internal Taxation Law by including services exports, film making and international events, 
agriculture, oleoche micals, energy efficiency, sustainable construction materials and technology, software 
development and services, and the industrial, agro -industrial and agro -cooperative sectors.  
The Law provides for significant reforms to the following legal instruments:  
• Tax Code;  
• Organic internal Taxation Law;  
• Ecuadorian Tax Equity Reform Law;  
• Organic Code of Production, Trade and Investment;  
• Law on Companies;  
• Labour Code;  
• Organic Law on Public -Private Partnership and Foreign Investment Incentives;  
• Organic Monetary and Financial Code;  
• Hydrocarbons Law;  
• Mining Law; and  
• Organic Law on Human Mobility.  
The specific economic stimulation measures include:  
• Elimination of the minimum advance payment of income tax.  
• Progressive reduction of the foreign exchange exit tax  (ISD) until eliminated, beginning the first 
tax year after the Law 's publication in the Official Register, subject to approval by the body 
responsible for public finances. The tax credit for ISD paid on imported inputs, raw materials and 
capital g oods will continue.  
• Increase in the limit on income tax deductions for the expenses of micro, small, and medium -sized 
enterprises that invest in technical training and productivity improvements from 1% to 5%. This 
applies to both new and existing business es. 
• Exemption from income tax and advance payment of income tax for new investments by new and 
existing businesses (in proportion to the investment) in priority sectors (industrial, agro -industrial 
and agro -cooperative): (a) for 12 years for enterprises l ocated in cities throughout the country 
other than the urban areas of Quito and Guayaquil, (b) for 8  years in the urban areas of Quito and 
Guayaquil and (c) for 15 years for investments in border cantons, in the industrial, agro -industrial 
and agro -coopera tive priority sectors. This is contingent on the investments being implemented 
within a period of 24 months, which may be extended by 24  months by Executive Decree, and 
there being a net gain in employment.  
• Exemption from income tax and advance payment o f income tax for 15 years for basic industries; 
an additional five -year exemption for investments in border cantons.  
• ISD exemption for payments for imports of capital goods and raw materials for new investments, 
up to the amount and time -period indicated in the investment contract.  
• ISD exemption for dividend payments abroad (for residents and non -residents) up to the 
time-period set forth in the contract, provided that the resources for the investment come from 
abroad and their entry into the country can be shown.  
• Restructuring of interest on tax debt by year.  
• For developers of social housing projects, a VAT refund for taxes paid on local purchases of goods 
and services used in the development of the project.  
• A 0% VAT rate for social housing constructio n services.  
• For regular exporters and exporters in the inbound tourism sector, an additional deduction for trade 
promotion expenses up to 100% of total promotion and advertising costs and expenses.  
• ISD refund for regular exporters that import raw materials and inputs and capital goods, provided 
they demonstrate a net foreign exchange inflow into the country.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 23 - 
  • VAT and ISD refunds on exports of services, as determined by the Tax Policy Committee.  
• 20-year income tax exemption for associative and/or community tourism ventures; the 
implementing regulations will set out the conditions and procedures for implementing this incentive.  
• Extension of the time -period for making new productive investments in the areas affected by the 
April 2016 earthquake from  3 to 5 years and up to 15 -years ' income tax exemption. The tourism 
sector is eligible for an additional 5  years.  
• Extension of the benefits to all investments made in Manabí y Esmeraldas, by virtue of the Solidarity 
Law. 
• Promotion of the special economic  development zones (ZEDEs) through a ten -year income tax 
exemption for their managers and operators and a ten -point reduction on their income tax rate for 
an additional ten years after expiration of the exemption period.  
• A single income tax on profits fro m sales of shares, at a progressive rate ranging from 2% to 10%.  
• A 0% VAT rate on imports and transfers of inputs in the agriculture, aquaculture and fisheries 
sectors; solar panels; LED lamps; new shipyard -built fishing vessels; parts and spare parts for  
wheeled tractors up to 200hp; items and machinery for use in agriculture, aquaculture and small -
scale fishing; batteries and chargers for hybrid and electric vehicles; agricultural insurance; and 
land lease for agricultural use.  
• A 0% VAT rate on electric  vehicles for personal use, public transportation and freight transportation.  
• A 0% Special Consumption Tax (ICE) rate on electric vehicles used for public transportation and 
on gas stoves and cookers.  
• Availability of VAT tax credit for up to five years.  
• A refund of 50% of VAT paid on development, pre -production and post -production expenses in 
audiovisual, television and film production activities.  
Source:  Internal Revenue Service of Ecuador (SRI), Organic Law on the Promotion of Production, 
Attraction  of Investment, Generation of Employment, and Fiscal Stability and Balance. 
Viewed  at: http://www.sri.gob.ec/web/guest/ley -organica -fomento -productivo . 
1.22.   The authorities estimate that the consolidated central government deficit will be 3.8% of GDP 
in 2018. They expect it to decrease over the following years and be 2.3% of GDP in 2021. Much of 
the improvement is expected to stem from a reduction in spending, as no substantial increa se in 
either oil or non -oil revenues is foreseen (Table 1.4).  Tackling the fiscal imbalances continues to be 
an important policy priority. The higher oil prices, temporary tax measures, cuts in capital 
expenditure and freeze on government procurement could  help reduce the deficit. However, more 
balanced and frontloaded fiscal consolidation would help increase confidence, reduce borrowing costs 
and achieve more sustainable deficit levels more quickly.  
Table 1.4 Projection of Consolidated Central Government finances 2018 -2021  
(% of GDP)  
Item  2018  2019  2020  2021  
Total revenues  19.0 19.1 19.1 18.8 
Oil revenue  2.2 2.8 2.7 2.5 
Tax revenue  14.2 13.8 13.9 13.9 
Non-tax revenue  2.3 2.2 2.2 2.2 
Transfers  0.3 0.3 0.3 0.3 
Total expenditure  22.8 22.3 21.7 21.1 
Current expenditure  16.2 16.3 16.3 16.2 
Capital expenditure  6.6 6.0 5.4 5.0 
Primary balance  -1.0 -0.5 0.2 0.7 
Overall balance (above the line)  -3.8 -3.2 -2.6 -2.3 
Source:  Ministry of the Economy and Finance.  
1.4  Monetary and exchange rate policy  
1.23.   The 2008 Constitution gave the executive branch the exclusive right to formulate monetary, 
credit, foreign exchange and financial policies and eliminated the autonomy of the Central Bank of 
Ecuador (BCE), which is  responsible for implementing those policies. The Constitution also provides 
that the credit and financial policy be executed through the public banking system. The BCE 's 
functions include facilitating payment and collection, in cash or through the financi al system, and 
evaluating, monitoring and controlling the amount of money in the economy, for which it uses bank WT/TPR/S/383 /Rev.1 • Ecuador  
- 24 - 
  reserve requirements as a tool. The BCE 's profits are made over to the Ministry of the Economy and 
Finance.12 
1.24.   Article 302 of the Constitution pr ovides that the objectives of the monetary, credit, foreign 
exchange and financial policies shall be to: (a) provide the means of payment needed for the 
economic system to operate efficiently; (b) establish global liquidity levels that ensure adequate 
financial security margins; (c) channel excess liquidity into investments required for the country 's 
development; and (d) favour borrowing and lending rates and ratios between the two that stimulate 
domestic savings and the financing of productive activities, with the aim of maintaining price stability 
and the monetary equilibrium of the balance of payments.13 Pursuant to the Law Amending the 
Law on the Monetary Regime and State Bank of 2009, the BCE Board is composed wholly of 
government officials . 
1.25.   The US dollar has been the currency of legal tender in Ecuador since March 2000. 
Consequently, because the economy is fully dollarized, the BCE does not act as lender of last resort. 
To partly offset the lack of a lender of last resort, the authorities establishe d a Bank Liquidity Fund, 
which is a commercial investment trust, created and established to serve the liquidity needs of 
private financial institutions subject to reserve requirements. There are also minimum liquidity 
requirements that banks have to meet. In addition, owing to its dollarized economy, Ecuador cannot 
implement an active and independent monetary policy, which limits its ability to respond to external 
risks. Through its use of the US dollar as currency, the Ecuadorian economy absorbs the effect  of 
currency fluctuations which may not necessarily be in harmony with its own economic cycle.14 On 
the other hand, as recognized by the IMF, dollarization has played an important role in securing 
macroeconomic stability.15 
1.26.   The Central Bank basic interest ra te has been kept at 0.2% since January 2010, when it was 
lowered from 5.1%, a rate set in 2009.16 Also, since July 2008, the Central Bank has been regulating 
lending interest rates, establishing interest rate ceilings for commercial, consumer and housing lo ans 
and microcredits. As a result, lending interest rates have remained broadly stable. The reference 
lending rate averaged 7.8% in 2017, compared with 8.2% in 2011, while the borrowing rate 
increased from 4.5% to 5% over the same period.  
1.5  Balance of paymen ts 
1.27.   After posting a deficit equivalent to 2.3% of GDP in 2010, Ecuador 's current account of the 
balance of payments showed moderate deficits in the period between 2011 and 2014. In 2015, the 
deficit increased to USD  2,223 million, equivalent to 2.2% of GDP (Table  1.5), on account of 
deteriorating merchandise and services trade balances, and in particular, a sharp fall in exports 
caused primarily by lower oil prices. As explained below, in March 2015 Ecuador adopted a 
balance -of-payments safeguard that affect ed 38% of tariff headings and resulted in a significant 
reduction in imports; this was, however, insufficient to keep the deficit from increasing. The 
safeguard remained in effect until 1  June 2017 and explains in large part the reductions in the trade 
deficit in 2016 and 2017. It was accompanied by measures to curb the growth of domestic demand, 
and these also had an impact on imports (Box 1.2).  
Table 1.5 Standardized balance of payments, 2011 -2018 Q2  
(USD million)   
2011  2012  2013  2014  2015  2016  2017  2018  Q2 
Current account  -400 -162 -944 -678 -2,223  1,322  -372 -53 
Percentage of GDP  -0.4 -0.2 -0.9 -0.7 -2.2 1.3 -0.4 -0.1 
Goods  -303 50 -529 -63 -1,650  1,567  311 268 
 Exports  23,082  24,569  25,587  26,596  19,049  17,425  19,618  10,916  
 General merchandisea 22,612  24,069  25,070  26,059  18,663  17,101  19,398  10,812  
 Repairs on goods  6 6 6 6 6 6 6 3 
                                                
12 Online information from the Central Bank of Ecuador. Viewed at: 
https: //www.bce.fin.ec/index.php/funciones -del-banco -central . 
13 Online information from the Central Bank of Ecuador. Viewed at: 
https://www.bce.fin.ec/index.php/normas -de-creacion . 
14 WTO documen t WT/BOP/S/18 of 27  May 2015.  
15 IMF (2014), IMF Executive Board Concludes 2014 Article IV Consultation with Ecuador . Press release 
No. 14/393, 20  August  2014. Viewed at: https:// www.imf.org/en/News/Articles/2015/09/14/01/49/pr14393 . 
16 Online information from the Central Bank of Ecuador. Viewed at: 
https://contenido.bce.fin.ec/home1/estadistica s/bolmensual/IEMensual.jsp . WT/TPR/S/383 /Rev.1 • Ecuador  
- 25 - 
   
2011  2012  2013  2014  2015  2016  2017  2018  Q2 
 Goods procured in ports 
 by carriers  464 494 511 531 380 319 214 101 
 Imports  -23,385  -24,519  -26,115  -26,660  -20,699  -15,858  -19,307  -10,649  
 General merchandisea -23,362  -24,496  -26,093  -26,637  -20,676  -15,835  -19,284  -10,637  
 Repairs on goods  -6 -6 -6 -6 -6 -6 -6 -3 
 Goods procured in ports 
 by carriers  -17 -17 -17 -17 -17 -17 -17 -8 
         
Services  -1,563  -1,394  -1,420  -1,171  -805 -1,054  -994 -80 
 Services provided  1,587  1,804  2,041  2,346  2,391  2,140  2,300  1,477  
 Transport  399 409 436 437 444 410 414 205 
 Travel  843 1,033  1,246  1,482  1,551  1,444  1,657  1,153  
 Other services  345 363 359 427 396 286 229 119 
 Services received  -3,150  -3,198  -3,461  -3,517  -3,197  -3,194  -3,294  -1,557  
 Transport  -1,762  -1,708  -1,709  -1,744  -1,510  -1,238  -1,471  -739 
 Travel  -594 -611 -622 -635 -639 -661 -687 -324 
 Other services  -795 -879 -1,130  -1,138  -1,048  -1,295  -1,136  -494          
Income  -1,257  -1,298  -1,372  -1,552  -1,731  -1,845  -2,354  -1,337  
 Income received  84 105 113 121 140 162 187 122 
 Compensation of 
 employees  8 9 9 11 10 10 9 4 
 Investment income  76 96 103 110 131 152 178 117 
 Direct investment  - - - - - - - - 
 Portfolio investment  - - - - - - - - 
 Other investment  76 96 103 110 131 152 178 117 
 Income paid  -1,342  -1,403  -1,485  -1,673  -1,871  -2,007  -2,541  -1,459  
 Compensation of employees  -8 -8 -10 -11 -13 -14 -14 -7 
 Investment income  -1,334  -1,395  -1,475  -1,661  -1,858  -1,992  -2,527  -1,452  
 Direct investment  -698 -674 -681 -664 -598 -434 -365 -240 
 Portfolio investment  -62 -64 -64 -143 -231 -301 -808 -572 
 Other investment  -574 -659 -731 -854 -1,029  -1,258  -1,353  -640          
Current transfers  2,722  2,480  2,376  2,108  1,963  2,654  2,665  1,096  
 Current transfers 
 received  2,985  2,757  2,703  2,727  2,644  3,461  3,358  1,699  
 General government  225 207 177 189 188 226 190 90 
 Other sectors  2,759  2,550  2,525  2,538  2,456  3,236  3,168  1,609  
 Workers ' remittances  2,672  2,467  2,450  2,462  2,378  2,602  2,840  1,482  
 Other current transfers  87 83 76 76 78 634 327 126 
 Current transfers sent  -262 -276 -327 -619 -681 -807 -693 -603 
 General government  -4 -4 -34 -203 -162 -302 -134 -327 
 Other sectors  -259 -272 -293 -416 -519 -505 -559 -276          
Capital and financial 
account  179 68 1,090  902 2,188  -1,221  385 117 
Capital account  99 138 85 87 -49 -794 87 -220 
 Capital transfers received  109 149 96 98 99 99 99 47 
 General government  85 124 73 74 75 75 74 36 
 Other sectors  24 24 23 24 24 24 24 12 
 Capital transfers sent  - - - - -136 -882 - -262 
 General government  - - - - -136 -882 - - 
 Acquisition of non-produced,
 non-financial assets  -10 -11 -11 -11 -11 -11 -11 -6 
Financial account  80 -70 1,005  815 2,237  -427 297 337 
 Direct investment  644 567 727 772 1,322  767 618 530 
 Abroad  - - - - - - - - 
 In Ecuador  644 567 727 772 1,322  767 618 530 
 Portfolio investment  41 67 -910 1,500  1,473  2,201  6,491  2,726  
 Assets  48 139 -903 -492 626 -555 16 -158 
 Liabilities  -7 -72 -6 1,992  848 2,756  6,475  2,884  
 Equity securities  2 5 2 1 2 6 4 2 
 Debt securities  -9 -77 -9 1,991  846 2,750  6,471  2,882  
 Other investment  -270 -1,180  3,065  -1,869  -2,012  -1,632  -8,620  -2,203  
 Assets  -2,404  -1,595  -1,158  -5,394  -5,257  -6,100  -6,853  -933 
 Trade credits  -711 -779 -1,486  -1,576  -1,529  -1,395  -1,537  -756 
 Currency and deposits  -1,011  -424 -1,932  -4,191  -2,567  -5,143  -3,952  -1,219  
 Other assets  -681 -393 2,260  372 -1,161  439 -1,364  1,042  
 Liabilities  2,134  416 4,223  3,526  3,245  4,468  -1,766  -1,270  
 Trade credits  583 -428 1,412  664 219 398 -1,034  -280 
 General government  532 -495 1,363  -330 436 615 -816 -172 
 Other sectors  51 67 50 994 -217 -217 -217 -108 
 Loans  1,505  680 2,821  2,841  3,064  4,108  -793 -986 
 Monetary authorities  -0 -0 -0 -0 -0 365 -0 -0 
 General government  1,405  794 2,129  1,746  2,073  2,279  -235 -609 
 Banks  -65 30 -75 -19 -10 -2 -2 -1 
 Other sectors  165 -143 767 1,115  1,001  1,466  -556 -377 
 Currency and deposits  -1 73 -24 27 -53 -54 28 -10 
 Monetary authorities  18 66 -67 -11 -24 -31 38 -10 
 General government  - - - - - - - - 
 Banks  -19 8 43 39 -29 -22 -10 0 
 Other liabilities  47 90 13 -7 15 15 32 -8 WT/TPR/S/383 /Rev.1 • Ecuador  
- 26 - 
   
2011  2012  2013  2014  2015  2016  2017  2018  Q2 
 General government  47 90 13 -7 15 15 32 7 
 Reserve assets  -336 475 -1,878  411 1,453  -1,763  1,808  -716 
 Monetary gold  -106 -109 379 559 54 -46 -316 -3 
 Special drawing rights  2 -1 -4 2 1 4 6 5 
 Reserve position in the IMF  -17 -0 -0 3 2 1 -2 1 
 Foreign exchange  -210 1,128  -2,619  -149 1,353  -1,837  2,099  -719 
 Other assets  -4 -543 366 -3 43 115 21 0 
Errors and Omissions  221 97 -145 -225 35 -101 -13 -64 
a Includes unrecorded trade. See methodological note on balance of payments.  
Viewed  at: http://www.bce.fin.ec/docs.php?path=./documentos/Estadisticas/SectorExterno/Balanza
Pagos/metodologia.pdf . 
Source:  Central Bank of Ecuador . 
Box 1.2 Balance -of-payments safeguard, 2015 -2017  
On 2 April 2015, Ecuador notified on the basis of paragraph 9 of the Understanding on the 
Balance -of-Payments Provisions of the General Agreement on Tariffs and  Trade 1994, that on 11 March 2015, 
it had introduced a temporary tariff surcharge for a period of up to 15 months in order to regulate the general 
level of imports and thereby resolve Ecuador 's critical balance -of-payments problems .a The purpose of the 
measure was to rapidly offset the deterioration of the balance of payments and the decrease in liquidity 
available to the Ecuadorian economy.  
The tariff surcharge applied to 2,955 ten-digit lines, or 38% of a total of 7,581 tariff lines , which in monetary 
terms amounted to 31% of imports recorded in 2014. The surcharge was applied at ad valorem  rates of 5%, 
15%, 25% and 45%.  
Ecuador made various changes to the list of goods covered by the safeguard and the related tariff rates; it 
exten ded the period of application of the safeguard following the April 2016 earthquake and established a 
progressive timetable for its dismantlement beginning in 2016 (Section 3.1.6.3). The impact of the earthquake 
on GDP was estimated at 0.7%, in addition to the loss of productive assets worth 0.26% of GDP.  
The measure was permanently eliminated on 1 June 2017.  
a WTO document WT/BOP/N/79 of 7 April  2015.  
Source:  WTO Secretariat.  
1.28.   The current account of Ecuador 's balance of payments is marked by certain specific structural 
characteristics, such as a traditional deficit in the services balance, a substantial deficit in the income 
account balance and a strong reliance on current transfers, in particular remittances. The deficit on 
the income account stems m ainly from payments related to direct and other investment in Ecuador, 
linked to a large extent to the petroleum sector and to mining activities. The deficit on the income 
account increased considerably between 2011 and 2017, when it reached USD  2,354  million 
(2.3%  of GDP), compared to USD  1,257  million in 2011 (Table 1.5). The increase in the income 
account deficit was due to higher dividend and royalty payments for foreign direct investment. The 
surplus in the transfer account remained high throughout the  period under review and reached 
USD 2,665 million, or 2.6% of GDP, in 2017. Transfers decreased slightly in 2014 and 2015, but 
picked up again starting in 2016, reflecting an increase in remittances, which climbed to just over 
USD 2,600  million that year and to USD  2,840  million in 2017. Remittances are a significant source 
of funding for private consumption in Ecuador, as they finance a significant share of imports, of both 
goods and services, and are an important source of support for domestic demand. Th ey are also 
behind a good part of household savings.  
1.29.   Ecuador traditionally runs a capital and financial account surplus, which offsets the current 
account deficit. Traditionally, the main source of capital flows into the country has been direct 
investment usually, but not always, related to the oil sector. This type of investment has, however, 
dwindled since 2014 and been replaced by portfolio investment. Portfolio investment inflows 
primarily relate to foreign debt securities issued by Ecuador. The capital  and financial account deficit 
posted in 2016 resulted primarily from the fall in direct investment that ensued from the drop in oil 
prices.  
1.30.   After increasing in 2011, international reserves declined considerably in 2012, owing mainly 
to the decline in curr ent transfers. Ecuador resorted to foreign loans and other types of financing to 
boost international reserves in 2013, when they peaked at USD  4,360 million. By end -2014, 
however, this level had declined to USD  3,949 million. The decline continued in the f irst three months 
of 2015 and was the decisive factor in the decision to implement the balance -of-payments safeguard WT/TPR/S/383 /Rev.1 • Ecuador  
- 27 - 
  (Box 1.2). Although the measure helped slow the fall in reserves, they declined to USD  2,496  million 
at 31 December  2015, enough to cover j ust one month of future imports of goods and services. The 
fall in imports, partly caused by the safeguard and the increase in external debt, caused international 
reserves to increase to USD  4,259 million in 2016 (Table 1.6). In 2017, international reserve s 
decreased to USD  2,451 million owing to increased imports of goods, a higher income account deficit 
and a negative flow of debt -related overseas payments. International reserves at 
30 September  2018 totalled USD  2,963 million as exports of goods picked u p and the services 
balance improved.  
Table 1.6 International reserves (end of period), 2011 -2018a 
(USD million)  
 2011  2012  2013  2014  2015  2016  2017  2018a 
1. Net foreign exchange position 
(1.1+1.2+1.3)  1,597.6  469.2  3,088.2  3,237.4  1,884.6  3,721.8  1,622.3  1,865.5  
1.1 Cash  649.3  244.2  360.4  361.0  434.6  357.7  431.4  555.2  
1.2 Net deposits in banks and financial 
institutions abroad  295.4  225.0  1,428.7  1,193.1  560.7  331.5  217.0  233.4  
1.3 Investments, term deposits and 
securities  652.9  - 1,299.1  1,683.3  889.3  3,032.5  973.9  1,076.9  
2. Gold  1,293.3  1,402.6  1,023.5  464.9  410.5  456.4  772.8  779.8  
3. SDRs  23.1 24.2 27.9 25.9 24.6 21.0 15.3 7.7 
4. IMF reserve position  43.8 43.8 43.9 41.3 39.6 38.3 40.6 39.8 
5. LAIA position  -0.2 542.7  177.0  179.5  136.8  21.3 0.0 -0.2 
International reserves (1+2+3+4+5+6)  2,957.6  2,482.5  4,360.5  3,949.1  2,496.0  4,258.8  2,451.1  2,963.0  
a At 30 September.  
Source:  Online information from the Central Bank of Ecuador. 
Viewed  at: https://contenido.bce.fin.ec/documentos/Estadisticas/SectorMonFin/RILD/RI.xls . 
1.31.   The public sector 's consolidated external debt reached USD  39,500 million at the end of 2017 
(37.9% of GDP), up significantly from its 2011 level (USD  15,200 million, or  19.2% of GDP).  
1.6  Developments in trade and investment  
1.6.1   Trends and patterns in merchandise and services trade  
1.32.   According to the information provided by the authorities and data  from Comtrade  (which may 
differ from the balance -of-payments data), Ecuador 's merchandise exports (f.o.b.) in 2017 totalled 
USD 19,122 million, a 14.4% decrease compared to 2011 (USD  22,343  million), while merchandise 
imports (c.i.f.) amounted to USD  19,845 million, an 18.3% drop compared to 2011 (USD  24,286 
million). The fall in the value of exports can be traced back largely to the decrease in the value of 
oil exports resulting from the lower international crude oil prices. The fall in imports reflects t he 
weakness of domestic demand and the effects of the balance -of-payments safeguard implemented 
by Ecuador between March 2015 and 1 June 2017.  
1.6.1.1   Composition of merchandise trade  
1.33.   Despite the sharp fall in their prices, mineral products, in particular petroleu m, are Ecuador 's 
main export goods. In 2017, they accounted for some 36.7% of total exports, compared to 57.9% 
in 2011.17 Agricultural products are the second largest export category. In 2017, exports of 
vegetable products accounted for 22.4% of total expor ts, compared to 14.8% in 2011, with bananas 
being the principal agricultural export. Exports of fish and crustaceans increased substantially during 
the review period, representing 17.2% of total exports in 2017 compared to 6.6% in 2011. In this 
category, t he primary product is shrimp, which, along with bananas, is Ecuador 's main non -oil 
export. Another growth category among exports during the period under review was food 
preparations and beverages, whose share of total exports increased from 3.7% in 2011 to  6.1% in 
2017 (Chart 1.1 and Table A1.1). Canned tuna exports also did well in this sector.  
1.34.   Manufactured goods accounted for more than two -thirds of Ecuador 's imports. In 2017, the 
main import categories were machinery and mechanical appliances (20.6% of t he total), 
chemical  products (14.1%) and automotive products (9.4%) (Chart 1.1 and Table A1.2). Imports of 
                                                
17 Comtrade figures using SITC classification.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 28 - 
  fuel, particularly refined petroleum, contracted sharply during the period, decreasing from around 
22.3% of total imports in 2011 to 17% in 2017. The  still relatively high share of mineral imports in 
total imports is explained by the fact that, although it is a major oil producer, Ecuador has insufficient 
refining capacity to meet domestic demand for refined products and imports oil derivatives such as  
diesel, gasoline and liquefied petroleum gas.  
Chart 1.1 Merchandise trade by main products, 2011 and 2017  
 
Source:  WTO Secretariat estimates based on data from the Comtrade  database.  
2011 2017
(a)    Exports
Total: USD 22,343 millon
(b)    Imports
Total: USD 24,286 millon Total: USD 19,845 millonTotal: USD 19,122 millonOther
6.9%Other
5.5%
Mineral 
products
22.7%Prepared 
foodstuffs
3.7%
Chemical 
products
11.8%
Plastics
6.0%Electrical 
machines 
and 
apparatus
20.9%Other
10.7%
Mineral 
products
17.3%
Chemical 
products
14.1%
Plastics
6.4%Base metals
7.5%Electrical 
machines 
and 
apparatus
20.6%Other
12.2%
Base 
metals
8.4%Textiles
3.1%Prepared 
foodstuffs
6.1%
Textiles
3.3%Vegetable 
products
14.8%
Vegetable 
products
22.4%Wood
1.0%Animal products
17.3% Wood
1.5%Animal
products
6.7%
Transport 
equipment
9.7%Transport 
equipment
9.5%Vegetable 
products
3.1%Vegetable 
products
2.9%Oils
1.7%
Prepared 
foodstuffs
9.7%
Mineral 
products
57.9%Base metals
1.1%
Oils
1.5%Prepared 
foodstuffs
13.3%Mineral 
products
36.7%Bsae metals
1.7%WT/TPR/S/383 /Rev.1 • Ecuador  
- 29 - 
  1.6.1.2   Direction of trade  
1.35.   The principal destinations for Ecuador 's merchandise exports continue to be its trading 
partners in the Americas, although their share of the total declined considerably during the period 
under review, from 79.1% in 2011 to 59% in 2017. The main destination fo r Ecuador 's exports is 
the United States, which received 31.7% of total exports in 2017 compared to 43.5% in 2011, 
followed by the EU (28) (16.6% of the total in 2017 compared to 12% in 2011), and, within the 
Americas, Peru (6.7%), Chile (6.5%), Panama (4. 9%) and Colombia (4%) (Chart 1.2). The 
geographical distribution of Ecuador 's exports underwent significant changes between 2011 and 
2017. For example, Viet  Nam became an important market for Ecuador 's exports, accounting for 
only 0.2% of total exports in 2011, but 7.6% in 2017. China 's share in total exports went from 0.9% 
in 2011 to 4% in 2017, while the Russian Federation 's share went from 3.1% in 2011 to 4.4% in 
2017 (Chart 1.2 and Table  A1.3).  
1.36.   Ecuador 's merchandise imports also come  mainly from its  trading partners in the Americas, 
which accounted for 53.2% of total imports in 2017, compared to 60.1% in 2011. The main sources 
of imports in 201 7 were the United States (20% of the total), China (18.6%), the EU  (28) (13.1%), 
Colombia (8.1%), Panama (4.5%),  Brazil (4.4%) and Peru (3.8%). During the period under review, 
the Americas ' share of Ecuador 's imports decreased while China 's increased.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 30 - 
  Chart 1.2 Merchandise trade by trading partner, 2011 and 2017  
 
Source:  WTO Secretariat estimates, based on UNSD Comtrade  database and data provided by the authorities 
for the year 2014.  
1.6.1.3   Trade in services  
1.37.   Ecuador traditionally runs a large services balance deficit due mainly to its deficit in 
transportation and some ot her services. This structural deficit has generally been in the range of 
1.2% -2% of GDP and has been one of the factors leading to the posting of a current account deficit. 
During the review period, there was an important increase in travel receipts, which  helped lower 
somewhat the traditional services balance deficit since 2014. The deficit decreased from 
USD 1,563  million in 2011 to USD  1,054  million in 2016, and then to USD  994 million in 2017 
2011 2017
(a)    Exports
Total: USD 22,343 millon 
(b)    Imports
Total: USD 24,286 millon Total: USD 19,845 millonTotal: USD 19,122 millonColombia
4.6%Other
4.4%
United 
States
43.5%
Other 
America
13.5%
Chile
4.9%
Peru
3.8%America
59.0%United 
States
31.7%
Other 
America
5.3%Chile
6.5%Other
7.0%
Asia
16.5%
America
79.1%Asia
3.4%
United 
States
21.2%
Other 
America
16.5%Colombia
8.7%China
13.7%Other Asia
12.8%Other
2.6% United 
States
20.0%
Panama
4.5%
Other 
America
12.4%Colombia
8.1%China
18.6%Other Asia
12.4%Other
1.9%
America
60.1%America
53.2%
Europe
10.8%
Europe
14.0%Asia
26.5%Asia
31.0%Europe
13.2%
Europe
17.5%
Peru
7.9% Colombia
4.0%
Brazil
3.9%Brazil
4.4%Panama
4.7%Panama
4.9%EU (28)
12.0%Other Europe
1.2%China
0.9%Other Asia
2.5%
EU (28)
16.6%Other Europe
0.9%China
4.0%Other Asia
12.5%
Peru
6.7%
Panama
6.1%
Peru
3.8%WT/TPR/S/383 /Rev.1 • Ecuador  
- 31 - 
  (Table  1.7). The deficit dropped to USD  80 million in the fir st half of 2018, mainly owing to a 
significant increase in the travel category.  
Table 1.7 Trade in services, 2011 -2018 Q2  
(USD million)   
2011  2012  2013  2014  2015  2016  2017  2018  
Q2 
Services provided (exports)  1,587  1,804  2,041  2,346  2,391  2,140  2,300  1,477  
 Transport  399 409 436 437 444 410 414 205 
 Maritime transport  359 371 392 394 402 370 370 181 
 Passenger  0 0 0 0 0 0 0 0 
 Freight  291 298 316 315 346 318 311 149 
 Other  68 73 76 79 56 52 59 32 
Port charges  15 16 16 17 12 11 13 7 
 Cargo handling  15 16 17 18 13 12 13 7 
 Commission and brokerage  18 19 20 20 14 13 15 8 
 Crew accommodation and food  11 12 12 13 9 8 9 5 
 Other (charters of less than one 
year, with crew)  10 11 11 11 8 8 9 5 
 Air transport  39 38 44 43 42 40 44 25 
 Passenger  6 6 5 5 6 6 6 4 
 Freight  28 27 35 35 33 32 35 20 
 Other  5 4 4 3 3 3 2 1 
 Airport charges  1 1 1 1 1 1 1 0 
 Cargo handling  1 1 1 1 1 1 1 0 
 Commission and brokerage  1 1 1 1 1 1 1 0 
 Crew accommodation and food  1 1 1 1 1 1 1 0 
 Other (charters of less than one 
year, with crew)  0 0 0 0 0 0 0 0 
 Land transport  0 0 0 0 0 0 0 0 
 Passenger  0 0 0 0 0 0 0 0 
 Freight  0 0 0 0 0 0 0 0 
 Other  0 0 0 0 0 0 0 0 
 Travel  843 1,033  1,246  1,482  1,551  1,444  1,657  1,153  
 Business  218 267 322 383 401 373 428 298 
 Personal  626 766 924 1,099  1,151  1,071  1,229  855 
 Other services  345 363 359 427 396 286 229 119 
 Communication services  160 144 126 111 88 66 42 16 
 Construction services  0 0 0 0 0 0 0 0 
 Insurance services  0 0 0 0 0 0 0 0 
 Financial services  0 0 0 96 98 41 38 29 
 Computer and information services  0 0 0 0 0 0 0 0 
 Royalties and licence fees  0 0 0 0 0 0 0 0 
 Other business services  0 0 0 0 0 0 0 0 
 Personal, cultural and recreational 
services  82 100 110 99 74 43 20 5 
 Rentals of films, videos, etc.  42 51 56 51 38 22 10 3 
 Public performances (artists)  22 27 30 27 20 12 5 1 
 Press subscriptions, newspapers and 
magazines  10 12 13 12 9 5 2 1 
 Other  8 10 11 10 7 4 2 1 
 Government services  104 119 124 121 136 136 129 68        
  
 Services received (imports)  3,150  3,198  3,461  3,517  3,197  3,194  3,294  1,557  
 Transport  1,762  1,708  1,709  1,744  1,510  1,238  1,471  739 
 Maritime transport  1,147  1,070  1,041  1,085  874 614 797 407 
 Passenger        
  
 Freight  1,072  1,000  972 1,014  817 573 745 380 
 Other  75 70 68 71 57 40 52 27 
 Port charges  18 17 16 17 13 9 12 6 
 Cargo handling  17 16 16 17 13 9 12 6 
 Commission and brokerage  13 12 12 12 10 7 9 5 
 Crew accommodation and food  14 13 13 13 11 8 10 5 
 Other (charters of less than one 
year, with crew)  13 12 12 12 10 7 9 5 
 Air transport  551 564 604 594 589 580 623 305 
 Passenger  323 333 366 355 355 373 399 191 
 Freight  146 147 144 149 142 111 123 66 
 Other  82 84 95 90 91 96 102 48 
 Port charges  21 22 24 23 23 25 26 12 
 Cargo handling  21 22 25 23 24 25 26 13 
 Commission and brokerage  13 14 15 15 15 16 17 8 
 Crew accommodation and food  14 14 16 15 15 16 17 8 
 Other (charters of less than 
one year, with crew)  13 13 15 14 14 15 16 7 
 Land transport  64 74 64 65 47 45 51 26 
 Passenger  0 0 0 0 0 0 0 0 
 Freight  64 74 64 65 47 45 51 26 WT/TPR/S/383 /Rev.1 • Ecuador  
- 32 - 
   
2011  2012  2013  2014  2015  2016  2017  2018  
Q2 
 Other  0 0 0 0 0 0 0 0 
 Travel  594 611 622 635 639 661 687 324 
 Business  161 166 169 172 173 179 187 90 
 Personal  433 445 454 462 465 482 500 235 
 Other services  795 879 1,130  1,138  1,048  1,295  1,136  494 
 Communication services  19 16 13 10 9 8 7 4 
 Construction services  0 0 0 0 0 0 0 0 
 Insurance services  290 325 413 383 241 480 463 202 
 Financial services  22 46 130 143 207 219 132 59 
 Computer and information services  0 0 0 0 0 0 0 0 
 Royalties and licence fees  66 90 126 111 72 46 30 11 
 Other business services  101 77 80 82 85 88 78 35 
 Personal, cultural and recreational 
services  188 210 237 270 310 333 324 139 
 Rentals of films, videos, etc.  150 168 189 216 248 267 259 111 
 Public performances (artists)  25 28 32 36 41 44 43 19 
 Press subscriptions, newspapers and 
magazines  13 14 16 18 21 22 22 9 
 Other  0 0 0 0 0 0 0 0 
 Government services  110 115 131 139 123 121 102 43 
BALANCE  -1,563  -1,394  -1,420  -1,171  -805 -1,054  -994 -80 
Note:  The services balance includes the reprocessing of freight, in connection with imports of petroleum 
derivatives, from the second quarter of 2012.  
Source:  Central Bank of Ecuador.  
1.6.2   Trends and patterns in FDI  
1.38.   As an oil exporter, Ecuador has traditionally benefited from significant FDI flows. However, 
FDI has been declining since 2015, partly becau se with the lower crude oil prices there is less 
investment in the oil sector. The manufacturing and trade sectors were also affected by the lower 
levels of investment flows (Table 1.8).  
Table 1.8 Direct investment by activity, 2011 -2018 Q2  
(USD thousand)   
2011  2012  2013  2014  2015  2016  2017  2018 Q2  
Total 644,072  567,487  727,033  772,270  1,322,490  767,414  618,432  529,983  
Agriculture, 
forestry, hunting 
and fisheries  449 17,835  20,752  38,903  67,781  41,873  124,601  37,504  
Trade  77,696  83,341  110,247  148,546  172,872  122,224  101,968  28,805  
Construction  50,534  31,578  69,196  4,744  6,834  30,465  59,133  15,281  
Electricity, gas 
and water  -10,825  46,447  29,201  -4,671  61,758  1,195  2,129  -7,772  
Mining and 
quarrying  379,202  224,945  252,886  685,578  559,834  462,759  68,277  273,989  
Manufacturing  121,927  135,596  137,918  107,722  264,101  37,503  144,210  54,177  
Community, 
social and 
personal services  27,824  1,699  -2,319  14,072  -10,834  -1,886  -3,857  1,962  
Business services  44,697  39,479  117,682  24,355  243,772  33,251  75,003  74,039  
Transport, 
storage, and 
communication  -47,433  -13,433  -8,530  -246,981  -43,628  40,033  46,967  51,997  
Source:  Central Bank of Ecuador -SIGADE, Agency for Hydrocarbons Regulation and Control (ARCH), 
Hydrocarbons Secretariat (SHE) and the Supervisory Authority for Companies, Securities and 
Insurance.  
1.39.   The leading investors in Ecuador during the review period were  Argentina,  Canada, Chile, 
China, Colombia, Peru, the United States,  Uruguay, the Bolivarian Republic of Venezuela, and several 
European Union member countries (principally France , Italy, the Netherlands and Spain, among 
others). Investment flows by country have fluctuated considerably during the period under review  
(Table 1.9).  WT/TPR/S/383 /Rev.1 • Ecuador  
- 33 - 
  Table 1.9 Direct investment by country, 2011 -2018 Q2  
(USD thousand)   
2011  2012  2013  2014  2015  2016  2017  2018  Q2 
AMERICA  450,363  328,819  413,835  436,900  697,778  167,951  247,371  326,399  
United States  11,621  93,513  41,913  10,099  186,172  87,598  34,965  19,273  
ANDEAN 
COMMUNITY  52,369  38,858  30,564  48,515  205,387  34,976  33,488  77,550  
Bolivia  46 2 0 1,857  10 725 0 1 
Colombia  21,069  8,158  -1,286  19,683  13,863  24,557  13,844  2,690  
Peru 7,173  12,762  11,731  6,673  169,533  6,110  9,056  12,406  
Venezuela , 
Bolivarian Republic of  24,081  17,937  20,119  20,302  21,980  3,584  10,588  67,834  
REST OF 
AMERICA  386,373  196,448  341,358  378,286  306,219  45,377  178,918  229,577  
Argentina  27,442  25,339  19,096  14,002  14,161  8,636  9,043  4,127  
Bahamas  10,890  -4,403  5,535  -15 0 50 5 0 
Barbados  18,086  25,937  -214 -214 -214 2,064  -1,062  -107 
Belize  1 50 139 3,567  69 1,872  0 0 
Bermuda  1,984  6,924  6,790  61 24 52 4,222  8,418  
Brazil  10,028  955 37 -8,460  2,437  3,127  334 1,672  
Canada  252,206  59,071  28,444  229,079  73,768  -43,935  -75,748  91,820  
Chile 15,530  15,895  23,506  18,189  77,627  14,420  44,638  24,769  
Costa Rica  19,762  4,414  9,210  17,343  7,688  6,779  19,135  2,450  
Cayman Islands  -62,819  -101,950  1,500  12 0 0 68,834  15.8 
Dominican 
Republic  493 1 201 100 49 25 52 0 
Mexico  70,133  83,136  91,031  4,196  1,613  7,607  6,897  59,911  
Netherlands 
Antilles  -5,427  -1,636  -18,259  -5,415  -395 -193 0 0 
Panama  32,350  25,205  54,503  27,575  17,608  24,539  21,709  1,766  
Uruguay  2,746  6,488  115,211  62,461  43,032  385 60,865  28,393  
Virgin Islands  -7,567  50,801  4,388  15,761  57,208  15,767  15,170  455.8  
Other countries  535 221 239 44 11,545  4,184  4,823  7,557  
EUROPE  107,309  118,873  189,540  178,741  464,623  542,487  131,052  177,663  
Austria  0 1,419  1,013  1,830  26 28 13 0 
Belgium and 
Luxembourg  15,850  -4,509  -1,689  -4,114  -5,696  2,498  -16,935  -3,041  
Denmark  14 10 1,402  0 79 0 5 0 
Finland  -11,205  -6,211  -4,000  -31,868  -18,066  -26,562  -890 0 
France  -1,653  -1,510  -944 -24,472  19,975  -15,455  -2,664  5,018  
Germany  -1,878  -128 558 11,688  6,623  142 2,779  8,267  
Iceland  0 0 0 0 0 0 0 0 
Ireland  -653 0 5 4 0 0 8 29 
Italy 25,124  27,410  60,673  27,187  25,208  43,090  19,280  6,620  
Netherlands  6,885  10,517  48,321  75,956  293,401  381,876  40,285  86,663  
Norway  19 1 178 0 3 0 0 0 
Romania  676 60 1,036  0 0 0 0 1 
Slovenia  0 0 0 0 0 0 0 0 
Spain  52,256  49,843  70,573  67,322  71,164  102,303  80,017  64,588  
Sweden  -1,499  3,362  -2,855  444 28,680  1,125  -499 1,860  
Switzerland  7,995  17,737  8,684  28,404  18,708  18,525  -2,482  4,890  
United Kingdom  14,831  18,707  1,270  25,377  20,611  34,385  11,152  2,747  
Other countries  547 2,164  5,314  981 3,908  532 984 23 
ASIA  79,046  87,035  97,713  83,493  123,048  78,451  96,337  26,322  
China  80,128  85,867  94,326  79,032  113,877  57,835  84,677  22,561  
Cyprus  0 0 0 0 0 0 0 0 
Israel  -59 44 2 210 97 13 68 125 
Japan  200 300 300 78 444 8,000  -7,996  0 
Korea , Republic of  88 68 809 794 22 1 3,072  176 
Philippines  0 0 0 0 0 0 25 0 
Russia n Federation  265 80 11 61 305 117 191 260 
Singapore  -1,802  50 2,189  2,969  -369 11,761  3,447  -203 
Chinese Taipei  -426 -663 -53 0 0 1 0 0 
Other countries  651 1,290  129 349 8,672  722 12,853  3,403  WT/TPR/S/383 /Rev.1 • Ecuador  
- 34 - 
   
2011  2012  2013  2014  2015  2016  2017  2018  Q2 
AFRICA  101 33 1,055  1 1 1 6,102  15 
Algeria  0 0 0 0 0 0 0 0 
Equatorial Guinea  0 0 0 0 0 0 0 0 
Liberia  0 0 705 0 0 0 0 0 
Other  countries  101 33 350 1 1 1 6,102  15 
OCEANIA  7,188  8,376  -4,300  25,964  33,654  3,656  103,944  33,484  
Australia  6,502  2,759  -4,300  -4,601  102 1 46 32,484  
New Zealand  686 5,617  0 30,565  33,553  3,655  103,898  1 
Samoa  0 0 0 0 0 0 0 0 
OTHER  41 24,327  29,129  47,146  3,359  -37,204  27,172  -450 
TOTAL  644,048  567,463  726,972  772,245  1,322,465  755,342  611,978  529,983  
Source:  WTO Secretariat, based on information provided by the authorities . WT/TPR/S/383 /Rev.1 • Ecuador  
- 35 - 
  2  TRADE AND INVESTMENT  REGIMES  
2.1  General framework  
2.1.  Ecuador is a republic with a presidential system and five independent Branches of Government: 
the Executive, the Legislature, the Judiciary, the Electoral Branch and the Transparency and 
Social  Control Branch. The Constitution of the Republic (2008) is the supreme law in the Ecuadorian 
legal order. Ecuador has continued to reform its legal framework in many areas in order to align it 
with the provisions of the 2008 Constitution.  
2.2.  During the  review period a referendum was held to amend the Constitution, leading to the 
adoption of constitutional reforms that were incorporated into the Constitution of Ecuador on 
14 February  2018. Those reforms are currently in force. They include: (i) the remov al of the 
indefinite re -election of public servants elected by suffrage; (ii) the restructuring of the Council of 
Citizen Participation and Social Control (CPCCS, see below); (iii) the prohibition on conducting any 
type of metallic -mining -related activity in protected areas (areas of significant biological wealth), 
and in urban centres; and (iv) an increase in the penalties imposed on persons convicted of acts of 
corruption.1 
2.3.  The President of the Republic, who is the Head of State and of Government, is elected on a 
ticket with the Vice -President by universal suffrage for four -year terms, and may be re -elected only 
once.2 The President is responsible for determining foreign policy and signing international 
agreements. Only the President is empowered to pr opose draft laws on the introduction, amendment 
or abolition of taxes, and to present the annual budget of the Republic to the legislature.3 
2.4.  The Executive Branch is led by the President and comprises the Vice -President and Ministries, 
many State Secretaria ts and associated public institutions. Ministers are appointed by the President.4 
2.5.  Legislative power is exercised by the National Assembly (equivalent to a Parliament), a 
unicameral body comprising 137  members who are elected by universal suffrage for four -year terms 
and may be re -elected for only one further consecutive term.5 The Constitution lists those matters 
that must be governed by law (statutory matters) including the exercise of constitutional rights, the 
creation or abolition of taxes, the definiti on of State bodies ' powers and the introduction of new 
offences and penalties.  
2.6.  "Organic laws", which require an absolute majority of the National Assembly in order to be 
adopted, are laws that regulate: the organization and functioning of the institutions established 
under the Constitution; the exercise of constitutional rights; the functioning and powers of the 
decentralized autonomous governments; and the electoral and party political systems.6 All other 
laws are referred to as "ordinary" laws; they canno t amend or take precedence over an organic law 
and must also be approved by an absolute majority of the members of the National Assembly.7 
2.7.  The Judiciary and the Indigenous Justice Branch operates through the National Court of Justice 
(CNJ), the provincial courts, the tribunals, and magistrate 's courts. The CNJ is the highest body in 
the administration of justice and has jurisdiction over the whole of the national territory. The CNJ 
comprises 21 judges appointed for nine -year periods across six chambers spec ializing in particular 
areas of law.8 The Council of the Judiciary governs and disciplines the judiciary; its powers include 
                                                
1 National Electoral Council online information. Viewed at: 
http://cne.gob.ec/es/institucion/sala -de-prensa/noticias/4349 -el-si-gana-en-las-siete-preguntas -del-referendu
m-y-consulta -popular -2018 and information supplied by the authorities.  
2 Article 144 of the Constitution.  
3 Articles 135, 301 and 305 of the Constitution.  
4 Article 303 of the Constitution.  
5 National Assembly online information. Viewed at: 
http://www.asambleanacional.gob.ec/es/pleno -asambleistas . 
6 Article 133 of the Constitution.  
7 Organic Law on Legislative Responsibilities, Article 53.  
8 There are six chambers specializing in the following areas: administrative law, tax law, criminal law, 
civil and commercial law, labour law and family law. Artic le 182 of the Constitution, and information viewed at: 
http://www.cortenacional.gob.ec/cnj/index.php/component/k2/item/100 . WT/TPR/S/383 /Rev.1 • Ecuador  
- 36 - 
  appointing members of the CNJ9 and determining the organic structure of courts and tribunals.10 
The Council of the Judiciary compris es five members and their respective alternates, who are in turn 
elected by the Council of Citizen Participation and Social Control (CPCCS).11 
2.8.  The Constitutional Court (CC) resolves objections that arise on constitutional matters submitted 
to it by the Pres ident of the Republic during the legal drafting process, and can rule ex officio  on the 
constitutionality of the related legislation. The CC is also responsible for examining the 
constitutionality of treaties signed by the President of the Republic prior t o their approval by the 
National Assembly. The judgments of the CC are binding and become part of the Constitution. The  CC 
comprises nine judges elected for nine -year periods who cannot be immediately re -elected upon the 
expiry of their term. One third of the judges are renewed every three years.12 
2.9.  The Office of the Attorney -General of the State (PGE) represents the State in legal proceedings 
and provides legal advice to public -sector bodies. The PGE verifies the legality of the acts and 
contracts performed by public -sector bodies.13 The Office of the Comptroller General of the State 
(CGE) is the body responsible for overseeing the use of state resources.14 
2.10.   In terms of its territory, the Ecuadorian State is organized into geographical regions (4), 
provinces (24 ), cantons (223) and parishes (1,041).15 The Constitution specifies the exclusive 
powers attributed to each level of government.  
2.11.   The regions are governed by Decentralized Autonomous Governments (GAD). The GADs can 
perform a regional planning role and design  the policies required for regional development. The 
GADs can also issue regional legislation and share in the revenue generated by the exploitation of 
natural resources in their territories.16 
2.12.   The Constitution is the highest -ranking law in Ecuador followed , in descending order, by 
international treaties and conventions; organic laws; ordinary laws; regional regulation s and district 
ordinances; decrees and regulations; ordinances; agreements and resolutions; and other acts and 
decisions issued by the authori ties (Table  2.1).17 The power to ratify or terminate trade agreements 
or treaties that involve or have a bearing on the country 's economic policy lies with the President, 
subject to the prior approval of the National Assembly.18 
Table 2.1 Hierarchy of legislation in Ecuador  
Order  Detail  
Constitution  Drafted by the Constituent National Assembly and subsequently put to a 
constitutional referendum.  
International treaties and 
conventions  The President of the Republic is responsible for their signature or ratification. 
The President must also immediately inform the National Assembly of all the 
treaties he signs, stating their precise nature and content.  
Organic and ordinary laws  The issu ance, amendment  and repeal of organic laws, as well as 
interpretations thereof that are generally mandatory, requires  an absolute 
majority of the members of the National Assembly. The other laws are 
ordinary laws, which cannot amend or prevail over an orga nic law.  
Regional regulation s  The autonomous regional governments, usually decentralized institutions 
that have political, administrative and financial autonomy, are responsible 
for formulating these regulation s. 
District ordinances  Formulation is the responsibility of the governments of the autonomous 
metropolitan districts, i.e. special systems of government at cantonal level 
that were introduced in response to concentrations of population and the 
conurbation process.  
                                                
9 Article 183 of the Constitution.  
10 Article 186  of the Constitution.  
11 Article 179 of the Constitution.  
12 The nine judges of the Constitutional Court are elected by a commit tee comprising six members: 
two from the Executive two from the Legislature, and two from the CPCCS. Articles 432 and 434 of the 
Constitution.  
13 Article 237 of the Constitution.  
14 Article 211 of the Constitution.  
15 Article 242 of the Constitution.  
16 Articles 262 and 274 of the Constitution.  
17 Article 425 of the Constitution.  
18 Article 419 of the Constitution.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 37 - 
  Order  Detail  
Decrees and regulations  These a re decisions of a general or specific nature taken by the President of 
the Republic in order to lead the government effectively.  
Provincial and cantonal 
ordinances  Formulation is the responsibility of the provincial and municipal governments 
respectively;  their aim is to plan out provincial and regional development 
and to draw up local land plans that dovetail with national, regional, 
cantonal and parish plans in order to regulate land cover and land use in 
urban and rural areas.  
Agreements and resolution s  The powers of the National Assembly that do not involve the passing of 
legislation are exercised through agreements and resolutions.  
Source:  Information provided by the authorities.  
2.13.   The power to introduce draft laws lies chiefly with the President of t he Republic or members 
of the National Assembly (supported by at least 5 % of National Assembly members or a bancada 
legislativa  – legislative bench) .19 Draft laws can also be introduced by the other Branches of the 
State in the areas within their competence; or by other public institutions such as the CC and the 
PGE; or by citizens or civil associations if the draft is supported by 0.25 % of registered vo ters.20 
However, only the President of the Republic can table draft laws that introduce, amend or abolish 
taxes, increase public spending or alter the country 's administrative -political  structure21 (Box 2.1). 
The President may also send the National Assembly  urgent draf t laws on economic matters. 
The Assembly must approve, amend or reject a draft law within 30  days of its receipt. If the 
Assembly fails to approve, amend or reject a draft law within the time allowed, the President will 
enact it as a decree -law. 
Box 2.1 Legislative procedure  
Stage one  
Presentation of the draft law to the President of the National Assembly.  
The draft may refer to a single matter and the presentation must include the grounds, the proposed articles 
and the norms that would have to be amended or repealed if the draft is approved.  
The draft is debated twice and discussed in the relevant parliamentary committee. In order to move on to 
stage two, a draft must be approved by an absolute majority (favourable vote of half the members of the 
National Assembly plus one) (draft organic law) or a simple majority (favourable vote by half plus one of the 
members of the National Assembly present at the plenary session) (draft ordinary law).  
Stage two  
Once approved by the National Assembly the draft is forwarded to the President of the Republic, who may:  
(i) Approve the draft. The text will be enacted as law. If the President fails to make a decision within 
30 days the draft will be deemed approved.  
(ii) Reject the draft in its entirety. The progress of the draft is halted for one year and may only be 
processed after one year has elapsed since the date of the rejection. Once that period has expired the 
National Assembly may debate it once mo re and vote. If the draft rece ives a favourable vote from 
two thirds  of members it will be enacted as law.  
(iii) Reject the draft in part. The President of the Republic can submit an alternative text that can include 
only the aspects covered in the origina l draft, and send it back to the National Assembly.  
Stage three  
Consideration of a draft law rejected in part.  
The rejected draft will be discussed in a single debate at the National Assembly within a period of 30  days 
and may be:  
(i) Adopted as amended  by a favourable vote of the majority of members present.  
(ii) Approved as initially submitted by a favourable vote of two thirds of members.  
Source:  Articles  134-140, Political Constitution of the Republic of Ecuador.  
2.14.   The Ecuadorian Constitution provides  for a mechanism for consulting the people on the 
establishment, amendment or repeal of legislation (referendum on constitutional and legislative 
matters). The bodies empowered to use this mechanism are: the President of the Republic (acting 
                                                
19 Political parties or movements that hold at least 10 % of the seats in the National Assembly can form 
a bancada legislativa . Representatives of one or more political parties that do not meet the required minimum 
percentage individually but can do so jointly may also form a bancada legislativa  (Article  116 of the 
Organic  Law on Legislative Responsibilities).  
20 Article 134 of the Constitution.  
21 Article 135 of the Constitution.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 38 - 
  on his /her own initiative); the DAGs (legislation on matters within their jurisdiction where they are 
supported by three quarters of the members of the Government); or citizens supported either by at 
least 5 % of eligible voters (national consultation), or by no less tha n 10% of eligible local voters 
(local consultation). The President alone can call a referendum on matters concerning taxation or 
the administrative -political structure of the country. The Constitutional Court must examine the 
constitutionality of proposed referendums.22 
2.15.   The CPCCS is an autonomous State body comprising seven principal councillors and 
seven  alternates elected by universal suffrage every four years from among the candidates put 
forward by social organizations and citizens. Among other duties, t he CP CCS is authorized to make 
appointments to certain offices such as the State Prosecutor  and the National Electoral Council.23 
The outcome of the referendum of February 2018 was a decision to restructure the CPCCS and 
terminate the mandate of the members  in office earlier than envisaged.  
2.2  Trade policy formulation and objectives  
2.16.   The general outline of Ecuador 's trade policy is set out in the 2008 Constitution and has not 
been amended during the review period. In accordance with the Constitution, the aims of  any State 
policy or programme must be subject to the provisions of the National Development Plan ( PND) 
which is mandatory for the public sector and for other sectors.24 The National Secretariat of Planning 
and Development (SENPLADES) draws up the PND with participation from the other State institutions 
and citizens.  
2.17.   Under the Constitution, the objectives of trade policy are to: (i) develop, strengthen and 
invigorate domestic markets in line with the strategic objectives set out in the National Development 
Plan (see below); (ii) regulate, promote and implement measures to strategically integrate the 
country into the global economy; (iii) strengthen the productive base and boost domestic production; 
(iv) contribute to ensuring food and energy sovereignty with  a view to reducing internal disparities; 
(v) promote the development of economies of scale and fair trade; and (vi) prevent monopol ies and 
oligopol ies, particularly in the  private sector, and other practices that distort the functioning of the 
markets.25 
2.18.   The Constitution of the Republic of Ecuador provides that the State will have sole control of 
"strategic" sectors and of the application of selective import substitution, discouraging imports "that 
adversely affect domestic industry, the natural world or in volve an unnecessary outflow of foreign 
exchange".26 Strategic sectors are defined as energy in all its forms, telecommunications, 
non-renewable natural resources, transport and refining of hydrocarbons, biodiversity and genetic 
heritage, the radio spectrum , water, and all other sectors determined as such by law.27 Additionally, 
under the trade policy outline provided for in the Constitution, the Ecuadorian State must encourage 
environmentally responsible exports, preferably those that generate higher employm ent and value  
added, especially exports from small and medium -sized producers and the crafts sector in particular. 
The State must encourage imports that are needed in order to attain its development objectives, 
protect domestic industry, the natural world or public health.28 
2.19.   Amendments to trade policy and trade measures are implemented by means of laws, 
regulations and resolutions depending on the level of the issuing State entity. Although reforms are 
within the general scope  of the National Development Pla n, there are a lot of amendments, especially 
to the implementation of policies and/or measures. The transparency and predictability of trade 
policy would benefit from regulatory streamlining and consolidation in order to make it easier to 
implement the mea sures adopted and provide some policy continuity.  
2.20.   During the review period, State institutions in Ecuador have also undergone various changes: 
ministries, agencies and councils have been created and then merged, abolished or phased out. 
                                                
22 Articles 103 and 104 of the Constitution.  
23 Article 208 of the Constitution.  
24 Article 280 of the Constitution.  
25 Article 304 of the Constitution.  
26 Article  306 of the Constitution and National Planning Council (2017) National Development Plan , 
page 66. 
27 Article 313 of the Constitution.  
28 Article 306 of the Constitution.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 39 - 
  Established in 2013 , the Ministry of Foreign Trade and Investment (MCEI) is currently (2018) the 
body responsible for  foreign trade policy. The MCEI took over the duties of the Vice -Ministry of 
Foreign Trade and Economic Integration, which reports to the Minist ry of Foreign Affairs and 
Human  Mobility. The MCEI is responsible for formulating foreign trade policy; its other duties include: 
(i) representing and defending the interests of the State in foreign trade matters; (ii) promoting 
exports and foreign investment; and (iii)  regulating imports and strategic selective import 
substitution.29 Various institutions assist the MCEI in implementing trade policy (Table  2.2). 
Table 2.2 Principal institutions involved in trade policy (31  July 2018)  
Ministries and Secretariats  Chief functions  
Ministry of Foreign Trade and 
Investment (MCEI)  •Propose, conduct and coordinate the negotiation of trade 
agreement s and administer and implement the international tra de 
agreements signed by Ecuador.  
•Promote and coordinate  economic integration processes.  
•Promote Ecuadorian exports of products and se rvices in 
international markets.  
•Promote foreign investment and f oreign exchange earnings.  
•Propose and coordinate policies to facilitate access for Ecuadorian 
exports to international markets in areas such as technical, sanitary, 
phytosanitary and  customs standards.  
•Propose and implement policies, standards and export and import 
procedures in accordance with the country 's requirements and 
needs.  
•Propose and implement incentive and regulato ry schemes to 
increase the value added of exports and ensure integration in 
international value chains.  
Ministry of Foreign Affairs and 
Human Mobility  
Vice-Ministry of Foreign Trade, Political 
Integration and Inter national 
Cooperation  •Contribute to the proces s of Latin American integration.  
•Define a foreign policy bas ed on multilateralism.  
•Coordinate international relations for the sec toral ministries.  
•Contribute to formulating internat ional economic and trade p olicy. 
•Evaluate trade and  economic agreements.  
Ministry of the Economy and 
Finance  
National Customs Service (SENAE)  
Legal Directorate for Government  
Procurement, Administrative 
Outsourcing and Recruitment  
National Directorate of State -Owned 
Companies  
Development Bank of Ecuador (BDE)  •Customs services and controls for trade transactions . 
•Define policy on State -owned companies and monitor them.  
•Coordinate development policies.  
•Strategic import substitution.  
•Promoting the export basket.  
•Market acces s for industrial products.  
Ecuadorian Service for 
Standardization  (INEN)  •Implement and monitor, within its field of competence, Ecuador 's 
WTO commitments.  
Ecuadorian Accreditation Age ncy 
(SAE) •Accreditation policy  
Ministry of Agriculture and 
Livestock  •Develop the agro -industrial sector and its  internal and external 
marketing systems . 
•Define with BanEcuador the thrust of finance policy for the 
agricult ural sector.  
•Publicize information about production methods and markets.  
•Foster international coope ration for agricultural development.  
Ecuadorian Agency for Agricultural 
Product Quality Assurance 
(AGROCALIDAD)  •Agricultural health and safety regulations and systems.  
•Implementation and monitoring, wit hin its field of competence, 
of Ecuador 's SPS commi tments.  
Ministry of Aquaculture and 
Fisheries  •Access to markets in fishery and aquaculture products.  
Under -Secretariat for Quality and 
Safety  •Implement the National Aquatic Animal Health Plan . 
•Award health accreditation to establishments.  
•Ascertain compliance with regulations.  
•Conduct laboratory analyses.  
•Issue certificates.  
•Maintain a register of aquatic animal inputs.  
                                                
29 Decree No . 25 of 12  June 201 3 and online information  from the Ministry of Foreign Trade and 
Investment (MCEI) . Viewed at: http://www.comercioexterior.gob.ec/funciones -atribuciones . WT/TPR/S/383 /Rev.1 • Ecuador  
- 40 - 
  Ministries and Secretariats  Chief functions  
Under -Secretariat for Fisheries (SRP)  •Develop, manage and coordinate the drafting and implementation 
of national fisheries policy.  
•Promote sustainable development of the industry, generating high 
value added, high -quality products that yield economic and social 
returns.  
•Approve price -regulation mechanisms, within its field of 
competence.  
•Together with the competent institut ions, coordinate access to 
preferential credit for the fisheries sector.  
•Annually set the maximum volumes, sizes and species of catches 
permitted, in accordance with the result s of scientific research, 
technical estimates and the need to conserve bio -aquatic resources.  
Under -Secretariat for Aquaculture (SA)  •Develop, dra ft and apply policies, plans and programmes to 
regulate and encourage all stages of the production chain to achieve 
sustainable development of aquaculture.  
•Propose and recommend the adopt ion of policies, strategies, plans, 
programmes, projects and technical legislation related to 
aquaculture activities.  
•Monitor compliance with the legislation in force in relation to 
aquaculture.  
•Plan, coordinate and publicize programmes  for monitoring 
aquaculture activities.  
National Fisheries Institute  (INP)   •Provide services and advice to the fisheries and aquaculture sector 
through scientific research into hydrobiological resources and their 
ecosystems with a view to sustainable management.  
Ministry  of Public Health  (MSP)  •Price controls on medicinal products . 
National Agency for Sanitary 
Regulation, Control and Surveillance 
(ARCSA)  •Contribute to improving the National Health System by regulating 
and monitoring compliance with the sanitary requirem ents for 
establishments and products for human use and consumption.  
•Increase efficiency in the regulation of products for human use and 
consumption and of establishments covered by its area of 
competence.  
•Increase efficiency in the certification, oversig ht and subsequent 
control of products and establishments covered by its area of 
competence.  
Source:  Information provided by the authorities and online information from the National Secretariat for 
Planning and Development. Viewed at: 
http://www.planificacion.gob.ec/wp -content/uploads/downloads/2017/10/Organigrama -Funcion -Ejec
utiva_25 -05-2017.pdf . 
2.21.   The Committee on Foreign Trade (COMEX), an interministerial body, is responsible for 
approving trade policy and regulating all related matters.30 COMEX is chaired by a representative of 
the Ministry of Foreign Trade and Investment (MCEI) and is composed inter alia  of representatives 
of the following bodies: Agriculture and Livestock; Aquaculture and Fisheries; Industry and 
Productivity; Economy and Finance; and the National Secretariat of Planning and Development 
(SENPLADES). The National Customs Service of Ecuador also participates in CO MEX but does not 
have the right to vote.31 
2.3  Trade agreements and arrangements  
2.3.1   WTO  
2.22.   Ecuador has been a Member of the WTO since 1996. This is the Trade Policy Review Body 's 
third review of the country 's trade policy. As at October 2018, Ecuador had not yet subm itted its 
instrument of ratification of the Agreement on Trade Facilitation to the WTO. Ecuador is not a 
signatory to the Agreement on Trade in Civil Aircraft, and has not yet ratified the Protocol amending 
the TRIPS Agreement. Ecuador is neither a signato ry to the Agreement on Government Procurement 
nor does it have observer status in the Committee on Government Procurement. Ecuador affords 
MFN treatment to all its trading partners. It submitted various notifications to the WTO Secretariat 
during the revie w period (Table  A2.1). Under the framework of the Amending Protocol incorporating 
the Agreement on Trade Facilitation, Ecuador submitted a notification of its  Category  A 
                                                
30 Article 71 of COPCI.  
31 MCEI online information. Viewed at: http://www.comercioexterior.gob.ec/comex ; and Decree No . 25 
of 12 June 2013.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 41 - 
  commitments, in other words, provisions that the Member will implement by the time the  Agreement 
enters into f orce (or in the case of a least developed country Member within one year after entry 
into force).32 
2.23.   During the review period Ecuador has been neither a complainant nor a respondent in any 
dispute before the WTO, but has participated in 19 disputes as a third party.  
2.24.   Within the framework of the WTO Ecuador is a member of the following groups in the 
agriculture negotiations: the Group of Small and Vulnerable Economies, the Group of 
Article  XII Members, the Tropical Products Group, the G -20 (Agriculture), the G -33 ("Friends of 
Special Products") and the "Friends of Fish" Group.  
2.25.   During the Buenos  Aires Ministerial Conference, Ecuador reaffirmed the importance it attaches 
to the multilateral trading system and to the outstanding Doha Develop ment Agenda  issues . Ecuador 
believes that trade should be fair and inclusive, so that it benefits both large enterprises and small 
craft businesses, promoting development offering greater employment opportunities.33 According to 
the authorities, Ecuador is of the view that any outcome from the negotiations should prioritize 
development and special and differentia l treatment, and take into account flexibilities for developing 
and least developed countries.  
2.3.2   Regional and preferential agreements  
2.26.   The objectives for trade integration continue to be to prioritize integration in the 
Andean  region, South America and Latin America. According to the Constitution, integration with 
Latin American and Caribbean countries is a strategic objective of the Ecuadorian State. T he 
Constitution also provides that Ecuador should favour  the consolidation of supranational 
organizations in Latin America, and the signature of international treaties on regional integration.34 
2.27.   Ecuador has nine trade agreements in force with different trad ing partners and is a member 
of the Andean Community and the Latin American Integration Association (LAIA).  
2.3.2.1   Andean Community  
2.28.   Ecuador is a signatory to the Andean Subregional Integration Agreement of 1969 which has 
evolved into what is now the Andean Commun ity (CAN). The Andean Council of Ministers of 
Foreign  Affairs and the Commission of the Andean Community are the bodies within the Andean 
Integration System responsible for defining a Community strategy aimed at achieving deeper 
regional integration.35 The CAN has established a free trade zone for all goods produced in the region 
and has developed common rules for trade between the member countries; moreover it has 
facilitated the harmonization of national legislation in the areas of customs, tariff nomencla ture, 
services, agricultural health, technical regulations, trade defence measures and intellectual property.  
2.29.   The CAN has set a common external tariff. The tariff is not binding and its application has 
been suspended until each member country can provide t he flexibility required to apply common 
tariff levels pursuant to Decision 805 of 24 April 2015. The CAN member countries may negotiate 
trade agreements with third countries on a community, individual or joint basis.36 
2.3.2.2   LAIA  
2.30.   During the review period three pa rtial scope agreements (AA P) entered into force under 
the LAIA framework in respect of Ecuador: AAP No. 42 with Guatemala (2013), AAP No. 45 with 
Nicaragua (2017) and AAP No. 46 with El  Salvador (2017).  
                                                
32 WTO document WT/PCTF/N/ECU/1  of 7 August 2014.  
33 WTO document WT/MIN(17)/ST/43 of 13 D ecember 2017.  
34 Articles 416 and 423 of the Constitution.  
35 Article  51 of the Cartagena Agreement.  
36 Article 1 of Andean Community Decision No. 598.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 42 - 
  2.3.3   Trade agreement with the European Union  
2.31.   In November 2016 Ecuador signed the Protocol of Ac cession of Ecuador to the 
Trade  Agreement between the European Union and its Member States, of the one part, and Colombia 
and Peru, of the other part. The Agreement entered into force in respect of Ecuador on 
1 January  2017 and was notified to the WTO that year.37 The Agreement provides for the 
liberalization of around 95 % of European  Union tariff lines for Ecuador and around 60 % of Ecuador 's 
tariff lines for the European Union at the time of entry into force. The full i mplementation period of 
the agreement is 17 years.38 
2.3.4   Other trade agreements and arrangements  
2.32.   Ecuador benefits from the Generalized System of Preferences (GSP) adopted by Australia, the 
United States, the Eurasian Economic Union, Japan, New  Zealand, Norway, Switzerland and 
Turkey.39 Ecuador ceased to be a beneficiary under the European Union scheme of preferences in 
January  2015.40 In terms of export value, the GSP with the United States extends the highest 
unilate ral benefits to Ecuador with USD  390 million in  exports in 2016. In turn, Ecuador was the 
eighth largest beneficiary of the United States GSP that year.41 In March 2018 the GSP with that 
country was reauthorized until December 2020.  
2.33.   Ecuador is a member of the Global System of Trade Preferences among Dev eloping Countries 
(GSTP), comprising 43 countries.  The GSTP lays down reciprocal concessions between its 
beneficiaries (except for the least developed countries, which are not required to grant 
concessions).42 Ecuador has not signed the Protocol building on  the GSTP.  
2.4  Investment regime  
2.34.   The Ecuadorian investment regime is primarily governed by t he Constitution of the 
Republic  of Ecuador, the Organic Code of Production, Trade and Investment (CO PCI) of 2010, 
the Organic Law on Internal Taxation (LORTI) of 2004, the Organic Law on the Promotion of 
Production, Attraction of Investment and Generation of Employment and Fiscal Stability and Balance 
of 2018, and a number of executive decrees.43 The COPCI was amended in part in 2014.44 
2.35.   Since its establishment in 2013, the  Ministry of Foreign Trade and Investment has been the 
body responsible for formulating, directing, managing and coordinating investment policy. 
Responsibility for negotiating and signing international treaties concerning foreign investment lies 
with the M inistry of Foreign Affairs and Human Mobility.45 The Strategic Committee for the Promotion 
and Attraction of Investment (CEPAI)46 was established in 2017 and replaced the Sectoral Council 
for Production (CSP) in 2018.47 The CEPAI comprises the Ministers for F oreign Trade, Foreign Affairs 
and Human Mobility, and the Economy and Finance, as well as the National Secretary for Planning 
and Development. Its responsibility is to define policies and programmes to foster, promote and 
attract investment. It is also res ponsible for coordinating institutions to promote and attract foreign 
investment, granting approval to investment contracts, and providing investors with assistance in 
implementing investment projects.48 
                                                
37 WTO document WT/REG380/N/1 of 3 March 2017.  
38 European Commission online information. Viewed at: 
http://www.sice.oas.org/TPD/AND_EU/negotiations/ECU_joins_COL_PER_FTA_e.pdf . 
39 Information provided by the authorities.  
40 European Commission (2015), The EU's General ised Scheme of Preferences, page 22. Viewed at: 
http://trade.ec.europa.eu/doclib/docs/2015/august/tradoc_153732.pdf . 
41 Online information from the United States Trade Repre sentative. Viewed at: 
https://ustr.gov/sites/default/files/gsp/GSP%20by%20the%20numbers%20March%2010%202017.pdf . 
42 Article 17 of the Agreement on the Global System of Trade Preferences. Viewed at: 
http://unctad.org/en/Docs/ditcmisc57_en.pdf . 
43 Decree No.  25 of 20  June 2013 and Decree N o. 252 of 22  December 2017.  
44 "Unnumbered" Law of 29 December 2014.  
45 Article  6, Decree No . 252 of 22  December 2017.  
46 Decree No . 252 of 22  December 2017.  
47 Decree No . 440 of 26 June 2018.  
48 Executive Decree No.  252 of 11  January  2018.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 43 - 
  2.36.   The Constitution provides that the State should promo te national and foreign investment but 
expressly prioritizes national investment.49 Foreign investment is in addition to national investment 
in those sectors considered as strategic, namely energy in all forms, telecommunications, 
non-renewable natural reso urces, transport and refining of hydrocarbons, biodiversity and genetic 
heritage, the radio spectrum, and water.50 In accordance with the Constitution, the State may 
delegate participation in strategic sectors to joint ventures in which it is the majority s hareholder.51 
There are no restrictions on foreign investment in the other sectors and foreign investors must 
undergo the same procedures and obtain the same authorizations , where applicable,  as 
Ecuadorians.52 According to  Article  14 of the COPCI, new invest ment does not require authorization 
of any kind except as expressly provided for in law and as required under the relevant regional 
ordinances; the requirements set forth therein must be complied with in order to be eligible for 
incentives.  
2.37.   Ecuador grants national treatment to foreign investors and guarantees the same level of 
protection to domestic and foreign investment, subject to the limits set forth in the Constitution, 
the COPCI and national laws. Foreigners with Ecuadorian residency are considered to be domestic 
investors when their capital is generated in Ecuador.53 The Constitution protects the right to property 
and prohibits confiscation of property. Expropriations are exceptional, must be conducted in a 
non-discriminatory manner, and are subject to the procedures laid down in law following payment 
of fair and adequate compensation.54 
2.38.    Domestic and foreign investors ' rights include: (i) the freedom to produce and market lawful 
goods and services, and to freely determine their prices except where spe cifically regulated in law; 
(ii) the freedom to import and export goods and services, subject to the exceptions in law; (iii) free 
transfer of earnings and profits derived from the investment made; (iv) free transfer of earnings 
from the total or partial s ale of the object of investment; and (v) free access to the Ecuadorian 
financial system and securities market .55 
2.39.   Since 2014, foreign investors investing in medium or large -scale metallic -mining or who invest 
at least USD  100 million in any other sector of t he economy may ask to sign an Investment Contract 
with the State. The Investment Contract ensures the continuity of tax incentives for the duration of 
the contract. The contracts are in force for 15  years at most and may be renewed once subject to 
authoriz ation by the CEPAI.  
2.40.   Ecuador grants tax incentives for various types of investment: general incentives for 
investments in any part of the country; sectoral investments for new businesses that are set up  in 
priority sectors56; incentives for investments in "d epressed areas"; and incentives for public projects 
implemented by public -private partnerships as established in 2015. There is also an incentives 
regime for Special Economic Development Zones (ZEDE), which are customs destinations in 
delimited zones in th e national territory that enjoy specific tax incentives (Table  2.3). 
2.41.   The general incentives include the following: a gradual reduction in income tax (IR) to 22 %, 
in place since 2013, and other IR reductions dependant on the type of investment and other fac tors; 
and exemption from the foreign exchange exit tax  (ISD) for external finance operations lasting more 
than one year (Table  2.3).57 In addition to the general incentives, the incentives scheme for 
                                                
49 Article 339 of the Constitution.  
50 Article 313 of the Constitution.  
51 Article 316 of the Constitution.  
52 Article 17 of the Organic Code of Production, Trade and Investment (COPCI).  
53 Article 13 of the COPCI.  
54 Article 18 of the COPCI.  
55 Article  19 of the COPCI.  
56 Priority sectors are defined as those that contribute to str ategic import substitution and encourage 
exports, for example: the agro -industrial sector (fresh, frozen and processed foods); agroforestry products; 
mechanical engineering; petrochemi cals; the pharmaceutical sector; tourism; renewable energy; logistical 
services; biotechnology; exports of services; development and production of software and hardware services; 
energy efficiency; construction materials and technology industries (information supplied by the authorities).  
57 Article  24.1 of the COPCI.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 44 - 
  "depressed areas"58 grants investors an additional deducti on for the calculation of the IR of 100 % 
of the cost of employing new labour for a period of five years.59 
2.42.   New investment that assists with diversification of the production matrix, "strategic import 
substitution", export promotion or rural and urban develo pment throughout the country are eligible 
for the tax incentives allowed under the sectoral and regional development schemes. The incentives 
include total exemption from IR for five years, depending on the site of the investment and the type 
of industry co ncerned; for example, the IR exemption for basic industries is ten years.60 
2.43.   Investors who participate in public projects delivered by Public -Private Partnerships (APP) are 
eligible for exemption from IR payments (for ten years from the first year of operati on), ISD and 
foreign trade taxes, and for other benefits under the LORTI.61 
2.44.   ZEDEs are customs destinations in delimited zones in the national territory that enjoy specific 
tax incentives: (i) exemption from the payment of tariffs on foreign goods imported f rom abroad;  
(ii) a VAT rate of 0 % on imports; (iii) a tax credit for the VAT paid on locally purchased raw materials, 
inputs and services; (iv) exemption from ISD on imports of goods and services related to their 
authorized activities and external finance operations; and (v) a 5 % reduction in the rate of IR  in the 
Quito and Guayaquil urban areas and full exemption from IR for five years outside those areas.62 
Table 2.3 Investment incentives  
Incentive  Type of incentive  
Generally applicable 
incentives  Progressive corporate income tax reduction of three percentage points until it 
reaches 22%.  
A 10% reduction in income tax for reinvestment of profits in technology and 
productive assets that can trigger innovation.  
Additional deductions when calculating income tax for the costs involved in job 
creation or wage rises, the acquisition of new assets for improved productivity and 
technology, cleaner production and all the incentives set out in this Code.  
Exemption from the foreign exchange exit tax  (ISD) for external finance 
operations lasting more than one year.  
Facilities for payment of foreign trade taxes.  
Additionally:  
• Companies that sell shares to their workers  may defer payments of 
income tax and payments on account for five  tax years for all new 
investment.  
• Investment in technology for green production:  when calculating 
income tax, an additional deduction is to be made of 100% of the cost of 
purchasing machine ry and equipment that will result in cleaner production, 
the implementation of renewable energy systems (solar, wind or similar 
energy), or a lower environmental impact.  
Investment in innovation in medium -sized enterprises : 
Reduction of 10 percentage p oints in income tax if profits are reinvested in 
innovation.  
Additional deductions in the calculation of income tax for costs under the 
following headings:  
• Technical training for research, development and technological innovation 
(up to 1% of the cost of w ages and salaries per year).  
• Expenditure on productivity improvements within the business (up to 1% of 
sales).  
• Costs of promoting the business and its products internationally (up to 50% 
of promotion and publicity costs).  
Incentives for "depressed 
areas"  All the incentives granted under the generally applicable regime.  
Additional deduction when calculating income tax of 100% of the cost of 
employing new labour, for 5 years.  
                                                
58 "Depres sed areas" are areas of high unemployment.  
59 Article  24.3 of the COPCI.  
60 Article  24.2 of the COPCI.  
61 Article  16 of the Organic Law on Public -Private Partnership and Foreign Investment Incentives of 
18 December 2015 (18  December 2015) lists the eligibilit y requirements for the tax incentives available under 
the partnership arrangements.  
62 Online information from the Ministry of Industry and Productivity. Viewed at: 
http://www.industrias.gob.ec/incent ivos. WT/TPR/S/383 /Rev.1 • Ecuador  
- 45 - 
  Incentive  Type of incentive  
Sectoral and regional 
development incentives 
(for new 
investment/ enterprises in 
priority sectors)a Full exemption from IR for 5 years for new investments located outside the 
urban limits of Quito and Guayaquil.b 
Additional 100% deduction of the cost of annual depreciation of new, productive 
fixed assets for 5 years for companies incorpo rated in any part of the country 
prior to January 2010.  
Exemption from income tax for ten years for basic industriesc, calculated as of 
the first year in which income attributable to the new investment is generated, in 
any part of the country; for border c antons, the income tax exemption is for 
12 years.  
Incentives for public 
projects implemented by 
public -private partnerships  Ten-year exemption from income tax calculated from the first tax year.  
Exemption from the foreign exchange exit tax for imports, financing  and 
dividend payments.  
Exemption from foreign trade taxes for imports related to the project.  
Exemption from VAT paid on imports related to the project.  
Special economic 
development zones (ZEDE)  Exemption from tariff payments on imported goods.  
0% VAT rate for imports.  
Tax credit for the VAT paid on locally purchased raw materials, inputs and 
services.  
Exemption from the foreign exchange exit tax  for imports or for external finance 
payments abroad.  
5% reduction in the rate of IR in the Quito and Guayaquil urban areas and full 
exemption from IR for 5 years outside those areas.  
a New enterprises  are companies incorporated on or after 31  December 2010 or new companies 
incorporated by existing companie s, for the purpose of making new and productive investment.  
b Exemption from income tax for the development of new and productive investment. For the 
purposes of applying the provisions of this Article, the new and productive investment shall be made 
outside the urban jurisdictions of the cantons of Quito or Guayaquil and in the following economic 
sectors deemed priorities by the State: production of fresh, frozen and processed foods; forestry and 
agro-forestry and their manufactures; engineering; petrochem icals; pharmaceuticals; tourism; 
renewable energy including bioenergy or biomass energy; logistics services for foreign trade; applied 
biotechnology and software; and strategic import substitution and export promotion sectors 
determined by the President of  the Republic (Article  9.1 of the  COPCI).  
c The basic industries are the smelting and refining of copper and/or aluminium; the smelting of iron 
and steel for flat steel production; the refining of hydrocarbons; the petrochemicals industry; the 
cellulose in dustry; and the ship -building and repair industry (information supplied by the 
authorities).  
Source:  COPCI and information provided by the authorities.  
2.45.   The goods produced in ZEDEs must assist in diversifying the national export basket and be 
particularly intended for export. Exceptionally however, a small percentage, to be determined when 
examining the investment project for the ZEDE, may be authorized to enter the national territory to 
be placed on the domestic market. These limits do not apply to product s obtained in economic 
sectors that are classed as basic industries or in processes for the transfer of technology and 
technological innovation.  
2.46.   Establishment of a ZEDE requires an authorization from the S ectoral Economic and 
Production  Council . This autho rization, previously issued by the Sectoral Council  for Production, 
takes account , inter alia , of the objectives of the National Development Programme63, and is valid 
for a renewable period of 20 years.64 The location of the ZEDE is determined by the body responsible 
for the  development of production.65 There are three types of ZEDE, depending on their activity 
(Table  2.4). 
                                                
63 Decree No.  440 of 26  June 2012.  
64 Article  38 of the  COPCI.  
65 Article  35 of the COPCI.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 46 - 
  Table 2.4 Types of Special Economic Development Zones (ZEDE)  
Types of ZEDE  Economic activities covered  
Technology 
transfer  Any type of technological development, electronic innovation, biodiversity, sustainable 
environmental or energy -related improvement project.  
Industrial 
diversification  Any type of undertaking focused on the export of goods, inward processing activities such 
as processing, manufacturing (mounting, assembly and adaptation) and repair 
(restoration, conditioning) of any type of goods for the purposes of export and strategic 
import substitution.  
Logistics services  Any type of inward processing activities, for example storage of freight for the purposes 
of consolidation and deconsolidation, sorting, labelling, packing, refrigeration, handling in 
dry ports or inland freight ter minals, coordination of  national or international distribution of 
goods.  
Source:  Article  36 of the  COPCI.  
2.47.   Ecuador also offers non -tax incentives to MSMEs and enterprises  established under the 
popular and solidarity economy regime (EPS) (Section  3.3). 
2.48.   The 2008 Constitution prohibited signature of international treaties or agreements under 
which the Ecuadorian State cedes jurisdiction to international arbitration bodies. Pursuant thereto, 
in 2008 notice of termination was given in respect of eight bilateral  investment protection treaties 
(TBI) and in 2010 Ecuador withdrew from the International Cent re for  Settlement of 
Investment  Disputes (ICSID).66 In May 2017 the National Assembly appro ved the termination of the 
(16) remaining TBIs signed by Ecuador. The tr eaties involved were with: Germany, Argentina, Brazil, 
Canada, Chile, China, Plurinational State of Bolivia, United St ates, Spain, France, Italy, 
the Netherlands, Peru, the United Kingdom, Sweden, and Switzerland.67 The effective date of 
expiry/termination of those TBIs varies in line with their respective survival clauses and as a result 
some of the agreements will remain in force for between 5 and 12 years.68 
2.49.   Ecuador has 20  double taxation treaties in force.69 During the review period Ecuador signed 
double taxation agreements with Uruguay (2013), Republic of Korea (2014), China (2015), 
Singapore (2016), and Belarus (2018).  
                                                
66 WTO document WT/TPR/S/254/Rev.1 of  11 January  2012.  
67 Notices of termination were officially given in Decrees Nos . 1399-1414 of 16  May 2017.  
68 Information provided by the Ecuadorian authorities.  
69 Internal Revenue Service (SRI) online information. Viewed at: 
http://www. sri.gob.ec/web/guest/fiscalidad -internacional2 . WT/TPR/S/383 /Rev.1 • Ecuador  
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  3  TRADE POLICIES AND P RACTICES BY MEASURE  
3.1  Measures directly affecting i mports 
3.1.1   Customs procedures  and requirements , and customs valuation  
3.1.  Ecuador 's customs pro cedures are primarily governed by the Organic Code  of Production, Trade 
and Investment (COPCI) and its implementing Regulations, as well as by regulatory decrees and the 
resolutions of the Ecuadorian National Customs Service (SENAE), through which specific procedures 
such as those for the implementation of the COPCI are adopted .1 
3.2.  Since 2012, Ecuador has adopted  a range of measures to facilitate trade and hence import 
proced ures. These include the implementation of the ECUAPASS electro nic customs system and the 
Single  Window  for foreign trade formalities (VUE) (2018)2; the introduction of risk management as 
the procedure for carrying out checks; and the us e of automatic inspe ctions and X -ray inspections. 
It has also facilitated trade by publishing the manuals of Customs procedures and instructions on 
the SENAE website, which may also be used for tariff classification consultations.  
3.3.  All importers, who may be individuals or lega l persons, whether Ecuadorian or foreigners based 
in Ecuador, must be register ed in the ECUAPASS computerized system , and for this purpose must 
meet the requirements laid down by the SENAE.3 Importer s may use the services of a customs 
broker authorized by the SENAE or have an employee who is the "Authorized Foreign Trade 
Representative" (RACE), and is identified as the "declarant". The customs broker may be Ecuadorian 
or foreign provided they reside in Ecuador. The customs broker or the declarant will repre sent the 
importer in the procedures for importing the goods. However, the use of a customs broker is not 
obligatory.4 
3.4.  The customs broker must provide the supporting documents that have to be attached to the 
import customs declaration (DAI). These supportin g documents, which provide the basic information 
concerning the operation, are in general the following: the commercial invoice or document attesting 
to the commercial transaction; the transport documents; the certificate of origin (where 
appropriate); and  whatever other documents the  SENAE or the foreign trade regulatory authority 
(the Committee on Foreign Trade or COMEX) may consider  necessary .5 These documents must be 
processed prior to shipment of the goods .6 
3.5.  COMEX  determines what accompanying documents or permits are required for the import  
operation , which vary according to the tariff subheading of the goods. These documents are 
requested electronically from the government control entities through the VUE, which i s part of the 
ECUAPASS  computerized system. The import permits must be attached to the DAI.  
3.6.  Ecuador has not introduc ed any new import regimes since 2012. The country has various such  
regimes: clearance for home use (COPCI, Article 147); temporary admissio n for re -export ation in 
the same state (COPCI, Article 148); temporary admission for in ward processing (COPCI, 
Article  149); replacement of duty -free goods (COPCI, Art icle 150);  processing under customs control 
(COPCI, Article 151); customs warehousing (CO PCI, Article 152) and reimportation in the same state 
(COPCI, Article 153) (B ox 3.1, import regimes).  
Box 3.1 Import regime s 
Clearance for home use  
Goods imported from abroad or from a Special Economic Development Zone or a Free Z one that is still 
under concession may move freely within the Ecuadorian customs territory for the purpose of remaining 
therein definitively, subject to  payment of all applicable import duties and taxes, surcharges and penalties  
and compliance with the customs formalities and obligations.  
                                                
1 Law ( without numb er) of 29 December 2010.  
2 Decree No. 312 of 2 February 2018.  
3 SENAE, B ulletin  76 – 2015. Online information viewed at : 
https://www.aduana.gob.ec/bolet ines/registro -de-operadores -de-comercio -exterior -183541 . 
4 COPCI Regulation s, Article 64.  
5 The Ministry of Foreign Trade  and Investment , established  in 2013, heads COMEX . 
6 COPCI Regulations , Article 73.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 48 - 
  Temporary admission for re -exportation in the same state  
Specific goods may be introduced into the customs territory for use for specified purposes, with total or 
partial suspension of payment  of import duties and taxes and surcharges, for re -export ation within a 
specified period without undergoing any change whatsoever (COPCI Regulation, Article 124).  
Temporary admission for inward processing  
Goods intended for exportation as compensating pr oducts after having undergone processing may enter the 
Ecuadorian customs territory with suspension of payment of import duties and taxes and applicable 
surcharges .a The compensating products obtained may be imported under the clearance for home use regime  
subject to payment of taxes on the imported component of the compensating product.  
Duty -free replacement of goods  
This regime authorizes the importation free of import duties and taxes and surcharges of identical or similar 
goods that have been used to obtain goods previously exported on a definitive basis.   
Processing under customs control   
Under this regime, goods may enter the customs territory in order to undergo processing that modifies their 
nature or state, with suspension of import duties and t axes and applicable surcharges, for subsequent 
clearance for home use of the resulting products, subject to payment of the import duties and taxes and 
surcharges that may apply according to the tariff classification of the finished product.   
Customs warehousing  
Under this regime, imported goods are stored for a specified pe riod under customs control in a place  
authorized for this purpose without payment of the applicable duties, taxes and surcharges.  
Reimport ation  in the same state  
This customs re gime authorizes the import ation for home use , exempt from import duties and taxes and 
applicable surcharges , of goods that have been exported provided they have not undergone any processing 
or repair abroad and that all the amounts payabl e by virtue of a r efund or draw back under a conditional 
exemption from duties and taxes or any subsidy or other amount granted at the time of export have been 
paid. 
a Compensating products are those obtained as a result of the incorporation, processing or repair of 
goods t hat have been authorized to enter under the inward or outward processing regimes.  
Source : COPCI  Regulations . 
3.7.  The declarant or customs broker must submit the import customs declaration (DAI) online 
through the ECUAPASS  computerized system . Once the DAI has been accepted, the ECUAPASS 
system automatically assigns an inspection c hannel f or the goods and generates the customs 
discharge. The inspection channels may be: automatic inspection; non -intrusive automatic 
inspection (i.e ., using means that do not open  the means of transport); documentary inspection; or 
intrusive physical inspection (the presence of the customs broker or declarant is required). The 
inspection takes place once the declarant/customs broker has paid the amount s due under the 
customs discharg e through the financial institutions authorized by the SENAE for such collection.  
3.8.  Following the inspection, and in the absence of observations, the completion of inspection is 
entered in the ECUAPASS system and t he withdrawal of the goods is authorized ("W ithdrawal  
Authorized"). Thereupon the declarant/customs broker undertakes the formalities for withdrawing 
the goods from their temporary place of storage, subject to payment for storage for the length of 
time the goods remained there. Otherwise , where observations are entered in the ECUAPASS 
system , the declarant/customs broker mu st provide justifications or corr ections  within the period of 
one day.   
3.9.  In some cases, the goods are subject to subsequent valuation or tariff classification controls 
depending on their risk profile. These subsequent controls may be carried out within five years from 
the date at which the foreign trade taxes should have been paid or from the day following the expiry 
of the authorized regime period. In all cases this process must be completed within one year from 
the date of notification of the start of the procedure, with the issuance by the responsible body of 
the final report on the matter containing the appropriate recommendations. The SENAE may carry 
out these controls on any for eign trade operator directly or indirectly linke d with the international 
trade  of goods subject to control as well as on any other person who may be in possession of goods  
or information, documentation or other facts relating to the operation subject to th e customs control , 
without requiring any judicial authorization for the purpose. Customs  may also examine and request WT/TPR/S/383 /Rev.1 • Ecuador  
- 49 - 
  accounting information, bank transactions, documents, archives, magnetic supports, computer data 
and any other information relating to the  goods. If the subsequent control verifies circumstances  
suggesting  that a customs offence has been committed, the operators may be penalized.7  
3.10.   In 2018 the Authorized Economic Operator (A EO) programme was included in Ecuador 's 
foreign trade facilitation  policy.8 Implementation of this programme has been underway since 2010, 
initially through a private project  and since 2015 through an SENAE regulation governing the activity 
of AEOs. This regulation established the prior conditions and requirements for Fore ign Trade 
Operators to be classified as AEOs, together with the advantages conferred by AEO certification and 
the grounds for their suspension or revocation .9 The Andean Community (CAN ) countries 
subsequent ly signed a Mutual R ecognit ion Agreement (M RA) to strengthen the controls applying to 
foreign trade operators  wishing to be certified as OEAs.10 In July 2018  five companies ( four exporters 
and one customs brokerage ) were classified as A EOs.11 
3.11.   Users wishing to be accredited as A EOs must apply to the SENAE . The classification may be 
obtained separately for each stage in the logistical chain. The authorization is renewable every three 
years and remains in force as long as the requirements laid down by the SENAE are met. A EOs may 
be subject to random checks t o monitor compliance with safety, human resources and administrative 
standards.12 
3.12.   During the period under review, no major changes were brought to the regulatory framework 
on customs valuation, which is governed by the WTO Rules, CAN Decision No. 571 and it s 
implementing regulation s (Resolution No. 1684), as well as the national legislation on customs 
valuation, specifically the provisions included in the COPCI. The SENAE has not made changes in the 
procedures for determining the value of imported goods sinc e Ecuador 's previous review and s trictly  
applies the valuation methods set out in the WTO Customs Valuation Agreement. The SENAE does 
not use reference prices. It uses a national value database for risk assessment purposes , constituted 
by the Andean Value Declarations, which correspond to the import prices of goods valued by the 
transaction value method.  
3.1.2   Rules of origin  
3.13.   Ecuador does not use non -preferential rules of origin.  
3.14.   In general, the preferential rules of origin of the treaty that entered into force during the  
review period  2012-2018 (the "Protocol  of the Accession of Ecuador to the Trade Agreement between 
the European Union (EU) and its Memb er States, of  the one  part, and Colombia and Peru, of  the 
other  part") follow the same lines as those of the oth er treaties previously signed by Ecuador. The 
criteria granting origin under this treaty may be general or specific. The Agreement stipulates  that 
products originating in either party are those wholly manufactured in the EU or in Ecuador, or 
products that include materials that have not been wholly obtained in them, provided such materials 
have undergone  sufficient processing in the EU or in Ecuador. Sufficient processing is determined on 
the following basis: ( i) if after processing there is a change in tariff heading; (ii) if previously specified 
changes have been made; or (iii) if the value of the non -originating materials is below the establi shed 
threshold  ("value added criterion"). In the treaty with the EU bilateral cumulation between the EU 
and the Andean countries is allowed, and in  some cases extended cumulation . In this case, Ecuador 
may also use materials originating in other Andean cou ntries or in a Central American country, 
provided they are processed or incorporated subsequently.  
3.1.3   Tariffs  
3.1.3.1   Tariff structure  
3.15.   In 2018, Ecuador 's customs tariff contained 7,997 ten-digit tariff lines of the HS 2017. Ecuador 
applies both ad valorem  and compound tariffs. Compound duties apply to 5% of tariff lines 
                                                
7 COPCI, Article 104, Subsequent Control, amended by Executive Decree of 27 March 2017 , Article 10 . 
8 Decree No. 312 of 2 February 2018.  
9 Resolution SENAE -DGN-2015-0720-RE. 
10 Resolution SENAE -SENAE -2017-0693-RE of 6 February 2018.  
11 Information provided by the authorities.  
12 COPCI Regulations , Articles 2 67-268. WT/TPR/S/383 /Rev.1 • Ecuador  
- 50 - 
  (418 ten-digit HS lines), primarily clothing (322 lines of HS  61, HS  62 and HS  63) (Table 3.1). For 
the purposes of this review, ad valorem  equivalents (AVE s) were calculated  for 317 lines;  the 
available information did not allow them to be calculated for the remaining lines (101).13 In the 
absence of an AVE, only the ad valorem  component of the compound rate was used.14 
Table 3.1 Tariff lines with compound tariffs and ad valorem equivalent (AVE), 2018  
HS 
Chapter  Descrip tion No. of  tariff 
lines with 
compound 
tariffs  No. of tariff 
lines with 
AVEs  Lines for which AVEs 
were not estimated  
No imports  Different 
unit 
22 Beverages, spirits and vinegar  20 0  
20 
40 Rubber and articles thereof  8 4 4  
61 Articles of apparel and 
clothing accessories, knitted 
or crocheted  133 125 8  
62 Articles of appare l and 
clothing accessories, 
not knitted or crocheted  122 121 1  
63 Other made -up textile articles  67 56 11  
64 Footwear, gaiters and the like  28 0 4a 24 
69 Ceramic products  5 5   
76 Alumini um and articles thereof  6 6   
85 Electrical machinery and 
equipment and parts thereof  28 0  
28 
96 Miscellaneous manufactured 
articles  1 0 1a  
  418 317 29 72 
a The unit is also different . 
Source:  WTO Secretariat estimates based on data provided by the authorities.  
3.16.   In addition to specific tariffs, Ecuador continues to apply the Andean Price Band System (SAFP) 
to 189 ten-digit tariff lines (HS 2017) (roughly 2. 5% of its entire Tariff Schedule ). The products 
concerned are meat and edible offal (HS  02); milk and dairy produce (HS  04); cereals (HS  10); 
milling industry products (HS  11); oil seeds and oleaginous fruits (HS  12); animal or vegetable f ats 
and oils (HS  15); preparations of meat, fish or crustaceans  (HS 16); sugars and sugar  confectionery  
(HS 17); preparations of cereals  (HS 19); residues and waste from the food industries  (HS 23); 
starches  (HS 35) and miscellaneous chemical products (HS 38). The lines to which the SAFP applies 
have two components, one fixed ad valorem  and the other variable. The duties resulting from the 
application of the SAFP vary in line with world p rices of the products in question. T he purpose of this 
measure is to s tabilize the domestic prices of these products.   
3.17.   Under the SAFP, duties  are determined according to a variable ad valorem  tariff, which may 
be a reduction or an increase in the MFN ad valorem  tariff. The reduction or increase is calculated 
on the basis of the international price with respect to the price band comprising "floor" and "ceiling" 
prices fixed on the basis of historical world prices in reference markets. When the reference 
international price is below the "floor", a tariff surcharge on the MFN ad valorem tariff is applied, 
and when the reference price is above the "ceiling", a tariff reduction is applied to the 
MFN ad valorem  tariff. When the reference price is within the pr ice band, the corresponding 
MFN ad valorem tariff is applied without any s urcharge or reduction. The SAFP may affect the 
predictability of the tariff, as  without making a calculation  importer s cannot know what tariff they 
will be facing. Where  trade agreements  are concerned , the use of the SAFP varies according to what 
has been negotiated: in some cases the SAFP continues to apply and in others only the ad valorem 
part is used.  
                                                
13 The AVEs were calculated using the unit values based on trade in 2017. In the cases where the AVEs 
could not be calculated, this was due to the following: (a) in some cases n o trade data were available 
(29 lines); and (b) in 72 cas es the import v olume unit did not correspond to the unit of the specific part of the 
compound tariff. The trade volume data are expressed for all tariff lines in metric  tons, while for alcohol 
(HS 22) the unit of the specific part of the compound tariff was e xpressed in degrees of alcohol  content,  
or per pairs (HS  64) or unit (HS  85). 
14 The trade data used to calculate the AVEs come from the Central Bank of Ecuador  (BCE) . Online  BCE 
information viewed at: https://www.bce.fin.ec/index.php/informacioneconomica/sector -externo . WT/TPR/S/383 /Rev.1 • Ecuador  
- 51 - 
  3.18.   The simple average of Ecuador 's applied MFN duties increased between 2011 and 2018, from 
9.3% to 10.9% , excluding AVEs, or to 12.2% if they are included ( Table 3.2). As in 2011, in 2018 
protection for agricultural products (WTO definition) was substan tially higher than that for 
non-agricultural products. In 2018, the average tariff on agricultural products was 18.5%, compared 
to 17.3% in 2011, whereas the average tariff on non -agricultural products, which was 8.2% in 20 11, 
rose to 9.7% in 2018, exclud ing AVEs, or 11.2% including them. The highest average tariffs in 2018 
were on dairy products (34.9%), sugar s and sugar confectione ry (28.4%), animals and animal 
products (26.8%), and fish and fishery products (25. 6%) (Table A3.1). The greatest tariff change 
taking into account the estimated AVEs is that on clothing (HS  61 and HS  62), where the average 
rate of 10% excluding the AVEs ( Table A3.1) rises to an average of 33.4%, i.e. almost triple the 
average tariff of 11.2% for non -agricultural products  (Table  A3.2).  
Table 3.2 Structure of MFN tariffs , 2011 and 2018  
(%) 
 2011 
(HS 07) 
excl. AV E 2018 ( HS 17) 
excl. 
AVE incl. 
AVE 
1. Total number of lines  7,241 7,997 7,997 
2. Non-ad valorem  tariffs (% of all tariff lines)  5.0 5.0 5.0 
3. Non-ad valorem tariffs with no AVEs  (% of all lines)  5.0 1.0 1.0 
4. Tariff quotas (% of tariff lines)  0.4 0.0 0.0 
5. Duty-free tariff lines (% of all lines)  46.7 37.3 37.3 
6. Average of lines above zero (%)  17.5 17.4 19.4 
7. Simple average  9.3 10.9 12.2 
8. Agricultural products (WTO definition)  17.3 18.5 18.5 
9. Non-agricultural products (including petroleum, WTO definition)  8.2 9.7 11.2 
10. Domestic tariff "peaks" (% of all lines)a 10.8 1.3 2.7 
11. International tariff "peaks" (% of all lines)b 24.8 29.3 33.1 
12. Overall standard deviation of applied rates  11.0 11.7 15.1 
13. Bound tariff lines (% of all lines)  100.0 100.0 100.0 
a Domestic tariff peaks are defined as those exceeding three times the overall average applied rate.  
b International tariff peaks are defined as those exceeding 15%.  
Source: WTO Secretariat estimates  based on data prov ided by the authorities.  
3.19.   Ecuador 's MFN tariff has 42 rates ranging from 0% to 85.5%, including the tariffs resulting 
from the application of the price band system but excluding the estimated ad valorem equivalents . 
In 2018, 98.5% (99.3% in 2011) of tariff lines carried rates below 30%; 37.3% carried a tariff of 
0% (46.7% in 2011), and only 1.6% of the total number of lines carried a tariff above 30% . 
That percentage rises to 3.7% of the total after including the estimated ad valorem equivalents. In 
that cas e, the percentage of tariff lines with rates over 45% reaches 1.2% of the total (C hart 3.1). 
The products subject to a rate of over 45% were: animals and animal products; dairy products; 
cereals and cereal preparations; and sugar s and sugar confectionery , excluding the estimated 
ad valorem  equivalents . Including them, the list would also contain  clothing and other textile articles 
(HS 61 and HS  63), which carry tariffs of up to 422.2%, 286%, 202 .2%, 191 .2% and 178.9%, 
including the AVEs .  WT/TPR/S/383 /Rev.1 • Ecuador  
- 52 - 
  Chart 3.1 Frequency distribution of MFN tariff rates, 2018  
 
a The total number of lines is 7,997. 
Source:  WTO Secretariat calculations  based on data provided by the authorities.  
3.1.3.2   Tariff bindings  
3.20.   In the Uruguay Round, Ecuador bound its entire T ariff Schedule at rates ranging from 5% to 
85.5%. The majority of tariff lines were bound at a rate of 25%; the other most frequent rates are 
10%, 20% and 30%. Some products were bound at a rate of less than 10%, for example fertilizers, 
chemicals, pharmaceuticals and seeds, which were bound at 5%. The 85.5% bound rate applies to 
cuts and offal of chicken, poultry, ducks or guinea fowl. Comparing the MFN applied tariff and the 
bound tariff, and taking into account only the lines that are s trictly comparable in view of the change 
in nomenclature, in some cases Ecuador 's MFN applied tariff exceeds the bound rate (Table 3.3).  
Table 3.3 Products for which appli ed MFN tariff rates exceed the  bound rates, 2018a 
HS Description  MFN tariff 
(ad valorem)b  Bound tariff  
Tariff lines where the MFN tariff is higher than the bound tariff (excluding the SAFP calculations)  
4805.120000  Straw fluting paper  15  10 
4805.190000  Other  uncoated paper and paperboard  15  10 
7214.200000  Containing indentations, ribs, grooves or other 
deformations produced during the Rolling 
process or twisted after rolling  20  15 
7308.909000  Other  20  15 
8415.900000  Parts 15  10 
8502.139000  Other  25  20 
8525.802000  Digital cameras and video cameras  25  20 
8544.491000  Of copper  25  15 
Parts of tariff lines where the MFN tariff is higher than the bound tariff (excluding the SAFP calculations)  
0206.210000  Edible offal 25  
20 
0206.220000  Edible offal 25  
20 
0206.290000  Edible offal 25  
20 
0206.410000  Other  30  
25 
0207.140000  Frozen poultry livers  85.5  
30 
0207.270000  Frozen poultry livers  85.5  
30 
0405.200000  With a milk fat content of at least 39% but 
less than 75% by weight  30  
20 
0713.339900  Kidney beans  25  
15 
0901.900000  Coffee husks and skins  30  
20 
1604.110000  "Chum", "Coh o", "Pink" and  "Sockeye" 
salmon, canned  30  
20 
4016.999000  Fishing net floats of vulcanized rubber other 
than hard rubber  30  
25 
37.3%
12.9%
10.6%
9.9% 9.6%
5.5%12.7%
0.3% 0.5% 0.5% 0.3%37.3%
12.7%
6.8%10.1% 10.0%
6.1%13.4%
0.8%0.9% 0.8%1.2%
05001,0001,5002,0002,5003,0003,500
0% >0%-5% >5%-10% >10%-
15%>15%-
20%>20%-
25%>25%-
30%>30%-
35%>35%-
40%>40%-
45%>45%Number of lines excl. AVEs
Number of lines incl. AVEsNumber of linesaWT/TPR/S/383 /Rev.1 • Ecuador  
- 53 - 
  HS Description  MFN tariff 
(ad valorem)b  Bound tariff  
4601.990000  Plaits and similar products of plaiting material, 
whether or not assembled into strips  30  
25 
8474.900000  Parts of machinery in subheading 8474.10.10, 
8474.39.20, 8474.80.20 and 8474.20.10  15  
10 
a Only strictly comparable lines were taken into account for this estimate.  
b The ad valorem  tariffs and the ad valorem  part of the SAFP and compound tariffs were taken into 
account for this estimate.  
Source:  WTO Secretariat estimates base d on data provided by the authorities.  
3.1.3.3   Tariff quotas  
3.21.   Ecuador maintains tariff quotas in the W TO but does not use them (Table 3.4). According to 
the authorities, the y have not been used  for various reasons : lack of domestic demand; the products 
imported have originated  in countries with which trade agreements provide for  preferential tariffs 
lower than the in -quota tariff; or the out-of-quota MFN tariff was temporarily lowered and therefore 
was below the in -quota tariff, as in the case of soya cake ( HS 2304.00.00.00) and wheat  
(HS 1001110000, HS 1001190000, HS 1001910000 and HS 1001991000 ).15 
Table 3.4 Products subject to tariff quotas, 2018  
Products  Tariff line 
(HS 2002)  Tariff line  
(HS 2017)  In-quota 
tariff  
(%) Out-of-quota 
tariff  
(%) Volume of 
tariff quota 
2017 
(tonnes)  In-quota 
imports in  
2017  
(tonnes)  
Whole turkeys, fresh 
or chilled  0207.22.00  0207240000  25 45 250 0 
Chicken cuts and 
offal, frozen  0207.14.00  0207140000  30 85.5 2,500  0 
Milk in powder, 
granules or other 
solid forms, of a fat 
content, by weight, 
not ex ceeding 1.5%  0402.10.00  0402101000  
0402109000  
 45 52 1,250  0 
Milk in powder, 
granules or other 
solid forms, of a fat 
content, by weight, 
exceeding 1.5% , not 
containing added 
sugar or other 
sweetening matter  0402.21.00  0402211100  
0402211900  
0402219100  
0402219900  45 52 1,250  0 
Other, of a fat 
content, by weight, 
of not less than 26% 
on dry product  0402.29.00  0402291100  
0402291900  
0402299100  
0402299900  45 52 1,250  0 
Glucose  1702.30.90  1702309000  35 0 1,500  0 
Glucose with fructose  1702.40.10  1702401000  35 0 200 0 
Glucose syrup  1702.40.20  1702402000  35 45 100 0 
Flint maize – other  
1005.90.00  1005901100d 
1005901200e 
1005901900e 25 45 
35 
45 19,678  0 
Grain sorghum – 
other  1007.00.90  1007900000  25 45 12,300  0 
Maize starch  1108.12.00  1108120000  25 40 137 0 
Soybean oilcake  2304.00.00  2304000000  25 0 17,000  0 
Rapeseed oilcake  2306.40.00  2306410000  
2306490090  25 0 
15  
6,000  0 
Wheat (all lines 
unless for animal 
consumption)  1001.00.00  1001110000  
1001190000  
1001910000  
1001991000  
1001992000  19 0 
0 
0 
0 
33 480,000  0 
Barley, other except 
seeds  1003.00.90  1003900010d 
1003900090e 25 2 16,000  0 
Malt, unroasted  1107.10.00  1107100000  20 - 25 36 16,000  0 
Wheat starch  1108.11.00  1108110000  25 33 120 0 
Source:  Information provided by the authorities.  
                                                
15 COMEX Resolution s No. 039 -2016 and No. 040 -2016.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 54 - 
  3.22.   In the framework of its trade agreements, Ecuador negotiated preferential quotas with 
Argentina, Brazil, Guatemala, Paraguay, the European Union and Uruguay. In all the agreements, 
preferential quotas apply only to agricultural products. The number of tari ff lines subject to quota 
varies according to the agreement, but in all cases these measures cover less than 1% of the entire 
tariff schedule . As for tariff rates, in most cases the in -quota tariff rate was 0%, except in the case 
of quotas negotiated with Paraguay for meat and edible offal and for preparations of meat, fish or 
crustaceans , and in the case of the quota negotiated with Uruguay fo r meat and edible offal and fo r 
dairy products. In the case of out -of-quota tariffs, the range varies according to the product and the 
agreement. According to the information provided by the authorities, the volumes of the quotas 
negotiated with the MERCOS UR member countries are all the same but the tariff rates differ16 
(Table  A3.3).  
3.1.3.4   Tariff preferences   
3.23.   Ecuador grants duty -free treatment on all imports from the other members of the Andean 
Community (CAN) (the Plurilateral State of Bolivia, Colombia and Peru ), provided they comply with 
the CAN rules of origin; and similar treatment is provided on imports from the Bolivarian Republic 
of Venezuela. The average preferential tariff that Ecuador has negotiated in the various agreements 
varies considerably, as does  the coverage of the preferences.  The average tariff applied for some 
trade partners is relatively low, between 0% and 1% in the case of the agreements with Argentina, 
Brazil and Chile; under these agreements, the number of duty -free lines exceeds 90%. On the other 
hand, in the case of the agreement with Mexico, the number of duty -free lines is less than 40% and 
the preferential tariff (11.7%) is barely below the average MFN tariff (12.2% including AVEs ), as 
also in the case of El Salvador and  Nicaragua. In the case of the EU, 62% of tariff lines are duty  
free, while the average applied tariff is 5.5%, less than half the MFN tariff. In all cases, the number 
of agricultural products that enjoy preferential treatment is  smaller than the number of 
non-agricultu ral products  (Table  3.5).  
Table 3.5 Analysis of tariff preferences  applied to countries with which Ecuador has 
negotiated trade agreements, 2018  
 Number of 
lines   Total   WTO categories  
Agricultural products   Non-agricultural 
products (excluding 
petroleum)  
Average 
(%) Duty -free 
lines  (%)a Average 
(%)  Duty -free 
lines (%)   Average 
(%)  Duty -free 
lines (%)   
MFN 7,997 12.2 37.3 18.6 22.4 11.2 39.5 
Bilateral agreements  
Chile 7,997 0.9 96.3 4.2 85.4 0.4 98.1 
Cuba 7,997  10.6 40.8 14.8 30.4 10.0 42.3 
El Salvador  7,997  11.5 39.8 16.3 27.5 10.8 41.6 
European Union  7,997 5.5 62.0 9.8 48.5 4.9 64.0 
Guatemala  7,997  10.0 45.9 13.9 37.6 9.4 47.1 
Mexico 7,997 11.7 37.9 16.7 25.1 10.9 39.7 
Nicaragua  7,997  11.8 38.7 16.7 26.6 11.0 40.4 
Mercosur  
Argentina  7,997 1.0 93.4 1.8 92.2  
93.5 
Brazil 7,997 0.8 94.0 1.8 92.2 0.7 94.2 
Paraguay  7,997 1.9 88.1 4.2 80.3 1.5 89.3 
Uruguay  7,997 3.3 81.3 5.5 73.1 2.9 82.5 
Andean Community  
Bolivia  7,997 0.0 100.0 0.0 100.0 0.0 100.0 
Colombia  7,997 0.0 100.0 0.0 100.0 0.0 100.0 
Peru 7,997 0.0 100.0 0.0 100.0 0.0 100.0 
a Duty-free treatment includes the treatment negotiated in the agreement as well as duty -free 
treatment under the MFN tariff.   
Source:  WTO Secretariat estimates based on information provided by the authorities.  
3.24.  Ecuador also grants preferential treatment to imports from countries with which it has signed 
agreements in the LAIA framework. Under the general LAIA provisions, the scope of these preferences 
depends on the degree of development of the beneficiary countr y: among the LAIA  participants, 
Ecuador has granted greater advantages to the Plurinational State of Bolivia and Paraguay.  
                                                
16 Information provided by the authorities.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 55 - 
  3.1.3.5   Tariff concessions  
3.25.   Ecuador continues to maintain special regimes providing for the suspension, exemption or 
reduction of tariffs. The se include in particular reimportation in the same state;  temporary 
importation for inward processing;  temporary importation with re -exportation in the same state; 
duty-free replacement of goods ; and processing under customs control. In addition, the speci al 
warehousing regime authorizes storage of goods intended for the supply, repair and maintenance of 
ships, aircraft and cargo units intended for the provision of public passenger and cargo transport 
services, free of any foreign trade  levies . Goods import ed under the international trade fair regime 
may enter the country with suspension of payment of duties and taxes for a specified  length of time.  
3.26.   Trade in goods intended for domestic use or consumption between frontier areas ( local border 
traffic) is carr ied out without foreign trade levies  up to certain limits established by the SENAE. 
Imports by the State and personal effects, emergency aid shipments, donations, medical equipment 
and postal parcels may be exempted from import duties  and taxes  (Table 3.2) . 
Box 3.2 Imports exempted from foreign trade levies  
Travellers ' personal effects . 
Household effects and work equipment . 
Emergency aid shipments for natural disasters or similar disasters on behalf of public sector entities or 
private charity or aid organizations.  
Imports by the State, public sector institutions, enterprises and bodies, including decentralized autonomous 
governments, enterprises at least 50% of whose  capital is held by a public institution, the Junta de 
Beneficencia de Guayaquil and the Sociedad de Lucha Contra el Cáncer (SOLCA). Imports by joint 
public -private enterprises are exempted pro rata to the public sector 's share in them.  
Donations from abr oad on behalf of public sector or private non -profit sector institutions intended to cover 
services related to health and hygiene, food, technical assistance, charities, medical assistance, education, 
scientific and cultural research, provided they have si gned cooperation contracts with public sector 
institutions.  
There is no exemption in the case of donations of  vehicles, except in the case of those for special uses, such 
as ambulances, hospital or X -ray vehicles, library vans, fire trucks and the like, pr ovided their function is 
consistent with the activity of the beneficiary institution.  
Coffins or urns containing bodies or human remains, samples without commercial value, within the limits 
and conditions established by the national custom s service.  
Imports provided for in the Law on Diplomatic Immunities, Privileges and Duty -free Treatment, including 
diplomatic and consular representations and missions, international organizations and other foreign 
governmental bodies accredited with the national governm ent. 
Medical equipment, technical aids, special tools, raw materials for orthopaedic and prosthetic devices used 
by handicapped persons for their own use or for the legal persons responsible for their care. Vehicles for the 
same purposes, within  the limit s provided in the Law on Disabilit ies. 
Postal parcels not exceeding 4 kg in weight and a transaction value, excluding carriage and insurance, of 
USD 400, provided they are for the use of the recipient  and not intended for sale. The following are also 
considered postal parcels:  
• books, letters, postcards, magazines, photographs or any other type of information contained in audio 
and video, magnetic, electromagnetic or electronic media; not subject to li censing, etc., for judicial, 
commercial, banking or other use but without any commercial purpose;  
• packages, bags or sacks containing documents or articles known as co -mail, entering the country by 
international transport lines, by their own means of transp ort and for their own specific use.  
Objects and pieces belonging to the cultural heritage of the State imported or repatriated by State 
institutions established by law for the purpose.  
Waste materials of goods covered by special regimes that are destroy ed in accordance with the customs 
regulations.  
Source:  COPCI (Article 125).  
3.27.   In Ecuador , tariffs are an economic policy instrument used to promote the development of the 
various sectors in line with government policy, with the objective of enhancing the ir competitiveness. 
Accordingly, COMEX may modify tariffs either ex officio or at the request of an interested party. WT/TPR/S/383 /Rev.1 • Ecuador  
- 56 - 
  Thus, in 2017 tariffs were reduced to 0% for inputs for the pharmaceutical industry, machinery and 
equipment for the footwear industry and some resins for the manufacture of brakes.17 
3.28.   COMEX is also authorized to postpone temporarily the levying  of tariffs in general or on specific 
economic sectors in the interests of domestic production or the economic needs of the State or of 
an industry. Accordingly, in some cases tariff concessions or "deferrals", which may be temporary, 
are granted for impor ts of a specified volume  or a specific quota of some products; in order to obtain 
this benefit importers must meet some specific requirements that vary according to the product, 
such as for example to absorb the domestic harvest. During the review period, payment of tariffs 
has been deferred on a number of occasions, generally to 0%, owing to a variety of circumstances 
(Table 3.6). These "deferrals" are granted once the domestic harvest of maize and soya beans has 
been absorbed; but in some cases, in order to benefit from t he deferral registration in the  register  
of importers  is required.18 In other cases, the tariff deferral is granted only for a quota, for example, 
in the case of tyres (HS  4011.20.10.00) o r for imports of wire rod .19  
Table 3.6 Tariff deferrals/reduction to 0%, 2012 -2018  
HS Code  Descrip tion  Requi rement /Observa tion  COMEX Resolution 
No. 
1001.19.00.00  
1001.99.10.00  
1101.00.00.00  
1103.11.00.00  Wheat and meslin 
flour Tariff deferral to 0%.  
Suspension of the SAFP.  099-2012 
001-2015 
012-2015 
2304.00.00.00  Soya bean cake  Tariff deferral to 0%.  
Importers must absorb  the entire 
domestic maize and soya  bean 
harvest.  
Suspensi on of the  SAFP.  103-2013 
040-2014 
039-2016 
8516.60.20.21  CKD induction 
cookers  Tariff deferral to 0%.  
Manufacturers must be registered in 
the Register of Importers and comply 
with the "Efficient Cooking 
Programme ". 013-2014 
039-2014 
045-2014 
7228.30.00  Other bars and 
rods, not further 
worked than hot 
rolled  Tariff deferral to 0% for 10 years.  
 020-2014 
7214.10.00  
7216.31.00  
7216.32.00  
7216.33.00  
7228.70.00  
7229.20.00  
7326.20.00  
8410.90.00  
8413.70.19  
8481.80.99  
8414.30.99  
8481.90.90  Metal working 
industry products  Tariff deferral to 0%.  
Incentive f or the development of the 
metal working sector.  027-2014 
6305.10.10.00  Jute sacks and bags  Tariff deferral to 0%.  001-2015 
8703.80.10.10  
8703.80.10.90  
8703.80.90.10  
8703.80.90.90  Electric vehicles  Tariff deferral to 0%.  
Elimination of quotas or other 
restrictions on imports of such 
vehicles.  009-2015 
8418.61.00.00  
8418.99.90.00  
8516.10.00.00  
8516.90.00.00  Electric water 
heaters and heat 
pumps and parts 
thereof  Tariff deferral to 0%.  
Promotion of production of electric hot 
water heaters.  020-2015 
8479.89.90.00  
8419.40.00.00  
8421.39.90.00  Distillation or 
rectification 
apparatus  Tariff deferral to 0%.  
Intended for domestic bioethanol 
processing for the production of 
ECOPAIS petro l and/or its exportation .  031-2015 
                                                
17 COMEX Resolutions No. 014 -2017, No. 018 -2017 and No. 015 -2017.  
18 COMEX Resolution No. 103 -2013.  
19 COMEX Resolutions No. 036 -2012, No. 042-2015, No. 035-2016, No. 019-2017 and No. 028 -2017.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 57 - 
  HS Code  Descrip tion  Requi rement /Observa tion  COMEX Resolution 
No. 
5903.10.00  Textile fabrics with 
poly (vinyl chloride)  Tariff deferral to 10% at the request 
of a single enterprise.  
The fabrics must be used to 
manufacture metal furniture.  
Importers must be registered with the 
MIPRO . 038-2015 
4011.10.10  
4011.10.10.00  
4011.10.90.00  
4011.20.10.00  Radial  and other 
tyres Tariff defer ral to 0%.  
Import quota  
 036-2012 
042-2015 
035-2016 
8708.80.20.20  Shock absorbers 
and parts thereof  Tariff deferral to 0%.  
Importers must register with the 
MIPRO.  004-2016 
The list of 
beneficiary 
products is 
established by the 
Tax Policy 
Committee  
pursuant to 
Resolution No. 
CPT-RES-2016-04 
and its 
amendments  Capital goods  Tariff deferral to 0%.  
Capital goods not produced in Ecuador 
for areas affected by the earthquake.  
An import quota is also established.  029-2016 
8438.80.90.00  
8422.30.10.00  Vertical filling 
machines with a 
capacity not 
exceeding 40 units 
per minute  Tariff deferral to 0%.  
 038-2016 
8470.89.90.90  Other automatic 
harvesting 
machines for the 
aquaculture sector  Tariff reduction  to 0%.  
 041-2016 
7227.20.00.00  
7213.20.00.00  
7213. 91.10.00  
7213.91.90.00  
7213.99.00.00  
7227.10.00.00  
7227.20.00.00  
7227.90.00.00  Wire and rod   Tariff deferral to %; tariff for a specific 
quota of 10,000 and then 
12,000  tonnes.  019-2017  
028-2017 
Source:  Prepared by the WTO Secretaria t on the basis of  COMEX Resolutions.  
3.1.4   Other charges affecting imports  
3.29.   Imports ar e also subject to other charges: these include  the customs charge (until  2018)20, 
the foreign exchange exit tax  (ISD), value added tax (VAT), the Special Consumption Tax  (ICE) and 
the contribution to the Children 's Development Fund (FODINFA)  
3.30.   The FODINFA contribution is 0.5% applied to the  c.i.f. value of imports. Domestic products 
are not subject to this contribution.21  
3.31.   Value added tax (VAT) is levied on imports of tangib le goods, at all marketing stages, as well 
as royalties from copyright, industrial property rights and related rights, and the value of services 
provided. There are two rates of VAT: the general rate of 12%, which applies to most l ines in the 
Ecuadorian Cu stoms T ariff, and the 0% rates.22 In the case of imports, the taxable base for VAT is 
the sum of the c.i.f. value plus the taxes, duties, charges, fees and surcharges included in the import 
declaration.  
                                                
20 The c ustoms control s ervice charge was established under Resolution No. SENAE -SENAE -2017-0001-RE, 
and eliminated in 2018 by Resolution N o. SENAE -SENAE -2018-0003-RE of 7 June 2018.  
21 Executive Decree No. 248 of 1 December 1988.  
22 Internal Tax ation Law (LORTI)  of 17 November  2004 ( as amended ), Article 55.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 58 - 
  3.32.   The Special Consumption Tax  (ICE), is levied on certai n goods and services, whether domestic 
or imported , and varies according to the item concerned . The ICE may be ad valorem  or specific 
depending on the product (Table 3.7). The taxable base for calculating the ad valorem ICE is the 
ex-customs price multipli ed by 1.25. The ex -customs price is the customs value of goods plus the 
tariff, contributions to funds (such as FODINFA) and surcharges (as in the case o f the 
balance -of-payments safeguard) collected by the customs authority when imports are released from 
customs.23 In most cases the ICE is ad valorem and ranges from 0% to 300%. The specific ICE is 
levied on cigarettes, beer, aerated  beverages, alcohol and alcoholic products. Beer, alcohol and 
alcoholic products other than beer are currently subject to speci fic or mixed levies, according to the 
price. The mixed levy is used for alcohol and alcoholic beverages. Producers of alcoholi c beverages 
that use artisanal  alcohol or aguardiente from sugar cane produce d by micro or small enterprises 
have a reduction in t he specific tariff.24  
Table 3.7 ICE, 2011 and  2018 (29 October)  
Product  HS Code   2011  2018  
Number of 
tariff lines  Rate Number of 
tariff lines  Rate 
Ad valorem ICE (%) 
Alcohol and alcoholic products other 
than beer  2204 5 40 n.a. n.a. 
2205 2 
2206 1 
2207 2 2 40 
2208 16 n.a. n.a. 
Machinery and equipment, whether 
or not electrically heated  8419 n.a. n.a. 1 100 
Firearms, sporting guns, and 
ammunition  9301 1 300 12 300 
9302 n.a. n.a. 4 
9303 2 300 10 
9304 n.a. n.a. 2 
9306 7 300 6 
Aeroplanes, helicopters, water 
scooters, motor tricycles and 
quadricycles , yachts and 
recreational craft  8703 1 15 n.a. n.a. 
8802 7 7 15 
8901 1 1 
8903 4 5 
Aerated beverages  2201 1 10 1 10 
2202 2 
Cigarettes  2402 4 150 2 150 
Beer 2203 1 30 n.a. n.a. 
Stoves, ranges, grates, cookers  7321 n.a. n.a. 5 100 
Vans with a retail p rice not 
exceeding  USD 30,000  8702 1 5 n.a. n.a. 
Incandescent lamps  8539 5 100 9 100 
Other tobacco  2403 n.a. n.a. 4 150 
Perfumes and toilet water  3303 1 20 1 20 
Motor vehicles with a retail sales 
price ≤  USD 20,000  up to 
USD 30,000 8703 9 5 n.a. 5 
Motor vehicles with a retail sales 
price > USD 30,000 and  
≤ USD 40,000 8705 7 15 n.a. 15. 
Motor vehicles with a retail  sales 
price >  USD 40,000  8711 6 15-35 n.a. 15-35 
Motor vehicles other than vans with 
a retail sales price > USD 20,000 
and ≤ USD 30,000 8704 4 10 n.a. 10 
Hybrid or electric motorized vehicles 
(up to 3.5 tonnes):   n.a. n.a. n.a.  
With a retail sales price 
≤ USD 35,000   n.a. n.a. n.a. 0 
with a retail sales price > 
USD 35,000 and ≤ USD 40,000  n.a. n.a. n.a. 8 
with a retail sales price > 
USD 40,000 and ≤ USD 50,000  n.a. n.a. n.a. 14 
with a retail sales price > 
USD 50,000 and ≤ USD 60,000  n.a. n.a. n.a. 20 
                                                
23 Online information from the Ecuador Internal Revenue Service. Viewed at : 
http://www.sri.gob.ec/web/guest/impuesto -consumos -especiales . 
24 Idem. WT/TPR/S/383 /Rev.1 • Ecuador  
- 59 - 
  Product  HS Code   2011  2018  
Number of 
tariff lines  Rate Number of 
tariff lines  Rate 
with a retail sales price > 
USD 60,000 and ≤ USD 70.000   n.a. n.a. n.a. 26 
with a retail sales price  > 
USD 70,000   n.a. n.a. n.a. 32 
Video  games  9504 1 35 1 35 
Specific or compound ICE 
Alcohol and alcoholic products oth er 
than beer (other than artisanal)  2204 n.a. n.a. 7 USD 7.22/l  
of pure 
alcohol plus 
75% 2205 2 
2206 1 
2207 1 
2208 21 
Large -scale industrial beer 
(Ecuadorian market share greater 
than 1.4 million hectolitres)  2203 n.a. n.a. 1 USD 12/l of 
pure alcohol 
plus 75%  
Medium -size industrial beer 
(Ecuadorian market share of more 
than 1.4 mill ion de hectolitr es) 2203 n.a. n.a. 1 USD 9.62/l  
of pure 
alcohol plus 
75% 
Small -scale industrial beer 
(Ecuadorian market share of more 
than 730,000 hectolitr es) 2203 n.a. n.a. 1 USD 7.72./l  
of pure 
alcohol plus 
75% 
Craft beer 2203 n.a. n.a. 1 USD 2.00/l 
of pure 
alcohol plus 
75% 
Cigarettes  2402 n.a. 150 2 USD 0.16./  
Unit 
Fruit juices (sugar content >25  gr/l) 2009 n.a. n.a. 18 USD 0.18/gr 
of added 
sugar  
n.a. Not ap plicable . 
Source:  Information provided by the authorities and online information from the Ecuador Internal Revenue 
Service. Viewed at: http://www.sri.gob.ec/web/guest/impuesto -consumos -especiales . 
3.33.   In order to reduce pollution and encourage recycling, in 2011 Ecuador introduced a 
redeemable tax on plastic bottles (IRBP).25 The IRBP applies to the bottling of drinks of any kind 
(alcoh olic, n on-alcoholic, aerated, non -aerated and water) in non-returnable plastic bottles of 
polyethylene terephthalate (PET). Dairy products and medic ines in non-returnable plastic bottles are 
exempt. The tax also applies to imported bottled drinks. The importer pays a tax of 
USD 0.02 per bottle when the bottle d product is withdrawn from customs.26  
3.34.   Importers are also subject to the foreign exchange exit tax (ISD), levied  at a rate of 5% on 
the value of all currency operations and transactions with foreign countries.  The tax  base is the 
amount of the transfer of foreign exchange, credit, deposit, check, transfer, giro, and in general any 
other mechanism for settling obligations relating to operations with foreign countries. In the case of 
payments made from abroad in connection with imports, the tax  base is the customs value of the 
goods indicated  in the customs declaration and other relevant documents.  
3.35.   ISD payments in connection with the import ation of raw materials, inputs and capital goods 
included in the list drawn  up by the Tax Policy Committee for this purpose may be considered as tax 
credits for the payment of income tax (or advance income tax) for the year in which the payments 
were made, as well as for the four subsequent years. The list was established in 2012 , but may be 
modified in each fiscal year. 27 
3.36.   Some transactions are exempt from the ISD, such as payments for imports for home use  of 
electric and induction cookers and parts thereof; pots and pans for use with induction cookers; and 
electric domestic hot w ater heating system s, including those for electric showers. Payments abroad 
by administrators and operators of Special Economic Development Zones (ZEDE s) in connection with 
                                                
25 Law on Environmental Promotion and Optimization of State Revenues of 24 November 2011.  
26 Online information fr om the Ecuador Internal Revenue  Service. Viewed at: 
http://www.sri.gob.ec/web/guest/impuesto -redimible -botellas -plasticas -no-retornables . 
27 Tax Policy Committee R esolution No. CPT-03-2012.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 60 - 
  imports of goods and services related with their activity are also exempt. Payments  for imports of 
goods used to implement a public -sector project, regardless of the import regime, and the acquisition 
of services for the execution of the public project are also exempt.28 
3.37.   Exports of goods and services are liable to the ISD if the correspon ding foreign exchange from 
the payment for the exports does not enter Ecuador.29 
3.1.5   Import prohibitions , restrictions and licensing  
3.38.   COMEX is responsible for issuing rules on import procedures other than customs procedures, 
such as registers, authorizations, pr ior control documents and licences.30 It also determines the 
goods that are prohibited. Goods whose importation is prohibited must be reshipped, except for 
clothing, perishable goods and educational materials , which are donated to the ministerial 
department  respons ible for social policy ( COPCI  Regulation s). Most import prohibitions are imposed 
for health, phytosanitary and environmental reasons , as well as to comply with international 
agreements.  
3.39.   In 2018, Ecuador prohibit s imports of certain products (221 t en-digit HS line s) regardless of 
their origin (C hart 3.2). These are mostly organic chemicals (71 ten -digit tariff lines of 
HS Chapter  29) and other chemical products (56 ten -digit tariff lines of HS Chapter 38), followed by 
nuclear reactors (35 ten -digit tariff lines of HS Chapter 84) and fish and crustaceans , molluscs and 
other aquatic invertebrates (34  ten-digit tariff lines of HS Chapter 3). Ecuador also prohibits imports 
of other products (692 ten -digit HS tariff lines) according to their origin on phy tosanitary grounds , 
and also to implement, inter alia , UN Security Cou ncil Resolutions and other international 
agreements to which Ecuador is a party.  
Chart 3.2 Import prohibitions by HS Chapter, 2018  
 
Note:  221 ten -digit HS tariff lines are prohibited.  
Source:  WTO Secretariat estimates  based on information provided by the authorities.  
                                                
28 Online information from the Ecuador Internal Revenue Service. Viewed at : 
http://www.sri.gob.ec/web/guest/impuesto -a-la-salida -de-divisas -isd. 
29 Idem. 
30 Article 72 (f) of the COPCI of 29 December 2010 .  
01020304050607080
03 25 28 29 38 39 40 41 48 49 63 84 85 95 96Number of tariff lines
HS C hapters
03. Fish and crustaceans
25. Salt, sulphur, etc.
28. Inorganic chemicals
29. O rganic chemicals
38. Misc. chemical products
39. Plastics
40. Rubber
41. Raw hides and skins
48. Paper and paperboard
49. Printing industry products
63. Textile articles
84. Nuclear reactors
85. Electrical machinery
95. Toys, etc.
96. Misc. manufacturesWT/TPR/S/383 /Rev.1 • Ecuador  
- 61 - 
  3.40.   Ecuador uses various pre-import control documents, including importer registration, permits, 
prior import authorization, certificate s of inspection or verification of classification issued at origin, 
customs destination document s, certificates of recognition and automatic and non -automatic 
licensing .31 In addition, some of the products subject to technical regulations issued by the 
Ecuadorian Standardization Service  (INEN) requi re a "Certificate of Recognition " as a supporting 
document for importation, and products subject to phytosanitary and animal health requirements 
need the appropriate certificates.32  
3.41.   The type of prior co ntrol may vary for the same product  according to the circumstances, and 
accordingly  the requirements may vary or one kind of permit may be replaced by another.33 Thus, 
the "Product Register" has been replaced by the " Import Authorization for Pesticides and Similar 
Products for Agricultural Use" or by the "Sanitar y Authorization for Veterinary P roducts"; or the 
"Register  of Importers " has been replaced by the "Phytosanitary Import Permit" or " Animal Health  
Import Permit"; or the prior control documents called  the "Health Register" and "Import Permit" 
have been replaced by the "Non -automatic Import Licence".34 Generally speaking, the Ecuadorian 
legislation does not specify the purpose of each kind of prior control document nor the requirements 
for obtaining it. The difference between the various documents is not always clear, nor is the need 
for imposing one type of control or another. For example, in some cases the registration of importers 
may be required in order to enable the importer to benefit from a tariff  reduction or concession or 
to prevent  stolen goods from entering the country .35 In addition, some imports may be exempted 
from the prior control requirement.  
3.42.   In 2012, COMEX established an import licensing  system , which is general and 
non-discriminatory, f or imports under any customs regime or destination. The licence is a necessary 
requirement for clearing goods and COMEX determines the requirements, time -frames and 
conditions that importers must satisfy in order to obtain the non -automatic l icences.36 In the case 
of non-automatic  import licences for basic food stuffs, which are issued by the Ministry of Agriculture  
and Livestock , the Ministry has issued  instructions for importers to be able to obtain the licences.37 
Nevertheless, in all cases a firm decision is required for any type of licence  to be issued .38 
3.43.   According to the MAGAP instructions, all importers may apply for authorization to import 
product s subject to non -automatic licensing . The licensing  regime is base d on whether the imports 
supplement the dom estic production capacity to satisfy domestic demand. The MAGAP carries out a 
technical analysis to determine the volume  of imports that will be allowed, on the basis inter alia of 
the outlook for domestic production, demand and consumptio n of the product to be imported, as 
well as the importer 's purchases of domestic output  over the last two years. The Under -Secretariat  
for Marketing issues a resolution for the total or partial approval of the import licences requested. 
However, in order to avoid serious i njury to domestic producers, no imports whatsoever will be 
allowed at the times when the domestic output is being marketed.39 
3.44.   The term "automatic and non -automatic licensing ", as used in this section, includes all types 
of import controls other than those o n health or technical grounds. This terminology has been used 
because the information provided to the Secretariat by the authorities is given in this form. However, 
it does not indicate which licences are automatic and which are not. These controls are app lied to 
imports of all origins.40  
3.45.   Various control documents are needed to obtain an automatic or non -automatic licence. These 
documents are issued by a number of ministries, according to their remit and/or the product, 
                                                
31 COMEX Resolutions No. 009 -2014, No. 015 -2014 and No. 013 -2017.  
32 As of 27 August 2016, 284 HS 2017 ten -digit tariff lines require "Certificate of Recognition" as a 
supporting document for importat ion (COMEX resolutions No. 011 -2016, No. 116-2013, No. 003-2014,  
No. 006-2014, No . 007-2014, N o. 010-2014, N o. 013-2014, N o. 014-2014, N o. 011-2016, N o. 019-2016, 
No. 025-2017 and No.  026-2017).  
33 COMEX Resolution No. 037 -2016.  
34 COMEX Resolutions No. 019 -2014, No. 043 -2015, No. 005 -2016, No. 027 -2016, No. 037 -2016, 
No. 019-2017, No. 022 -2017, No. 023 -2017, and No. 024 -2017.  
35 COMEX Resolutions No. 50 -2012, No. 009 -2014, No. 015 -2014, and No. 010 -2017.  
36 COMEX Resolution No. 56 -2012. 
37 COMEX Resolution  No. 102 -2013 and MAGAP Resolution No. 299 of 14 June 2013.  
38 COMEX Resolution No. 56 -2012.  
39 MAGAP Resolution No. 299 of 14 June 2013.  
40 COMEX Resolution No. 102 -2013.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 62 - 
  including the Ministry of Agriculture  and Livestock, Ministry of Aquaculture and Fisheries, Ministry of 
Industry and Productivity, Ministry of  Public  Health, Ministry of the Environment and Ministry of 
Transport and Public Works.  
3.46.   In the previous trade policy review of Ecuador in 2012, 1,364 ten-digit HS tariff lines were 
identified as requiring some type of import control. In 2018, 2,158 ten -digit HS tariff lines were 
subject to some kind of import control (automatic or non -automatic licensing ). These measures 
affected in particular such prod ucts as cotton (HS Chapter 52) and clothing (Chapters 61 and 62); 
organic chemicals (HS Chapter 29); and preparations of fruit and vegetables (HS Chapter 20) 
(Chart  3.3).  
Chart 3.3 Automatic and non -automatic licensing  by HS Chapter, 2018  
 
Note: 2,158 tariff lines are subject to automatic and non -automatic licensing . 
Source:  WTO Secretariat estimates base d on information provided by the authorities at 1 January 2018.  
3.47.   During the revi ew period, Ecuador imposed quantitative restrictions on certain  products. 
In 2013 it established an import quota for vehicles (HS  8706.00.10.80, H S 8706.00.21.80); in 2014 
an import quota was also established for electric vehicles41; and a similar measur e was adopted 
in 2015, but covering a larger number of tariff lines.42 COMEX allocates  the quota by means of a 
resolution.43 Import quotas were also adopted for vehicles (HS  8703.24.10.90) for the Ecuadorian 
National Red Cross Society.44 In general, imports of u sed vehicles are prohibited but there may be 
exceptions for vehicles for agricultural use or for specific activities, and in some cases the tariff is 
reduced to zero .45 Since 2012, cel lular telephones (HS  8517.12.00.00) have been subject to a 
                                                
41 COMEX Resolution No. 049 -2014.  
42 COMEX Resolution No. 050 -2015.  
43 COMEX Resolutions No. 101 -2013, No. 003 -2013, No. 106 -2013, No. 019 -2015, No. 050 -2015 and 
No. 050-2015.  
44 COMEX Resolution No. 106 -2013.  
45 COMEX Resolutions No. 025 -2014 and No. 024 -2014.  
0 20 40 60 80 100 120 140 160 180 200 22002030405070809101213151617181920212223252728293032333435363839404244485051525354555657585960616263647072838485878889909396
Number of tariff linesHS C hapterWT/TPR/S/383 /Rev.1 • Ecuador  
- 63 - 
  quantitative r estriction and in 2013 the number of tariff lines subject to this measure was increased 
(HS 8552);  in 2015 a quota was established for imports of other cellular telephones 
(HS 8517.12.00.29, HS 8517.12.00.39 and H S 8517.12.00.99).46 As in the case of motor vehicles, 
COMEX allocates  the quota through a resolution.47  
3.1.6   Anti-dumping, countervailing and safeguard measures  
3.1.6.1   Anti-dumping and countervailing measures  
3.48.   The legal framework governing anti -dumping and countervailing measures include s the 
provisions of the relevant WTO and GATT 1994 Agreements, the COPCI of 2010 and its implementing 
Regulation s, and Andean Community Decisions No. 283, N o. 456 and No. 457.  Ecuador has notified 
to the WTO Resolution No. 42 of the Committee on Foreign Tr ade, "Requirements and procedures 
for dumping investigations and the application of a nti-dumping me asures", published in 
Official  Register  No. 677 of 5 April 2012.48 The Ministry of Foreign Trade and Investment is the 
authority responsible for conducting in vestigations, while the SENAE deals with the application of  
anti-dumping and countervailing duties.  
3.49.   The legislation provides that anti -dumping and countervailing duties shall remain in force for 
the period and to the extent necessary to counter act the inju ry to the domestic industry. However, 
they must be terminated within five years from their entry into force. Definitive anti -dumping duties, 
safeguards or countervailing duties may be reviewed and modified periodically at the request of a 
party or ex offic io at any time, following a report by the investigating authority, indepen dently of  
whether such duties are subject to national or international administrative or judicial proceedings. 
The import duties imposed as a result of the investigations into unfair  practices may be smaller than 
the dumping margin or the amount of subsidy shown to exist, provided they are sufficient to 
discourage the importation of products under unfair international trade practices.  
3.50.   On 30 June 2018, Ecuador did not have any definiti ve anti -dumping measure in force; 
however, its latest notification to the WTO in this regard covered the period from 1 January to 
30 June 2014. Since 2010 only one investigation  has been initiated, concerning metallized 
polypropylene up to 25 microns thick  (HS 3920.20) from Chile and Oman49, which was concluded 
without application of provisional or definitive measures. At that same date, Ecuador did not have 
any countervailing measure s in effect, and during the period 2012 -2018 did not initiate any 
counterva iling investigations.  
3.1.6.2   Safeguard measures  
3.51.   In 2012 , Ecuador issued new regulations governing safeguard investigations.50 The Ministry 
of Foreign Trade and Investment is the authority responsible for conducting safeguard investigations, 
while the authority responsible for determining injury or threat of injury is the Ministry responsible 
for the production sector concerned by the investigation.51 The domestic industry is defined as "the 
producers as a whole of the like or directly competitive products operati ng within the national 
territory or those whose collective output of like or directly competitive products constitutes at least 
40% of total domestic production of those products that are claimed to be affected by the increased 
imports".52 In the case of fr agmented producers and small and medium enterprises, the required 
percentage is 25%. Safeguards shall remain in effect for up to four years and may be prolonged for 
a further four years, provided the need for doing so is justified, taking into account the 
implementation of the adjustment programme for the domestic industry.  
3.52.   Ecuador has initiated two safeguard investigations  since 2010, and in both cases definitive 
measures were applied. In the first investigation , opened  in 2010, the product concerned was 
imported under NANDINA 7007.21.00.00 with the tariff description (windshields) "of size and shape 
suitable for incorporation in motor vehicles, aircraft, vessels or other vehicles". The investigation led 
                                                
46 COMEX Resolutions  No. 115-2013, No. 047 -2014, No. 014 -2015, No. 024 -2015 and No. 049 -2015.  
47 COMEX Resolutions No. 104 -2013, No. 014 -2014 and No. 035 -2014.  
48 WTO document G/ADP/N/1/ECU/3/Suppl.1 of 13 May 2016.  
49 WTO document G/ADP/N/230/ECU of 9 August 2012.  
50 COMEX Resolution No. 43 -2012 (WTO document G/SG/N/1/EC U/6 of 11 May  2012).  
51 Idem.  
52 Idem. WT/TPR/S/383 /Rev.1 • Ecuador  
- 64 - 
  to the application of a specific duty for windshields  for a duration of three years as from 
1 November  2010. In the first year a tariff of USD 12.72 was applied to windshields, which fell to 
USD 9.54 in the second year, USD  6.36 in the first half of the third year and to USD  3.18 in the 
second half of that y ear.53 
3.53.   In 2014 an investigation was initiated to determine whether the increase in imports of certain 
types of w ood and bamboo flooring w as causing serious  injury and  threat of serious injury to the 
domestic industry. This initially led to the imposition of  a provisional safeguard measure.54 In 2015, 
Ecuador imposed a definitive safeguard measure for a period of three yea rs, consisting of an 
additional, non-discriminatory, tariff surcharge  on top of  the current tariff.55 In the first year the 
surcharge was USD  1.50 per kg.  The measure was progressively dismantled: as of the second year 
the surcharge was  USD 1.12 per kg and in the third, USD  0.75 per kg.56 
3.54.   In the Andean Community framework , in December 2014 Ecuador imposed an e xchange -rate 
safeguard for products originating in Peru and Colombia. The measure consisted in the application 
of an ad valorem  customs duty equivalent to 7% f or products from Peru and 21% for products from 
Colombia.57 This measure was applied across the customs tariff schedule and was eliminated in 
March 2015.58 
3.55.   In 2017, Ecuador adopted two safeguards  in the Andean Community framework.  The first was 
the elimination of the tariff preference for imports of powder for the preparation of detergents 
(HS 3402.90.99.00), w ith the lifting of the tariff to 15%, the same level as the MFN tariff.59 This 
measure was eliminated at the end of 2017.60 In the same year, Ecuador imposed another Andean 
Community safeguard on imports of sugar (HS  1701.14.00.00, HS  1701.91.00.00, 
HS 1701.99.1 0.00, HS 1701.99.90.10 and HS  1701.99.90.90) from all CAN member countries. In 
this case, Ecuador established an annual quota of 3 0,000 metric tons with a zero -rated tariff for the 
tariff lines subject to the measure. Imports in excess of the quota were du tiable at the MFN tariff 
rate. This measure will be applied for two years and may be extended. The Ministry of Industry and 
Productivity (MIPRO) administers the quota through a register  of importers.61 
3.56.   In addition to the general safeguards under the  WTO and  CAN framework s, "surveillance" 
measures are applied to products. The Ministry of Foreign Trade and Investment, through COMEX, 
has to monitor import trends that could cause threat of injury to a domestic industry and adopt the 
appropriate surv eillance measures. The decision to impose surveillance is adopted by the Ministry 
following a technical report by the investigating authority, either ex officio or at the reasoned request 
of a party. The duration of surveillance measures is limited  to 12 months. When a product is subject 
to surveillance , importer s need  a "surveillanc e document", validated by the investigating a uthority, 
as an accompanying document for the customs declaration in order to be able to carry out the import 
operati on.62 When the u nit price varies by up to 5% in relation to the price given in the surveillance 
document, the import operation is permitted. If the price is 5% lower than that given in the 
surveillance document, the import operation is halted.  
3.57.   During the period 2014-2015, Ecuador did not adopt any surveillance measure s, but in 
2016-2017 it adopted four such measures to analyse import conditions. In 2016, the measures 
concerned imports of other paper in rolls (HS  4803.00.90)63, moulded or pressed articles of paper 
pulp (HS  4823.70.00.00)64; semi-chemical fluting paper (HS 4805.11.00.00); and other corrugated 
paper  (HS 4805.19.00.00)65 In 2017 a surveillance measure was adopted for imports of domestic 
                                                
53 WTO documents G/SG/N/8/ECU/3 and G/SG/N/10/ECU/4 of 21 October 2010.  
54 WTO documents G/SG/N/6/ECU/9 of 2 September 2014 and G/SG/N/7/ECU/3 of 23 October 2014.  
55 WTO document G/SG/N/ 8/ECU/4  of 24 April 2015 and COMEX Resolution No. 022-2015.  
56 COMEX Resolution No. 022 -2015.  
57 COMEX Resolution No. 050 -2014.  
58 COMEX Resolutions No. 002 -2015, No. 005 -2015 and No. 010 -2015.  
59 COMEX Resolutions No. 011 -2017 and No. 012 -2017.  
60 COMEX Resolution No. 031 -2017.  
61 COMEX Resolution No. 030 -2017.  
62 COMEX Resolution No. 016 -2014.  
63 Resolution No. MCE -VNIDC -2016-003-R of 22 March 2016.  
64 Resolution No. MCE -VNIDC -2016-006-R of 19 August 2016.  
65 Resolution No. MCE -VNIDC -2016-007-R of 31 October 2016.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 65 - 
  and commercial refrigerators and freezers (HS  8418.10.20.00, HS 8418.10.30.00, 
HS 8418.10.90.00 and HS 8418.50.00.90).66  
3.1.6.3   Balance -of-payments safeguards  
3.58.   Through the Committee on Foreign Trade  (COMEX), the Government can adopt trade defence 
measures , such as a safeguard , to restrict imports in order to protect the balance of payments. 
Thus, in 2015, in order to regulate the overall level of imports and henc e safeguard the balance -of-
payme nts equilibrium and remedy the lack of liquidity in the economy, Ecuador introduced a  
temporary and non -discriminatory tariff surcharge, initially for a period of up to 15 months.67  
3.59.   On 2 April 2015, in accordance with paragraph 9 of the Understanding on the 
Balance -of-Payments Provisions of the General Agreement on Tariffs and Trade 1994, Ecuador 
notified the WTO that on 11 March 2015 it had introduced  a temporary and non -discriminatory tariff 
surcharge for a period of up to 15 months in orde r to regulate the general level  of imports and 
thereby resolve its critical balance -of-payment s problems.68 In its WTO notification, Ecuador 
indicated that the notified measure did not exceed what was necessa ry to address Ecuador 's 
balance -of- payments disequilibrium, which was expected to amount to between USD 2 billion and 
USD 2.4 billion in 2015. It st ated that the measure was based on Article XVIII, Section B , of the 
GATT 1994 a nd the Understanding on the Balance -of-Payments Provisions of the GATT 1994.69 In 
2015 and 2016, the Commit tee on Balance -of-Payments Restrictions held consultations concerning 
the measure. During these consultations, Members were not in agreement as to whether Ecuador 's 
measure would serve to redress the balance -of-payments deficit nor as to its compatibility with the 
WTO rules, but recognized that Ecuador had acted in a complete ly transparent manner and had 
respected the timetable established for dismantling the measure.70 
3.60.   The tariff surcharge was applied to goods  for home use , while goods imported under other 
import regimes were not affected (COPCI , Article 147 ).71 The surcharge w as added to the MFN tariff 
or the preferential tariff applicable to the imports. Imports such as travellers ' personal effects, 
household effects, emergency aid shipments, gifts from abroad and government  imports were 
exempted (COPCI, Article 125); as were goods imported with donations from international 
cooperation and those originating in countries considered to be relatively less economically 
developed in the LAIA framework (the Plurinational State of Bolivia and Paraguay) .  
3.61.   The tariff surcharge initially  covered 2,955 HS  2012 ten -digit tariff lines, or the equivalent of 
38% of the entire Customs T ariff (7, 581 HS 2012 ten -digit lines).72 After the measure had been 
imposed, the list of tariff lines affected was changed and the surcharge applied to 2,938 tariff lines .73  
3.62.   The surcharge was ad valorem  calculated on the basis of the c.i.f. value of imports. There 
were five rates of 5%, 15%, 20%, 25% and 45%; the majority of lines were subject to a surcharge 
above 25%: the 45% rate applied to 45.4% of tari ff lines and the 25% rate  to 13.2%; the 5% 
surcharge applied to 24 % of lines . In some cases (86 ten -digit tariff lines of HS 2012 ), some of 
these lines w ere zero-rated ( Chart 3.4).  
                                                
66 Resolution No. MCE -MCE-2017-0001-R of 6 June 2017.  
67 Resolutions No. 011 -2015 and No. 001 -2016; an d WTO document WT/BOP/N/79 of  7 April 2015.  
68 COMEX Resolution No. 011 -2015.  
69 WTO document WT/BOP/S/18 of 27 May 2015.  
70 WTO document WT/BOP/R/114 of 31 Aug ust 2017.  
71 COMEX Resolutions No. 016 -2015 and No.  036-2015.  
72 COMEX Resolution No. 016 -2015 of 8 April 2015.  
73 Ecuador initially mentioned 2,955 HS  2012 ten -digit tariff lines, of which six were eliminated by 
Resolution No. 16 -2015. However, in addition t he Secretariat noted that of the remaining 2,949 lin es 
five HS 2012 codes were not valid, one corresponded to a subheading that compr ised two tariff lines, and 
five were not r eally lines but rather subh eadings  and the corresponding lines had already been i ncluded in the 
communication. This gave a total of 2,938 tariff lines (WTO document WT/BOP/S/18 of 27 May 2015).  WT/TPR/S/383 /Rev.1 • Ecuador  
- 66 - 
  Chart 3.4 Tariff lines subject to  the surcharge by WTO product category, 2015  
 
Source:  WTO Secretariat estimates based on data provided by the authorities.  
3.63.   Non-agricultural products (WTO definition) were more affected by the surcharge than 
agricultural products (WTO definition); 83.5% of  the products subject to the s urcharge were 
non-agricultural. Of these, the most affected were textiles (591 ten -digit tariff lines of HS 2012, 
Chapter  15), followed by minerals and metals (370 ten -digit tariff lines of HS 2012, Chapter 12) and 
other non -agricultural products (343 ten -digit tariff lines of HS 2012, Chapter 21). The agricultural 
products most affected were fruit, vegetables and plants (150 ten -digit tariff -lines of HS 2012, 
Chapter 03).  
3.64.   As a result of the application of this surcharge, in some cases the applied tariff s exceeded the 
bound levels. Thus, f ollowing the imposition of the import surcharge  28% of all tariff lines 
(2,101 ten-digit tariff lines of H S 2012) were subject to applied tariffs above the bound levels.74  
3.65.   During the imposi tion of the tariff surcharge (2015 -2017), a number of changes were made 
in the surcharges , in addition to the reductions under  the dismantlement timetable.75 Some of these 
changes were made in the interest of consistency with other government  policies and in accordance 
with the needs of domestic industry or th e Government .76 Thus, during the safeguard  application 
period some rates were modified;  some products were exem pted; some products became 
zero-rated; and some products were excluded, such as those imported  for tourist proje cts, to fulfil 
government contracts, imports of traders based in specific provinces (Carchi, Huaquillas, Loja, 
Orellana and Sucumbios), specific products for approved vehicles and passenger and school public 
transport veh icles, gloves for  medical use, th ree-wheeled vehicles, and propellers and propeller 
blades  for vessels.77 In 2017, before the safeguard was wholly dismantled , the domestic industry 
producing extr uded alumi nium sections  requested the Ministry of Foreign Trade and Investment to 
adopt a trade defence measure on grounds of unfair practices, and as a result the ad valorem  tariff 
was changed into a compound tariff and these products we re excluded from the 
balance -of-payments  safeguard .78 
                                                
74 WTO document WT/BOP/S/18 of 27 May 2015.  
75 Resolutions No. 011 -2015, No. 005 -2016 and No. 006 -2016.  
76 COPCI Article 72q; COMEX Resolutions No. 037 -2015 and No. 047 -2015.  
77 COMEX Resolutions No. 002 -2016, No. 016 -2015, No. 035 -2015, No. 023 -2015, No. 029 -2015, 
No. 039-2015, No - 003-2016, No. 007 -2016, No. 008 -2016, No. 026 -2016, No. 031 -2016, No. 048 -2016, 
No. 041-2015, No.  048-2016, No. 006 -2017, No. 006 -2017, No. 009 -2017, No. 010 -2017 and No. 015 -2016.  
78 COMEX Resolution No. 005 -2017.  
020040060080010001200140016001800
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22Number of tariff lines
Number of tariff lines subject to the surchargeNumber of tariff lines
1 Animals and animal products
2 Dairy products
3 Fruit, vegetables and plants
4 Coffee and tea
5 Cereals and cereal preparations
6 Oil seeds, fats and oils
7 Sugars and sugar confectionery
8 Beverages and tobacco9 Cotton
10 Other agricultural products
11 Fish and fishery products
12 Minerals and metals
13 Chemical and photographic products
14 Wood, paper and furniture
15 Textiles
16 Clothing17 Leather, rubber, footwear
18 Non -electrical machinery
19 Electrical machinery
20 Transport equipment
21 Non -agricultural products
22 PetroleumWTO categoryWT/TPR/S/383 /Rev.1 • Ecuador  
- 67 - 
  3.66.   In 2015, Ecuador submitted a timetable for d ismantling the surcharges.79 In January 2016, 
Ecuador began to remove the safeguard measure, reducing the 45% rate t o 40% and eliminating 
the 5% rate  (April).80 In April 2016, following the earthquake that caused great damage to  the 
country, Ecuador announce d that it would postpone implementation of the dismantlement timetable 
that had been proposed and discussed  in the Committee on Balance -of-Payments Restrictions until 
April 2017 (original  timetable ) (Table  3.8). In October  2016, Ecuador reduced the 40% rate to 35% 
and the 25% rate to 15%, and presente d an alternative timetable for removing them.81 
Table 3.8 Timetable for the removal of the balance of payments safeguard measure, 2017  
Surcharge  April 2017  May 2017  June 2017  
Original timetable  
15% 10.0% 5.0% 0.0% 
25% 16.7% 8.3% 0.0% 
40% 26.7% 13.3% 0.0% 
Alternative timetable  
15% 10.0% 5.0% 0.0% 
35% 23.3% 11.7% 0.0% 
Source:  COMEX Resolution s No. 006 -2016 and No. 021 -2016.  
3.67.   Broadly speaking, following the removal of the safeguar d measure most of the applied 
MFN tariffs returned to their 2015 level (Table 3.9). In 2018, in the case of only 20 tariff lines was 
the applied MFN tariff higher than in 2015, but still remained below  the bound level: for two tariff 
lines that were subject to the surcharge, the rate was lower than the 2015 MFN rate.  For five lines, 
the ad valorem  tariff applied in 2015 was replaced by a compound tariff. This change occurred 
in 2017 prior to the removal  of the safeguard when the domestic producers of "extruded aluminium 
sections", asked the Ministry of Foreign Trade and Investment to adopt "a trade defence measure 
on grounds of unfair practices"; accordingly, the ad valorem  tariff was replaced by a compo und tariff 
and these products were excluded from the application of the balance of payments safeguard.82  
Table 3.9 Comparison of tariff lines before and after imposition of the safeguard 
(2015 -2018)a 
HS Code  Descrip tion 2015  2018  
MFN 
tariff  Surcharge  MFN 
applied 
tariff  MFN applied 
tariff  
8702109080  CKD-engine vehicles  13 15 28 3 
8453100000  Machinery for preparing, 
tanning or working hides, 
skins or leather  5 15 20 0 
7216500000  Other angles, shapes and 
sections, not further worked 
than hot rolled, h ot drawn or 
extruded 15 45 60 20 
7304290000  Other tubes and pipes  0 5 5 5 
7308902000  Sluice gates  15 45 60 25 
8504219000  Other liquid dielectric 
transformers  15 15 30 25 
8504221000  Having a power handling 
capacity exceeding 650 kVA 
but not exceeding 1,000 kVA  15 15 30 25 
8504341000  Transformers having a power 
handling capacity not 
exceeding 1.600 kVA  15 15 30 25 
7303000000  Tubes, pipes and hollow 
profiles, of cast iron  0 5 5 15 
7304110000  Tubes, pipes and hollow 
profiles, of stainless steel  0 5 5 15 
7304190000  Other tubes, pipes and hollow 
profiles  0 5 5 15 
7304220000  Drill pipe of stainless steel  0 5 5 15 
                                                
79 WTO document WT/BOP/R/114 of 31 August 2017.  
80 COMEX Resolution No. 001 -2016.  
81 COMEX Resolutions No. 011 -2015, No. 005 -2016, No. 006 -2016 and No. 021 -2016.  
82 COMEX Resolution No. 005 -2017.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 68 - 
  HS Code  Descrip tion 2015  2018  
MFN 
tariff  Surcharge  MFN 
applied 
tariff  MFN applied 
tariff  
7304230000  Other drill pipe  0 5 5 15 
7304240000  Other pipe, of stainless steel  0 5 5 15 
7304510000  Cold drawn or cold rolled 
(cold reduced)  10 45 55 25 
7304410000  Cold drawn or cold rolled 
(cold reduced)  5 5 10 25 
7304310000  Cold drawn or cold rolled 
(cold reduced)  0 5 5 25 
7304390000  Other tubes and pipes  0 5 5 25 
7304490000  Other tubes and pipes  0 5 5 25 
7304590000  Other tubes and pipes  0 5 5 25 
7304900000  Other tubes and pipes  0 5 5 25 
7326110000  Grinding boles and similar 
articles  for mills  0 5 5 25 
7604102000  Profiles, including hollow 
profiles  10 45 55 5% + 1.2 $/kg  
7604210000  Hollow pro files 10 45 55 5% + 1.2 $/kg  
7604291000  Bars 10 45 55 5% + 1.2 $/kg  
7604292000  Other profiles  10 45 55 5% + 1.2 $/kg  
7608200000  Of aluminium alloys  15 45 60 5% + 1.2 $/kg  
a Only includes strictly comparable tariff lines.  
Source:  WTO Secretariat estimates base d on information provided by the authorities.  
3.68.   In June 2017, Ecuador notified the WTO that i t had eliminated the balance -of-payments 
safeguard measure as scheduled on 1 June.83  
3.1.7   Other measures affecting imports  
3.69.   The National Finance Corporation (Corpor ación Financiera Nacional (CFN)) provides financing 
for imports of raw materials and semi -finished or finished products not produced in Ecuador or whose 
production is inadequate to satisfy domestic demand. These products must be transfor med and the 
finished product must be exported.84 The financing is granted for up to five years; the mi nimum 
amount i s USD  50,000 per client with a ma ximum of USD 25 million per borrower and USD 50 million 
per economic group.  The interest rate depends on the percentage of financing within the total value 
of the project. The financing may be used as working capital for all economic activities which the 
CFN is authorized to finance.85 
3.70.   The Import Letter of Credit is a financial in strument which  the CFN issues on behalf of its 
client as a documentary credit in favo ur an exporter abroad. It is paid when the terms and conditions 
established between the purchaser and seller have been fulfilled. It is available for  natural or legal 
persons having annual sales exceeding USD 100,000. The minimum amount of the letter of credit is 
USD 50,000. This type of instrument is used to finance imports in advance  and prov ides payment 
security. For recurring operations, the client may  obtain a credit l ine on which letters of c redit are 
issued.86 
3.2  Measures directly affecting exports  
3.2.1   Customs procedures and requirements  
3.71.   Both Ecuadorians and resident foreigners in Ecuador may be exporters. For this purpose they 
must obtain a Taxpayer 's Registration Number (RU C) issued by the Internal Revenue Service (SRI), 
an electronic signature in the Civil Register which is valid for two year s, and register with the 
                                                
83 WTO document WT/BOP/N/84 of 20 June 2017.  
84 Online information  from the Corporación Financiera Nacional . Viewed at: 
https://www.cfn.fin.ec/financiami ento-de-importacion -2. 
85 The full list of activities that the CFN may finance may  be viewed online at: http://www.cfn.fin.ec/wp -
content/uploads/2016/02/Anexo -1-Activ. -Financiables -2.pdf. 
86 Import Letters of Credit. Online CFN information viewed at: https://www.cfn.fin.ec/cartas -de-credito -
importacion . WT/TPR/S/383 /Rev.1 • Ecuador  
- 69 - 
  Customs  ECUAPASS computerized system. Expor ters may hire the services of a  SENAE -authorized 
customs broker or  a freight forwarder registered with the SENAE to submit the export customs 
declaration (DAE), or may do so in person through the ECUAPASS  system . The person submitting 
the DAE is called the "declarant" and will represent the exporter in the export procedu re.  
3.72.   The declarant must submit the accompanying and/or support ing documents that have to  be 
attached to the DAE. These include the commercial invoice, packing list, prior authorization (where 
appropriate), certificate of origin (where appropriate) and plan t or animal health certificate (where 
appropriate). The export process begins with the submission of the DAE. Once it has been received, 
the export entry record (IIE) for the entry of the goods to the primary zone  through which it will be 
exported is regis tered, following which the ECUAPASS computerized system automatically assigns 
an inspection channel for the goods, which may be automatic, documentary or physically intrusive.  
3.73.   If the inspection c hannel assigned is the automatic one, the exit of the goods f rom Ecuadorian 
customs territory is authorized (Exit  Authorized); otherwise, an inspection takes place and, if no 
observations  are made, the responsi ble of ficial registers the completion of the inspection in the 
ECUAPASS system and the DAE is given " Exit  Authorized " status.  If the inspection process reveals 
discrepancies , the of ficial enters the corresponding observations  and they must be justified or 
corrected by the declarant within one day. Once the DAE has authorized exit status, the goods may 
be shipped.  Where necessary the declarant may correct the DAE. Once the goods have been shipped,  
the declarant may regularize the DAE with the SENAE, which closes  the definitive export process.  
3.74.   Ecuador has other export regimes apart from definitive export (T able 3.3). In the case of 
exports subject to the regimes of temporary export ation for reimport ation in the same state and 
temporary export ation for outward processing , the procedures are different and a customs broker is 
required.  
Box 3.3 Export regimes  
Definitive export  
The definitive exit of the goods from the Ecuadorian customs terr itory or to a Special Economic Development 
Zone or a Free Zones that is  still in operation located within the Ecuadorian customs territory.  
Temporary export ation for reimportation in the same state  
The temporary exit from the customs territory of goods for a specified purpose and time is authorized, 
within which time they must be reimported without having undergone any change with the exception of 
normal wear and tear.  
Temporary export ation  for out ward processing  
Goods in free circulation in the customs territory may be temporarily exported outside the customs territory 
or to a special economic development zone or the free zones which are still in operation within that territory, 
for transformatio n, processing or repair and subsequently reimported as compensating  products which are 
exempt from the corresponding duties and taxes.  
Source : COPCI  Regulations .  
3.2.2   Taxes, charges and levies  
3.75.   Ecuador does not impose taxes on exports with the exception of ba nanas and coffee. However , 
export s of goods and services  are liable to the  ISD if the corresponding foreign exchange from the 
payment for the exports does not enter Ecuador .87 
3.76.   Banana and coffee exports are subject to an export levy of 9.7% and 2%, respectiv ely, on 
their f.o.b. value .88 In 2013 , the export levy on bananas,  used to finance the Banana Industry Fund, 
was suspended89; and that  on coffee was suspended in 2015.90 The coffee contribution (2% on the 
                                                
87 Online information from the Ecuadorian  Internal Revenue Service. Viewed at : 
http://www.sri.gob.ec/web/guest/impuesto -a-la-salida -de-divisas -isd. 
88 Informati on provided by the authorities.  
89 Ministerial Decision No. 406 of 11 September 2013.  
90 Amendment to the Law Creating  the National Agricultural Research Institute (INIAP) and repeal of  the 
Special Law on the Coffee S ector, Official Register No. 446 o f 26 February 2015.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 70 - 
  f.o.b. value of coffee beans, roasted beans and ground  roasted coffee per unit of 100 pounds 
exported)  was used as part of the funds needed to finance the National Coffee Board  (COFENAC).91 
3.77.   The authorities indicated  that the charges  for the granting of permits, registrations, 
authorizations, licences, analyse s, inspections and other export -related formalities are fixed in 
proportion to the cost of the services actually provided.  
3.2.3   Minimum export  prices  
3.78.   Export s of bananas are subject to a minimum reference price. The reference price is set by 
the MAG ( formerly  the MAGAP), and is based on the support price that exporters must pay producers 
(Section  4).  
3.79.   Ecuador uses minimum reference pri ces for exports for internal taxation  purposes in the case 
of cocoa beans (HS  1801.00.19) and semi -finished coco a products (of HS headings  1803, 1804  and 
1805). These prices are set weekly on the basis of the New York Intercontinental Exchange prices 
and serve as a reference for marketing these p roducts on the domestic market. In the case of coffee 
(HS 09011190), reference prices wer e abolished in 2015 when the Special Law on the Coffee Sector 
was repealed. Ecuador does not fix minimum reference pri ces for shrimp. However, the  Aquaculture 
Management Directorate of the Under -Secretariat for Aquaculture issues  a monthly list of referenc e 
prices for aquacultural exports, for purely  informational purposes. According to the authorities, the 
purpose of this list of reference prices is to give Ecuadorian shrimp producers and exporters a fuller 
picture of world prices.   
3.2.4   Export prohibitions, re strictions and licensing  
3.80.   The Committee on Foreign Trade  (COMEX) is responsible for issuing rules on export 
requirements other than customs formalities, such as registration, authorizations, prior control 
documents and licensing .92 
3.81.   In 2018, Ecuador prohibits  the definitive export ation and temporary export ation for outward 
processing of certain products (480 ten -digit HS tariff lines) (Chart. 3.5). The prohibitions mostly 
concern metal products and manufactures, tools, nuclear reactors and moto r vehicles.  
                                                
91 Special Law on the Coffee Sector (codified text) of 2004 of 17 March 2004.  
92 Article 72 (f) of the COPCI of 29 December 2010.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 71 - 
  Chart 3.5 Export prohibitions by HS Chapter, 2018  
 
Note: 480 tariff lines are prohibited . 
Source:  WTO Secretariat estimates based on information provided by the authorities.  
3.82.   As in the case of imports, Ecuador  uses various pr ior documents to accompany the e xport 
customs declaration (DAE) for definitive exports, including export authorization, exporter 
registration, export certificate s, export permit s and export licence s.93 In 2018, these requirements 
concerned 1 93 ten -digit HS tariff lines (Chart 3.6).  
                                                
93 COMEX Resolutions No. 009 -2014, No. 015 -2014 and No. 013 -2017.  
020406080100120140160180200220
72 73 74 75 76 78 80 81 82 83 84 87Number of tariff lines
HS C haptersHS C hapters
72. Iron and steel
73. A rticles of iron and steel
74. C opper and articles thereof
75. Nickel and articles thereof
76. A luminium and articles thereof
78. Lead and articles thereof
80. Tin and articles thereof
81. O ther base metals
82. Tools and implements
83. Miscellaneous articles of base metal
84. Nuclear reactors
87. Motor vehiclesWT/TPR/S/383 /Rev.1 • Ecuador  
- 72 - 
  Chart 3.6 Export restrictions by HS Chapter and type of restriction, 2018  
 
Note:  193 ten -digit tariff lines are subject to restrictions.  
Source:  WTO Secretariat estimates based on information provided by the authorities.  
3.83.   In general, Ecuador guarantees the free export of goods with the exception of those that may 
affect public health, environmental conservation, animal and plant health94, and the cu ltural 
heritage. Exports may also be restricted in order to comply with Ecuador 's undertakings under the 
various international agreements to w hich it is a signatory, such as the Montreal Protocol.95  
3.84.   Controls are also used for statistical purposes. The Mini ng Regulation and Control Agency 
(ARCOM) maintains the corresponding registers in order to carry out statistical controls of the 
marketing and export of minerals as well as to ensure that the other legal obligations are fulfilled, 
including ensuring that t he origin of the minerals is lawful ; hence, exports of copper, silver and gold 
ores (HS  2603.00.00.00, HS 2616.10.00.00, HS 2616.90.10.00, HS 7108.12.00.00  and 
HS 7106.91.00.00) require an export certificate from ARCOM, failing which their exportation cann ot 
be authorized.96 
3.85.   Export controls may be used to support specific industries or encourage domestic production 
of specific industries.97 Thus, the "pollution abatement, public transport fuel subs idy rationalization 
and vehicle  scrapping programme " prohibits  the export of scrap (HS  7204.30.00.00, 
HS 7204.10.00.00, HS  7204.29.00.00, HS  7204.41.00.00, HS 7204.49.00.00, HS 7204.50.00.00, 
HS 7205.10.00.00, HS 72.05.21.00.00, HS 7205.29.00.00, HS 7403.22.00.00, HS 7404.00.00.00 
and HS 7602.00.00.00). However, in the event of an oversupply of scrap (in relation to the 
processing firms ' capacity) or if the reference market price obtained by calculating the moving 
average for the last three months does not correlate properly with the price paid by the scrapping 
firms, the MIPRO may grant export quotas.98 Accordingly, Ecuador  set a quota for export s of 
                                                
94 COMEX Resolution No. 029 -2017.  
95 COMEX Resolution  No. 023 -2017.  
96 Requirements for the export certificate for owners of mining rights, Resolution No. 017 -ARCOM -2017.  
97 Constitution of the Republic of Ecuador, Article 284.  
98 Executive Decree No. 676 of 24 February 2011.  
0 5 10 15 20 25 30 35 40 450306070809101218262938394144717276787997
Export authorization Export certificate Export licence
Exporter registration Export permit Export permit, quotaNúmero de líneas arancelariasHS C hapters
HS C hapters
03. Fish and crustaceans
06. Live trees and other plants
07. Edible veg. and certain roots and tubas 
08. Edible fruit and nuts
09. C offee, tea
10. C ereals
12. Seeds
18. C ocoa and cocoa preparations
26. O res
29. O rganic chemicals38. C hemical products
39. Plastics
41. Raw hides and skins
44. Wood and articles of wood
71. Natural or cultured pearls
72. Iron and steel
76.Aluminium and articles thereof
78. Lead and articles thereof
79. Zinc and articles thereof
97. Works of artWT/TPR/S/383 /Rev.1 • Ecuador  
- 73 - 
  non-ferrous scrap. These quotas may only be used by exporters registered with MIPRO, and are  
allocated  on a first come , first served basis.99  
3.86.   COMEX may also regulate and/ or restrict exports to ensure the supply of raw materials for 
domestic industry and thus promote the incorporation of value added, pursuant to the National 
Industrial Development Plan . These controls may be imposed ex officio  or at the request of an 
indust ry. Thus, in 2013 the National Tanners Association (ANCE) requested MIPRO to re -establish 
the Register of Exporters of Raw Hides and Skins (for raw hides  and skins of bovine 
(including  buffalo) or equine animals – (HS 4102.10.00.00,HS 4102.21.00.00, HS 410 2.29.00.00, 
HS 4104.11.00.00, HS 4104.19.00.00, HS 4104.41.00.00 and HS 4104.49.00.00) as a mandatory 
requirement for their export, given the indiscriminate outflow of these raw materials from the 
country with the result that the sector was facing difficul ties in the supply of salted hides.100 From 
2014, COMEX considered it necessary to impose an export requirement in the form of a quality 
certificate issued by MIPRO -approved inspection bodies, and suspend the Register of Exporters of 
raw hides and skins. According to the authorities, the quality certificate makes it possible to verify 
the correct use of the tariff subheadings for exports of hides and skins, thereby facilitating the export 
of the hides and skins that the local industry does not use. In addi tion, MIPRO also monitors the 
processing capacity of the tanneries, as well as the industry 's production prices and activation plan. 
If its half -yearly evaluation indicates an oversupply of raw hides and skins in the country, it opens 
export quotas.101 
3.2.5   Expor t support and promotion  
3.2.5.1   Export support  
3.87.   Ecuador notified the WTO that during the period 2012 -2016 it did not grant any export 
subsidies for agricultural products.   
3.2.5.2   Drawback regimes and other inc entives  
3.88.   The tax credit scheme was established as an exp ort ince ntive for when exporters face  a 
worsening of access to international markets as a result of changes  in tariff levels or other adverse 
measures in their destination markets. The scheme consists of a "Tax Credit Certificate" (CAT) , 
which stipulates the value  of the credit. The CATs are issued by the National Customs Service as a 
credit note and are freely negotiable. They may be used to settle any tax obligation with the 
exception of fees for services provided, royalties and other contributions levied by the State in 
connection with mining and hydrocarbon activities.102  
3.89.   The granting of Tax Credit Certificates was reactivated in 2013 . COMEX acts as the 
management  committee for the purposes of the Tax Credit Law: it draws up the list of products 
eligible for  CATs103, establishes the period for which they will be considered and the percentages to 
be applied for e ach tariff line104, as well as the maximum annual amount that may be allocated to 
the grant of CATs under the General Budget of the State. For example, in 2016  this amount was 
roughly USD 21 million.105 COMEX  is also responsible for identifying the beneficiaries of the CATs, 
fixing the maximum annual amount  of the  benefit for each exporter106, and determining the 
international markets for Ecuadorian exports in which  exporters have faced a worsening of access 
levels.107 The maximum annual amount of the benefit, as approved by COMEX, may not exceed what 
is necessary to offset the reduction in the level of access to an international market.108 
3.90.   The most recent list of produc ts and exporters eligible for the CAT, and the percentage to be 
applied for the grant of the CAT, dates from 2 016, since when, according to the authorities, the 
                                                
99 SENAE Resolution 177 of 3 May 201 1. 
100 COMEX Resolution  No. 008 -2014.  
101 COMEX Resolution No. 008 -2014 and No. 333 of 28 July 2014.  
102 Tax Credit Law, Supreme Decree No. 3605 -B of 13 July 1979 and amendments  thereto . 
103 No information is available on how the  list of CAT -eligible products i s drawn up.  
104 No information is available on how the percentage applied for the CAT for each product is 
determined.  
105 COMEX Resolution No. 030 -2016.  
106 No information is available on how  the maximum annual amount  of the CAT is determined . 
107 COMEX Resolution No. 105 -2013.  
108 Implementing Regulation to the Tax Credit Law, Decree No. 100 of 4 September 2013.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 74 - 
  mechanism has not been used.109 The percentages vary according to the product and are calculated 
on the basis of the export value. In 2013 they ranged from 0.1% for aerated beverages 
(HS 2202.10.00.00) to 32% for acrylic sweaters and similar articles of clothing 
(HS 6110.30.10.00).110 In that year the scheme particularly benefited products such as flowers 
(HS Chapter 06) and textile products (HS Chapter s 61, 62 and 65). There was no significant  change 
in the eligible products  in 2016. The percentages for the grant  of the CAT range from 0.05% for 
pineapples (HS  0804.30.00.04) to 35% for tuna  (HS 1604.14.00.01).111 
3.91.   Exporters of goods that use or incorporate imported packaging or packing, raw materials or 
inputs are el igible under the conditional draw back scheme that provides for the total or partial refund 
of foreign trade levies paid on import s of goods  that are subsequently exported. Exporters may 
request this drawback within 12 months of the import ation for home consumption of the good that 
was part of the definitive export, count ing from the date of release of the goods.  
3.92.   The value of the  drawback was  originally base d on the input -output  matrix presented by the 
exporter. In principle, it amounted to 100% of the foreign trade levies actually paid on imports of 
products for which the drawback was requested; however, the amount refunded could not exceed 
5% of the transaction value of the exported goods.112 
3.93.   A simplified conditional drawback scheme was introduced in 2015, under which a fixed 
percentage of the export value was determined for the drawback. In 2015 this procedure could be 
used for all exports exc ept vehicles (Chapter 87); some fresh and prepared fish (Chapters 3 and  16); 
some flowers  (Chapter 6); some salts, sulphurs , earth and stone, plastering materials, lime and 
cement  (Chapter  25) and mineral fuels (Chapter  27), among others. In general, the refund 
amounted to 5%, Ecuador 's weighted tariff between 2010 and 2014, but some products received a 
smaller drawback of 3% or 2%. In some cases, the drawback varies according to the market of 
destination113, as in the case of " cavendish Valé ry" bananas ( HS 0803.90.11.00), Lady Finger 
(bocadillo ) bananas  (HS 0803.90.12.00) and other bananas  (HS 0803.90.19.00): 2% for the 
European Union, 3% for the Russian Federation and 4% for China.  COMEX  may periodically review 
the exports subject to the simplified procedur e as well as the refund pe rcentage.114 In 2016, COMEX  
modified the list of products eligible for the 5%  drawback .115 According to the authorities, this 
procedure has not been used since the last quarter of 2016. In order to be able to finance the 
simplified co nditional drawback  procedure, in 2015 the Ministry of Foreign Trade and Investment 
implemented the "Export Sector Promotion"  Investment Project. The total amount allocated to the 
project in 2015 was USD 229 million, but only USD  50 million was used .116 
3.94.   Expor ters who take advantage of  the CATs or who have used the ordinary conditional 
drawback procedure are not entitled to the simplified conditional drawback. The exporter may decide 
whether to use the simplified scheme or the original scheme. Exporters using t he simplified scheme 
must repatriate  the foreign exchange from the export operation to Ecuador.117 
3.2.5.3   Free Zones and Special Economic Development Z ones (ZEDE s)118 
3.95.   In 2010, Free Zones were replaced by Special Economic Development Zones (ZEDEs). 
According to the authorities, the free zone scheme did not meet the planned objectives in terms of 
promotion of investment, exports, employment and technology transfer. Furthermore, it was based 
on the principle of extraterritoriality, which created limita tions for the State:  for example, there was 
no clear legal framework, projects were not necessarily aligned with government economic 
development policies, and the formalities and procedures for the entry and exit of goods to and from 
the free zones were co mplicated. The COPCI therefore  replaced the Law on Free Zones  in 2010. 
                                                
109 COMEX Resolution No. 030 -2016.  
110 COMEX Resolution No. 105 -2013.  
111 COMEX Resolution No. 030 -2016.  
112 COPCI, Article 1 57; COPCI Regulations , Articles 170 –175, Decree No. 758 of 29 December 2010; 
COMEX No. 027 -2015 and No. 040 -2015.  
113 COMEX Resolution No. 013 -2015.  
114 COMEX Resolutions No. 013 -2015, No. 027 -2015 and No. 040 -2015.  
115 COMEX Resolution No. 017 -2016. 
116 Information provided by the authorities.  
117 COMEX Resolution No. 017 -2016.  
118 This section is based on the COPCI and its implementing r egulation s, and the Regulation s on Special 
Economic Development Zone Operators (Ministerial Decision No. 148 of 8 March 2017).  WT/TPR/S/383 /Rev.1 • Ecuador  
- 75 - 
  However, free zones whose concessions had been granted under that law remained in operation for 
the duration of the concession. Nevertheless, free zone  administrators and users are subj ect 
administratively and operationally to the COPCI. In addition, companies administering free zones 
that wish to migrate to the ZEDE regime may do so provided they submit an application to the 
competent authority (the Sectoral Economic and Production Coun cil) six months before the free zone 
concession expires.  
3.96.   Until 2010, free zones were supervised and controlled by the National Council for Free Zones 
(CONAZOFRA); the five remaining free zones are currently regulated by MIPRO.119 Since 2010, 
enterprises tha t register as new users of the free zo nes must fulfil the same requirements as ZEDE 
operators. By 2018, five ZEDEs had been set up.  
3.97.   The ZEDEs were established as a customs destination, in delimited areas of the national 
territory, for the establishment of new investment that will be subject to special foreign trade, tax 
and financial treatment.  The administrators and operators who set up in ZEDEs enjoy specified tax 
incentives (Section 2). The Sectoral Economic and Production Council is responsible for runn ing and 
supervising the  ZEDE s, which may be of three kinds according to their objective: technology transfer, 
industrial diversification , and provision of logistical services .  
3.98.   The goods produced in the ZEDEs should , inter alia , contribute to diversifying the domestic 
suppl y for export and be specifically export -oriented. However, they may exceptionally be authorized 
to enter the national territory for sale on the domestic market in limited percentages.  The percentage 
depends on the project submitted, as ap proved by the Sectoral Economic and  Production Council, 
which determines when such entry will be permitted. These limits do not apply to the products 
obtained in economic sectors that are designated as basic industries and technology transfer and 
technolog ical innovation processes.120 
3.2.5.4   Export promotion   
3.99.   The Export and Foreign Investment Promotion Institute (PRO ECUADOR), under the Ministry 
of Foreign Trade and Investment, is the government entity responsible for planning, coordinating 
and implementing export p romotion policy as well as for attracting  foreign inves tment, in order to 
promote Ecuad or's exportable supply of goods and services, with emphasis on diversification of 
products, markets and participants. PRO ECUADOR advises priority sectors and carries ou t training 
activities, with special emphasis on integrating small and medium -sized enterprises in the value 
chain. It also coordinates and prepares national and international promotion activities, together with  
specific cross-sectoral projects as well as o thers aimed at specific sectors, such as the I ncubation 
Project for the artisanal footwear and textiles sector.  
3.2.6   Export finance, insurance and guarantees  
3.100.   The agency responsi ble for implementing export finance, insurance and guarantee 
programmes is the National Finance Corporation (CFN). The CFN is Ecuador 's development ban k, a 
public financial institution  whose mis sion is to promote the development of the country 's production  
and strategic sectors through a range of financial and non -financial services geared to government 
policies121 (Table 3.4). The instruments it offers facilitate f oreign trade operations by providing 
client s with backing that gives them access  to favourable credit terms and conditions.  
Box 3.4 Financial instruments for exporters, 2012 -2018  
Export finance  
Working capital: financing to promote the export of any product made in Ecuador across all economic 
activities.  
Finance  for up to 100% of export -related costs (for example, insurance,  carriage, exporting costs); 
no finance for taxes and duties in relation with the operation.  
                                                
119 Ministerial Decision No. 11.270 of 26 July 2011.  
120 Basic industries are copper and/or alumin ium smelting and refining; steel making f or the production 
of flat steel ; hydrocarbon refining; petrochemicals industry; pulp and paper industry; and  shipbuilding and 
repairs . 
121 Online information provided by  the National Finance Corporation  (CFN) . Viewed at : 
https://www.cfn.fin.ec/corporacion -financiera -nacional . WT/TPR/S/383 /Rev.1 • Ecuador  
- 76 - 
  Minimum amount of financing is USD 50,000 per client; maximum amount is USD 25 million per borrower 
and USD 50 million per economic group.  
Post-shipment finance: short -term loans to finance the period between shipment and payment by the 
foreign purchaser.  
Development finance: long -term loans aimed at generating new export capacity  (for example, construction 
of factories and creation of new product lines).  
Maximum period is five years for working capital and up to 15 years for fixed assets.  
There are grace period s for capital of 1 to 4 years according to the cash flow.  
The nominal interest rate is 7.5% for the corporate segment, 8.25% for the business segment and 9.75% 
for the SME segment.  
The CFN 's Assets and Li abilities Committee (ALCO) sets the interest rates . 
International factoring  
Financial instrument that allows exporters to receive  early settlement of their future invoices 
(with international clients) in order to obtain working capital.  
Finance for  up to 80% of the value of the export invoice with a due date of at least 30 days.  
Available to Ecuadorian export ers of (non -oil) goods and services with annual sales exceeding USD 100,000.  
The discount rate is 6.25% per annum  up to 60 days, 7.25% up to 120 days and 7.25% up to 180 days.  
Stand -by letter of credit  
Financial instrument whereby the CFN undertakes to pay a client 's obligation to a foreign beneficiary. It is 
executed when the terms and conditions agreed be tween the parties are fulfilled  but the client does not 
honour its obligation.  
This service is available to non -oil exp orters with annual sales exceeding USD 100,000. The minimum 
amount of the stand -by letter of credit is USD 50,000.  
A commission is charged per event. The initial commission is 3% annually.  
Documentary collection  
Non-financial instrument whereby the CFN undertakes the documentary verification and collection of 
payments for a foreign trade operation without undertaking to honour the payment.  
This service is available to exporters with annual sales exceeding USD 100,000.  
A commission is charged per event.  
Credit guarantees  
With this instrument the CFN, through the National Guarantee Fund, all ows a bank operating in Ecuador  and 
having an agreement w ith the National Guarantee Fund  to provide pre -shipment or post -shipment loans for 
exports. The CFN covers 50%  to 80% of the required guarantee. The commissions are between 2.5% and 
4.5% annually.  
Source : Online information from the National Finance Corporation.  
3.3  Measures affecting production and trade 
3.3.1   Incentives  
3.101.   As notified to the WTO, during the period 2013 –2018 Ecuador did not provide any type of 
subsidy within the meaning of Article 1.1 of the Agreement on Subsidies and Countervailing 
Measures or that were specific within the meaning of Article 2 of that Agreement.122  
3.102.   Nevertheless, one of Ecuador 's fiscal policy  objectives is income redistribution through 
transfers, taxes and subsidies (Article 285 of the Constitution). Accordingly, Ecuador grants fiscal 
incentives for the development of production in general (Section 2) as well as for specific sectors 
such as ag riculture and basic industry , and also  for the popular, solidar ity and communit y-based  
economy .  
3.103.   Fiscal incentives for production development are of four kinds: (1) general, which apply to 
investment anywhere within the national territory; (2) sectoral and for equitable regional 
development, for the sectors that help to change the energy matrix, strat egic import substitution, 
export promotion and rural development; (3) for depressed areas ; and (4) for public projects 
implemented through public -private partnerships  (Section  2).123  
                                                
122 WTO documents G/SCM/N/253/ECU of 17 July 2013; G/SCM/ N/284/ECU of 14 July 2015; 
and G/SCM/N/315/ECU of 26 February 2018.  
123 COPCI, Articles  23-24. WT/TPR/S/383 /Rev.1 • Ecuador  
- 77 - 
  3.104.   In addition to the incentives for production development and export promot ion, the 
Government also promotes basic industries that transform renewable and non -renewable natural 
resources into inputs for the production of intermediate and final goods. The following are considered 
basic industries: copper and/or alumi nium smelting and refining ; steelmaking  for the production of 
flat steel; hydrocarbon refining; petrochemical industry; pu lp and paper industry; and ship building 
and repairs.  
3.105.   As part of the policy to promote the po pular, solidarity and community -based economy, to 
which the micro, small and medium -sized enterprises ( MSMEs) belong , Ecuador provides incentives 
in the form of preferential financing and public procurement mechanisms, and by facilitating the 
setting up of enterprises (feasibility studies, market studies, innov ation projects) as well as exports 
(through the Exporta Fácil  ("Export ing Made Easy ") programme for MSMEs and craft workers ). The 
Banking Supervisory Authority  will establish a special guarantee scheme for the financing of MSMEs 
as well as specia l rules to  enable them to have a ccess to the st ock market.124 In addition, public 
institutions are obliged to include MSMEs in government procurement procedures as provided for by 
the National Public  Procurement System (Section 3.3.6).  
3.106.   Exporta Fácil is a programme backed  by various State institutions that was launched in 2012 
to facilit ate export procedures so that MS MEs and artisans  can increase their exports and g ain a 
foothold in new markets. Under t his programme , participants  can ship products for up to a value of 
USD 5,000 and a maximum weight of 30 kg per shipment, without restriction on the quantity of 
packages sent.125 Exporters who use Exporta Fácil must have a RUC, be registered on the 
programme 's web portal and use a Simplified Customs Declaration, accompani ed by the mandatory 
documents including the commercial invoice, packing list and prior authorizations or certificate of 
origin, as appropriate.  
3.107.   The National Finance Corporation (CFN B.P.), which is part of Ecuador 's development banking 
system, is a pu blic financial  institution that offers a range of financial and non -financial services for 
the development of Ecuador 's production and strategic sectors. It has credit lines for the production 
sector , with particular attention paid to SMEs (T able A3.4).126  
3.108.   BanEc uador was set up in 2016 to replace the National Development Bank, with the purpose 
of providing loans geared to the particular features of the targeted production activity , area and 
client, so as  to bring about a change in the production matrix and achiev e food sovereignty.127 
BanEcuador grants financing to individual and family, com munal a nd associative production units, 
entrepreneurs,  and the MSMEs involved in the production of goods or provision of services or in 
trade (Table 3.10). The interest rate on l oans is determined in line with the b ank's interest rate 
policy, which according to the authorities is based on market conditions and operating c osts, 
financing cost, provisioning  and inflation. BanEcuador accepts various types of guarantee for its 
loans.  
Table 3.10 BanEcuador financial products, 2018  
Product  Beneficiaries  Features  Term  
Banco del Pueblo  Trade, services 
and small -scale 
industry  Amounts: USD 50-15,000  
Up to 100% financing  
No credit history required  Up to 5 years  
Gran Minga 
Agropecuaria  
project  Agriculture and 
forestry  Amounts: 50 -150 times the unified 
minimum wage   
Up to 100% financing  Up to 10 years for 
agricultural activities  
Up to 20 years for forestry 
activities  
Entrepreneurial 
credit  Entrepreneurs in 
any sector  Amounts: USD 500-50,000  Up to 60 months  
Credit for small 
and medium-sized 
enterprises (SMEs)  Production, 
trade, services  Amounts: USD 5,000 -500,000  
Various types of guarantee are 
accepted  Variable, according to type 
of investm ent  
                                                
124 COPCI, Articles 63-66. 
125 Online information from Exporta Fácil. Viewed at: 
http://www.exportafacil.gob.ec/index.php?option=com_content&view=article&id=3&Itemid=108 . 
126 Online information from the CFN. Viewed at : https://www.cfn.fin.ec/corporacion -financiera -nacional. 
127 Executive Decree No. 677 of 13 May 2015.  WT/TPR/S/383 /Rev.1 • Ecuador  
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  Product  Beneficiaries  Features  Term  
Credit for micro 
enterprises  Production, 
trade, services  150 times the unified minimum 
wage  
Various types of guarantee are 
accepted  Variable, according to the 
type of investment  
Note:  The unified minimum wage in 2018 is USD 386. Ministerial Decisio n No. MDT -2017-0195 
of 26 March  2018. Viewed at: http://www.trabajo.gob.ec/wp -content/uploads/2018/01/ACUERDO -
MINISTERIAL -MDT-2017-0195.pdf .  
Source:  BanEcuador.  
3.109.   The State has a responsibil ity to achieve food sovereignty, for  which purpose  there are 
preferential financing mechanisms for small and medium -sized producers, facilitating the acquisition 
of inputs and promoting productivity in the agricultural sector.128 BanEcuador and the CFN B.P 
provide the financing for these segments. In addition, in 2018 Ecuador notified a series of domestic 
support measures for agriculture relating to pest and disease control, research, marketing and 
promotion services, inspection services and infrastructure services. In general, these programmes 
do not benefit specific products.129 
3.110.   The Government  provides support for farmers, in p articular small and medium -sized 
producers, under its Agroseguro programme, t hrough which a State insurance c ompany (Seguros 
Sucre) offers agricultural insurance against adverse natural phenomena. The programme finances 
60% of the net premium  of the insura nce policy, up to a limit of USD  700, for all crops except 
bananas, where the limit is USD  1,500.130  
3.3.2   Standards and other technical requirements  
3.111.   The legal framework governing the standardization system in Ecuador consists primarily of 
the Constitution, the Ecuadorian Quality System  Law and its implementing r egulations131, as well as 
other manuals, ministerial decisions and resolution s, and the rules of the Andean C ommunity (CAN) 
(Table 3.5).  
3.112.   The Ecuadorian Quality System Law governs, inter alia , the principle s, policies and entities 
concerned with  conformity assessment  activities. It also ensures compliance with citizens ' rights and 
international commitments in this area. The guiding  principles of the Ecuadorian quality system 
include  fairness and national trea tment:  accordingly, domestic and imported goods and services are 
treated in the same way,  and the techni cal regulations and conformity assessment procedures  of 
other countries are recognized provided they are suitable for Ecuador. In addition, the particip ation 
of all sectors in the development and promotion of quality and dissemination of information  is 
guaranteed .  
Box 3.5 Regulation of the Standardization System, 2018  
Inter -Ministerial Committee on Quality Resolution No. 001 -2013 -CIMC 30 May 2013 (as amended 
by Resolution No. 002 -2013 -CIMC of 22  August 2013 and Resolution No. 001 -2014 -CIMC of  
10 June 2014) : conformity assessment and manual of procedures prior to release for home use , marketing 
and supervisio n in the market place at all stages for goods produced, imported and market ed that are 
subject to Ecuad orian technical regulation  
Ministerial Decision No. 11256 of 15 July 2011 : establishes prices for E cuadorian technical standards, 
codes, good practice guides , manuals and other technical documents.  
Ministerial Decision No. 11446 of 25 November 2011 : delegates to the Under -Secretariat  for Quality 
the power of approving and officia lizing proposals for standard s or technical regulations and conformity 
assessment procedures proposed by the  INEN. 
Ministerial Decision No. 17074 of 19 May 2017 : instructions for establishing the designation process for 
conformity assessment  purposes .  
                                                
128 Constitution of the Republic, Article 281.  
129 WTO document G/AG/N/ECU/45 of 24 July 2018.  
130 2017 Project Information Note, Agricultural Insurance Unit, MAGAP.  
131 Law on the Ecuadorian Quality System of 22 February 2 007 (amen ded by the COPCI 
of 29 December  2010) and General Regulations to the Ecuadorian Quality System La w 
(Executi ve Decree  No. 756 of 17 May 2011).  WT/TPR/S/383 /Rev.1 • Ecuador  
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  Resolution No. 2017 -003 of 25 January 2017 : establishes the guidelines f or the preparation and 
adoption of standardization  documents of the Ecuadorian Standardization Service (INEN), through study and 
participation in national committees.  
CAN Decision No. 827 of 18 July 2018:  establishes the guidelines for the preparation, ad option and 
application of technical regulations and conformity assessment procedures in member countries of t he 
Andean community and at the C ommunity level. (CAN Decision No. 827 of 18 July 2018 replaced 
CAN Decision No. 562 of 26 June 2003.)  
Source:  Information provided by the authorities.  
3.113.   The Ecu adorian Quality System is the set of processes, procedures and public institutions 
responsi ble for the implementation of the q uality and conformity a ssessment principles and 
mechanisms. The Ministry of Industry and Productivity (MIPRO) is the leading institution  of the 
system. In addition to MIPRO, the system consists of the Inter -Ministerial C ommittee  on Quality, t he 
Ecuadorian Standardization Service (INEN), the Ecuadorian Accreditation Service (SAE), and the 
government entities and institutions which, according to their remit, may issue standards, technical 
regulations and conformity assessment procedures, including the Ministries of Electricity and 
Renewab le Energy (MEER), Public Health (MSP), the Environment (MAE), Tourism (MINTUR), 
Agriculture and Livestock  (MAG) , Aquaculture and Fisheries (MAP),  and Transport and Public Works 
(MTOP), as well as the Provincial Councils and the Municipalities.  
3.114.   The Ecuadorian Standardization Service (INEN) is the technical body responsi ble for 
regulation, standardization and metrology activities. It is assisted by the Inter -Ministerial Committe e 
on Quality, which coordinates inter sectoral quality policy  and compr ises various ministers or their 
representatives.132 
3.115.   The standardization process begins with the identification of national standardization needs, 
which involve s evaluating the po ssible impact of such rules. On the basis of this analysis, the priority 
areas a re identified and included in the Annual Standardization Programme (Chart 3.7). This 
programme is drawn up by the INEN  and included in the National Standardization Plan, which is in 
turn part of the National Quality Plan, an annual plan adopted by the Inte r-Ministerial Committee on 
Quality.  
3.116.   Working drafts of standards are assigned to the various technical departments , which study 
them taking into account the respective technology, bibliography, publications and international 
standards. The working draft bec omes a " draft standard " when the technical department submits it 
to the technical  committee consisting of all interested parties: academic  circles, public bodies, 
industry, chambers and consumers. Once approved by the technical committee, draft standards a re 
published for public consultation (Chart 3.7). They may be consulted on the INEN website for 60 days 
in the case of the normal procedure or 15 days in the case of an accelerated procedure, which arises 
in the event of a national emergency or to address a situation impairing the country 's legitimate 
objectives.   
3.117.   The draft standard then undergoes a quality control to check that it complies with the 
standardization principles, contains the applicable and demonstrable requirements, and complies 
with the inte rnal standardization procedures. Once the document has undergone quality control, it 
is edited  and sent to the MIPRO Under -Secretariat for Quality to be approved and officialized and 
then finally published in the Official Register  (Chart 3.7). 
3.118.   Standards ar e systematically reviewed every five years to assess their validity. Nevertheless, 
they may be reviewed earlier if standardization needs so warrant. Following this assessment, 
standards may be revised, modified or eliminated.  
3.119.   Notwithstanding the voluntary nature of technical standards, the authorities may make 
compliance with them mandatory through a technical regulation. Technical regulations are issued to 
preserve safety, human, animal and plant health, the environment and consumer protection. They 
                                                
132 The Inter -Ministerial Committee on Quality comprises  the ministers responsible for: coordinat ing 
production, employment and competitiveness; industry and productivi ty; the environm ent; tourism, 
agriculture, livestock , aquaculture  and fisheries ; public health; transport and public work s; and electr icity and 
renewable energy (Law on the Ecuadorian Q uality System of 22 February 2007  (latest amendment: 
29 December  2010), Article 9).  WT/TPR/S/383 /Rev.1 • Ecuador  
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  must b e in the interests of the national economy  and in line with the current state of develo pment 
of science and technology  as well as with the country 's climatic and geographical specificities. 
However, the authorities indicated that technical regulations are governed by the principles of 
national treatment, non -discrimination, equivalence and transparency, as set out in the international 
treaties, conventions and agreements in force in Ecuador.   
3.120.   Technical regulations are prepared by central, provincial and mun icipal government 
entities .133 MIPRO is the leading body of the Ecuadorian  Quality System and issues the Ecuadorian 
Technical R egulations (RTE s) with the technical support of the INEN (RTE –INEN).134 In July 2018, 
232 RTE –INEN regulations  were in force. They mu st be reviewed, like standards, at least every 
five years with the technical support of the public and private sectors.135 According to the authorities, 
they are updated or modified in line with international and/or sectoral needs.  
Chart  3.7 Standardization process  
 
Source:  Information provided by the authorities.  
3.121.   During the period 2012 –2018, Ecuador submitted 207  regular notifications and 
25 emergency notifications to  the WTO TBT Committee through MIPRO 's Under -Secretariat  for 
Quality, Ecuador 's national contact point and/or  information centre for the WTO . The notifications 
related to: consumer protection and the prevention of misleading practices; protection of human 
health or safety; and quality requireme nts. Nine of these measures concerned labelling.  
3.122.   Members questioned Ecuador 's technical regulations on 18 occasions  during the review 
period. Measures that have been questioned several times include the labelling system for processed 
food for human consumption, and the procedure for obtaining a Certificate of Recognition or 
conformity verification certificate (form INEN-1).136 This certificate, wh ich is issued by the INEN, is 
a supporting document for the import customs declaration for certain goods subject to technical 
regulations when the value exce eds USD 2,000, except in the case of textiles, clothing and footwear, 
for which there is no thresho ld.137 In 2018, 1,152 ten -digit tariff lines were subject to technical 
                                                
133 Law on the Ecuad orian Quality System, Article 29.  
134 Ibid.,  Article 8.  
135 Preparation, adoption and application of Ecua dorian technical regulations, RTE -INEN 
(NTE INEN 1000:2009).  
136 Technical Barriers to Trade I nformation Management S ystem. Online information . Viewed at:  
http://tbtims.wto.org/es/SpecificTradeConcerns . 
137 Resolution No. 009 -2009, General Framework for Conformity Assessment , and Resolution 
No. 010-2009, Procedure for obtaining  the Certificate  of Recognition (Form INEN  1) (G/TBT/N/ECU /44 
of 16 April 2009); and COMEX Resolutions No. 116 -2013, No. 003 -2014, No. 006 -2014, N o. 007-2014,  
No. 010-2014 and No. 011-2016.  
WT/TPR/S/383 /Rev.1 • Ecuador  
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  regulations. The goods involved are mainly moto r vehicles (HS Chapter 87), clothing and accessories 
(HS Chapters 61 and 62) and electrical machinery and equipment (HS Chapter  85) (Chart 3 .8).  
Chart 3.8 Imports subject to technical regulations, by Chapter, 2018  
 
Note:  1,152 ten -digit tariff lines are subject to technical regulations.  
Source:  WTO Secretariat estimates based on information prov ided by the authorities.  
3.123.   The Ecuadorian Accreditation Service  (SAE) is responsi ble for conformity assessment 
accreditation in Ecuador, for which it has the power to accredit the technical competence of 
conformity as sessment bodies; supervise such bodies; a nd determine the technical conditions under 
which they may offer their services.138 Conformity assessment bodies that may operate in Ecuador 
include public or private entities acc redited by the SAE and foreign bodies with which mutual 
recognition agreements have been signed or that have been so designated by MIPRO. The latter 
may also temporarily designate other foreign bodies, where the service cannot be provided by the 
entities authorized to operate in  Ecuador.  
3.124.   Before they can be marketed, both domestic or imported products subject to a technical 
regulation must have a certificate of conformity issued by a certification body accredited in Ecuador 
or issued in accordance with the mutual recognition agreements in force. Each technical regulation 
establishes th e procedure for demonstrating the conformity of the product. In the case of 
government procurement of goods and services, it is also necessary to establish compliance with 
quality requirements through a conformity  certificate.  
3.125.   Products that have the INEN Quality Seal Certificate of Conformity (INEN Quality Seal) do 
not need a conformity certificate to be marketed. The INEN Quality Seal, which began to be used 
in 2015, is obtained upon application139: the INEN grants the seal when a product is manufactured 
                                                
138 Law on the Ecuadorian Quality System, Article 21.  
139 INEN Resolution 2015 -0002 of 10 March 2015.  
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  under an INEN -approved quality system and permanently complies with the requirements 
established in the relevant technical regulation. The Seal is valid for three years, renewable for three 
consecutive years.140 Enterprises must pay  for the technical services, for example, tests, audits  to 
determine product quality or audits  of the enterprise quality management system carried out by 
INEN in order to be able to grant  the Seal.  
3.126.   Ecuador has a National Calibration System to guarantee the  uniformity and reliability of 
measurements made in the country both with respect to commercial and s ervice transactions as well 
as for industrial processes and scientific and technological development research work. The National 
Calibration System consist s of the INEN Nati onal Metrology Laboratory, the  laboratories designated 
as primary laboratories for the safe custody of national calibration standards, and accredited 
calibration laboratories. The National Metrology Laboratory issues the appropriate metro logy 
procedures.  
3.127.   The INEN manages the National Calibration System and coordinates the necessary activities 
for determining the accuracy of the calibration standards and instruments used by the accredited 
laboratories in order to ensure uniformity and reli ability of the measurements.  
3.3.3   Sanitary and phytosanitary requirements  
3.128.   The main laws governing  phytosanitary and animal health policies and measures are the new 
Organic Law on Agricultural H ealth, dating from 2017, the Organic Law amending the Organic Law 
on the Food Sovereignty Regime , and the Organic Law on Health. The Organic Law on Agricultural 
Health was enacted in order to update and harmonize the national phytosanitary  and animal health 
regulations with the national and international framework s, and th erefore it also repealed various 
laws.141 The regulatory framework in this area also comprises a number of other laws, decrees and 
regulations (Box 3.6).  
Box 3.6 Main legislation governing sanitary and phytosanita ry measures  
Organic Law on Agricultural Health of 27 June 2017 
Organic Law amending the Organic La w on the Food Sovereignty Regime of 12 October 2010  
Organic Law on Health of 22 December  2006 
Law on Fishing and Fisheries Development  (Codification 2005 -007) of 11 May 2005  
Regulations to the Law on Fishing and Fisheries Development, Executive Decree No. 3198 
of 19 February  2016 
Resolution No. 217 of 31 October 2016 : establishes the procedure for the approval of foreign 
enterprises an d their establishment s wishing to export livestock products to Ecuador.  
Resolu tion DAJ-201707 -EC-0201 -0064 : National Plan for Surveillance and Control of Pollutants in 
Primary Sector Production . 
Resolution No. 0099 of 30 September 2013 : instructions on t he general rules for promoting and 
regulating organic, ecological and biological production in Ecuador; regulates and controls organic 
production.  
Organic Law on Health of 22 December 2006 : sanitar y control of the production, importation, 
distribution, st orage, transport, marketing, dispensing and outlets for processed foods, medic ines and other 
products for human use and consumption as well as the systems and procedures for ensuring their safety 
and quality.   
Executive Decree No. 1290 of 13 September 201 2: divides the "Dr Leopoldo Izquieta Pérez" National 
Institute of Hygiene and Tropical Medicine, and creates the National Institute of Public Health and Research 
(INSPI) and the National Agency for Sanitary  Regulation, Control and Surveillance (ARCSA).  
Technical Regulation INEN RTE INEN 022 (2R) : labelling of processed, packaged and packed food 
products.  
                                                
140 The list of products that have obtained the Quality Seal may be viewed online at: 
https://drive.google.com/file/d/1TX2muPrGaqWDHojaZRYzQmLrhxAJCa3Q/view . 
141 The laws repealed in 2017 were the  Law on the Eradication of Foot -and-Mouth Disease;  Law on 
Animal Health; Law on Plant Health; Law on Sl aughterhouses; Emergency Law No. 36; and the Law on State 
Veterinar y Laboratories . WT/TPR/S/383 /Rev.1 • Ecuador  
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  Resolution ARCSA -DE-067-2015 -GGG of 2016 : unified technical health requirements for processed 
foods, food processing plants, food distribution, marketi ng and transport establishments and mass catering 
establishments.  
Resolution ARCSA -DE-028-2016 -YMIH of 2017 : technical health requirements for food supplements.  
Ministry of A quac ulture and Fisheries (MAP) Ministerial Decision No. 13 of 20 October  2017: 
Organic Statute on Process -Based  Organizational Management of the Ministry of Aquaculture and Fisheries  
(MAP):  establ ishes the powers and competencies of the MAP. Aquaculture activities in the production chain  
must observe the aqua cultural  health and safety rules established by the health authority.  
Ministry of Agriculture, Livestock, Aquaculture and Fisheries Decision  241 of 17 June  2010 : 
minimum health requirements for the aquaculture industry.  
Source : Information provided by the authorities . 
3.129.   Since 2017, the authority responsible for plant and animal health and food safety in the 
primary production sector in Ecuador has been the Ecuadorian Plant and Animal Health Regulation 
and Control Agency (AGROCALIDAD), attached to the Ministry of Agricultu re and Livestock (MAG), 
which  took over a ll the responsibilities of the Ecuadorian Agricultural Product Quality Agency.  
AGROCALIDAD is responsi ble for protecting and improving animal and plant health and food safety 
in primary sector production, including organic production. To this end, it draws up , issues and 
applies sanitary and phytosanitary measures affecting both domestic production and imports and 
exports. It works with international bodies such as the International P lant Protection Convention 
(IPPC) , the OIE, Codex Alimentarius and, at regional level, the CAN.  
3.130.   The Ministry of Public Health regulates and exercises sanitary control of the production, 
importation, distribution, storage, transport and marketing of processed foods, medicines and other 
products for human use and consumption, as well as the systems and procedures that ensure their 
safety and quality.142 To this end, in 2012 the National Agency for Sanitary Regulation, Control and 
Surveillance (ARCSA) was established as part of the Ministry.143 The ARCSA is tasked with ensuring 
public health through the regulation and control of the quality and safety of products for human use 
and consumption as well as the hygiene and health conditions of establishments subject to its 
supervisio n and control. It issues technical rules and standards and protocols for the sanitary control 
and surveillance  of the products and establishments for which it is responsi ble144, and monitors  
compliance with technical requirements .145  
3.131.   The ARCSA is responsi ble for granting, sus pending, cancelling or renewing health registration 
certificates and the mandatory health notifications for cosmetics and hygiene products. It also carries 
out controls and su rveillance in the markets after registration certificate s or mandatory health 
notification s have been obtain ed. In addition, t he ARCSA issues health registration certificates for 
imports of the products under its control and, in the case of exports, regulates the procedure for 
obtaining the export health certificate for processed foods , processed food products and medicines 
manufactured and/or prepared in the country exclusively for export.146 
3.132.   Since 2017, the Under -Secretariat  for Quality and Safety of the Ministry of A quaculture and 
Fisheries (MAP) has been responsi ble for health, qualit y and safety  policy  in the aquaculture and 
fisheries sector.147 It replaced the National Fisheries Institute as the authority responsible for health 
controls , official inspection of establishments, analysis of fishery and aquaculture  products, and 
product safety certification for exports. Currently, the National Fisheries Institute carries out 
                                                
142 Organic La w on Health, Article 6.  
143 Executive Decree No. 1290 of 30 August 2012.  
144 These products are: processed foods, food additives, nutraceutical products, processed n atural 
biological products for medicinal  use, homeopathic medicines and dental products; medical, biochemical 
reactive and diagnostic devices, hygiene products, pesticides for domestic  and industrial use manufactured  
domestically  or abroad for import, export, marketing, dispensaries and outlets, including those received as 
donations,  and domestic hygiene products and absorbent personal hy giene products.  
145 The requirements by product and procedure implemented by the ARCSA may be vi ewed online: 
https://www.controlsanitario.gob.ec/documentos -vigentes . 
146 Resolution  ARCSA -DE-012-2017-JCGO (Health Technical Regulations on Products  for Human Use and 
Consumption Exclu sively for E xport ation). 
147 Ministry of Agriculture and Fisheries (MAP) Ministerial Decision No. 13 of 20 October 2017.  WT/TPR/S/383 /Rev.1 • Ecuador  
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  scientific and technological research on biological ocean  resources with a view to diversifying 
production, promoting the development of fisher ies and optimizing their utilization.  
3.133.   AGROCALIDAD has responsibility for drawing up plant and animal health measures for the 
primary sector: its various technical coordination units have procedures for the proper elaboration 
of regulations in each area wit hin its competence.148 These procedures generally include the stages 
of drafting , adoption and publication of the rules, followed by implementation. They are prepared 
with the technical support of  the stakeholders  – producers, importers and/or exporters.  
3.134.   According to the authorities, the main legal provisions relating to plant health are harmonized 
with the IPPC guidelines. A number of resolutions have been issued laying down the phytosanitary 
requirements for imports of plants, plant products  and other regul ated articles, as well as the 
procedure for import and export controls and the new list of quarantine pests not present in Ecuador, 
among others (Box 3.7). AGROCALIDAD 's Food Safety Directorate has published a number of 
handbooks of general agricultural an d livestock good practices.149 
Box 3.7 Regulations governing phytosanitary measures, 2012 -2018  
Resolution No. 146 : establ ishes phytosanitary requirements for single occurrences of imports of plant 
propagation mat erial that promote change in the production matrix and are prioritized and justified by the 
MAG authorities  
Resolution No. 222 : mandatory requirement procedures for imports of samples of plant propagation 
material intended for research  
Resolution No. 116  and Resolution No. 082 : quarantine pests not present in Ecuador (until 15. 9.2017)  
Resolution No. 063 : Handbook of procedures for the control of international transit of plants, plant 
products and regulated articles  
Source:  Information provided by the au thorities.  
3.135.   In the case of imports of animal products, the official veterinary service in the country of an 
enterprise wishing to export its products to Ecuador must forward the exporter 's request to 
AGROCALIDAD together  with information on the health statu s of the species concerned and 
information on the e nterprise and its establishmen ts. This information is assessed by 
AGROCALIDAD 's General Animal H ealth Coordination Office , which reserves the right to request 
additional information and carry out an in sit u inspection. The result of the evaluation of the 
exporting country 's sanitary status will be communicated to that country.  If the result is favourable, 
the process of authorizing the enterprise (and its establishments) wishing to export to Ecuador will 
be initiated. E nterprises have to  submit specific information, through the o fficial veterinary service 
of their country of or igin, to the General Animal Health Coordination Office , which reserves the right 
to request additional information and carry out an in situ inspection . The result of the evaluation will 
be transmit ted to the official veterinary s ervice of the country conce rned.  
3.136.   The approval of the enterprise  and its establishments wishing to export animal products to 
Ecuador is valid for three years. In the event of changes in the sanitary status of the country of 
origin or the enterprise, AGROCALIDAD may stop issuing anim al health import permits and suspend 
the approval of the enterprise (and its establishments) until the official veterinary service of the 
country of origin provides the necessary information, and also, where appropriate, carry out an 
in situ inspection . The costs involved in the approval process are borne by the interested parties 
(public and/or private institutions) wishing to export to Ecuador. Requests for renewal must be made 
by the official veterinary service of the country concerned at least 30 days p rior to the expiry of the 
approval of the enterprise (and its establishments). Once this period has expired, animal health 
import permits will no longer be issued. The renewal will be granted provided there have not been 
any changes in the sanitary status of the country of origin or in the production operating procedures  
of the enterprises and their establishments.   
                                                
148 AGROCALIDAD has five technical coordination offices: General Animal Health  Coordination Office ; 
General Plant Health  Coordination Office ; General Food Safety  Coordination Office ; General Coordination Office 
for Agricultural Input Registration ; and General Laboratories  Coordination  Office.  
149 The complete list is available at: http://www.agrocalidad.gob.ec/direccion -de-inocuidad -de-
alimentos . WT/TPR/S/383 /Rev.1 • Ecuador  
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  3.137.   In the case of exports of agriculture  and fishery products, the MAP Under -Secretariat  for 
Quality and Safety draws up and maintains a register of natural or legal persons authorized to export. 
Establishments wishing to be included in the register must comply with the technical protocols and 
the verifica tion of their health conformity  for the Under -Secretariat  for Quality and Safety to be able 
to issue the official guarantees required by the various markets of destination for the fishery and 
aquacultural  products to be exported. The Under -Secretariat for Quality and Health is responsible 
for the sanitary control and regulatory inspection of all est ablishments and entities in the traceability 
and processing chain for fishery and aquacultural  resources intended for export.   
3.138.   AGROCALIDAD is the designated agency for notifying sanitary and phytosanitary measures 
to the WTO Committee on Sanitary and Phyto sanitary Measures. During the period 2012–2018 
(July), Ecuador  submitted some 120 notifica tions to the Commi ttee (not counting addenda). 
Of these, 11 notifications concerned emergency measures (two relating to plant protection and the 
others to animal health). As for the remaining measures notified to the Committee, some were 
adopted in order to protect animal health and food safety, but most concerned the protection of 
plants and the territory against harm from pests. Generally speaking, the notified measures apply 
to regions or trade partners affected by the disease or pest against which the country is seeking to 
protect itself. Most of them are based on international standards; in only a few cases it is specified 
that there is no relevant international standard or that the measure is not in conformity with the 
international regulations. During the period 2012 -2018 (July), Members did not ques tion the 
phytosanitary and animal health  measures notified by  Ecuador.150  
3.139.   In 2018, 1,124 ten -digit tariff lines were subject to sanitary and phytosanitary measures. 
These concerned in particular fruit and vegetables (HS Chapters 08 and 07), wood, wood charc oal 
and articles of wood (HS Chapter 44) and meat and edible offal (HS Chapter 02) ( Chart 3.9). These 
products require an animal health import permit as well as other customs control documents (such 
as a prior control document, a customs destination docume nt or importer registration) as supporting 
documents for the import customs declaration.151  
                                                
150 Sanitary and Phytosanitary Information Management System. Online information:  
http://spsims.wto.org/es/SpecificTradeConcerns . 
151 Resolutions No. 019 -2014, No. 028 -2015 and No. 027 -2016.  WT/TPR/S/383 /Rev.1 • Ecuador  
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  Chart 3.9 Imports subject to sanitary a nd phytosanitary measures, by HS  Chapter, 2018  
 
Source:  WTO Secretariat estima tes based on information provided by the authorities.  
3.3.4   Competition  policy and price controls  
3.3.4.1   Competition policy   
3.140.   Competition policy in Ecuador since the previous review in 2012 continues to be governed 
by the Organic L aw on the Regulation and Control of Market Power (LORCPM).152 The purpose of this 
law is to prevent, correct, eliminate and sanction anti-competitive behaviour and unfair practices , 
for the benefit of  markets and consumers.153 The provisions of the LORCPM apply to all economic 
operators, whether  natural or legal persons, public or private, national or foreign, profit -making or 
non-profit -making, that carry on economic activities in the national territory as well as outside the 
country insofar as their activities produce or may produce harmful effects on the domestic market.154  
3.141.   The Supervisory Authority for Control of Market Power (SCPM), set up in 2011, is the 
technical body responsible for promoting competition. The SCPM controls the proper workings of 
markets and sanctions  abuse of market powe r, restrictive  agreements and practices and unfair 
practices that have the effect or purpose of restricting, distorting, hindering or impeding competition 
in the market concerned or that have an adverse impact on the efficiency of the economy or on 
welfare.155 The SCPM also examines, controls, authorizes and, as appropriate, denies or sanctions 
economic mergers, for which purpose it  has a range of l egal powers.156 In addit ion, the Market Power 
                                                
152 Law No. 0 of 13 October 2011 and its Regulation (Executive Decree  No. 1152 of 7 May 2012, 
latest  amendment: 14 July 2017).  
153 LORCPM, Article 1.  
154 Ibid., Article 2.  
155 Article 9 of the LORCPM defines 23 types of conduct that consti tute abuse of market power, 
and Article 11 defines the prohibited agreements and practices, of which there are 21 in all.  
156 Article 38 of the LORCPM lists all the powers (30)  to be exercised by the SCPM.  
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  Regulation Board (Regulation  Board) is empowered to issue generally mandatory rules on matters 
within its sphere of competence. The head (or delegate) of the SCPM  participates in Regulation Board 
meetings as an invitee with the right to speak but not to vote. The Regulation  Board is comprised of 
the heads  (or their delegat es) of the ministries responsible for production, economic policy, strategic 
sectors and social development.157  
3.142.   The SCPM applies the l aw across all economic sectors , including the strategic sectors and 
those for which regulatory bodies exist. However, at th e initiation or in the course  of an investigation, 
the SCPM coordina tes with other regulatory authorities. For example, in cases relating to entities of 
the national financial system, the SCPM invol ves the Banking Supervisory Authority and/or the 
Superviso ry Authority for the p opular and solidarity e conomy in order to be in possession of all 
relevant information for undertaking the appropriate analysis. It  also coordinates  with other 
regulatory authorities  such as the Internal Revenue Service, the Superviso ry Authority for 
Companies, Securities and Insurance,  the Banking Supervisory Authority,  the Supervisory Authority 
for the popular and solidarity economy, the ARCSA, ARCOTEL, ARCOM, ARCH,  SENAE,  the 
Comptroller -General and the Attorney -General.  
3.143.   The SCPM may launch an investigation ex officio, at the request of another body of the Public 
Administration, or in response to a complaint by any public or private person showing  a legitimate 
interest. It may initiate an investigation ex of ficio when it c onsiders that in a particular market 
anticompetitive practices may actually  or potentially exist . However, without prejudice to ex officio 
investigation, any natural or legal, public or private, national or foreign person may lodge  a complaint 
against such a practice. The complaint must be made in writing to the S CPM, giving a precise 
description of the behaviour  or practices  that are presumed to be anti -competitive of which it is 
aware, identifying those responsi ble and supplying all relevant evidence.  
3.144.   When the S CPM receives a complaint or carries out an investigation on its own init iative, and 
before taking decisions and determining po ssible penalties, it must collect information and analyse 
various aspects of the case. Although the same aspects are not a nalysed in all cases, the main 
matters to be investigated are: (a) definition of the relevant mark et; (b) volume of business; 
(c) market power actually possessed by the  enterprise under investigation; ( d) existence of the 
allegedly anticompetitive practice ; and ( e) actual or potential, positive or negative, effects of the 
anticompetitive practice for society.   
3.145.   In the period 2012 –2018 (April), 231 cases of unfair practices and 219 cases of market 
power abuse and restrictive agreements and practices were inve stigated. In 2018 (April), 
54 investigations were underway for unfair practices and another 54 for abuse of market power, 
collusion and restrictive practices.158 These cases primarily concern the pharmaceutical industry,  
financial services, telecommunication s and the distribution  sector  (supermarkets). As for the type of 
unfair practices investigated, the most common was fraud and violation of contractual rules, while 
in the case of investigations of abuse of market power and/or collusion and restrictive prac tices, the 
most common were unilateral practices and m arket-sharing  arrangements. In some cases  the 
investigations gave rise to corrective penalties and in others to the closing of the case for lack of 
evidence.  
3.146.   Economic mergers must be notified to the  SCPM when : (a) the volume of business in Ecuador 
of the participants taken together exceeds, in the accounting period prior to the operation, the 
amount laid down by the Regulatory Board in terms of current Unified Minimum Wages (in 2018, 
equivalent to US D 318). T he thresholds were last defined in 2015. These thresholds may be reviewed 
at any time at the request of the Chair of the Regulation Board or at least two of its members, or 
the SCPM159, or (b) in the case of economic operators engaged in the same ec onomic activity and 
who as a result of the merger will acquire or increase their share of the relevant market to 30% or 
more. However, the S CPM may request ex officio,  or at the request of a party , that other economic 
mergers also be notified, but accordin g to the authorities this has never occurred.  
3.147.   Between 2012 and 2018, 159 merger operations were investigated. The notification 
obligation does not apply in the case of acquisition of shares or any type of convertible security  
                                                
157 LORCPM, Article 35.  
158 Information provided by the authorities.  
159 Resolution No. 009 of 6 November 2015.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 88 - 
  without voting rights, or the acquisition of liquidated enterprises or enterprises that have not 
recorded any activity in Ecuador over the last three years.   
3.148.   Within 60 calendar days, running from the submission of the request and respective 
documentation,  the SCPM must: (a) aut horize the operation ; (b) authorize the operation under 
certain conditions; or (c) refuse the operation.160 The decision is taken after analysing criteria such 
as the state of competition in the relevant market; the degree of market power of the economic 
operator an d its main competitor; the need to develop and/or maintain free competition among 
economic operators in the market ; the possible effect of concentration on the market and/or the 
possible contribution to the production system, the country 's economic progres s, competitiveness 
and consumer welfare .161 
3.149.   Where a merger takes place without prior notification or prior authorization, the S CPM may 
order measures to reduce concentration, or corrective measures or the cessation of the control by 
one economic operator over another or others, where the case so warrants, without prejudice to 
whatever penalties may be imposed according to the serious ness of the offence.162 The economic 
operators under investigation or the subject of a complaint may submit proposals for a compromise 
under which they undertake to cease the practice and thus remedy, as appropriate, the damage and 
injury they may have cause d to the relevant market and to consumers by their anticompetitive 
behaviour .163 
3.3.4.2   Price controls  
3.150.   Generally speaking, in Ecuador prices are market -driven. H owever, the State has the 
obligation to regulate, control and intervene, when necessary, to define a pri ce policy aimed at 
protecting domestic production.164 The setting of predatory prices and unjustified price 
discrimination constitute abuse of market power and as such are prohibited. Likewise, the concerted 
setting or manipulation of prices, interest rates or tariffs falls within the scope of prohibited 
agreements and practices in Ecuador.165 Speculation and the raising of prices above the official 
indices of inflation, producer prices or consumer prices, are also unlawful trade practices. Again, any 
other unf air practice that causes or is likely to cause an indiscriminate increase in the prices of goods 
and/or services is prohibited. Where there are indications of speculative processes, the police and 
other competent authorities may, at the request of any inte rested party or even ex officio, carry out 
the necessary controls in order to verify  their existence.166 
3.151.   Ecuadorian legislation provides for the use of minimum sales prices, called "minimum 
support prices", in order to guarantee fair prices to producers. The se prices are applied to cotton, 
rice, bananas and plantains, coffee, s ugar cane, pork, maize, milk, qu inoa, soya beans and wheat. 
MAGAP determines these prices taking into account production costs and a profit margin for the 
producer. In addition, since 2 018 MAGAP has set a maximum price for maize and rice in order to 
avoid speculation167 (Section  4.1). 
3.152.   Article 159 of the Or ganic La w on Health establishes that the national health authority must 
set, review and control the price of medicines for human use thr ough the National Council for the 
Fixing and Review ing the  Prices of Medicines for Human Use, attached to the Ministry of Public 
Health, in order to ensure the availability of and access to high -quality medicines for the population 
and promote domestic pro duction.168 This Council  is responsi ble for setting and reviewing prices on 
the basis of the Regulations on the setting of prices of medicines for human use and consumption, 
whether domestic or imported.169  
                                                
160 LORCPM, Article 21.  
161 LORCPM (Law 0) of 13 October 2011, Article 22.  
162 The penalties are specified in Articles 78 and 79 of the LORCPM.  
163 LORCPM, Article 89.  
164 Constitution of the Republic, Article 335.  
165 LORCPM (Law 0) of 13 October 2011.  
166 Organic Law on Consumer Protection (Law No. 21) of 10 July 200 0 
(latest  amendment:  16 January  2015).  
167 MAGAP Ministerial Decisions No. 046, No. 047 and No. 048 of 11 April 2018.  
168 Constitution of the Republic, Article 363.  
169 Decree No. 400 of 14 July 2014.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 89 - 
  3.153.   The enterprises that are responsible for the  supply of household public services, either 
directly or under concession contracts, have the obligation to provide efficient, continuous and 
permanent services at fair prices.170 Electricity and telephone tariffs are regulated (Section 4).  
3.3.5   State trading, state-owned enterprises and priv atization  
3.154.   State -owned enterprises are entrusted with a major role in the Ecuadorian economy : under 
the Constitution , the State reserves  the right to administer, regulate, control and manage strategic 
sectors. These sectors und er exclusive control of the State are those that have a decisive economic, 
social, political or environmental influence. The following are considered strategic sectors: energy in 
all forms, telecommunications, non -renewable natural resources, transport and  refining of 
hydrocarbons, biodiversity and the genetic heritage, the radio  spectrum, water and other sectors as 
determined by law. The State is also responsible for providing public services of drinking water and 
irrigation, sanitation, electricity, telec ommunications, roads, port and airport infrastructures, and 
others as determined by law. Accordingly, state -owned enterprises have been set up to manage 
strategic sectors, provide public services, make sustainable use of natural resources or public goods 
and carry out  other economic activities.171 The public enterprises operating in strategic sectors are 
as follows: Empresa Pública Estratégica Corporación Eléctrica del Ecuador (CELEC EP) (Electricity 
Corporation of Ecuador), the Empresa Pública Estratégica Co rporación Nacional de Electricidad (CNEL 
EP) (National Electricity Corporation), Empresa Nacional Minera (ENAMI EP) (National Mining 
Company), Empresa Pública Exploración y Explotación de Hidrocarburos (PETROAMAZONAS EP) 
(State Hydrocarbons Exploration and  Exploitation Company) , Empresa  Pública Hidrocarburos del 
Ecuador (PETROECUADOR EP) (Ecu adorian State Oil Company), Empresa Pública Flota Petrolera 
Ecuadoriana (FLOPEC EP) (Ecuadorian State Oil Tanker Fleet Company), Empresa Pública del Agua 
(EPA EP) (Publ ic Water Company) and Corporación Nacional de Telecomunicaciones (CNT) (National 
Telecommunications Corporation).  
3.155.   Ecuadorian state -owned enterprises may opt for any form of association they consider 
appropriate, such as consortia, strategic alliances, private-public partnerships, with Ecuadorian or 
foreign enterprises and/or subsidiaries, in order to attain their productivity and efficiency targets. 
When state -owned enterprises enter into partnership  with foreign private or state -owned 
enterprises, the Ecu adorian State will always retain a majority shareholding in the case of 
partnerships that operate in strategic sectors. The state -owned enterprises of the Central 
Government  have a Strategic Plan 2017 -2021, whose targets, strategies and indicators are alig ned 
with those of the National Development Plan 2017-2021 a dopted by the National Planning and 
Development  Secretariat (SENPLADES).  
3.156.   State -owned enterprises are governed by the Organic Law on Public Enterprises of 2009.172 
In March 2018, there were 324 public enterprises in Ecuador. These are classified as State -Owned 
Enterprises of the Central Government  (or Coordinated State -Owned Enterprises) (22), Public 
Enterprises created by the Constitution or Law  (33); Public Enterpr ises of the Provincial Autonomous 
Governments (32); and Public Enterprises of the Autonomous Municipal Governments (237) 
(Table  3.11).  
Table 3.11 State -owned enterprises , 2018  
Type of enterprise  Sector  Number  
State -owned enterprises of 
the Central Government  Infrastructure and non -renewable natural resources  10 
Production  3 
Safety  2 
Social  2 
Habitat and environment  2 
Foreign policy and promotion  1 
Unclassifieda 2 
Public Enterprises created by 
the Constitution or Law  Education – universities  33 
                                                
170 Organic La w on Consumer Protection (Law No. 21) of 10 July 2000  
(latest amendment: 16 January 2015).  
171 Constitution of the Repub lic, Articles 313 -315. 
172 Organic Law on Public Enterprises (LOEP), Law 0 of 16 October 2009  
(latest amendment: 19 May 2017).  WT/TPR/S/383 /Rev.1 • Ecuador  
- 90 - 
  Type of enterprise  Sector  Number  
Public Enterprises of the 
Provincial Autonomous 
Governments  Roads and public works  13 
Other servicesb 9 
Tourism  6 
Agricultural services  2 
Electricity  2 
Public Enterprises of the 
Municipal Autonomous 
Governments  Drinking water, irrigation and sanitation  75 
Roads and public works  40 
Other servicesc 31 
Rubbish collection  24 
Housing  23 
Slaughter houses  18 
Tourism  10 
Health  6 
Property register  4 
Agricultural services  4 
Electricity  2 
a Ecuador Estratégico EP and EMCO EP.  
b Including communication and information, production devel opment and competitiveness, 
and telecommunications services, inter alia . 
c Including communication and information, production devel opment and competitiveness, 
and municipal services, logistics, parks, cemeteries a nd the like, leisure areas, 
and telecommunications services, inter alia .  
Source:  EMCO EP  Planning Department . 
3.157.   The Coordinating Enterprise for State -Owned  Companies  (EMCO EP) was create d in 2015 for 
the purpose of planning, coordinating and controlling the policies of operations of state-owned 
enterprises at central government level, as well as their subsidiaries, branches, agencies and 
business units. Its purpose is to achieve greater e fficiency in the technical, administrative and 
financial management of the companies, as an alternative for financing the State budget. The 
enterprises under the EMCO EP are all those corresponding to the central government level, i.e. the 
Executive Branch  of the State. Previously, these enterprises were each attached to the sectoral 
ministry in charge of their respective areas of activity , which led to a lack of cooperation among 
them across the various sectors. The creation of the  EMCO EP has brought abou t better coordination 
among the enterprises placed under its authority.  
3.158.   In 2015 there were 23 central -government -owned enterprises (not counting the coordinating 
enterprise). One of these was subsequently abolished, namely, Empresa Pública de Fármacos 
ENFARMA EP  (State  Pharmaceuticals  Company) . In 2016, two public enterprises, El telégrafo EP and 
Televisión y Radio de Ecuador EP RTV Ecuador, merged to form the Empresa Pública de Medios 
Públicos de Ecuador – Medios Públicos EP (State Public Media Company), which left 21 enterprises 
(Table A3.5) .173 
3.159.   The income of the state -owned enterprises coordinated by EMCO EP (provisional data) 
totalled about USD  14 billion in  2017, about the same level as in 2015. Transfers  from the General 
State Budget amounted to some USD  383 mill ion in 2017, less than in 2015 (USD  486 mill ion). 
In 2017, nine public enterprises received transfers from the State for ongoing and non -recurrent 
expenses.  
3.160.   There are currently no government supp ort programmes directly aimed at public enterprises. 
However, as public enterprises belong to the Ecuadorian public sector, they can tap funds from the 
Institutional Strengthening Programme financed by the Inter -American Development Bank (IADB), 
consisting  of a refundable credit for financing restructuring projects as well as process, service and 
quality management improvement projects for government institutions. Public enterprises are 
exempt from income tax (25% of the tax base) and the advance payment of  income tax, but are 
subject to VAT (12%). In addition, they must pay the municipal business tax and a levy to the 
Super visory Authority for  Companies. The public enterprise Santa Bárbara EP, which produces 
weapons and armour,  is also subject to the ICE (3 00%).  
3.161.   State -owned  enterprises do not enjoy any preferential procedure for importing or exporting. 
None of the coordinated public enterprises has an exclusive right to import or export any good or 
                                                
173 Executive Decree No. 1158 of 22 August 2016.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 91 - 
  service. Among the central -government -owned public enterpris es, the main export er is 
PETROECUADOR, and the largest importers are PETROECUADOR and Empresa Pública 
Estratégica Corporación Eléctrica del Ecuador (CELEC)  (Electricity Corporation of Ecuador) , which 
account for 9.0% of total imports .174  
3.162.   With respect to government procurement, state-owned  enterprises must apply all the 
procedures laid down in the Organic Law of the National Public Procurement System. Like all other 
economic operators they are also subject to the provisions of the law gover ning competition policy 
in Ecuador.175  
3.163.   In 2012 Ecuador notified the WTO tha t it did not maintain any State trading enterprises 
corresponding to t he definitions in Article XVII: 4(a) of the GATT 1994 and paragraph 1 of the 
Underst anding on the Interpretation of Article XVII of the General  Agreement on Tariffs 
and Trade  1994.176 
3.164.   In 2014 and 2018 Ecuador notified the WTO that it had a state trading e nterprise falli ng 
within the definition of GATT  Article XVII.177 This is the National Storage  Unit (UNA EP) which is 
chiefly responsi ble for the temporary storage  and domestic marketing of agricultural surpluses, in 
particular yellow flint maize, rice and cereals, the management of strategic food reserves, and  
support for the marketing and distribution of inputs. It plays  a significant part in low - and 
high-volume domestic marketing, but it does not import or export.  
3.165.   In 2013 the Empresa Pública Importadora EPI -EP was set up as the sole importer of 
mercury178, and i n 201 4 it also  became the sole importer of sodium cyanide and potassi um 
cyanid e.179 However, it was liquidated in 2015 and the Ministry of the Environment was tasked with 
regulating imports of the  substances previously imported by the now -defunct EPI.180 
3.3.6   Government procurem ent  
3.166.   Ecuador is not a party  to the WTO Agreement on Government Procurement and does not 
participate as an observer in the Committee on Government Procurement.  
3.167.   Through its National Public Procurement System, Ecuador seeks inter alia to ensure the 
quality and transparency of public expenditure and avoid discretionary action in government 
procurement, as well as to promote domestic production and the participation of craft workers and 
MSMEs.  
3.168.   Ecuador uses government procurement as a strategic element of public  policy to achieve 
some of the objectives established in the National Plan for Good Living 2013 -2017, such as , for 
example , changing  the production matrix through public investment and procurement.181 In order 
to achieve the objective of chang ing the product ion matrix, procurement policy promotes import 
substitution, reserves markets, in particular for micro, small and medium -sized enterprises (MSMEs) 
and the popular and solidarity economy (EPS), and re wards innovation and transfer of know -how 
and technology.  Government procurement policy also seeks to promote public investment by 
reducing the imported component, imposing performance requirements and giving priority to local 
production chains.182 
3.169.   Government procurement in Ecuador is governed by the Organic Law o n the National Public 
Procurement System (LOSNCP) of 2008 (as last amended in 2018); and the General Regulations 
                                                
174 Information provided by the authorities (EMCO EP Planning Department).  
175 Article 2  of the Organic La w on the Regulation and Control of Market Power.  
176 WTO document G/STR/N/14/ECU of 20 December 2012.  
177 WTO document G/STR/N/15/ECU of 6 October 2014, and G/STR/N/16/ECU of 6 July 2018.  
178 Executive Decree No. 92 of 21 August 2013.  
179 COMEX Resolutions 037 -2014 and 017 -2015.  
180 Decree  No. 840 of 24 December 2015 and COMEX Resolution  No. 005-2016.  
181 National Plan for Good Living 2013 -2017. Online information : 
http://www.buenvivir.gob.ec/objetivos -nacionales -para-el-buen-vivir. 
182 Information provided by the authorities.  WT/TPR/S/383 /Rev.1 • Ecuador  
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  implementing  the Organic Law o n the National Public Procurement System (RLOSNP) of 2009 
(last amended in 2016).  
3.170.   The National Public Procurement  Service (SERCOP), set up in 2013, replaced the previous 
INCOP .183 As the guiding entity of the National Public Procurement System (SNCP) , SERCOP is 
responsi ble for ensuring that the objectives of the SNCP are fulfilled and for developin g and 
administering the Official Public Procurement System  (SOCE).184 
3.171.   The SOCE is an electronic tool for public procurement that began to be used in 2009 as a 
register of suppliers, and has since gradually been updated with the inclusion  of various procurement 
methods. The auth orities stated that since 2012 all ordinary public procurement is managed 
electronically through the SOCE. In 2015 the "facilitator " module was added, whose use is now 
mandatory  and facilitates  the preparation of the annual procurement plan, the special co nditions of 
contract s, and bids. The use of this module has promoted the participation of a large r number of 
suppliers , and avoids disqualification owing to mistakes in the submission of bids. Thanks to its use, 
public procurement processes have become mor e transparent and greater control over them has 
been established. Suppliers must be registered in the Single Registry for  Suppliers (RUP) as 
authorized suppliers  to be able to participate in any type of procurement, with some exceptions.  
3.172.   Public  procurement  procedures in Ecuador fall under four  regimes : ordinary regime, special 
regime, special procedures and other (Table 3.12). The special procedures are used for the contracts  
designa ted by the Pre sident of the Republic, such as purchases of medicines, procu rement by the 
armed forces, and procurement  between state entities and/or public enterprises; in the case of 
tendering by public enterprises, a "Specific Business " procedure (Giro Especifico del Negocio) is 
used.185 In the case of special procedures the law does not establish thresholds (Article  2).  
Table 3.12 Government procurement procedures, 2018  
 Procedure  
Ordinary 
regime  • Minimal value  • Low value  • Direct purchase  
• Online purchase  catalogue  • Bidding by invitation  • Shortlist  
• Reverse auction  • Tendering  • Public competition  
Special regime  • Purchase of medicines  • Legal advice and 
sponsorship  • Internal or international 
mail transport  
• Internal and external 
security  • Artistic, literary or 
scientific works  • Contracts between public 
entities  
• Social communication  • Parts and accessories  • Financial and insurance 
institutions  
• Strategic sectors  • Unique  goods and 
services on the market  • State trading enterprises 
and subsidiaries  
Special 
procedures   • Leasing of  property   • Comprehensive 
fixed-price contracts  • Emergenci es  
• Acquisition of property   • Inclusion fairs    
Other  • Corporate procurement  • National capacity   • Verification of national 
production (VPN)  
• IDB contracting module – 
Ordinary regime  • Framework convention 
and inclusion fairs    
Source:  Information provided by the  SERCOP.  
3.173.   For "standard ized" (i.e. homologated) goods and services , in general public procurement is 
carried out through the online purchase catalogue (Table 3.13). This catalogue is regu larly updated 
through supplier selection processes for suppliers with whom framework agreements are made under 
which they offer standardized goods and services that the contracting public entities may acquire 
directly (Article 43). For the acquisition of s tandardized goods and services not included in the 
catalogue, the contracting entities must hold a reverse auction in which the suppliers of good s and 
services drive the offer  price downwards either through a public auction or through the 
COMPRASPUBLICAS website (Article  47). 
                                                
183 Organic Law amending the Organic Law of the National Public Pr ocurement System (LOSNCP) 
of 14 October 2013.  
184 LOSNCP Articles  7 and 9.  
185 Interna l Resolution No. RI -SERCOP -2015-000094 of 22 May 2015  
(latest amendment: 24  January 2017).  WT/TPR/S/383 /Rev.1 • Ecuador  
- 93 - 
  3.174.   For non -standard ized goods , services and works , the various procedures of the ordinary 
regime are used according to the value  of the contract. In the case of consultancies, the procurement 
procedure also depends on  the value of the con tract.  The procedure may be direct contracting, 
shortlist or public competition.  
3.175.   Ecuador grants public procurement preferences for goods, works and services of Ecuadorian 
origin as well as for enterprises operating in the popular and solidarity economy (EPS) and for 
micro  and small enterprises (MSEs). In all procurement procedures, preference is given to suppliers  
offering goods, works or services that incorporate the most local content  or EPS enterprises and/or 
MSEs, through the application of me chanisms such as proportional preference margins  over the bids 
of other suppliers, reserved market share s and/or preferential subcontracting. For the acquisition of 
goods, works or services not considered to be of Ecuadorian origin, a prior check must be m ade to 
ensure th at there is no Ecuadorian supplier , using methods  that do not  delay the procurement 
(Articles 25.1 and 25.2)   
3.176.   The preferences granted vary according to the type and value  of the contract (Table 3.13). 
In some  cases there is a market reserva tion in favour of  MSEs and EPS operators and therefore only 
those suppliers deemed to qualify as MSEs or belonging to the EPS are invited, as in the procurement 
of non -standard ized goods and services in s mall quantities. For consultancies , there is no market 
reservation  but the recruitment of Ecuadorian nationals is prioritized.  
Table 3.13 Thresholds and preferences by government procurement procedure  
 Procedure  2018 Threshold 
(USD) Preferences  
Standardized 
goods and 
services  Online purchase  
catalogue  No limit  n.a. 
Reverse auction  > 6,970.67  Market reserved  for the best price bid that 
complies with  Ecuadorian value added (VAE)  
Minimal  value  ≤ 6,970.67  n.a. 
Non-
standardized 
goods and 
services  Low value  < 69,706.74  Market reserv ed for local MSEs and the 
popular and solidarity economy (EPS)  
Bidding by invitation   Between 
69,706.74 and 
522,800.57  VAE: up to 5 points  
MSEs and EPS: VAE + 5 points  
Local MSEs and EPS: VAE + 5 points  
Tendering  > 522,800.57  VAE: up to 10 points  
Works  Low value  < 243,973.60  Market reservation for MSEs and EPS  
Bidding by invitation   Between 
243,973.60 and 
1,045,601.15  MSEs and EPS: VAE + 5 points  
Local MSEs and EPS: VAE + 10 points  
Tendering  > 1,045,601.15  Subcontracting: VAE + 5 points  
Ecuadorian participation : VAE + 10 points  
Consultancy  Direct contracting  ≤ 69,706.74  Priority for recruitment of Ecuadorians  
Shortlist  > 69,706.74 and 
< 522,800.57  Priority for recruitment of Ecuadorians  
Public competition  ≥ 522,800.57  Priority for recruitment of Ecuadorians  
n.a. Not applicable.  
Source:  Information provided by the SERCOP.  
3.177.   In other cases, the Ecuadorian value added (VAE) is used as the preference parameter. It is 
calculated at the end of the bidding or n egotiation  stage. The following criteria are used to award 
the preference: (a) if there are domestic bids (that meet the VAE threshold), the system only takes 
these into account and disqualifies those that do not meet the threshold, as they  are considered 
foreign bids; (b) if the bidder is the manufacturer and fulfils the VAE threshold, its product is 
considered national ; (c) if the bidder is the manufacturer but it does not meet the VAE threshold, 
the product is considered foreign ; (d) if the bidder is not the manufacturer, it is automatically 
awarded a VAE of zero and its product is considered foreign. Other preferences give points for the 
declared VAE in the bid and points are also awarded if the participants are MSEs or part of the local  
EPS, in other words they belong to the canton in which the object of the contracting will be carried 
out.  
3.178.   In the case of bids for works, the preference awarded takes ac count of subcontracting and 
Ecuadorian participation, meaning the percentage of local c ontent in the technology that will be used WT/TPR/S/383 /Rev.1 • Ecuador  
- 94 - 
  for the work. In the case of subcontracting, full points will be awarded to the bid that offers the 
highest percentage of subcontracting with MSEs or EPS enterprises of the locality where the work 
will be carried out, with a limit of up to 30% of the value of the bid. Other bids that offer a percentage 
of subcontracting of at least 10% of the value of their bid will be awarded points in direct proportion 
to the highest proposed percentage.  
3.179.   Under Ecuadorian law, a bidder may lodge an administrative appeal to challenge the award 
of a government procurement contract.  
3.180.   In 2012 -2013, the level of public procurement remained at about 11% of GDP, a large part 
of which consisted  of spending on public works. However, since then it has decreased in line with 
the slower growth of the economy and the cutbacks in non -priority spending (Chart 3.10).  
Chart 3.10 Government procurement , 2012 -2018 ( July) 
 
 
a Provisional d ata. 
Source:  National Public Procurement Service, Trends in Public Procurement – July 2018.  
3.181.   Government procurement totalled almost USD 3,610 million at July 2018; this represents 
17.8% of the General State Budget (G SB) and 5.9% of GDP . At that date the Cen tral Government 
accounted for 29.9% of the total value of government procurement, the decentralized autonomous 
governments for 33. 3% and the central government public enterprises for  16.4%. Of the latter, 
PETROECUADOR was the largest in 2017 with a total p rocurement of USD 3,721 million, followed by 
the Electricity Corporation of  Ecuador (CELEC EP), with USD 3,213 million. In 2018 (July), 
the National Electricity Corporation  (CNEL EP)  topped the list  with total procurement of 
USD 148.9 million. 
3.182.   As a result of Ecuador 's preference policy, MSMEs and EPS enterprises and associations have 
played an important part in government procurement. In the period between 2012 and 2018 (July), 
EPS participants were awarded contracts totalling USD 1,258 mill ion, r epresentin g 2.4% of 
government procurement during this period, while MSMEs totalled USD  24,358 million, or 46.2% of 
public procurement during this period.   
3.183.   Since 2012, most procurement has  been done through the ordinary regime. In general, 
public tendering  has been the most frequently used method, followed by online reverse auction and 
in some years (2012 and 2013), one of the special regimes, i.e. special publication  (Table  3.14).  
2012 2013 2014 2015 2016 2017 201801,0002,0003,0004,0005,0006,000
Goods Works Services37.9%41.5%
23.9%
20.4%23.2%
19.6%
17.8%
11.2% 11.4%
8.1%7.5% 7.0%5.7% 5.9%
02,0004,0006,0008,00010,00012,000
2012 2013 2014 2015 2016 2017 20180%5%10%15%20%25%30%35%40%45%
Government Procurement (GP)
GP/GB
GP/GDPGovernment Procurement (GP) as a percentage of 
the general budget (GB) and GDPBy type of purchase
(USD million) (USD million)
a a a aWT/TPR/S/383 /Rev.1 • Ecuador  
- 95 - 
  Table 3.14 Government procurement indicators , 2012 -2018  
 
2012  2013  2014  2015  2016  2017a 2018a,b 
Contracts   138,077 141,634 110,941 91,577 95,605 119,089 68,386 
 (USD million)  
Total government 
procurement  9,888 10,843 8,198 7,412 6,916 5,849  3,610.2 
Ordinary regime          
Online purchase catalogue  307.6 373.1 407.2  370.0  622.7  1,121.8  708.8 
Public competition  169.8 116.2  81.6  50.1  46.6  18.3  11.8 
Direct contracting  123.4  112.3  136.3  122.5  60.7  54.2  32.7 
Bidding by invitation  745.4  695.3  665.0  591.8  399.0  444.7  347.6 
Inclusive fairs  -  -  57.2  60.5  30.1  11.5  32.8 
Tenderingc 2,620.8  2,200.6  1,244.9  1,074.2  972.9  565.0  510.9 
Insurance tendering  20.8  45.4  33.6  29.4  27.0  31.0  18.2 
Short list  117.3  113.2  113.9  118.5  69.5  60.0  33.3 
Low value  666.7  642.5  470.6  451.7  272.2  323.8  218.6 
Online reverse auction  1,664.0  1,653. 2  1,777.8  1,866.3  1,313.5  1,073.8  745.3 
Special regime         
Procurement between 
administrative units  -  506.9  888.3  526.0  605.8  682.6  395.3 
Unique goods and services  -  181.9  459.0  313.0  232.1  244.2  170.4 
Special publication  3,451.7  3,546.8  477.2  816.7  1,707.1  664.9  208.0 
Social communication  -  152.1  238.5  191.0  121.9  124.7  55.7 
Specific business of public 
enterprises  -  207.7  658.2  158.0  97.3  63.8  44.4 
Replacement parts or 
accessories  -  94.6  130.9  112.1  62.0  85.6  32.0 
Artistic, scientific or literary 
work -  23.6  38.7  43.8  42.8  57.6  30.3 
Procurement with 
international or public 
enterprises  -  92.0  212.9  475.5  187.1  177.1  6.2 
Insurance procurement  -  71.6  87.6  28.2  32.8  34.8  5.5 
Legal advice and services  -  12.6  17.0  11.5  8.9  7.7  1.8 
Internal or international mail 
transport  -  0.3  0.4  0.6  1.5  0.6  0.5 
Procurement of Government 
financial and insurance 
institutions  -  1.0  0.6  0.9  2.9  1.7  0.2 
a Provisional  data. 
b January -July. 
c The SERCOP does not possess this information in the case of international tendering .  
Source : SERCOP – SOCE.  
3.3.7   Intellectual property rights  
3.3.7.1   General features  
3.184.   During the period under review, a number of changes were made in the legal framework 
governing intel lectual property rights (IPRs). In 2016, the Organic Code of the Social Economy of 
Knowledge, Creativity and Innovation ( Code of Knowledge ) was promulgated,  replacing  the earlier 
Intellectual Property Law (LPI) o f 1998.186 The Code of Knowledge  is the primary text regulating 
IPRs and has provisions governing both industrial property and copyright and related rights, as well 
as plant varieties and traditional kn owledge. Its implementing Regulations were adopted in 2017.187 
However, they do  not regulate all IPR matters. Those not governed by the Code of Knowledge 
Regulations continue to be governed on a transitional basis by the 1998  LPI Regulation s 
(Table  A3.6).  
3.185.   Ecuador is a member of the World Intellectual Property Organization (WIPO) and signatory 
to various treaties administered by WIPO . During the review period, Ecuador ratified the Marrakes h 
Treaty to facilitate access to published works for persons who are bl ind, visually impaired or 
otherwise print disabled.  
                                                
186 WTO document s IP/N/1/ECU/3 -IP/N/1/ECU/C/8 of 25 January 2017.  
187 Executive Decree No. 1.435 (Regulations implementing the Organic Code of the Social Economy of 
Know ledge, Creativity and Innovation) of 23 May 2017.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 96 - 
  3.186.   Since 2017, the new government entity responsible for industrial property, copyright and 
related rights, plant varieties and traditional knowledge is the National Intellectual Rights Service 
(SENADI), under the authority of the recently created Secretariat of Higher Education, Science, 
Technology and Innovation  (SENESCYT).188 The SENADI replaced the Ecuadorian Intellectual 
Property Institute (IEPI).189 It is primarily tasked with: (i) protecting and upholding  IPRs recognized 
by Ecuadorian law; (ii)  organiz ing and administering all registrations relating to IPR protection; 
(iii) undertaking the procedures and deciding on whether to grant registrations of rights for patents, 
utility models, industrial designs, t rademarks, commercial slogans, trade names and geographical 
indications, inter alia ; (iv) processing and deciding on challenges to registration applications;  
(v) setting the fees and charges for IPR registration applications; and  (vi) implementing public p olicy 
on IPR protection as issued by the  SENESCYT.190 
3.187.   Ecuadorian law grants national treatment to foreign IPR holders.191 Priority rights are also 
recognized by virtue of the relevant international treaties ratified by Ecuador.192 
3.188.   The State reserves the right to  access matters protected by IPRs without the owner's 
permiss ion for reasons of public interest, when these goods guarantee constitution al rights or are 
part of the so -called "strategic sectors". Where this prerogative is used, the law provides for 
compensation to be made to the owner. This prerogative has not been used since the Code of 
Knowledge  entered into force. If it is used, the right owner will receive compensation either in the 
form of a royalty or as one of the payments made for the concession or service contract  in these 
sectors.  
3.3.7.2   Industrial property  
3.189.   The Code of Knowledge  governs patents, utility models, layout -designs of integrated circuits 
and industrial designs.  
3.190.   In order to obtain a pa tent, a patent registration  must be obtained  by means of an application 
to the SENADI.193 Until the implementing regulations for the Code of Knowledge are issued, the 
time-frames and procedures will be determined on a transitional basis by the provisions of the 
Intellectual Property Law and other rules such as the IPL  implem enting regulations, and the 
CAN legislation establishing  the Common Industrial Property R egime for the Andean Community  will 
also apply .  
3.191.   Both national and foreign natural and legal person s may own patent right s.194 A patent holder 
has the right to prevent unauthorized third parties to manufacture, sell or import a patented product 
or, in the case of a process, to implement or market the product obtained through the use of the 
patented proces s.195  
3.192.   As a general rule, rights deriving from an invention made in the performance  of a contract 
whose subject matter is the inventive activity are vested in  the employer, unless otherwise agreed 
by the parties to the contract.196 If the invention is made in the course of a contract whose subject 
matter is not the inventive activity, but with the use of the employer 's resources or confidential 
information, the latter is entitled to a free and non -exclusive licence for the patent.  
3.193.   A patent owner may grant licen ces for the exploitation of the patented invention or process 
through the corresponding registration. Various licences may be granted for the same patent to 
                                                
188 Code of Knowledge , Article 10, and R egulations implementing the Code of Knowledge , Article 2.  
189 Decree No. 356 of 3 April 2018.  
190 Code of Knowledge , Article 11.  
191 Ibid., Article 97.  
192 Ibid., Article 263  
193 Ibid., Article 279.  
194 Ibid., Article 275.  
195 Ibid., Article 293.  
196 Ibid., Article 277.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 97 - 
  different interested parties, without any exclusivity requirement.197 A licence holder may not in tur n 
grant a licence without the patent owner 's authorization .198  
3.194.   The SENADI is empowered to grant compulsory licences for a patent to third parties if at the 
time of the request the patent has not been exploited for at least a year, and after three years from 
its granting or four years from the application  for registrat ion of the patent. A patent owner may 
prevent the granting of a licence if they can prove that the patent could not be exploited owing to 
legal or regulatory restrictions or force majeure .199 The Code of Knowledge  also empowers the 
SENADI to arrange for the non-commercial public use of a patent or the grant of compulsory licences 
in some cases (Table 3.15). During the period 2012 -2015, ten compulsory licences were issued in 
connection with pharmaceuticals on grounds of public interest by virtue of  the right t o public health 
established in the Constitution. Since then there have been no requests for compulsory licences.200 
Table 3.15 Compulsory licences  
Factor s Specific causes  Special conditions  
Reasons of public 
interest  
(Article 314)  Public interest, emergency or 
national security.  Must be declared by executive decree or 
ministerial resolution.  
May be declared at any moment without prior 
negotiation with the patent holder.  
Maintained only as long as the reasons that gave 
rise to it obtain.  
The concession of a licence for public interest 
reasons does not limit the patent owner 's right 
to exploit their patent.  
Anticompetitive 
practices  
(Article 315)  Anticompetitive practices that are in 
breach of the competition 
regulations, in particular when 
consisting of abuse of dominant 
position by the holder.  Ex officio or upon request by a party.  
Requires a prior declaration by the competent 
national authority for competition, i.e., the 
Super visory Authority for the Control  of 
Market  Power.  
Dependency 
(Article 316)  Application by the owner of a patent  
whose exploitation necessarily 
requires the exploitation of a 
protected first patent for which they 
have been unable to obtain 
authorization.  The invention claimed in the second patent must 
involve a major technical step and considerable 
economic importance with respect to the 
invention claimed in the first patent.  
The holder of the first pa tent will be entitled to a 
cross-licence under reasonable conditions.  
The licence fo r the first patent may not be 
transferred without the transfer of the second 
patent.  
Lack of 
agreement 
(Article 318)  Lack of agreement on profits and 
royalties from patented inventions 
made by various members of a 
team in the course of academic 
research o r activities in higher 
education or research institutes 
(Article 276).  At the request of a party, not less than six 
months from the grant of the patent.  
The applicant must prove that they had 
requested a licence and that the request had 
been turned down o wing to lack of agreement 
among the co -holders.  
Exploitation by a 
plant variety 
breeder  
(Article 317)  When a plant variety breeder  cannot 
exploit an obtainer 's certificate 
without infringing a right deriving 
from a patent.  The patent holder is entitled  to a compulsory 
reciprocal licence for the plant variety.  
The compulsory licence may only be transferred 
to third parties with the necessary patent or 
certificate for its proper exploitation.  
Source : Code of Knowledge . 
3.195.   Ecuadorian patent law applies the regime of international exhaustion of rights .201 
3.196.   Utility models are protected through a patent. The procedure for registering a utility model 
is the same as for registering a patent, except with respect to the time -frames for the process, which 
are halved. H owever, as in the case of patents, until such time as the implementing regulations of 
the Code of Knowledge are issued, the time -frames and procedures will be determined on a 
transitional basis by the provisions of the Intellectual Property Law and other p rovisions such as its 
                                                
197 Ibid., Article 298.  
198 Idem.  
199 Ibid. Article 310.  
200 Information provided by the authorities.  
201 Code of Knowledge , Article 295.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 98 - 
  implementing regulations, and the CAN legislation establishing the Common Industrial Property 
Regime for the Andean Community are applied . 
3.197.   The protection of layout -designs for integrated circuits also requires registration in the 
appropriate register. The rights are held by the designer and may be transferred. The application for 
registration must be made to the SENADI within two years of its  first commercial exploitation.202 
Registration entitles the holder to prevent unauthorized third  parties from reproducing, importing, 
selling or distributing the protected layout -design or an integrated circuit incorporating that design. 
The importation, sale or distribution of an article that incorporates a protected integrated circuit is 
prohibited  if it contains an illegally reproduced layout -design.203 Ecuadorian law applies the principle 
of the international exhaustion of rights for integrated circuit layout -designs.204 
3.198.   The protection of industrial designs is obtained through the corresponding registration. The 
rights are held by the designer and may be transferred. Registration gives the holder the right to 
prevent unauthorized third parties from the manufacturing, sale or importation for commercial 
purposes of products that incorporate or reproduce the pr otected design, or for products whose 
design presents only secondary differences or whose appearance is similar to that of the protected 
design. Rights deriving from an industrial design pursuant to a contract whose subject matter was 
the creation of such a design belong to the employer, unless otherwise agreed by the parties. If the 
subject matter of the contract is not the making of the design, but the latter is made us ing the 
employer 's resources, the employer will have the right to a free and non -exclusive licence for the 
industrial design  rights .205 The provisions concerning industrial designs apply the international 
exhaustion of rights regime.206 
3.199.   The Ecuadorian IPR legi slation does not contain provisions  for protecting undisclosed 
information, which is protected by competition law in the context  of unfair practices.207 
3.3.7.3   Trade marks  
3.200.   Trade marks must be registered with the corresponding regist ry in order to be protected. 
Tradem ark registration gives the holder the right to prevent unauthorized third parties to do the 
following, inter alia: (i) to apply or affix the trade mark or an identical or similar distinctive sign to 
products for which the mark has been registered, products linked with t he services for which the 
trade mark has been registered or on the packing or packaging of such products; (ii) to manufacture 
or market labels, packing or packaging or other materials that reproduce or contain the protected 
trademarks; (iii) to  use in the course of trade a distinctive sign that is identical or similar to the 
trademark when such use could cause confusion or risk of association with the owner of the 
registered trademark  or could cause the latter  unfair economic or commercial injur y on account of 
the dilution of the distinctive force or commercial value of the trademark; and (iv) use publicly a 
sign identical or similar to a well -known trade mark, even for non -commercial purposes, when this 
could dilute the distinctive force or comme rcial or publicity value of the trademark or take unfair 
advantage of its prestige.208  
3.201.   Applications for the registration of a trademark are submitted to the SENADI. Until such time 
as the implementing regulations  for the Code of Knowledge  are issued,  the re quirements and 
time-frames for the examination of a registration application, its publication, the lodging of 
challenges and the granting or refusal of registration, shall be determined on a transitional basis by 
the provisions of the Intellectual Property  Law and other rules such as the IPL  Regulations; in 
addition, the CAN legislation establishing the Common Industrial Property Regime for the Andean 
Community applies.  
3.202.   The use of a trademark is not obligato ry in order to obtain renewal of  the registration .209 
However, the registration may be cancelled at the request of a third party when the trademark has 
                                                
202 Ibid., Article 330.  
203 Ibid., Article 33 4. 
204 Ibid., Article 337.  
205 Ibid., Article 350.  
206 Ibid., Article 355.  
207 Organic Law on the Regulation and Control of Market Power of 11 October 2011, Article 27.  
208 Code of Knowledge, Article 367.  
209 Ibid., Article 366 . WT/TPR/S/383 /Rev.1 • Ecuador  
- 99 - 
  not been used during the three years prior to such a request. The owner of the trademark may 
challenge the request for cancellation by proving that it does  use the mark or by proving that the 
lack of use is due to reasons of force majeure , unforeseen circumstances , or official restrictions.210 
The implementing regulations for the Code of Knowledge will cover the definition of these limitations . 
3.203.   Rights in a registered trade mark may be transferred. In addition, the holder may grant 
licences to one or more interested parties for the exploitation of the trademark. A licens ee may not 
in turn grant licences without the trademark owner 's authorization. Both the transfers and the 
licences must be registered with the corresponding registry.211  
3.204.   The Ecuadorian law on trademarks applies the regime of international exhaustion of rights.212 
3.3.7.4   Geographical indications  
3.205.   Ecuadorian law establishes two types of geographic al indication: denomination of origin (DO) 
and indication of provenance. A declaration issued by the SENADI is required for a geographical 
locality or area to be protected as a DO. The DO may be used by persons that extract, produce or 
manufacture products  designated by a DO , are located in the protected area and have  obtained an 
authorization of use from the  SENADI . An indication of provenance is a sign used on products that 
have a specific geographical origin and possess qualities that are attributable to  that origin. In 
Ecuador, identification of provenance is understood to mean a name, expression, image or sign that 
designates or evokes a specific country, region, locality or place. An indication of provenance  cannot 
be used in trade relating to a produc t or service when its origin is false or misleading or when its 
use may result in the likelihood of confusion as to the origin, provenance, quality or any other 
characteristic of the product or service. The procedure for the processing of such applications  is the 
same as for geographical indications, except if otherwise indicated in the corresponding regulations. 
Indications of provenance  are not subject to a specific period of validity, but remain valid until the 
registration is cancelled.  
3.3.7.5   Plant varieties  
3.206.   Plant varieties are protected by the Code of Knowledge . Protection is acquired through 
registration in the National Register of Protected Varieties. The plant breeder 's rights are vested in 
the breeder and are transferable. The application for registration  must be made to the SENADI. 
According to the transitional provisions of the Code of Knowledge, the requirements, time -frames 
and procedures for, inter alia , the examination of the application, its publication, the lodging of 
challenges and the granting of  the registration continue to be governed by  the pro visions  of the 
Intellectual Property Law and its implementing Regulation s, as the Regulations to the Code of 
Knowledge do  not contain such provisions.  
3.207.   The owner  of a plant variety right is entitled to prevent unauthorized third parties from 
carrying out the following acts with respect to the protected variety: (i) production, reproduction, 
multiplication or propagation; (ii) preparation for purposes of reproduction, multiplication or 
propagation; and (iii) the offering, sale, importation, exportation or introduction of any kind into the 
market of the material for reproduction, propagation or multiplication .213  
3.208.   The right of priority for applying for the protection of a plant variety in Ecuador applie s for 
12 months in the case of applications submitted in a CAN member country, a member country of 
the International Union for the Protection of New Varieties of Plants (UPOV) or in any other country 
that grants reciprocal treatment to Ecuador.214 
                                                
210 Ibid., Articles 379 and 382.  
211 Ibid., Articles 374 and 375.  
212 Ibid., Article 371.  
213 Ibid., Article 487.  
214 Ibid., Article 483.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 100 - 
  3.209.   The rules on ownership of rights in a variety obtained  in the framework of a labour 
relationship are the same as those applied in the case of patents.215 Ecuadorian law applies the 
regime of international exhaustion of rights for plant varieties.216 
3.3.7.6   Copyright and relate d rights  
3.210.   In Ecuador, copyright is protected by the mere fact of the creation of the work, and therefore 
neither registration  nor fulfilment of any other prior requirement  is necessary .217 Computer prog rams 
are protected as literary w orks.218 The rights are ves ted in the author of the work, who may only be 
a natural person. As a general rule, ownership of works created in a salaried employment relationship 
is vested in the aut hor. 
3.211.   Copyright includes, inter alia , the following moral and economic rights: (i) to ke ep the work 
unpublished  or to disclose it; (ii) to claim authorship of the work at any time; (iii) to oppose any 
deformation or modification contrary to the ho nour or reputation of the work or the author; (iv) to 
reproduce or communicate the work by any me ans or procedure; (v) to distribute publicly examples 
or copies of the work by means of sale or rent; and ( vi) to prevent the import of copies of the 
protected work without the author 's permission .219 
3.212.   The author may vol untarily register his or her work in th e corresponding SENADI register. 
Registration is not proof of the author 's ownership, but in the event of a dispute constitutes a 
prima  facie case for  ownership in favour of the person who made the registration.220  
3.213.   Ecuadorian law protects related rights, whereby  performer s have  rights over their 
performances, producers of  phonograms over their phonograms and broadcasting entities  over their 
broadcasts. Related rights en title their holders, inter alia , to prevent unauthorized third parties from 
carrying out  the direct or indirect reproduction, distribution, rebroadcasting or unlawful importation 
of their works.221  
3.214.   The SENADI may, in exceptional cases, grant compulsory licences for literary, artistic, 
musical or audio -visual  works protected by copyright.222 These case s include the following : (i) where 
unfair competitive  practices have been found to exist  by the Super visory Authority  for the Control 
of Market Power; ( ii) where a literary or artistic work has not been translated into Spanish or other 
official langu ages in the respective territories and a translation is not a vailable on the domestic 
market;  and (iii) where an audiovisual work, videogram or other audiovisual fixation is not available 
or accessible on the domestic market and a year has passed since its  dissemination by any means 
or in any format.223 
3.215.   Ecuadorian law applies the regime of international exhaustion for the right of distribution of 
a work protected by copyright .224 
3.3.7.7   Enforcement of IPRs  
3.216.   The Code of Knowledge  provides for legal and administrative measures to ensure that IPRs 
are properly protected and non -compliance  sanctioned. These include preventive  measures and 
repressive measures .225 In the event of infringement, an IPR owner may sue the infringer before th e 
civil or criminal courts . 
                                                
215 Ibid., Articles 481 and 482.  
216 Ibid., Article 492.  
217 Ibid., Articles 101 and 102.  
218 Ibid., Article 131.  
219 Ibid., Articles 118, 120 and 126.  
220 Online information from the SENADI. Viewed at: https://www.propiedadintelectual.gob.ec/registro -
de-obras -de-derecho -de-autor . 
221 Code of Knowledge, Articles 221 and following.  
222 Ibid., Article 217.  
223 Idem.  
224 Ibid., Article 125.  
225 Implementing Regulations to the Code of Knowledge, Articles 60 and 61.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 101 - 
  3.217.   When the administrative authority receives a complaint, it may order precautionary 
measures, including: (i) the immediate cessation of the acts constituting the alleged offence; 
(ii) withdrawal from sale of the products constituting the offence; (iii) suspension of the importation 
or exportation of the products, materia ls or means used to commit the offence; (iv) the temporary 
closure of the commercial establishment presumed to be committing the offence w here necessary 
to avoid its continuation or recurrence.226  
3.218.   The owner  of a registered trademark or copyright who has sufficient evidence to suppose 
that the importation or exportation of goods injures their rights may ask the SENADI to suspend the 
customs op eration, for which purpose they must provide the necessary information. Once an 
application for border measures has been lodged, Customs must suspend the operation until the 
application has been decided on. The SENADI may also order ex officio the suspensi on of the 
Customs operation.227  
3.219.   The Code of Knowledge  punishes  infringements of IPRs with fines of between 5 and 
142 times the unified minimum wage228, depending on the nature of the offence and the criteria set 
out in the corresponding regulations.229  
3.220.   The SEN ADI maintains a register of seizure s of goods that infringe intel lectual property 
rights. The register records the quantity, registered trademark and year of the infringement.  
                                                
226 Code of Knowledge , Article 565.  
227 Ibid., Articles  575 and 577.  
228 In 2018, the unified minimum wage is the equivale nt of USD 386. 
229 Code of Knowledge , Article 581.  WT/TPR/S/383 /Rev.1 • Ecuador  
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  4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture  
4.1.  The agricultural sector is of considerable importance for Ecuador because of its contribution to 
GDP and employment, and as the s econd largest generator of forei gn exchange after petroleum. 
In 2017, agricultural GDP accounted for 8.2% of total GDP, almost the same percentage as in 2011 
(8.5%), and absorbed 70% of rural employment and 26% of total employment (Table 4.1).  
Table 4.1 Principal indicators for the agricultural sector, 2011 -2017  
 
2011  2012  2013  2014  2015  2016a 2017a 
Share of GDP (%, at current prices)  8.5 7.5 7.6 8.0 8.5 8.4 8.2 
Real growth rates (%, at 2007 prices)  7.5 -0.5 6.4 5.9 2.1 -0.2 4.4 
Employment (%, end of period)         
Agriculture, livestock, hunting and forestry, 
and fishing  27.9 27.4 24.8 24.4 25.0 25.6 26.1 
Agricultural sector, WTO definition  
Exports  
Value (US D million)  4,899 4,651 4,897 5,440 5,648 5,536 5,829 
Share of total exports (%)  21.9 19.5 19.6 21.1 30.8 33.0 30.5 
Growth rate (%)  .. -5.1 5.3 11.1 3.8 -2.0 5.3 
Five most important products, by HS Chapter (% of total exports)  
 08. Edible fruit and nuts  10.5 9.2 9.7 10.5 16.0 17.1 16.7 
 0803 – Bananas, including plantains  10.1 8.7 9.3 10.1 15.4 16.3 15.9 
 0804 – Dates, figs, pineapples, avocados, 
guava, mangoes and mangosteens  0.3 0.3 0.3 0.2 0.4 0.5 0.5 
 06. Live plants and cut flowers  3.1 3.3 3.4 3.6 4.5 4.8 4.7 
 0603 – Flowers and buds  3.0 3.2 3.4 3.6 4.5 4.8 4.6 
 18. Cocoa and cocoa preparations  2.6 1.9 2.1 2.8 4.4 4.5 3.6 
 1801 – Cocoa beans, whole or broken, 
 raw or roasted  2.1 1.5 1.7 2.3 3.8 3.7 3.1 
 15. Animal or vegetable fats and oils and 
their cleavage products  1.7 1.5 1.1 1.1 1.6 1.7 1.4 
 20. Preparations of vegetables, fruit, nuts 
or other parts of plants  1.1 0.9 0.9 1.1 1.4 1.4 1.2 
        
Imports  
Value (US D million)  1,932 1,877 1,975 2,103 1,872 1,709 2,031 
Share of total imports (%)  8.0 7.4 7.3 7.6 8.8 10.6 10.2 
Growth rate (%)  .. -2.9 5.2 6.5 -11.0 -8.7 18.9 
Five most important products, by HS Chapter (% of total imports)  
 23. Residues and wastes from the food 
industries  1.5 1.6 1.8 2.2 2.7 3.6 3.3 
 10. Cereals  1.8 1.4 1.1 1.3 1.5 1.8 1.8 
 21. Miscellaneous edible preparations  0.7 0.7 0.8 0.8 0.9 1.1 1.0 
 15. Animal or vegetable fats and oils and 
their cleavage products  0.8 0.7 0.7 0.6 0.7 0.8 0.7 
 08. Edible fruit and nuts  0.5 0.5 0.5 0.5 0.5 0.5 0.5 
Agricultural trade balance (USD million)  2,968 2,775 2,922 3,337 3,777 3,828 3,797 
.. Not available.  
a Preliminary data.  
Source:  Central Bank of Ecuador and Comtrade database.  
4.2.  Ecuador is a net exporter of agricultural products. During the review period, the agricultural 
trade surplus increased from US D 2,967 million in 2011 to US D 3,797 million in 2017. This made it 
possible partially to compensate for the decline in foreign exchange earnings due to the fall in the 
price of oil, the principal export product. The agricultural trade surp lus could be maintained thanks 
to increased exports and a reduction, albeit limited, in imports. This reduction was more pronounced 
during 2015 and 2016, due to the effect of the balance -of-payments safeguard ( Sections 1 and 3). WT/TPR/S/383 /Rev.1 • Ecuador  
- 103 - 
  In 2017, exports of agricul tural products amounted to US D 5,829  million, while imports o f these 
products amounted to USD  2,031 million.1 
4.3.  In 2017, agricultural products accounted for around 30.5% of total exports and 10.2% of 
imports. The principal agricultural export products are ba nanas, which in 2017 accounted for 15.9% 
(USD 3,045 million) of total exports, flowers (4.6%), and cocoa (3.1%). Where agricultural imports 
are concerned, Ecuador imports mainly residues and wastes from the food industries, and cereals.  
4.4.  To a large extent, the growth of the agricultural sector during the review period was possible 
due to certain policies that facilitated greater access to agricultural inputs and technology and 
created favourable market conditions for the producer. Notable among the programme s 
implemented by the Ministry of Agriculture and Livestock (MAG) are the High -Yield Seeds Plan, the 
Ecuadorian Coffee -Growing Revitalization Programme and the Revitalization Programme for the 
Ecuadorian Cocoa -Producing Sector, which boosted agricultural pr oductivity.  
4.5.  The principal legislation relating to the agricultural sector includes the Organic Law on  the 
Food Sovereignty Regime of 2009; the Organic Law on Water Engineering Resources and the Use 
and Supply of Water of 2014; the Organic Law on Rural Land s and Ancestral Territories of 2016; 
and the Organic Law on Agro -Biodiversity, Seeds and the Promotion of Sustainable Agriculture of 
2017. Ecuador also has legislation relating to products of economic importance, such as bananas 
and coffee. In this connect ion, the marketing of bananas is mainly governed by the Law for 
Promoting and Controlling the Production and Marketing of Bananas, Plantains (Barraganete) and 
Other Related Musaceae for Export, and its Regulations, which has been the subject of several 
amendments since 2012 (Table 4.2).  
Table 4.2 Principal legal instruments governing the marketing of bananas  
Legal instrument  Description  Date of publication  
Codification 13  Law to Promote and Control the Production and 
Marketing of Bananas, Plantains and other Related 
Musaceae for Export  16 April 2004  
Latest amendment:  
29 December 2010  
Executive Decree 818  Regulations to the Law for Promoting and 
Controlling the Production and Marketing of 
Bananas, Plantains and other Related Musaceae for 
Export  26 July 2011  
Latest amendment: 
23 April 2013 
Ministerial 
Decision  316 of the 
MAGAP  Instruction for implementing the Regulati ons to the 
Law for Promoting and Controlling the Production 
and Marketing of Bananas  26 August 2014  
Latest amendment: none  
Resolution 137 of the 
SENAE  General framework for enabling the control of 
exports of bananas, plantains and other related 
musaceae  authorized by the MAGAP  19 June 2012  
Latest amendment: none  
Ministerial 
Decision  227 of the 
MAGAP  Minimum support prices for the year 2018  12 October 2017  
Latest amendment: none  
Resolution NAC -
DGERCGC17 -00000618 
of the SRI  Establishes the methodology of limit indexation 
applicable to the export prices of bananas as from 
fiscal year 2018  28 December 2017  
Latest amendment: none  
Source:  WTO Secretariat, based on the Ecuadorian legislation.  
4.6.  Up until 2017, the public entity responsible for framing and implementing agricultural and 
fisheries policy in Ecuador was the Ministry of Agriculture, Livestock, Aquaculture and Fisheries 
(MAGAP).  In 2017, the Ministry of Aquaculture and Fisheries was est ablished and took over the 
responsibilities relating to aquaculture and fisheries previously held by MAG AP, which came to be 
called the Ministry of Agriculture and Livestock (MAG).  
4.7.  UNA EP (a state -owned company which reports  to the MAG ) is responsible, among other things, 
for the storage and marketing of agricultural  products, the administration of the strategic reserve of 
these products, and the marketing and distribution of inputs.2 
                                                
1 The WTO definition of agriculture is used for the statistical calculations.  
2 Executive Decree No. 12 of 30 May 2013.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 104 - 
  4.1.1   Border measures  
4.8.  Agricultural products (WTO definition) receive more ta riff protection than non -agricultural 
products. In 2018, the average tariff applied to agricultural products was 18.5% (without including 
the ad valorem equivalents), whereas for non -agricultural products it was 9.7%. Of the various 
categories of products defined in the WTO, dairy products (34.9%), sugar and sugar confectionery 
(28.4%), animals and products of animal origin (26.8%), and coffee and tea (22.9%) recorded, on 
average, the highest tariffs. At a more specific level, the highest tariff protection is accorded to cuts 
and offal of chicken, turkey, goose and duck (HS  0207) (85.5%), rice (HS  1006) (67.5%), milk and 
cream (HS  0401 and HS  0402) (54%), cuts and offal of guinea fowl (HS  0207) (53.5%), pig meat 
(HS 0203) (45%), food preparations for dogs an d cats (HS  0210) (45%), and unroasted malt 
(HS 1107) (36%).  
4.9.  Ecuador uses the Andean Price Band System (APBS) for certain agricultural p roducts with a 
view to stabilizing their import price. The APBS affects 189 tariff lines at HS ten -digit level, of which  
184 correspond to agricultural products, in accordance with the WTO definition (Table 4.3).3 Several 
of the products subject to the APBS are also products with the highest tariffs such as, for example, 
chicken cuts (85.5%), rice (67.5%), milk (54%) and pig  meat (45%).  
4.10.   During the review period, Ecuador suspended the application of the APBS for three products 
used as inputs; only in one case was the suspension permanent . In November  2014, Ecuador 
reduced the tariff from 15% to 0% and temporarily suspended the  application of the APBS until 
31 December 2019 for soya cake (HS  2304.00.00.00) used as animal feed (cattle, poultry and 
shrimp).4 In March  2015, Ecuador suspend ed the ap plication of the APBS until December  2016 for 
wheat and related products  (HS 1001.19.00.00, HS 1001.99.10.00, HS 1101.00.00.00 and 
HS 1103.11.00.00).5 The suspensi on was later extended to December  2019. Moreover, in June 2015, 
the application of the APBS was permanently suspended for balanced feeds for aquacultura l use that 
do not contain maize (corn) (HS  2309.90.90.11 and HS  2309.90.90.13).6 
Table 4.3 Andean Price Band System (APBS) for Ecuador  
HS Chapter  Description  No. of  lines  MFN 2018  MFN APBS 
(interval)  
(%) 
02 Meat and edible meat offal  33   
  
2 30% +/ - VC 30.0 - 30.0   
22 45% +/ - VC 41.3 - 85.5   
8 85.5% +/ - VC 85.5 - 85.5   
1 30% y 45% y 
85.5% +/ - VCa 59.2 - 85.5 
04 Dairy produce; birds ' eggs; natural 
honey; edible products of animal 
origin, not elsewhere specified or 
included  28   
  
1 20% +/ - VC 33.3 - 33.3   
15 25% +/ - VC 25.0 - 38.3   
5 30% +/ - VC 30.0 - 30.0   
7 54% +/ - VC 54.0 - 54.0 
10 Cereals  16   
  
4 0% +/ - VC 2.4 - 2.5   
1 10% +/ - VC 12.4 - 12.4   
7 15% +/ - VC 17.3 - 38.4   
1 20% +/ - VC 22.8 - 22.8   
1 25% +/ - VC 27.3 - 27.3   
2 67.5% +/ - VC 67.5 - 67.5 
                                                
3 The remaining five products are chemical products.  
4 Resolutions COMEX No. 040-2014 o f 26 November 2014 and No. 039 -2016 of 23 December  2016. 
5 Resolution COMEX No. 040-2016 of 23 December 2016.  
6 Resolutions COMEX No. 025-2015 of 5 June 2015 and No. 004 -2018 of 24 May 2018.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 105 - 
  HS Chapter  Description  No. of  lines  MFN 2018  MFN APBS 
(interval)  
(%) 
11 Products of the milling industry; 
malt; starches; inulin; wheat gluten  8   
  
2 0% +/ - VC 1.9 - 1.9   
4 20% +/ - VC 21.8 - 45.0   
2 36% +/ - VC 36.0 - 36.0 
12 Oil seeds and oleaginous fruits; 
miscellaneous grains, seeds and 
fruit; industrial or medicinal plants; 
straw and fodder  13   
  
6 0% +/ - VC 11.8 - 11.8   
6 15% +/ - VC 26.8 - 26.8   
1 20% +/ - VC 25.0 - 25.0 
15 Animal or vegetable fats and oils and 
their cleavage products; prepared 
edible fats; animal or vegetable 
waxes  43   
  
8 0% +/ - VC 10.9 - 14.3   
1 5% +/ - VC 11.0 - 11.0   
2 15% +/ - VC 15.0 - 29.3   
29 20% +/ - VC 25.0 - 31.5   
3 31.5% +/ - VC 31.5 - 31.5 
16 Preparations of meat, of fish or of 
crustaceans, molluscs or other 
aquatic invertebrates  6   
  
6 30% +/ - VC 26.3 - 30.0 
17 Sugars and sugar confectionery  17   
  
3 0% +/ - VC 23.4 - 23.4   
1 10% +/ - VC 45.0 - 45.0   
8 15% +/ - VC 38.4 - 45.0   
4 20% +/ - VC 45.0 - 45.0   
1 25% +/ - VC 45.0 - 45.0 
19 Preparations of cereals, flour, starch 
or milk  1   
  
1 30% +/ - VC 31.9 - 31.9 
23 Residues and waste from the food 
industries; prepared animal fodder  19   
  
4 0% +/ - VC 11.8 - 23.4   
9 15% +/ - VC 26.8 - 38.4   
4 20% +/ - VC 43.4 - 43.4   
1 45% +/ - VC 45.0 - 45.0   
1 0% and 45% +/ - VCb 23.4 - 38.4 
35 Albuminoidal substances; modified 
starches; glues; enzymes  2   
  
1 0% +/ - VC 20.0 - 20.0   
1 15% +/ - VC 20.0 - 20.0 
38 Miscellaneous chemical products  3   
  
1 0% +/ - VC 14.3 - 14.3   
2 15% +/ - VC 29.3 - 29.3 
a This tariff line is divided into three sub -lines.  
b This tariff line is divided into two sub -lines.  
Note:  VC signifies variable component under the Andean Price Band System (APBS).  
Source:  WTO Secretariat calculations based on information provided by the authorities.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 106 - 
  4.11.   Ecuador maintains tariff quotas for 17 products, including chicken meat, glucose, maize 
(corn), and soya cake (Table 3.4). However, these quotas, which are administered by the MAG, are 
not being used.7  
4.12.   Ecuador also has preferential tariff quotas for agricultural imports under its trade agreements 
with Argentina, Brazil, Guatemala, the Eu ropean Union (EU) and Uruguay (S ection 3). Within the 
framework of the agreement with  the EU  – the most recent, in force since 2017  – 82 tariff lines (at 
HS ten -digit level) are subject to preferential quotas, including food preparations for animals, edible 
offal, dairy produce, vegetables, sweet corn, potatoes, meat of animal origin and p roducts with a 
high sugar content.  
4.13.   In 2015, Ecuador introduced a balance -of-payments safeguard measure in accordance with 
paragraph 9 of the Understanding on the Balance -of-Payments Provisions of the General Agreement 
on Tariffs and Trade  1994. The safegua rd, which took the form of tariff surcharges, was in force 
from March 2015 to June 2017, and began to be dismantled in 2016 i n accordance with a timetable 
(Section 3).8 The measure was imposed on 2,938 tariff lines at HS ten -digit level, of which some 
16% (484 lines) corresponded to agricultural products. Agricultural products were subject to a tariff 
surcharge of 5%, 15%, 25% or 45%. The most frequent rate was 45%, which affected 80.8% of 
agricultural  products (Table 4.4), including sugar, cocoa, meat, cor n flour, fruit and cheese.  
Table 4.4 Distribution of tariff surcharge rates  
Tariff surcharge levels  Number of lines  % of total lines with surcharge  
5% 34 7.0 
15% 34 7.0 
25% 25 5.2 
45% 391 80.8 
Total 484 100 
Note:  The lines HS  1208.90.00.00 (seed flour) and HS  3301.29.90.00 (essential oils) have two surcharges, 
5% and 0%, and 15% and 0%, respectively.  
Source:  WTO Secretariat calculations based on information provided by the authorities.  
4.14.   In general, import s of agricultural products require a sanitary or phytosanitary import permit 
for the purpose of safeguarding human, animal or plant health. The importation of agricultural 
products may also require other prior -control documents, such as the importer 's regi stration 
document, permits, prior -importation authorizations, the inspection or classification verification 
certificate issued at origin, the customs destination  document, recognition certificates and automatic 
and non -automatic licences.  
4.15.   Since 2013, Ecuador has been applying non -automatic licences for importing certain 
agricultural goods, classified in 59 tariff lines at ten -digit level (Table 4.5). These licences are granted 
to permit importation in the event of shortages when it is necessary to supp lement domestic 
production in order to be able to meet domestic demand and keep the country permanently supplied 
with food.9 On the basis of a technical report issued by the MAG10, the Under -Secretariat for 
Marketing annually allocates an import quota to im porters registered with the Ministry. However, as 
stipulated by the MAG, "in periods when domestic goods are being produced, under no circumstances 
will non -automatic import licences be granted, to prevent them from harming domestic 
production".11 
                                                
7 WTO documents G/AG/N/ECU/30 of 16 November 2012; G/AG/N/ECU/38 of 19 February 2014 ; and 
G/AG/N/ECU/41 of 5 January 2016, and information provided by the authorities.  
8 Resolution COMEX No. 011-2015 of 6 March 2015.  
9 Resolutions COMEX No. 102-2013 of 1 Mar ch 2013 and No. 043-2015 of 6 November  2015.  
10 MAGAP Resolution No. 316 of 20 November 2015 (Instruction for Obtaining Non -Automatic Import 
Licences for Basic Foods, which replaced MAGAP Resolution 299 -A of 14 June 2013).  
11 Article 9 of MAGAP Resolution No. 316 of 20 November 2015.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 107 - 
  Table 4.5 Agricultural products subject to non -automatic licences  
HS 2017 
heading  Tariff lines 
(10 digits)  Description  
0201 4 Meat of bovine animals, fresh or chilled.  
0202 4 Meat of bovine animals, frozen.  
0203 12 Meat of swine, fresh, chilled or frozen.  
0206 5 Edible offal of bovine animals, swine, sheep, goats, horses, asses or 
mules, fresh, chilled or frozen.  
0207 8 Meat and edible offal of chicken and turkey, fresh, chilled or frozen.  
0209 3 Pig fat free of lean meat and poultry fat (not rendered), fresh, chilled, 
frozen, salted, in brine, dried or smoked.  
0210 3 Meat of swine, salted, smoked or in brine.  
0405 2 Butter and other fats and oils derived from milk; dairy spreads.  
0406 2 Cheese and curd.  
0504 1 Guts, bladders and stomachs of animals (other than fish), whole and 
pieces thereof, fresh, chilled, frozen, salted or in brine, dried or smoked.  
0710 1 Vegetables, uncooked or cooked by steaming or boiling in water, frozen.  
0713 9 Dried leguminous vegetables, shelled, whether or not skinned or split.  
1005 2 Maize (corn).  
1007 1 Grain sorghum.  
2004 1 Potatoes, frozen.  
2005 1 Potatoes, not frozen.  
Source:  Resolution COMEX No. 102-2013 of 1 March 2013 and Resolution COMEX No. 043-2015 of 
6 November 2015.  
4.16.   As from 2018, to import green bean coffee (HS  0901.1190.10. HS  0901.1190.20, 
HS 0901.1190.90) it has been necessary to obtain automatic or non -automatic licences (as 
appropriate) in advance. The MAG will automatically authoriz e the importation of green bean coffee 
under special customs procedures, such as customs warehousing and temporary admission for 
inward processing, or exclusively for exportation by Ecuadorian companies duly registered with the 
Ministry of Industry and Pro ductivity (MIPRO) and devoted to manufacturing processed coffee 
products. Non -automatic licences are used only for imports of coffee for domestic consumption. To 
ensure that the domestic coffee bean harvest is entirely absorbed, those who import coffee bea ns, 
whether for domestic consumption or under special procedures, must annually record local 
purchases of the product and this record will form the basis for the granting of the import 
authorization.12 
4.17.   During the review period, Ecuador used minimum referenc e prices for some of its principal 
export products, such as bananas and cocoa. In 2015 the minimum reference prices for coffee 
(HS 0901.11.90) were eliminated with the repeal of the Special Law on the Coffee Sector.  
4.18.   Where bananas are concerned, the MAG ann ually sets the minimum support price which the 
exporter must pay the producer, and a minimum benchmark price that the exporters must obtain. 
In 2018, the minimum support price per box (from 41.5 to 43 pounds) of bananas (type 22XU) was 
USD 6.20 and the min imum benchmark f.o.b. export price was US D 8.01.13 These prices have 
increased marginally since Ecuador 's last review, when the minimum support price of a box of 
bananas (type 22XU) and the minimum benchmark f.o.b. export price were US D 5.5 and US D 7.05, 
respectively.  
4.19.   In the case of cocoa, Ecuador uses minimum reference export prices for cocoa beans 
(HS 1801.00.19) and semi -manufactured cocoa products (of headings HS  1803, HS  1804 and 
HS 1805), for internal taxation purposes. These prices are set we ekly on the basis of the prices on 
the New York Stock Exchange and serve as a reference for the marketing of these products on the 
domestic market.  
                                                
12 Inter-ministerial Decision No. 020 between the MIPRO and the MAG of 21 February 2018.  
13 MAGAP Ministerial Decision 227 of 27 October 2017.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 108 - 
  4.20.   In 2013, the banana export tax (0.7% on the f.o.b. price), used f or financing the 
Banana  Trade Association Fund, was suspended.14 Moreover, in 2015 the export tax on roasted 
coffee beans and roasted ground coffee per 100 lb unit (2% on the f.o.b. price), used as part of the 
funds required to finance the National Coffee Board (COFENAC), was eliminated.15 
4.21.   Ecuador h as notified the WTO that, during the period 2012 -2016, it did not grant any export 
subsidies for agricultural products.16 
4.22.   From 2013 to 2016 Ecuador reactivated the granting of Tax Credit Certificates (CAT), as a 
measure for promoting exports.17 The percentag es vary according to the product and are calculated 
on the basis of the export value. In 2013, in the case of agricultural products, they varied between 
0.1% for tapioca (HS  1903.00.00.00) and 21.3% for asparagus (HS  0709.20.00.00).18 That year, in 
particul ar, products such as flowers (HS  06) benefited from the measure. In 2016, the agricultural 
products benefiting from CAT were almost the same as in 2013. The percentages for applying the 
CAT concession varied between 0.05% for pineapples (HS  0804.30.00.04) and 21.3% for asparagus 
(HS 0709.20.00.00).19  
4.23.   In 2015, a simplified drawback procedure, determining a fixed percentage of the export value 
for the refunding of foreign trade taxes, was introduced. In general, the refund percentage was 5%, 
which corresponds  to Ecuador 's weighted tariff from 2010 to 2014. However, for some products the 
refund is less, 3% or 2%. In some cases, as with Cavendish Valery type bananas 
(HS 0803.90.11.00), the bocadillo (Lady finger) banana (HS  0803.90.12.00) and other bananas 
(HS 0803.90.19.00), the refund varies with the market of destination20: 2% for the EU, 3% for the 
Russian Federation and 4% for China. The banana and flower exporters are among those that 
benefited the most from this mechanism in 2016, when they received 29.3% o f the total incentive: 
the banana exporters received US D 10.2 million and the flower exporters US D 4.4 million.21 
4.1.2   Domestic support measures  
4.24.   Ecuador has notified that, during the period 2011 -2013, no type of domestic support was 
granted to its industry22, except in 2011 when the state agricultural insurance programme 
AgroSeguro was implemented.23 However, as part of its promotion policy for the agricultural  sector, 
Ecuador has implemented programmes such as the Gran Minga Agropecuaria and AgroSeguro 
project s. Marketing policy for some agricultural products is primarily oriented towards supporting 
small and medium -sized producers.  
4.25.   The main objective of agricultural insurance is to protect the agricultural production of the 
small and medium -sized producers from adverse weather conditions, pests and diseases that may 
affect their crops. It ensures that the producer, who receives compensation for any loss, enjoys 
continuity in the exercise of his or her activity. The insurance is provided by the state -owned 
insurance  company (Seguros Sucre). Under the AgroSeguro pr ogramme, the State pays 
Seguros  Sucre 60% of the net premium for the insurance policy, with a limit of US D 700, except in 
the case of bananas, for the cultivation of which the maximum value of the pol icy is US D 1,500. The 
cost of the remaining 40% of the premium is assumed by the farmer. In 2017, the co -payment 
                                                
14 Ministerial Decision No. 406 of 11 September 2013.  
15 Special Coffee Sector Law (consol idated text) of 2004 of 17 March 2004, Law Amending the Law 
Establishing the National Agricultural Research Institute (INIAP) and Repealing the Special Coffee Sector  Law, 
Official Register  No. 446 of 26 February 2015.  
16 WTO documents G/AG/N/ECU/35 of 19 Fe bruary 2014; G/AG/N /ECU/40 of 5 January 2016; 
and G/AG/N/ECU/44 of 22 May 2018.  
17 Resolution COMEX No. 030 -2016.  
18 Resolution COMEX No. 105 -2013.  
19 Resolution COMEX No. 030 -2016.  
20 Resolution COMEX No. 013 -2015.  
21 Ministry of Foreign Trade (2017), Informe de Gestión 2016 . Viewed at: 
https://www.comercioexterior.gob.ec/wp -content/uploads/downloads/2017/05/Informe -de-Gestion -2016_ -
1.pdf. 
22 WTO documents G/AG/N/ECU/36 of 19 February 2014 and G/AG/N/ECU/42 of 13 January 2016.  
23 MAGAP Ministerial Decision No. 154 of 18 July 2011 and Ministerial Decision No. 100 of 27 April 2015 
revoking Ministerial Decision No. 388 of 2012 and containing the Man agement  Instructions for AgroSeguro 
of 27 August 2015.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 109 - 
  amounted to US D 5.9 million. It is estimated that during the period 2011 -2017 a total of 
USD 51.5 million was disbursed in subsidizing the insu rance premium.24  
4.26.   In order to increase the productivity of small producers of cotton, rice, seed rice, kidney beans, 
flint corn, flint corn for silage, sweet corn and potato, 2017 saw the implementation of the 
Gran Minga Agropecuaria project, "an emblematic  strategy" by means of which the producers of 
these products may, among other things, obtain certificated seeds, fertilizers, and other agricultural 
inputs ("agricultural kit") at subsidized prices. The assistance granted to purchase the "agricultural 
kit" varies according to the product (from US D 172 to US D 1,120) (Table 4.6). Moreover, to be able 
to purchase these kits, the farmers must be registered with the MAG and have the beneficial use of 
a maximum of 10 hectares (5 hectares in 2018). Each farmer may  obtain a maximum of 5 kits. It is 
estimated that, for the sowing season of winter 2018, the MAG delivered 104,170  "agricultural kits". 
The Gran Minga Agropecuaria project also provides for access to lines of credit at preferential rates 
for agricultural u se, with a maximum of US D 5,000 per loan, granted by the State bank 
BanEcuador.25 
Table 4.6 Assistance by product for the agricultural kit, 2017  
Product  Assistance per agricultural kit/  
hectare/in US D % of tot al area planted  (ha) 
with assistance  
Cotton  224 75 
Rice 200 3 
Seed rice  400 .. 
Kidney bean  220 0.2 
Flint corn  180 27 
Flint corn for silage  350 47 
Sweet corn  172 0.2 
Potato  1,220 0.4 
.. Not available.  
Source:  MAG, information viewed in June 2018 at: https://www.agricultura.gob.ec/gobierno -nacional -apoya -
a-pequenos -productores -entregando -paquetes -tecnologicos -y-seguro -agricola -subsidiados -a-traves -
del-mag. 
4.27.   Ecuador intervenes in the marketing of certain agricultural products by establishing "minimum 
support prices" to ensure that the producer  gets a "fair price". The MAG determines these prices, 
which, in addition to covering the production costs, provide a profit margin for the producer. In 
general, the support prices are fixed by advisory boards, in which the MAG, the producers and the 
agro-industrial sectors participate. During the review period, the products to which a "minimum 
support price" was applied were: rice, bananas and plantains, coffee, maize (corn), quinoa, soya, 
wheat, cotton, sugar cane and milk. For some of these products, spe cifically rice, maize, quinoa, 
soya, wheat and coffee, a domestic crop "absorption commitment" is also required. The purpose of 
this "commitment" is to ensure that the agro -industrial sector purchases all of the domestic 
production, to strengthen the produ ction system and boost domestic output. Imports are conducted 
in accordance with a system for recording domestic supply and demand to ensure that the entirety 
of the local production of these products is "absorbed". In accordance with this analysis, import  
quotas are temporarily established (Table 4.7).  
                                                
24 MAG (2017), Agricultural Insurance Unit, Proyecto AgroSeguro para pequeños y medianos 
productores y pescadores artesanales del Ecuador. Ficha Informativa de Proyecto 2017 . Viewed at: 
http://servicios.agricultura.gob.ec/transparencia/2017/Agosto2017/k/EJECUCION_Agosto/GPR%20AGROSEGU
RO%20 -%20Agosto.pdf . 
25 Executive Decre e No. 677 of 1 June 2015 (latest amendment of 27 October 2017) and Resolution 
No. 22 of 7 September 2016.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 110 - 
  Table 4.7 Products for which "minimum support prices" and/or an "absorption 
commitment" are required  
Product  
Minimum 
support price  
Absorption 
programme  
Latest R esolutions/Ministerial Decisions  
Cotton  Yes No MAGAP Ministerial Decision No. 211 of 2 May 2013  
Resolution No. 141 of 22 May 2017  
Rice  Yes Yes MAGAP Ministerial Decision No. 047 of 11 April 2018  
Bananas and plantains  Yes No MAGAP Ministerial Decision No. 227 of 12 October 2017  
MAG Ministerial Decision No. 048 of 11 October 2017  
Coffee  Yes Yes MAGAP Resolution No. 032 -2016 of 23 February 2016  
Sugarcane  Yes No MAGAP Ministerial Decision No. 137 of 21 June 2016  
Milk  Yes No MAGAP Ministerial Decision No. 36 of 27 March 2018  
Maize  Yes Yes MAGAP Ministerial Decision No. 046 of 11 April 2018  
MAGAP Ministerial Decision No. 134 of 26 March 2013 
(Marketing Regulations for Yellow Flint Corn)  
Quinoa  Yes Yes .. 
Soya Yes Yes MAGAP Ministerial Decision No. 180 of 24 August 2016  
MAG Ministerial Decision No. 220 of 25 September 2017  
Wheat  Yes Yes MAGAP Ministerial Decision No. 460 of 16 October 2012  
.. Not available.  
Source:  WTO Secretariat, based on the Ecuadorian legislation; MAGAP (2016) "Ecuadorian Agricultural 
Policy: Towards sustainable rural land development 2015 -2025"; and online information . Viewed at : 
http://una.gob.ec/la -regulacion -de-precios -mejoro -las-condiciones -de-los-agricultores . 
4.28.   The National Storage Unit (UNA EP), an enterprise notified by Ecuador as being covered by 
the definition of a State trading enterprise in accordance with Article XVII of the GATT26, participates 
in the process of  domestic marketing of agricultural products, in small and large volumes. UNA EP 's 
principal objective is the temporary storage and domestic marketing of agricultural products, 
especially yellow flint corn, rice and cereals; the administration of strategic  food reserves; and 
support for the marketing and distribution of inputs. UNA EP acts as an intermediary between the 
agricultural producer and the agro -industrial sector. Under the crop absorption p rogramme, UNA EP 
participates mainly in the absorption of products such as rice, yellow flint corn and soya, 
guaranteeing the farmer the "minimum support price" throughout the year. UNA EP buys 
preferentially from small and medium -sized producers whose crop complies wi th the technical quality 
parameters required by the INEN standard.27 
4.2  Fisheries  
4.29.   The fisheries  sector 's contribution to GDP is modest (1.1% in 2017) and did not vary much 
during the period 2011 -2017. However, the sector is considered fundamental for the econo my as an 
important generator of foreign exchange. As with agricultural products, exports of fishery products 
increased during the period in question, rising from US D 2,496 million to USD  4,609 million , and 
accounting for 24.1% of total exports, so that Ecu ador's trade balance in relation to seafood products 
was positive during 2011 -2017. Shrimp is the fisheries  sector 's main export product and has become 
the largest generator of foreign exchange, excluding oil. During the review period, shrimp exports 
practically doubled, reaching US D 3,037 million in 2017, equivalent to 15.9% of total exports. This 
has led to shrimp exports exceeding exports of bananas, which have traditionally been Ecuador 's 
main (non -oil) export product. Fish and tuna are also among the m ain export products, accounting 
for 1.3% of total exports (Table 4.8).  
                                                
26 WTO documents G/STR/N/15/ECU of 6 October 2014 and G/STR/N/16/ECU of 6 July 2018.  
27 UNA online information. Viewed at: http://una.gob.ec/programasservicios/industrializacion . WT/TPR/S/383 /Rev.1 • Ecuador  
- 111 - 
  Table 4.8 Main indicators for the fisheries sector, 2011 -2017  
 
2011  2012  2013  2014  2015  2016a 2017a 
Share of GDP (% at current prices)  
Aquaculture and fisheries  1.1 1.2 1.2 1.1 1.0 1.1 1.1 
 Aquaculture and shrimp fishing  0.5 0.5 0.5 0.6 0.4 0.5 0.6 
 Fishing (except shrimp)  0.6 0.7 0.6 0.6 0.5 0.6 0.5 
Real growth rates (%, at 2007 prices)  
Aquaculture and fisheries  10.9 9.3 8.4 18.2 7.7 6.3 11.0 
 Aquaculture and shrimp fishing  21.7 7.3 9.1 40.0 18.6 8.2 15.9 
 Fishing (except shrimp)  3.0 11.1 7.9 -0.1 -5.2 3.5 3.5 
Fisheries sector (WTO definition)  
Exports         
Total fisheries ( USD million)  2,496  2,882  3,620  4,222  3,654  3,939  4,609  
Share in total exports  11.2 12.1 14.5 16.4 19.9 23.4 24.1 
Growth rate (%)  .. 15.4 25.6 16.6 -13.4 7.8 17.0 
Leading export products, by HS Chapter (% of total exports)  
 03. Fish and crustaceans, molluscs and 
other aquatic invertebrates  6.6 6.8 8.3 11.0 13.9 16.9 17.2 
 Shrimpb 5.3 5.4 7.2 9.8 12.4 15.4 15.9 
 Fish 0.0 0.0 0.7 0.8 0.9 0.9 0.9 
 Tuna 0.0 0.0 0.4 0.4 0.5 0.5 0.4 
 16. Preparations of m eat, fish or 
crustaceans, molluscs or other aquatic 
inverteb rates 3.9 4.7 5.4 4.9 5.2 5.4 6.1 
 23. Residues and wastes from the food 
industries; prepared animal fodder  0.5 0.5 0.6 0.4 0.7 0.9 0.6 
 15. Animal or vegetable fats and oils and 
their cleavage products  0.1 0.1 0.1 0.1 0.1 0.2 0.1 
Imports         
Total fisheries ( USD million)  303 208 141 158 124 112 124 
Share in total imports (%)  1.2 0.8 0.5 0.6 0.6 0.7 0.6 
Growth rate (%)  .. -31.3 -32.3 12.0 -21.8 -9.4 10.9 
.. Not available.  
a Preliminary figures.  
b Includes some tariff lines from HS Chapter 16.  
Source:  Central Bank of Ecuador and Comtrade  database.  
4.30.   The fisheries sector is regulated mainly by the Law on Fishing and Fisheries Development28 
and its implementing R egulation s.29 Although the law itself was not amended during the review 
period (it dates from 1974 and was last amended in 2005), the authorities reported that a 
replacement bill was currently under review , with a view to its possible  adoption. In contrast, the 
impleme nting Regulation s to the Law on Fishing and Fisheries Development  has been amended twice 
since the last review, in 2014 and again in 2016. The changes made include abolition of the National 
Fisheries Development Council, with its responsibilities  being tra nsferred to the Ministry of 
Agriculture (MAG), and the introduction of sanctions for violation of the Law on Fishing and Fisheries 
Development.  
4.31.   During the period under review, several changes occurred in the institutions that regulate the 
fisheries sector.  In 2017, the Ministry of Aquaculture and Fishing (MAP) was created, absorbing the 
Under -Secretariat for Fisheries , which had previously been attached to the Ministry of Agriculture, 
Livestock, Aquaculture and Fish eries (MAGAP). The MAP is currently tasked  with formulating and 
implementing Ecuador’s aquaculture and fisheries policy.30 
                                                
28 Law on Fishing and Fisheries Development, issued by Decree Law No. 1 78 of 19 February 1974, 
last amended on 11 May 2005.  
29 Regulation s to the Fishing and Fisheries Development Law , Executive Decree No. 3198, 
24 October  2002, as amended on 21 February 2014 and 19 February 2016.  
30 Executive Decree No. 6 of  24 May 2017 . WT/TPR/S/383 /Rev.1 • Ecuador  
- 112 - 
  4.32.   In 2018, the National Fisheries Control  Plan of Ecuador was published, setting out guidelines 
to make fishery products traceable, discourage and eradicate illegal fishing and s upervise all agents 
involved in fishery activity, to make sure the country's hydrobiological resources are used 
sustainably.31 The results of the Plan will be evaluated every two years.  
4.33.   The authorities stated that no specific incentive is used to promote th e aquaculture and 
fisheries sector , apart from training programmes. Exports of marine products, like other exports, 
benefited from the simplified conditional tax rebate system that was applied between February and 
December 2015. This instrument benefited t he fisheries sector, and the fish product processing 
industry in particular, despite the fact that exports of unprocessed shrimp and fish products were 
not eligible for the simplified system. Exporters of canned fish were the main beneficiaries of the tax 
rebate (a total of USD 16 million refunded), while tuna and fishmeal exporters received refunds 
totalling USD 1.7 million. These three products between them absorbed 35.3% of the total amount 
reimbursed.32 
4.34.   In 2016, negotiations were concluded with the Europ ean Union (EU) for a cumulation of origin 
arrangement with other countries from the region with which the EU has trade agreements, such as 
Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Peru.33 The 
objective was to allow cumul ation of origin until Ecuador’s November  2016 accession to the 
EU-Colombia/Peru trade agreement took effect in January  2017. The arrangement enabled Ecuador 
to continue exporting tuna to the EU, its main market, until then. In 2017, exports of preserved tu na 
(HS 1604.14) totalled USD 1.045 billion, of which 68% went to the EU.34 
4.35.   Foreign -flag fishing vessels may not engage in industrial fishing activities in Ecuadorian 
waters, unless they have the corresponding permits granted by the MAP and fulfil an establi shment 
requirement; in other words they must operate on behalf of a firm established in Ecuador through a 
partnership or lease contract.35 Until 2017, authorization for industrial fishing could be granted for 
a three -year period, renewable  for two further years; but since then unlimited extension has been 
allowed.36 Foreign -flag shrimp and lobster fishing vessels, and factory ships are prohibited37; and 
small -scale (artisanal) fishing is reserved for Ecuadorian nationals. A permit is also req uired to 
engage in the exportation or wholesale marketing of fish products, and also to engage in the 
processing of aquaculture and fishery products. The latter permit lasts for ten years, renewable for 
equal periods, and it also entitles its holder to sel l in the domestic and international markets.38  
4.3  Mining and energy  
4.3.1   Mining  
4.36.   Ecuador’s mining sector generated roughly 1.5% of the country’s GDP in 2017.39 This sector, 
traditionally consisting of  artisanal and small -scale operations, was declared strategic in 2 009, since 
when several regulatory and institutional reforms have been introduced to develop it. Ecuadorian 
mining mainly involves the extraction of gold, silver and copper, along with non -metallic products 
including limestone, clay and pumice.  
                                                
31 MAP Ministerial Decision No. 102 of  5 June 2018.  
32 Ministry of Foreig n Trade (2017), Informe de Gestión 2016 . Viewed at: 
https://www.comercioexterior.gob.ec/wp -content/uploads/downloads/2017/05/Report -de-Gestion-2016_ -
1.pdf. 
33 European Commission Implementing Regulation (EU) 2016/ 1380 of 16 August 2016  on a derogation 
from Article 55 (2)(a) o f Delegated Regulation (EU) 2015/2446 as regards the rules of origin applicable to 
regional cumulation for tuna originating in Ecuador.  
34 Comtrade database.  
35 Articles 24 and 28 of the Law on Fishing and Fisheries Development  and Articles 1.1, 27, and 33 of 
the implementing Regulation s to the Law on Fishing and Fisheries Development.  
36 Article 28 of the Law on Fishing and Fisheries Development and MAGAP Ministerial Decision No.  3 of 
19 January 2017.  
37 Article 34 of the Law on Fishing and Fisheries Development.  
38 Article 40 of the Law on Fishing and Fisheries Development and Article 110.1 of the Regulation s to the 
Law on Fishing and Fisheries Development . 
39 Figure provided by the authorities on the basis of data from the Central Bank of Ecuador.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 113 - 
  4.3.1.1   Regulatory  framework  
4.37.   The mining sector is governed mainly by the Mining Law and its General Regulation s, along 
with several ministerial decisions  (Table 4.9). During the period under review, the law itself and its 
Regulation s were amended several times40, inter alia to include new provisions on medium - and 
large-scale mining and on sanctions (including fines) (2013); to al low foreign investment in 
small -scale mining (2015); and to introduce more detailed provisions on royalties (2016 and 2018).  
Table 4.9 Main legal instruments governing the mining sector  
Legal instrument  Description  Date of 
publication in 
the Official 
Register  Most recent 
amendment  
Law No. 45  Mining Law  29/1/2009  21/8/2018  
Executive Decree No. 119  General Regulation s to the Mining Law  16/11/2009  4/1/2017  
Executive Decree No. 120  Regulation s of the special small -scale mining 
regime  16/11/2009  - 
Ministerial Decision  No. 612 Instructions for granting mining concessions 
for non -metallic minerals  7/11/2014  - 
Ministerial Decision  No. 37 
of the Ministry of the 
Environment  Environmental regulation of mining activities  27/3/2014  12/7/2016  
Ministerial Decision  No. 2 Instructions for granting mining concessions 
for metallic minerals  30/3/2016  11/7/2016  
Ministerial Decision  No. 19 Instructions for granting small -scale mining 
concessions for metallic minerals  28/7/2017  - 
Source:  WTO Secretariat.  
4.38.   The short -, medium - and long -term objectives of Ecuador’s mining policy are defined in the 
second National Mining Sector Development Plan (2016 -2020), which follows the guidelines of the 
National Plan for Good Living (2013 -2017).41 The Mining Development Plan contains policies for each 
type of mining regime: artisanal, small -, medium - and large -scale mining; and it defines three stages 
for the development of mining activity. In the first stage (2016 -2020) the aims are to develop min ing 
activities within the small -, medium - and large -scale regimes; attract  national and foreign 
investment; promote geological studies and research; and amend the legal framework. For the 
second stage (2021 -2025), the Plan requires the State to strengthen the national industry by 
fostering  research and innovation. During the third stage (2026 -2035), the Plan proposes to upgrade 
artisanal mining into small -scale mining; modernize small -scale mining; and identify new areas of 
interest.  
4.3.1.2   Institutional framework  
4.39.   The name and structure of the sector ministry have changed several times.42 Currently 
(2018), the authority in charge of the mining sector is  the Ministry of Energy and Non -Renewable 
Natural Resources. Within this Ministry, the Vice Ministry of Mines has specific responsibility for  the 
mining sector (Chart 4.1).  
                                                
40 Mining Law, Law No. 45  of 27 January 2009 (last amended on 21 August 2018), and General 
Regulation s to the Mining Law, E xecutive Decree No. 119  of 11 Nove mber 2009 (as last amended 
on 4 January  2017).  
41 Ministry of Mining (2016), National Mining Sector Development Plan (Summary Version). 
Online  information  viewed at : http://extwprlegs1.fao.org/docs/pdf/ecu166602anx.pdf . 
42 Executive Decree No. 578  of 13 February 2015, and Executive Decree No. 399  of 15 May 2018.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 114 - 
  Chart 4.1 Institutions responsible for the electricity, hydrocarbon and mining sectors  
 
Source:  WTO Secretariat.  
4.40.   The Mining Regulation and Control  Agency (ARCOM) and the Geological and Energy Research 
Institute (IIGE) (formerly the National Institute for Geological, Mining and Metallurgical Research 
(INIGEMM)) are both attached to the sector ministry.43 The first of these is the technical body 
responsib le for monitoring, auditing and supervising mining right -holders in the different phases of 
mining activity. The IIGE is in charge of research, technological development and innovation. In 
addition, two State -owned firms operate in the sector: Empresa Naci onal Minera (ENAMI EP) and 
Gran Nacional Minera Mariscal Sucre C.E.M., in which the Ecuadorian State has a 51% shareholding; 
ENAMI EP has a preferential right to be awarded mining concessions.44 
4.3.1.3   Ecuador’s mining regime  
4.41.   The Mining Law classifies mining activ ity in Ecuador in four regimes: artisanal, small, medium, 
and large -scale. To be able to engage in mining activities, the Law grants mining rights of specific 
types: permits for artisanal activity, concessions for mineral extraction, authorizations to set up 
processing plants, and mineral marketing licences (for both the domestic market and exports). 
Mining concession -holders do not need authorization to set up processing plants, or a marketing 
licence, because the concessions authorize them to extract, pro cess, smelt, market and close the 
mine.45 Nonetheless, the procedures for obtaining each type of mining right vary according to the 
activity to be undertaken and the mining regime in question (Table 4.10). Mining rights are issued 
by the sector ministry and  are specific to the type of ore to be extracted (metallic or non -metallic).  
Table 4.10 Mining regimes, 2018  
 Artisanal miming  Small -scale 
mining  Medium -scale 
mining  Large -scale 
mining  
Area  Up to 4 hectares of 
underground mining 
area and 6  hectares 
of open -cast mining 
area 1 to 500 hectares 
mining area  500 to 
5,000  hectares 
mining area  Up to 
5,000  hectares 
mining area  
Type of mining 
right Permit  Concession  Concession  Concession  
                                                
43 Executive Decree No. 399 of  15 May 2018.  
44 Article 24 of the Mining Law and Article 20 of the R egulation s to the Mining Law.  
45 Article 49 of the Mining Law.  
Creation of the Ministry of Energy and 
Non-Renewable Natural Resources , from the 
merger of:
◼Ministry of Hydrocarbons 
◼Ministry of Mining
◼Ministry of Electricity and Renewable Energy 
◼Hydrocarbons Secretariat Ministry of Mines and 
Petroleum , name change to 
Ministry of Non -Renewable 
Natural ResourcesMinistry of Energy and Mines ,divided into:
◼Ministry of Mines and Petroleum
◼Ministry of Electricity and Renewable Energy Ministry of Non -Renewable Natural Resources , 
divided into:
◼Ministry of Hydrocarbons 
◼Ministry of Mining
2007 2008 2009 2015 2018 … …WT/TPR/S/383 /Rev.1 • Ecuador  
- 115 - 
   Artisanal miming  Small -scale 
mining  Medium -scale 
mining  Large -scale 
mining  
Issuing process  Direct  Petition (1 to 
300 hectares mining 
area); Bid (301 to 
500 hectares mining 
area)  Competitive tender 
(or public auction 
as appropriate)  Competitive tender 
(or public auction 
as appropriate)  
Contract required  n.a. n.a. n.a. Mining  contract 
(and service 
contract if 
applicable)  
Profit sharing  n.a. 10% for the 
worker and 5% for 
the State  5% for the worker 
and 10% for the 
State  3% for the worker 
and 12% for the 
State  
Duration  10 years  25 years  25 years  25 years  
Origin of 
investment  National  National and/or 
foreign (subject to 
domicile in 
Ecuador)  National and/or 
foreign (subject to 
domicile in 
Ecuador)  National and/or 
foreign (subject to 
domicile in 
Ecuador)  
Royalties  n.a. 3% 3% to 8%  3% to 8%  
Environmental 
requirements  Environmental 
certificate  Environmental 
licenc e Environmental 
licenc e Environmental 
licence 
n.a. Not applicable.  
Source:  WTO Secretariat, based on the legislation and the National Mining Development Plan 2016-2020.  
4.42.   Mineral extraction under the artisanal mining regime requires a p ermit lasting  up to ten  years, 
renewable for equal periods. Right -holders under this regime do not have to pay royalties.  
4.43.   Small -scale mining requires a mining concession, which can be granted through a petition or 
a bid, depending on the size of the mining  area (Table 4.10). A petition is submitted when the area 
to be mined is of between 1 and 300 hectares; and a bidding process is used for areas of 301 to 
500 hectares. In the case of petitions, the concession is requested from the Ministry and published 
on its website. Concessions are granted if the requirements are met. In a bidding process, the 
Ministry posts a notice on its website, for five days, stating that an area is to be placed under 
concession . During this period, potential bidders can express int erest. A committee evaluates all 
applications  and recommends the best one.46 
4.44.   Mineral extraction under the medium - or large -scale mining regimes requires a concession 
that is granted through a public auction or competitive bidding  process (Table  4.10). The mining 
right in this case lasts for up to 25 years and may be renewed for equal periods.47 Nonetheless, 
before starting any auction or competitive bidding process, ENAMI EP must be consulted; and if it is 
interested in the area in question, the mining right  is automatical ly granted to it. Foreign 
State -owned firms also do not have to participate in a public auction or competitive bidding process, 
whereas foreign private enterprises do have to. Accordingly, the Ecuadorian State can award a 
mining contract to a foreign State -owned firm directly.48 
4.45.   The auction or competitive bidding process can be held at the initiative of the Government or 
at the request of a private entity. To date (2018), the Government has not initiated any auction or 
bidding process; all hav e been triggered by the private sector (B ox 4.1). 
                                                
46 Instructions for granting mining concessions for small -scale metallic mine rals, published in the 
Official  Register on 28 July 2017.  
47 Article 36 of the Mining Law.  
48 Article 29 of the Mining L aw. WT/TPR/S/383 /Rev.1 • Ecuador  
- 116 - 
  Box 4.1 Auction or public bidding process  
If the auction or bidding process is carried out on government initiative, the Ministry will issue a public call 
for te nders in which interested parties can submit bids pursuant to the legally defined procedure (Article 29 
of the Mining Law). The Ministry will award the mining concession for a specific territory to the best bid. If 
there is only one bidder, the Ministry wi ll award the concession if the proposal fulfils all requirements, 
including economic and technical solvency. If there is no bidder, the process will be declared void and, after 
three months, a new process may be launched. If no bidder satisfies the require ments, the Ministry also 
reserves the right to declare the process void.  
When the auction or bidding process is held at the initiative of a private -sector entity wishing to obtain a 
concession for a specific territory, the party in question must reserve t he area through the (online) Mining 
Management System and ask the Ministry to launch the process. The latter publishes a call for tenders 
online to enable other potential bidders to participate. If a higher bid than the one proposed by the initial 
applican t is submitted during the qualification stage, the latter will have two days to improve its initial bid. 
The concession is awarded to the highest bid. This process is governed by the "Swiss challenge" method and 
provides a degree of advantage to the initia l applicant.  
Source:  WTO Secretariat on the basis of information provided by the authorities.  
4.46.   In the case of large -scale mining, once the decision awarding the concession has been made, 
the right -holder will have six months to sign a mining  contract with the State. This will specify the 
terms, conditions and deadlines for the stages of construction and assembly, extraction, 
transportation, and marketing  of the minerals obtained within the boundaries of the mining 
concession.49 Mining concession -holders unde r the small - and medium -scale mining regimes are not 
required to sign a  mining  contract.50 
4.47.   Mining activity in Ecuador is subject to the following taxes: income tax (IR), foreign exchange 
exit tax (ISD), va lue added tax (VAT); and the sovereign adjustment ta x, which is levied on the 
extraction of non -renewable resources. The windfall tax, which was exclusive to mining activities , 
was eliminated in 2018.51 The sovereign adjustment tax is based on Article 408 of the Constitution 
of the Republic which provides th at: "the State shall share in the profits obtained from these 
resources, in an amount that is no less than the profits earned  by the company producing  them" . 
This means that the Ecuadorian State must receive at least 50% o f the profits obtained from 
non-renewable resource projects. Nonetheless, the firms only have to pay the sovereign adjustment 
tax if the present value of the firm’s cumulative  profits exceeds the value of the Government's 
cumulative  share. As mining is a capital -intensive industry, the sovereign adjustment tax is only 
applied at the end of the life of the mining project, if at all.  
4.48.   Mining activity also involves the payment of a labour profit share, as well as royalties, advance 
royalties and annual conservation licence fees . The labour profit share, which is established for each 
mining regime, varies from 3% to 10% for workers and from 5% to 12% for the State.52 In the case 
of royalties, concession -holders must pay the State between 3%  and 8% of the value of sales of the 
main and secondary minerals.53 The advance royalty is negotiated on the basis of the projected 
value of t he deposit, as specified in the mining  contract; and it is paid once only when the concession 
contract is signed.54 Maintenance fees must be paid each year for each concession and are based on 
the number of hectares under concession and the mining regime in question. Artisanal mining is 
exempt from the payment of the labour profit share, royalties, advance royalties and  conservat ion 
licence fees. 
4.49.   Ecuador provides several tax incentives to attract investment. These include exemptions from 
advance IR payments for a five -year period and on ISD for certain payments made abroad55, as well 
as accelerated depreciation and a VAT refund on mining exports (since 2018). Foreign investors can 
                                                
49 Article 41 of the Mining Law.  
50 Article 57 of the General Regulation s to the Mining Law.  
51 Articles 36 and 43 of the Organic Law on the Promotion of Production, Attraction of Inv estment,  
Generation of Employment , and Fiscal Stability and Balance (Law  No. 0)  of 21 Au gust 2018, as last amended 
on 6 September  2018.  
52 Article 67 of the Mining Law.  
53 Article 93 of the Mining Law.  
54 Article 4 of the Instructions for Mineral Exploration and Extraction and Articles 41, 92 and 93 of the 
Mining Law.  
55 Article 2 4 of the Organic Code on Production, Trade and Investments.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 117 - 
  also enter into investment contracts with the State to secure greater stability and tax security 
(Section 2).  
4.50.   Foreign investment under the small - (since 2015), medium - and large -scale regimes is 
allowed for up to 100% of the capital involved. Nonetheless, foreign legal entities investing in the 
sector must be domiciled in Ecuador. Currently (2018), foreign investment is only prohibited in the 
artisanal mining regime.  
4.3.2   Hydrocarbons  
4.3.2.1   Characteristics of the sector  
4.51.   The hydrocarbon sector remains the pillar of the Ecuadorian economy; it is the chief 
contributor to the State budget and the largest foreign exchange earner. Ecuador produces crude oil 
and natural gas, and their derivatives, crude oil being t he most important item and the leading 
export product. In 2017, Ecuador exported 135 million barrels of crude oil worth USD 6.190 billion, 
which represented around 32% of its total exports.56 In the same year, oil activities generated 8.9% 
of Ecuador's GDP.57 The sector was badly affected by the slump in oil prices that occurred between 
2014 and 2016, which was a major shock to government income and the trade balance. This led to 
the implementation of various measures to restrict imports and promote exports a nd investments, 
in order to save and generate additional foreign exchange.  
4.52.   During the period under review, although a number of changes were made at the institutional 
level, the only significant regulatory amen dment was the reintroduction of production -sharing 
contracts in 2018.  
4.53.   Foreign investment is generally allowed in the sector, albeit subject to establishment and 
labour requirements. Maritime transportation of hydrocarbons is the only activity reserved for the 
State.  
4.54.   The country relies heavily on the oil sector to finance its budget and generate foreign exchange 
inflows, which are essential in a dollarized economy such as Ecuador’s. During the period under 
review, the effects of this dependency were felt throughout the  economy when international oil prices 
per barrel fell in 2014 (Section 1). Between June and December of that year, the monthly average 
price of West Texas Intermediate (WTI)  crude , which serves as a benchmark for setting the prices 
of the Oriente and Napo  crude oil extracted in Ecuador, plummeted from USD 105.2 to USD 59.5 
per barrel. In the ensuing months, the price of a barrel of WTI crude continued to fall, before reaching 
a low of USD 30.3 in February 2016. Since then, the per barrel price has recovere d, but without 
regaining its 2011 -2013 levels; in April 2018 it stood at USD 66.3 (Chart 4.2).  
                                                
56 Data from the Central Bank of Ecuador.  
57 Figure provided by the authorities.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 118 - 
  Chart 4.2 Monthly price trend of Ecuadorian and WTI  crude oil , 2011 -2018  
 
WTI West Texas Intermediate.  
Source:  Central Bank of Ecuador.  
4.55.   The fall in oil prices undermined the value of Ecuador’s exports, and hence the country’s 
foreign -exchange earnings, thus generating a balance -of-payments deficit. Between 2014 and 2016, 
oil exports slumped from USD 13,276 m illion to USD 5,459 million, before climbing back to 
USD 6,914  million in 2017. During those years, production remained relatively stable, easing slightly 
from 203 million barrels in 2014, to 201 million in 2016. To address this trade deficit, safeguard 
measures were adopted to restrict imports (Section 3). Other steps w ere also taken to promote 
non-oil exports, including the implementation of the "simplified drawback" regime, and measures to 
attract foreign investment, such as  the opening up of the mining sector.  
4.56.   Although Ecuador has a large crude -oil surplus, it is a net importer of petroleum products. As 
its refining capacity remains limited, it needs to import fuels, mainly diesel, gasoline and liquefied 
petroleum gas, to satisfy domestic demand. On average bet ween 2011 and 2017, petroleum 
products accounted for 20% of the country’s  total imports, reaching a level of USD 3.2 billion in  2017 
(Chart 4.3).  
020406080100120
1 6 1 6 1 6 1 6 1 6 1 6 1 6 14
2011 2012 2013 2014 2015 2016 2017 2018
Crudo Oriente Crudo Napo WTIDollars per barrellWT/TPR/S/383 /Rev.1 • Ecuador  
- 119 - 
  Chart 4.3 Oil and non -oil exports and imports, 2011 -2017  
 
Note: Oil exports include both crude oil and its derivative products; but, as Ecuador does not import crude 
oil, its oil imports consist exclusively of oil derivatives.  
Sources:  Information provided by the authorities and data from the Central Bank of Ecuador . 
4.3.2.2   Regulatory and institutional framework  
4.57.   The hydrocarbon sector is governed mainly by the Hydrocarbons Law and its implementing 
regulations (Table 4.11). During the review period, the Law itself was amended four times, in 2014, 
2017 and again in 2018. The implementation  of this Law and its amendments has entailed issuing 
several sets of regulations , including the Regulation s for the amended version of 1993, issued in 
1994 and last amended in July 2018 ; and the Regulation s for the amended version of 2010, issued 
the same year and amended in 2012, 2017 and twice in 2018.58 The changes introduced in 2018 
include the following: the updating of provisions on production -sharing  contracts for the exploration 
and extraction of hydrocarbons; and the issuance of regu lation s governing  the exploration, 
extraction, transportation, storage, industrialization, refining and marketing of hydrocarbons 
(Table  4.11).  
Table 4.11 Main legal instruments governing the hydrocarbons sect or 
Legal instrument  Description  Publication 
date Most recent 
amendment  
Supreme Decree No. 2967  Hydrocarbons Law  15/11/1978  21/8/2018  
Executive Decree No. 1417  Regulation s implementing  the 1993 Law (No. 
44) amending the Hydrocarbons Law  21/1/1994  12/7/2018  
Executive Decree No. 546  Regulations implementing  the 2010 Law 
amending the Hydrocarbons Law  29/11/2010  24/5/2018  
Executive Decree No. 1036  Regulation s to Law (No. 85) of 2007 amending 
Hydrocarbons Law  7/5/2008  n.a. 
Executive Decree No. 1672  Regulation s to replace the regulation s 
implementing Law (No. 42) of 2006 amending 
the Hydrocarbons Law  13/7/2006  3/12/2008  
Ministerial Decision No. 1  Regulation s governing  Hydrocarbon Operations  2/2/2018  n.a. 
n.a. Not applicable.  
Source:  WTO Secretariat.  
                                                
58 Regulation s for the Reforms to the Hydrocarbons Law, 29 November  2010, as amended most recently 
on 24 May 2018.  
Oil Non-oil05,00010,00015,00020,00025,00030,000
2011
2012
2013
2014
2015
2016
2017A. Exports 
2011-2017
(USD millon FOB)
05,00010,00015,00020,00025,00030,000
2011
2012
2013
2014
2015
2016
2017B. Imports 
2011-2017
(USD millon FOB)WT/TPR/S/383 /Rev.1 • Ecuador  
- 120 - 
  4.58.   The hydrocarbons sector is overseen by the Ministry of Energy and Non -Renewable Natural 
Resources, which is responsible for implementing the Government’s hydrocarbons policy, as outlined 
in its 2017 -2021 Strategic Plan. The Hydrocarbons Secretariat of Ecu ador, which was merged with 
the Ministry, is responsible for administration of the country’s oil resources, for which it oversees 
the respective contracts, bidding processes and all oil field operational activities. The Hydrocarbons 
Regulation and Control Agency (ARCH), attached to the Ministry of Energy and Non -Renewable 
Natural Resources, serves as the sector regulator.  
4.59.   Two publicly  owned enterprises operate in the sector: Pe troecuador EP and 
Petroamazonas  EP. The former is responsible for transporting and marketing crude oil, and for 
producing, transporting and marketing petroleum derivative products. Until 2013, Petroecuador EP 
was also in charge of oil prospecting and extraction; but since then, those activities have been taken  
over by Petroamazonas E P, which is also responsible for  gas prospecting and extraction.59 These 
firms play a major role in the sector, as the country’s main producers and exporters. In 2017, 
Ecuador produced 184 million barrels of crude oil and exported 135 mi llion barrels, of wh ich the 
two public -sector firms jointly accounted for 78% and 86%, respectively (Chart 4.4).  
Chart 4.4 Production and exportation of crude oil by public - and private -sector 
enterprises  
 
Note:  Petroecuador EP contributed to oil production until 2012.  
Source:  Information provided by the authorities and the Central Bank.  
4.60.   The law allows domestic or foreign private firms, as well as foreign State -owned enterprises, 
to participate in hydrocarbon sector activities th rough partnership, production -sharing or 
service -provision contracts. These are awarded through a competitive bidding process and signed 
with the State. Contracts may also be awarded directly in the case of foreign public -sector companies 
or Ecuadorian mix ed-ownership firms in which the State is the majority shareholder.60 
4.61.   Since 2010, and during most of the period under review, a government policy was 
implemented that resulted exclusively in the signing of service -provision contracts for hydrocarbon 
explorat ion and/or extraction.61 In contracts of this type, the corresponding production is owned by 
the State; and the contractor undertakes to provide services, using its own resources, in return  for 
a contractually stipulated fee per barrel of oil produced and d elivered to the State. The fee is 
calculated on the basis of the contractor’s investments, costs and expenses plus a reasonable profit 
                                                
59 Executive Decree No. 1351 -A of 1 November 2012.  
60 Article 19 of the Hydrocarbons Law.  
61 Transitory Provisions of the Law Amend ing the Hydrocarbons Law and the  Law on the Domestic Tax 
Regime of 27 July 2010.  
131 134145158 154 158 15252 514745444342
106 112124139131 126116161716162019
19
050100150200250
2011 2012 2013 2014 2015 2016 2017Millions of barrels
Public-enterprise production Private-enterprise production
Petroecuador EP exports Other exportsWT/TPR/S/383 /Rev.1 • Ecuador  
- 121 - 
  margin that takes risks into account. Contracts can be granted for up to 20 years62, and are not 
subject to royalty paymen ts.63 
4.62.   In July 2018 , a policy change reintroduced production -sharing  to promote foreign 
investment.64 These entitle the firms in question to receive part of the production.  
4.63.   Foreign persons can participate in tenders, provided they meet certain requirements. F or 
example, foreign citizens who wish to participate in a tender with a view to signing a contract with 
the State need to be domiciled in the country, submit to the Ecuadorian courts and expressly waive 
any claim through diplomatic channels.65 In addition, least 95% of the workers, 90% of the 
administrative staff and 75% of the technical personnel must be Ecuadorian nationals. These 
percentages must also rise progressively: five years after starting activities, 100% of the workers 
and administrative staff, a nd 95% of the technical personnel, must be Ecuadorian. The Hydrocarbons 
Law makes clear that knowledge transfer is the objective of phasing in this requirement.66 
4.64.   Nationality restrictions apply for the international maritime transportation of hydrocarbons, 
which is reserved for vessels owned by State firms. As a result, Empresa Pública Flota Petrolera 
Ecuatoriana (FLOPEC EP) is responsible for all maritime transportation of hydrocarbon exports and 
imports. Domestic  private, State -owned or mixed -ownership com panies in which the Ecuadorian 
State holds at least 51% of the share capital may provide hydrocarbon loading/unloading and 
storage services.  
4.65.   The prices of oil derivatives such as diesel, gasoline and liquefied petroleum gas (or domestic 
gas) for local cons umption continue to be subsidized. By 2018, it is estimated that the expenditure 
on these subsidies will amount to USD 1.7 billion, equivalent to around 5% of the General State 
Budget for that year.67 
4.3.3   Electricity  
4.3.3.1   Performance of the electricity sector during  the period  2011 -2017  
4.66.   During the period  2011-2017, Ecuador’s installed electric power capacity grew from 5,181 MW 
to 8,036 MW, as a result of increased public investment which financed the construction of new 
hydroelectric plants. Given the additional capa city, electric power  generation increased by 36% 
between 2011 and 2017, to reach 28,033 kWh in the latter year . Of this, 71.7% was hydroelectric, 
26.3% thermoelectric and the rest was generated from unconventional renewable sources.68 
Demand in 2017 totalled 20,203 kWh, which corresponds to an estimated installed capacity 
(maximum demand) of 3,745 MW, so the existing facilities are currently considered to be 
underutilized (Chart 4.5).  
                                                
62 Article 23 of the Hydrocarbons Law.  
63 Article 16  of the Hydrocarbons Law.  
64 Executive Decree No. 449 of  12 July 2018.  
65 Articles 12 and 26 of the Hydrocarbons Law.  
66 Article 31 of the Hydrocarbons Law.  
67 Ministry of Economy and Finance (2018), Proforma Presupuestaria 2018. Cifras del Presupuesto 
General  del Estado 2018 . Viewed at: https://www.finanzas.gob.ec/wp -
content/uploads/downloads/2017/11/Proforma_2018_para_Asamblea.pdf . 
68 Information pr ovided by the authorities.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 122 - 
  Chart 4.5 Gross production and demand for electricity 2011 -2017  
 
Source:  WTO Secretariat, on the basis of the data published by ARCONEL.  
4.67.   Ecuador has historically been a net importer of electricity from Colombia and, sometimes, also 
from Peru. However , with t he increase in domestic energy production, imports have been declining 
steadily since 2015 and exports have been increasing, such that in 2016 and 2017 the electricity 
trade account was in surplus (Chart 4.6). In 2017, Ecuador expo rted 194 GWh to Colombia and 
17 GWh to Peru, while it imported 18 GWh exclusively from Colombia.  
Chart 4.6 Electric energy trade balance 2011 -2017  
 
Note:  Imports include purchases from Colombia and Peru, except in 2017 when no impor ts from Peru were 
recorded.  
Source:  WTO Secretariat, based on data published by ARCONEL and the sector ministry.  
4.3.3.2   Regulatory and institutional framework  
4.68.   The electric ity sector is regulated by the Organic Law on the Public Electricity Service 
(the Electric Energy Law) of 2015, which replaced the Law on the Electricity Sector Regime that had 
been in force since 1996, and also several sets of regulations (Table 4.12). Among other changes, 
the new Law introduces a flat tariff for the end -consumer, and calls for the preparation of plans such 
as the Electrifi cation  Master Plan (PME) and the National Energy Efficiency Plan (PLANEE). Until the 
20,54422,84823,26024,30725,95027,314 28,033
15,24916,17517,07218,33819,331 19,35220,203
05,00010,00015,00020,00025,00030,000
2011 2012 2013 2014 2015 2016 2017
Gross energy generated Total demand(KWh)
1,295
238662837
511
82
19 14 12 2947 46401
211
02004006008001,0001,2001,400
2011 2012 2013 2014 2015 2016 2017
Imports Exports(KWh)WT/TPR/S/383 /Rev.1 • Ecuador  
- 123 - 
  imple menting regulation s to the Law on the Electric Energy  can be issued, the Law will be 
implemented pursuant to the provisions of the Regulation to the Law on the Electricity Sector 
Regime , as far as possible and wherever applicable.  
Table 4.12 Main legal instruments regulating the electric ity sector  
Legal instrument  Description  Publication 
date  Most recent 
amendment  
Law No. 0  Organic Law on the Public Electricity 
Service  16/1/2015  21/5/2018  
Executive Decree No. 2066  Regulation s to the Law on the Electricity 
Sector Regime  21/11/2006  16/1/2015  
Executive Decree No. 796  Regulation s governing provision of the 
electricity service  22/11/2005  - 
Executive Decree No. 1274  Regulation s on concessions for electric 
power provision  3/4/1998  21/8/2009  
Source:  WTO Secretariat.  
4.69.   Until August 2018, the Ministry of Electric ity and Renewable Energy was responsible for 
defining and implementing policies for the electricity sector. Thereafter, the functions in question 
were assumed by the new Ministry of Energy and Non -renewable Natural Resources, to which 
two other institutions w ere assigned: the National Electricity Operator (CENACE) and the Electricity 
Regulation and Control Agency (ARCONEL). These two institutions were created in 2015 through the 
Electric Energy  Law, and replaced the National Energy Control Centre and the Natio nal Electricity 
Board  (CONELEC).  
4.70.   ARCONEL regulates and oversees the public electric ity and street lighting service , while 
CENACE operates the National Interconnected System  (SNI), through which the public electricity 
service is provided. The SNI connects t he generation and transmission centres, including 
international interconnection nodes, to the consumption centres. The SNI does not include the grid 
that distributes electric energy to the final consumer. CENACE is tasked with guaranteeing the safety 
and q uality of SNI operations pursuant to the regulations issued by ARCONEL.  
4.71.   The main public firms operating in the sector are Corporación Eléctrica del Ecuador 
(CELEC  EP), which undertakes generating and transmission activities, and Corporación Nacional de 
Electricidad (CNEL EP), which operates in the distribution and marketing  segments.69 In 2017, 
CELEC  EP generated 87% of the country’s total electric ity, mostly using hydropowe r. CNEL  EP 
distributes electricity and provides the street lighting service to 50% of  national territory.70 Another 
nine mixed -ownership companies, whose largest shareholder is the State, serve the rest of the 
country.  
4.72.   The Electric ity Law reserves provision of the public electricity service (generation, 
transmission, distribution and domest ic and international marketing), as well as street lighting, for 
public -sector companies or joint ventures in which the Ecuadorian State is the majority shareholder. 
However , on an exceptional basis and if necessary to protect  the public interest, the Stat e may 
outsource power generation to private firms (either national or foreign) through a competitive 
bidding process, or to foreign State -owned companies by direct award, except in the case of projects 
that use non -conventional renewable energies that are not included in the Electricity Master Plan.71 
Moreover, in some cases the State may authorize mixed -ownership or private companies to 
participate in building and operating transmission systems.72 Foreign private firms must be domiciled 
in the country to be able to engage in activities in the sector.  
4.73.   To authorize operations  in the sector, the Ministry grants two types of contract depending on 
the type of enterprise in question. Public and mixed -ownership companies receive an operating 
permit, while private -sector firms receive a concession contract, which may last for up to 50 years. 
Once the concession contract has expired, the company must transfer the assets and infrastructure 
                                                
69 Executive Decree No. 1459 of  13 March 2013.  
70 Online information from CNEL EP. Viewed at: https://www.cnelep.gob.ec/servicio -indicador es-
gestion -pec-comercial -energia . 
71 Articles 7, 24 and 25 of the Organic Law on the Public Electricity Service.  
72 Articles 40 -43 and 62 of the Organic Law on the Public Electricity Service.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 124 - 
  used to provide the service, such as the power generation plant, to the State fre e of charge.73 
Disputes over a concession contract can only be heard by judges of the Ecuadorian judiciary or by a 
regional arbitration body.74 
4.74.   As of August 2018, there were 57 firms (13 public and 44 private) generating electricity, but 
most of the energy is generated by the public -sector companies. The transmission segment had just 
one public -sector firm operating, while the distribution and marketing  sector had one public and 
nine mixed -ownership companies in which the State was the largest shareholder.75 
4.75.   The 2015 Electric ity Law established a single tariff for the entire country, which may vary by 
type of consumer. Under the new system, in the first six months of each year, ARCONEL determines 
the costs of generation, transmission, distribution and marketin g, and street lighting to be applied 
in the various market transactions; and these will serve as a basis for setting the single tariff for the 
end-consumer.76 The latter has two rates: a rate for residential users and a general rate which 
applies to all oth er users and may vary according to the type of activity and time of use. In 2017, 
the average price of electricity was USD 0.097 per kWh.77 
4.76.   A subsidized rate, known as "Tarifa Dignidad " [Dignity Rate], is applied for residential users 
that consume up to a s pecified amount per month. The Dignity Rate consists of a 50% discount on 
the rate for residential users whose consumption is less than 110 kWh in the Sierra region or 
130 kWh in the Costa/Oriente/Insular region. There is also a subsidy for elderly residen tial users 
and those with a disability .78 
4.4  Manufactures  
4.77.   Since 2013, manufacturing -sector development and diversification has become a priority in 
the strategy to transform the production matrix.79 Despite the efforts deployed, however, the 
manufacturing secto r’s contribution to the economy (excluding oil refining) performed erratically and 
only increased slightly during the period under review.80 In 2017, the sector accounted for 13.6% 
of GDP, compared to 12.2% in 2011. During the period under review, the manuf acturing sector 
posted positive growth rates of between 1.9% and 6.2%  each year , except in 2015 and 2016 
(Chart  4.7). In 2017, the sector (including oil refining) generated 11.3% of total employment and 
was second only to the agricultural sector as the mai n job creator.81 
                                                
73 Article 33 of the Organic Law on the Public Electricity Service.  
74 Article 37 of the Organic Law on the Public Electricity Service.  
75 Data provided by the authorities.  
76 Articles 54 and 55 of the Organic Law on the Public Electricity Service.  
77 Corporación Eléctrica del Ecuador (CELEC EP), Plan Maestro de Electricidad 2016-2025. Viewed at: 
https://www.celec.gob.ec/hidroagoyan/images/PME%202016 -2025.pdf . 
78 Corporación Eléctrica del Ecuador (CELEC EP), Plan Maestro de Electricidad 2016 -2025. Viewed at: 
https://www.celec.gob.ec/hidroagoyan/images/PME%202016 -2025.pdf . 
79 SENPLADES (2012), Transformación de la Matriz Productiva , Information leaflet. Viewed at: 
http://www.planificacion.gob.ec/wp -content/uploads/downloads/2013/01/matriz_productiva_WEBtodo.pdf ; 
and Office of the Vice -President of Ecuador  (2013), Estrategia Nacional para el Cambio de la Matriz Productiva . 
Viewed at : https ://www.vicepresidencia.gob.ec/wp -content/uploads/2013/10/ENCMPweb.pdf . 
80 Oil refining represented 0.8% of GDP in that year.  
81 Central Bank of Ecuador (2018), Boletín - Presentación Coyuntural , March 2018. Viewed at: 
https://www.bce.fin.ec . WT/TPR/S/383 /Rev.1 • Ecuador  
- 125 - 
  Chart 4.7 Contribution of the manufacturing sector t o GDP and the growth rate  (%), 
2012 -2017  
 
Source:  Data provided by the authorities, on the basis of data from the Central Bank of Ecuador.  
4.78.   During the review period, Ecuador’s manufacturing trade deficit (non -agricultural products, 
WTO definition) narrowed significantly , beginning in 2014 when  imports decreased sharply, probably 
as a result of the various measures adopted by the Government i n that period. 
Between  2014 and 2016, manufacturing sector imports shrank by 43%, from USD 25,301 million to 
USD 14,381 million, before climbing back to USD 17,486 million in 2017, representing 88.1% of 
Ecuador’s total imports. In the same year, exports from  the manufacturing sector reached a level of 
USD 7,030 million or 36.8% of total foreign sales ( Chart  4.8). The main export products in 2017 
were canned fish, metal manufactures and wood, while the leading imports were light motor 
vehicles, medicines, meta l manufactures, and machinery and machine parts .82  
                                                
82 Ministry of Foreign Trade and Investment (2018), Informe Mensual de Comercio Exterior , 
January  2018. Viewed at: https://www.come rcioexterior.gob.ec/wp -content/uploads/2018/04/Bolet%C3%ADn -
Enero.pdf . 
12.212.613.5 13.613.813.6
3.46.2
3.7
-0.4
-2.52.1
-4-20246810
0246810121416
2012 2013 2014 2015 2016 2017
Share of GDP Real growth rate(% of GDP) Growth rate (% at 2007 prices)WT/TPR/S/383 /Rev.1 • Ecuador  
- 126 - 
  Chart 4.8 Exports and imports of non -agricultural produ cts (excluding crude oil), 
2011 -2017  
 
Source:  Calculations made by the WTO Secretariat, on the basis of data from the Comtrade database.  
4.79.   The leading segments of the manufacturing sector include food, beverages and tobacco, which 
accounted for 42% of the sector's activities in 2017, followed by chemicals (9%), non -metallic 
products (9%), textiles and leath er (7%), bas e metals and metal products (7%), and wood products 
(6%).83 
4.4.1   Institutional framework  
4.80.   The Ministry of Industr y and Productivity (MIPRO) is tasked with formulating and 
implementing Ecuador’s industrial policy, the objectives of which include chang ing and diversifying 
the production matrix. This implies close interaction between industrial policy and trade policy, since 
the key instruments for achieving change in the production matrix are export promotion and 
selective import substitution to reduce the trade deficit and promote domestic production.84 
Ecuador’s 2016 -2025 Industrial Policy Plan, published in 2016, outlines the country’s industrial 
policy, which involves coordination with other ministries such as the MAG and MAP, the National 
Public Proc urement Service (SERCOP) and the Ministry of Foreign Trade and Investment.  
4.81.   The Plan’s main objective , in terms of altering the production matrix85, is to shift from an 
economy founded on the extraction of primary resources, particularly oil, to one based on  
manufacturing and higher value -added services. This would be achieved through  a series of 
cross-cutting and sector -level policies. The former aim to improve the business climate, promote 
industrial competitiveness, strengthen human skills and make  financi ng for industry  more accessible . 
In contrast, the sector policies seek to promote and develop certain industries considered to be of 
                                                
83 Figures provided by the authorities.  
84 SENPLADES (2012), Transformación de la Matriz Productiva , Information leaflet. Viewed at: 
http://www.planificacion.gob.ec/wp -content/uploads/downloads/2013/01/matriz_productiva_WEBtodo.pdf , and 
Office of the Vice -President of Ecuador (2013), Estrategia Nacional para el Cambio de la Ma triz Productiva . 
Viewed at: https://www.vicepresidencia.gob.ec/wp -content/uploads/2013/10/ENCMPweb.pdf . 
85 Office of the Vice -President of Ecuador (2013), Estrategia Nacional para el Cambio de la Matriz 
Productiva . Viewed at: https://www.vicepresidencia.gob.ec/wp -content/uploads/2013/10/ENCMPweb.pdf . 
5,6416,481 6,5887,266
6,325 6,2047,03022,26623,23224,95625,301
19,404
14,38117,486
25.2%27.2%26.4%28.2%34.5%36.9% 36.8%91.7% 92.2% 92.2% 91.9%90.7%88.8% 88.1%
0102030405060708090100
05,00010,00015,00020,00025,00030,000
2011 2012 2013 2014 2015 2016 2017
Value exported Value imported % of total exports % of total imports(USD million)(%)WT/TPR/S/383 /Rev.1 • Ecuador  
- 127 - 
  high export potential. These are grouped in three sectors: agribusiness, intermediate and final 
industries, and basic indus tries.86 
4.82.   In the agribusiness sector, the Plan seeks to strengthen the industries that make products 
from cocoa, coffee and fish, as well as palm oil, meat, fruits and vegetables and milk. In the 
intermediate and final goods sector, the Plan promotes the dev elopment of the production of textiles 
and leather, furniture and wood articles, pharmaceuticals and cosmetics, machinery and its 
components (metalworking), rubber and plastic articles, paper, glass, ceramics, and articles of 
concrete and stone. Among basi c industries, the Plan prioritizes development of steel and metallurgy 
industries for flat steel manufacture, as well as copper and aluminium smelting and refining, the 
petrochemical industry, the production of pulp for paper and paperboard, and the develo pment of 
shipyards for ship repair and construction. The Plan envisage s the construction of a shipyard, a flat 
steel plant and a pulp mill, with operations starting in 2019, 2020 and 2025, respectively.  
4.83.   Among the instruments envisaged to implement the sect or-level policies, the Plan proposes 
import substitution for some of the products identified in agribusiness and basic industries, such as 
dairy, meat and steel products. The Plan also proposes a reduction of tariffs on raw materials and 
machinery used in agribusiness, together with the use of mechanisms such as the simplified 
conditional drawback  regime (Section 3). Another policy envisaged involves promoting  "Fair Trade". 
Several of the trade measures implemented during the period under review follow thes e guidelines.  
4.4.2   Border measures  
4.84.   The average most -favoured -nation (MFN) applied tariff for non -agricultural products 
(including oil, WTO  definition ) has risen since the previous review, from 8.2% in 2011 to 9.7% in 
2018, excluding ad valorem  equivalents (AVEs), or to 11.2% when these are taken into account 
(Table 3.1). The products with the highest tariffs in 2018, including AVEs, are the following: certain 
textile products (422.2%) and clothing  (178.9%), mineral products and metals (60.5%) a nd 
transport equipment (40%). If AVEs are not taken into account, the highest tariff level is 40% on 
certain types of transport equipment.  
4.85.   Between 2015 and 2017, imports classified in 2,938 tariff lines (at the ten-digit level), most 
of which correspond to  non-agricultural products (WTO definition), were subject to an ad valorem  
tariff surcharge imposed as a balance -of-payments safeguard, which varied between 5% and 45% 
depending on the product (Section 3.1.6.3). The most heavily targeted products, in terms  of the 
number of tariff lines subject to the measure, were: textiles (591 lines), minerals and metals (370), 
non-electrical machinery (281), clothing (255) and electrical machinery (214).87 Of these products, 
textiles and apparel have the highest average M FN applied tariffs if AVEs are taken into account.  
4.86.   Import s of certain manufacture s are  either prohibit ed or subject to automatic and 
non-automatic licensing  (Section 3.1.5). The main products which cannot be imported are organic 
chemicals and other product s of the chemical industry, as well as nuclear reactors. Import licences 
are required mainly for textiles and clothing  (Chapters 52, 54, 55, 61 and 62 of the 
Harmonized  System – HS) and for organic chemicals. Other products subject to licensing 
requirement s are heavy vehicles, CKD vehicles, tyres, and iron and steel wire.  
4.87.   The importation of certain manufactured products covered by technical regulations requires 
the presentation of a certificate of recognition or Certificate of Conformity (form  INEN-1)88, which 
attests to compliance with the corresponding technical regulation, in addition to the certificate of 
conformity  issued by accredited certification entities.89 The products that require a certificate of 
recognition (or Certificate of Conformity (form INEN -1)) cover 292 (HS ten-digit) tariff lines, 
representing 25% of all tariff lines subject to technical regulations (1,152 lines). This certificate 
serves as a document supporting the customs declaration, and its validity depends on the type of 
                                                
86 Ministry of Industries and Productivity (MIPRO) (2016), Política industrial del Ecuador 2016 -2025 
(más industrias, mayor desarrollo) . Viewed at: https://www.industrias.g ob.ec/wp -
content/uploads/2017/01/politicaIndustrialweb -16-dic-16-baja.pdf . 
87 WTO document WT/BOP/S/18 of  27 May 2015.  
88 Information Management System on technical barriers to trade. Online WTO information  viewed at : 
http://tbtims.wto.org/es/SpecificTradeConcerns . 
89 COMEX Resolutions No. 116  of 19 November 2013, No. 3  of 14 January 2014 and No. 8 
of 3 July 2015.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 128 - 
  product being  imported. In some cases a new certificate is required every time the product is 
imported. This distinguishes it from the certificate  of conformity issued by accredited certification 
bodies, which can be used to import the same product several times. The i tems subject to this 
measure are mainly food products (150 tariff lines), particularly dairy and coffee -based products, 
vegetable preparations, a nd plastics.  
4.88.   During the period under review, Ecuador adopted definitive  safeguard measures for a 
three -year per iod on imports of winds hields (since 2010) and of certain types of wood and bamboo 
(since 2015), as well as an exchange -rate safeguard within the Andean Community (CAN) 
framework, and other corrective measures covering imports of sugar and powder for the p reparation 
of detergents (Section 3.1.6.2). In addition, Ecuador established temporary  import  quotas for 
conventional and electric vehicles and cell ular telephones (Section 3.1.5); and between 2010 and 
2016 it set export quotas on ferrous waste and scrap ( previously prohibited) and non -ferrous, 
bronze, copper and aluminium waste and scrap.90 MIPRO also sets benchmark prices for ferrous and 
non-ferrous scrap metal . 
4.4.3   Domestic measures  
4.89.   Ecuador seeks to enhance the competitiveness of the manufacturing sector by running support 
programmes, some of which are temporary, such as a tariff drawback scheme for imported goods, 
a program me of Special Economic Development Zones, and preferential financing  conditions . 
4.90.   In 2013 -2016, the Tax Credit Certificates (CAT s), issued  by the National Customs Service 
(SENAE), were used as a credit note to settle  any tax liability, except for fees for services provide d, 
royalties and other contributions levied by the State in connection with mining and hydrocarbon 
activit ies.91 This instr ument was used when exporting certain products (220 HS ten-digit tariff lines), 
of which 67% were manufactures, particularly textiles and articles of apparel.  
4.91.   Exporters can affiliate to an ordinary conditional drawback scheme , under which the taxes are 
totally or partially refunded when importing inputs to be used in goods for export. The amount of 
the refund is based on the input -output matrix present ed by the exporter; but it cannot exceed 5% 
of the transaction value of the exported goods (Section  3).92 Between 2015 and 2016, Ecuador 
implemented a simplified conditional drawback scheme t hat was applicable to nearly all exported 
products and amounted in general to 5% of the export value. This scheme mainly benefited the 
fishery products industry (Section 4.2 ). To be eligible, the exporter could not also be affiliated to the 
ordinary conditional drawback scheme , or make use of the Tax Credit Certificate (CAT).  
4.92.   Temporary tariff "deferrals", generally to 0%, were also applied to imports of various products, 
such as wire rod, metal -working  products, and CKD induction cookers (Section 3.1.3.4).  
4.93.   Since 2010, Ecuador has also been operating a programme of Special Economic Development 
Zones (ZEDEs)93 which replaced the Free Zones programme. Tax incentives are available for the 
ZEDE operators and the firms established within the ZEDEs  (Section 2).  A total of  five ZEDEs had 
been set up  by 2018. 
4.94.   Manufacturing  firms can obtain credit lines under preferential conditions from Corporación 
Financiera Nacional and BanEcuador (Sections 3.2.6 and 3.3.1) . 
4.5  Services  
4.5.1   Financial services  
4.95.   Financial services accounted for around 3.4 % of Ecuador 's GDP in 2017. Although the ban king 
and insurance sectors contain many financial institutions, each of these markets remains dominated 
by just a few companies. The securities  market is also small and underdeveloped. During the review 
period, Ecuador made significant regulatory and insti tutional changes to strengthen the financial 
                                                
90 MIPRO Decision  No. 10.646, 28 October 2010.  
91 Tax Credit Law, Supreme Decree No. 3605-B, 13 July 1979, and its amendments.  
92 Articles 170 -174 of the Regulation s to the Customs Facilitation Title of the Organic Code of 
Production, Trade and Investments  of 19 May 2011, last amended on 27 March 2017.  
93 Executive Decree No. 757  of 6 May 2011.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 129 - 
  system, increase lending to the producti on sector, promote microcredit and develop the securities  
market, among other aims.94 The key changes were introduced in 2014 through the 
Organic  Monetary and Financial Cod e (COMF), which repealed some 30 laws and consolidated 
regulations governing financial, insurance and securities activities in a single document.95 
4.96.   Foreign investment is generally allowed in these three segments, albeit subject to 
requirements mainly relati ng to setting up a business and its legal structure. Restrictions apply to 
cross-border trade in the insurance sector, except for the com mitments made with the 
European  Union and EFTA on maritime transport and aviation insurance.  
4.5.1.1   Regulatory framework  
4.97.   The financial system is regulated by the COMF96, which was implemented in 2014 to regulate 
the functioning of the financial system as a whole. The Code consolidates legislation governing the 
financial and monetary sector into a single document; and it repeals 30  laws, such as the Organic 
Law on the Monetary Regime  and State Bank , the General Law on Financial Institutions, and the 
General Law on Insurance Companies, as well as other legal instruments (e.g. decrees and 
resolutions). The COMF is organized in three p arts or books, each of which contains regulations for 
a different activity sector. Book I deals with financial and banking activities, Book II addresses 
insurance and Book III covers the securities market. Unlike Book I, the other two contain existing 
laws that were updated and added to the COMF. Book II contains the Securities Market Law of 2006, 
and Book III the General Law on Insurance  also of 2006.97 The COMF is supplemented by other 
instruments such as the Regulation s implementing  the General Law on Ins urance  (Table 4.13).  
Table 4.13 Main legal instruments regulating the financial sector  
Legal instrument  Description  Publication 
date Most recent 
amendment  
Codification No. 1  Organic Monetary and Financial Code - Book I  12/9/2014  21/8/2018  
Codification No. 1 Organic Monetary and Financial Code - Book II - 
Securities Market Law  22/2/2006  18/4/2017  
Codification No. 10 Organic Monetary and Financial Code - Book III - 
General Law on Insurance  23/11/2006  25/4/2018  
Executive Decree No. 390 Regulation s implementing  the Securities Market 
Law 14/12/1998  - 
Executive Decree No. 1510  Regulations implementing  the General Law on 
Insurance  18/6/1998  15/8/ 2006 
Law No. 0  Organic Law implementing  the Popular and 
Solidarity Economy  10/5/2011  29/12/2017  
Executive Decree No. 1061  Regulation s implementing  the Organic Law on 
the Popular and Solidarity Economy  27/2/2012  1/6/2018  
Law No. 0  Organic Law to Strengthen and Optimize the 
Corporate and Stock Market Sector  20/5/2014  18/4/2017  
Source:  WTO Secretariat.  
4.98.   The COMF made substantial regulatory and institutional changes in each of the 
three  segments of activity it deals with (see following sections). These include the creation of the 
Monetary and Financial Policy and Regulation Board (JPRMF), as well as changes to minimum capital 
requirements and alteration of the structure of mandatory investments for insurance and reinsurance 
companies; changes in the capital structure of stock exchanges; and con solidation of the regulations 
governing the national financial system, to mention just a few.  
                                                
94 Government of Ecuador (2017), National Development Plan 2017 -2021. Viewed at: 
http://www.planificacion.gob.ec/wp -conten t/uploads/downloads/2017/10/PNBV -26-OCT-
FINAL_0K.compressed1.pdf . 
95 Organic Monetary and Financial Code (Law No. 0)  of 12 September 2014, as amended most recently 
on 21 August 2018 . 
96 Organic Monetary and Financial Code (Law No. 0)  of 12 September 2014, as  amended most recently 
on 21 August 2018.  
97 The Securities Market Law and the General Law on Insurance  were enacted in 1998, but only codified 
in 2006.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 130 - 
  4.5.1.2   Institutional framework  
4.99.   In terms of institutions, six entities have functions in the Ecuadorian financial sector: (i) the 
JPRMF; (ii) the Central Bank of Ecuador;  (iii) the Supervisory Authority for Banks ; (iv) the 
Supervisory Authority for  Companies, Securities and Insurance (SCVS); (v) the Supervisory 
Authority for  the Popular and Solidarity Economy; and (vi) the Deposit Insurance, Liquidity Fund and 
Private Insu rance Fund Corporation (COSEDE).  The latter five institutions have non -voting 
representation on the JPRMF.  
4.100.   The Monetary and Financial Policy and Regulation Board, created in 2014 through the COMF, 
is the key sector institution. It replaced and absorbed the  functions of the following entities: 
(i) the Banking Board; (ii) the Securities Market Regulation Board (which in May 2014 replaced the 
National Securities Council); (iii) the Board of Governors of the Central Bank; and (iv) the Board of 
the Supervisory A uthority for  the Popular and Solidarity Economy, all of which were abolished. The 
JPRMF forms part of the country 's executive branch and is responsible for formulating monetary, 
credit, foreign exchange and financial policies, including insurance and secur ities activities; it also 
issues the respective implementing regulations. Its other functions include reaching agreement with 
the foreign trade regulator on the mandatory goals for net non -oil foreign exchange inflows in the 
goods and services trade accoun t, and submitting a report on their fulfilment to the Government.98 
The JPRMF consists of a representative of the Executive Branch and three ministers (Economy and 
Finance, National State Planning, and Production). The Board does not have any private -sector  
representatives, as was the case with the National Securities Council, for example.  
4.101.   The Central Bank of Ecuador is responsible for executing the government 's monetary, credit, 
foreign exchange and financial policies, using the instruments specified in the  law. 
4.102.   The Supervisory Authority for Banks  (until 2015 known as the Supervisory Authority for 
Banks  and Insurance) is tasked with supervising and overseeing the activities of public and private 
financial entities. The Supervisory Authority for  Companies, Se curities and Insurance (until 2015 
known as the Supervisory Authority for  Companies and Securities) plays the same role in the 
securities and insurance market and with respect to non -financial companies (Box 4.2); and the 
Supervisory Authority for  the Popu lar and Solidarity Economy regulates the popular and 
solidarity -based financial sector. As of May 2018, the Supervisory Authority for Banks  was 
responsible for 28 financial entities (24 private and four public); the SCVS was supervising 33 
insurance compan ies and one reinsurer, considering the insurance market alone; and the 
Supervisory Authority for t he Popular and Solidarity Economy was overseeing 657 financial entities.  
Box 4.2 Changes in the insurance oversight and supervision body  
In addition to creating the JPRMF, another of the institutional changes introduced by the COMF concerned the 
insurance market supervision and oversight body. To demarcate banking and financial activities from those of 
insura nce companies, the Code provided that the SCVS would also take on supervision and oversight 
functions for the entire private insurance system, which was previously the responsibility of the Supervisory 
Authority for Banks  and Insurance. As the change had t o be made within one year from its implementation, 
the transfer of functions was completed in September 2015; and these two supervisory authorities  changed 
their names to Supervisory Authority for  Companies, Securities and Insurance, and Supervisory Author ity for 
Banks , respectively.  
Source:  Thirty -first transitional provision of the Organic Monetary and Financial Code.  
4.103.   Lastly, COSEDE, which administers deposit insurance, the liquidity fund and the private 
insurance fund, aims to enhance the stability of t he financial and private insurance systems 
(Box 4.3). 
                                                
98 Article 142 of the Organic Monetary and Financial Code.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 131 - 
  Box 4.3 Financial system funds and insurance  
The Deposit Insurance, Liquidity Fund and Private Insurance Fund Corporation (COSEDE) administers Deposit 
Insura nce and the Liquidity Fund, which are two of the financial system 's security mechanisms. It also 
manages the Private Insurance Fund, which protects people who have a current policy in a private insurance 
company. Deposit Insurance allows for the restitutio n of deposits held in banks, saving and loan cooperatives 
and mutual associations, up to the amount specified in the law, in the event of involuntary liquidation ordered 
by the respective oversight body. The authorities reported that, as of August 2018, th is mechanism has 
resulted in the return of all deposits to 98% of depositors in financial entities that are under liquidation. This 
deposit insurance is financed from contributions made by private financial entities and the popular and 
solidarity  sector. T he Liquidity Fund is also financed from the same sources, but acts as a lender of last resort 
when these entities encounter temporary liquidity problems. In such cases, the fund will grant liquidity loans 
to financial institutions that fulfil the solvency parameters defined in the law. The Private Insurance Fund was 
created in 2014 through the COMF to protect persons insured with private insurance companies in event of 
the latters ' liquidation. This fund began operations in January 2016 and is financed by c ontributions made by 
the insurers.  
Source:  WTO Secretariat, on the basis of Ecuadorian legislation.  
4.5.1.3   Banks and other entities of the financial system  
4.104.   The banking sector is regulated by Book I of the COMF, and is supervised and overseen by 
the Supervisory A uthority for Banks . According to the COMF, the Ecuadorian financial system 
consists of public -sector entities (banks and corporations), private -sector entities (banks, financial 
service firms and auxiliary financial -system service providers), and entities of the popular and 
solidarity financial sector, such as saving s and loan s cooperatives, and mutual saving s and loan s 
associations for housing.99 As of May 2018, there were 24 private banks operating in Ecuador , 
145 saving s and loan s cooperatives, four mutua l associations and four public entities (Table 4.14). 
Private banks dominated the market, accounting for 65.6 % of total assets. In 2017, the national 
financial system extended credit totalling USD 27.3 billion, around 80 % or USD 21.5 billion of which 
from private -sector lenders. Although the financial sector has a large number of players, its activities 
remain concentrated in just five banks: Banco Pichincha, Banco del Pacífico, Produbanco, Banco de 
Guayaquil and Banco Bolivariano. These five banks, all pri vate, were responsible for about 72 % of 
private -sector lending in 2017. The main type of lending was consumer credit (35 % of total credit 
in 2017) and commercial credit (47.8 %). In the same year, 9 % of loans went to housing, 6 % was 
channelled to microenter prise, and 2 % to education.  
Table 4.14 Structure of the national financial system (May 2018)a 
System  Type of financial entity  No. of 
operational 
entities  Assets 
(USD million)  Share of 
assets  
Private  Private banks  24 39,344.2  65.0%  
Popular and 
solidarity  Saving s and loan s cooperatives 
(segment 1)  26 8,282.3  13.7%  
Popular and 
solidarity  Saving s and loan s cooperatives 
(segment 2)  38 1,842.9  3.1%  
Popular and 
solidarity  Saving s and loan s cooperatives 
(segment 3)  81 1,033.6  1.7%  
Popular and 
solidarity  Saving s and loan s cooperatives 
(segment 4)  162 448.3  0.7%  
Popular and 
solidarity  Saving s and loan s cooperatives 
(segment 5)  154 116.0  0.2%  
Popular and 
solidarity  Mutual associations  4 936.0  1.6%  
Public  Corporación Financiera Nacional  1 3,859.0  6.4%  
Public  Banco de Desarrollo del Ecuador  1 2,343.5  3.9%  
Public  BanEcuador  1 1,956.2  3.3%  
Public  Corporación Nacional de Finanzas 
Populares  1 349.1  0.6%  
                                                
99 Articles 160 -163 of the Organic Monetary and  Financial Code.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 132 - 
  System  Type of financial entity  No. of 
operational 
entities  Assets 
(USD million)  Share of 
assets  
National 
financial system  Total  593 60,511.1  100.0%  
a The Ecuadorian National Financial System comprises the public, private , and popular and solidary 
financial sectors.  
Note:  Segment 1 includes entities with assets of over USD 80 million; segment 2 consists of entities with 
assets of USD 20 million to USD 80 million; segment 3, those with assets of between USD 5 million 
and USD 20 million; segment 4 those with assets of USD 1 million to USD 5 million; and segment 5, 
those with assets of up to USD 1 million; and it also includes savings ba nks, local banks and local 
saving funds ( cajas comunales ). 
Source:  Information provided by the authorities.  
4.105.   Ecuadorian banks are well capitalized, reporting the following indicators in September 2018: 
an average solvency index of 12.9 %, a gross arrears ra te of 3.1 %, operating return on assets (ROA) 
of 1.4 % and a return on equity (ROE) 13.28 %. 
4.106.   To be able to operate in Ecuador, private financial entities must be legally constituted in the 
country as joint -stock corporations ( sociedades anónimas ), and, in the  case of banks, maintain 
minimum capital of USD 11 million. For other financial entities, the minimum capital will be 
determined by the JPRMF. Foreign financial entities must be domiciled in Ecuador and be registered 
as joint -stock corporations or establis hed as branches or representation offices in the country.100 In 
addition to requiring prior authorization from the Supervisory Authority for Banks , foreign financial 
institutions must show that they are not prevented from setting up branches or representatio n offices 
in Ecuador under the laws of their country of origin. They must also prove that their main domicile 
is not in a tax haven or a lower -tax jurisdiction than Ecuador; and they must expressly acknowledge 
that they will be subject exclusively to the j urisdiction, laws, courts and authorities of Ecuador.101 
Moreover, foreign financial institutions may not adopt names that belong to Ecuadorian financial 
entities or which could be misleading; and their names must unequivocally indicate their status as 
a foreign financial entity.102 
4.107.   Once the constitution of the joint -stock corporation, branch or representative office is 
approved, the service provider must obtain authorization to engage in financial activities and an 
operating permit from the Supervisory Authori ty for Banks . The permit may be obtained once the 
authorization is received and the other requirements have been met. The authorization will specify 
the activities that the financial institution can undertake.103 Representation offices will serve 
exclusively  as information centres for their customers and may only grant mortgage and secured 
loans, and make deposits in Ecuadorian or foreign financial entities.104 No entity in the national 
financial system may engage in insurance and securities activities (either directly or indirectly ).105 
4.108.   Restrictions apply to the lending and contingent operations that public or private financial 
institutions and those of segment 1 of the popular and solidarity financial sector can engage in. 
These entities may not engage in lending and contingent operations with the same natural or legal 
person for an amount that exceeds, in total, 10 % of the technical capital of the entity in question. 
This limit will be raised to 20 % if the amount in excess of 10 % corresponds to bonds secur ed by 
guarantees from national or foreign banks of recognized solvency, or by guarantees deemed 
adequate under the terms specified by the JPRMF. In no circumstances may the total of the 
aforementioned operations exceed 200 % of the borrower 's capital, unles s there are adequate 
guarantees that cover at least 120 % of the amount in excess, pursuant to JPRMF regulations. These 
limits do not apply to lending and contingent operations with securities issued by the 
Ecuadorian  State and the Central Bank of Ecuador. Moreover, the JPRMF is authorized to set lower 
percentages for financial entities that have a better risk profile than the most secure level of the 
system.  
                                                
100 Article 178 of the Organic Monetary and Financial Code.  
101 Article 181 of the Organic Monetary and Financial Code.  
102 Article 180 of the Organic Monetary and Financial Code.  
103 Articles 144, 389, 392, 396, 397 of the Organic Monetary and Fi nancial Code.  
104 Articles 179 and 181 of the Organic Monetary and Financial Code.  
105 Article 196 of the Organic Monetary and Financial Code.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 133 - 
  4.109.   The creditors of the parent company of a foreign financial entity that has set up a branch in 
Ecuado r will not be able to pursue its claims against the assets of the branch.106 Accordingly, in the 
event of liquidation, the creditors of the Ecuadorian branches of a foreign financial institution will 
enjoy preferential rights over the assets that those branc hes hold in the country . 
4.110.   Auxiliary services must be provided by non -financial legal entities constituted as joint -stock 
corporations or limited companies.107 The credit rating service must be provided by the Supervisory 
Authority for Banks  and by legal entit ies authorized by it. The sources of financial system information 
must report to the Supervisory Authority for Banks , which will pass the information on to legal 
entities authorized to provide the credit rating service.108 
4.111.   Ecuadorian legislation maintains th e essence of the objectives pursued  by the 
Basel  Committee and has adopted the changes needed to strengthen the prudential requirements 
that regulated financial entities have to meet. It also establishes the basis for such entities to 
strengthen their inte rnal risk management processes. This has been accompanied by a process of 
internal strengthening of the Supervisory Authority for Bank's supervisory capacities. With regard to 
capital adequacy, the Ecuadorian standard is stricter than that of Basel, requir ing banks to maintain 
technical capital of 9 %, compared to the Basel recommendation of 8 %. Although Ecuador has been 
strengthening bank supervision and resolution processes in recent years, a further effort is still 
required to consolidate the structure, t ools and supervision processes and thus keep pace with the 
development of risk management. There is also a significant gap between the level of detail in the 
information disclosed to the market, as recommended by Basel, and that required by the current 
Ecuadorian regulation. The authorities state that, in general when adjusting the Ecuadorian standard 
to the reality of the domestic market, there are specific features, such as regulated interest rates, 
reserve requirements using government bonds, and dollari zation, which may impede the application 
of some of the Basel recommendations.109 
4.112.   In the case of interest rates, the JPRMF sets the maximum lending and deposit rates to be 
offered by entities of the national financial sector; and, if necessary, it may also s et maximum 
lending and deposit rates for the rest of the system in accordance with the COMF.110 Currently, the 
JPRMF regulates lending rates for all types of credit in all financial institutions. As of July 2018, the 
benchmark lending rates were between 4.9 % (on public -interest housing loans) and 28.5 % (on 
retail microcredit). The benchmark rate on loans to the productive sector was 7.85 % in the case of 
corporations and 9.8 % for small and medium -sized enterprises (SMEs) ( Chart  4.9).111 
                                                
106 Article 178 of the Organic Monetary and Financial Code.  
107 Article 434 of the Organic Monetary and Financial Code.  
108 Articles 357 and 359 of the Organic Law on Productive Development, Attraction of Investment, 
Generation of Employment , and Fiscal Stability and Balance, 21 August 2018.  
109 Supervisory Authority for Banks , Project: Diagnostic Assessment of the Gaps in Finan cial Regulation 
in Ecuador, relative to International Trends and the Basel I, II and III Recommendations.  
110 Articles 14, 79 and 130 of the Organic Monetary and Financial Code.  
111 Data from the Central Bank of Ecuador.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 134 - 
  Chart 4.9 Benchmark and maximum rates ( %) in force as of July 2018  
 
Source:  Central Bank of Ecuador.  
4.113.   Book I of the COMF contains a typology of violations and provides that sanctions for 
non-compliance with the law will be based on their seriousness. The applicable fine is related to the 
amount of assets held by the offending financial institution, subject to a limit for each case.112 
4.114.   All financial -sector entities are subject to a 5 % foreign exchange exit tax (ISD), which is 
charged on  the value of all operations and monetary transactions involving payments abroad.  
4.115.   Between February 2015 and March 2018, Ecuador implemented an electronic money system 
through which registered users could pay for goods or services, among other things, throu gh cell 
phones. The system was administered by the Central Bank, based on a one -to-one parity with the 
US dollar. All electronic transactions were fully backed by the amount in physical currency; and 
electronic money could be exchanged at any time for US dollars. On 31 March 2018, the system 
ceased to operate, pursuant to the Economic Recovery  Law passed in January of that year. The 
Central Bank programme involved a movement of USD 29.2 million during its lifetime . 
4.5.1.4   Insurance  
4.116.   The private insurance system in Ecuador consists of insurance companies, reinsurance 
companies, reinsurance brokers, loss assessors and insurance advisors. Insurance companies can 
offer both general and life insurance, as well as other insurance services, while reinsurance 
companies prov ide cover to one or more insurance companies for the risks they have assumed. 
Reinsurance companies can also undertake retrocession operations. As of May 2018, there were 
31 insurance companies and one reinsurance company operating in Ecuador. Although sev eral firms 
participate in the insurance market, activities are concentrated in just six, which hold 55 % of the 
sector's assets. These are Sucre, currently the largest company with a 15 % market share , 
followed  by Seguros Equinoccial (10 %), Chubb Seguros (9 %), Seguros del Pichincha (8 %) and 
Seguros  Colonial with 7 %. 
4.117.   During the review period, the insurance sector underwent several regulatory and institutional 
changes, mainly stemming from adoption of the COMF in 2014. As noted above, insurance activities 
                                                
112 Articles 264 and 520 of the Organic Monetary and Financial Code.  
23.5025.5028.509.5011.334.9917.3017.3011.8310.219.3311.8311.8310.219.33
20.2123.9026.869.4710.334.9016.6016.6310.409.697.487.999.809.727.85
0 5 10 15 20 25 30Extended cumulative microcreditSimple cumulative microcreditRetail microcreditEducationReal estatePublic interest housingPriority consumptionOrdinary consumptionSME priority commercialBusiness priority commercialCorporate priority commercialOrdinary commercialSME productiveBusiness productiveCorporate productive
Benchmark rates Maximum ratesWT/TPR/S/383 /Rev.1 • Ecuador  
- 135 - 
  are regulated by Book III of the COMF, which contains the General Law on Insurance  of 2006113, 
and by the respective implementing Regulation s.114 The law was amended when it was added to the 
COMF in order to strengthen the sector. At the institutional level, since 2014 the SCVS has fulfilled 
oversight and supervision functions in this sector (Section 4.5.1.2.). At the regulatory level, the 
changes made to the minimum required capital for insurance and reinsurance companies affected 
the market structure, generating a  process of consolidation, mergers or liquidations, either voluntary 
or for prudential reasons; a private insurance fund was also created (see below). In addition, 
amendments were made to the composition of mandatory investments, including that relating to  
participation by insurance companies as institutional investors in the securities market. More 
streamlined administrative mechanisms were also put in place to settle disputes between insurance 
companies and their policy -holders.  
4.118.   Apart from these instituti onal changes, in September 2014, the COMF changed the minimum 
capital needed to set up an insurance/reinsurance company in Ecuador. As from that date, the 
minimum capital was set at USD 8 million for insurance companies, and USD 13 million for 
reinsurance companies, and for firms wishing to provide both services. Previously, the regulations 
of the Supervisory Authority for Banks  and Insurance had set a minimum capital of USD 3,943,410 
for insurance companies in the general and life insurance segments, and a minimum of 
USD 1,690,153.53 for firms that operate only in the general insurance sector; reinsurance 
companies needed minimum capital of USD 7,886,820. The firms in questio n were given 18  months 
to adapt to the new requirement. This measure resulted in the insurance market becoming more 
consolidated, as companies either closed down or merged with others. When the measure came into 
effect in September 2014, 35 insurers and tw o reinsurers were registered as currently operating; 
by January  2018, the numbers had dropped to 32 and one, respectively.115 
4.119.   Another change made to the General Law on Insurance when it was integrated into the COMF 
was the creation of the Private Insurance F und. This is designed to protect public - and private -sector 
policy -holders in the event of the private insurance company 's liquidation. The Fund has been 
operating since January 2016 and is financed through a contribution made by the private insurance 
comp anies equivalent to 1.5 % of the value of their insurance premiums. This contribution is 
composed of a basic amount and another part based on the insurance company 's risk rating.  
4.120.   During the period under review, a change was also made in the administration o f Mandatory 
Traffic Accident Insurance (SOAT). In 2015, th e name of this mechanism was changed to the Public 
Traffic Accident Payment System (SPPAT), and it was brought under government management.116 
The SPPAT provides the same protection as the SOAT and gu arantees universal coverage for all 
persons circulating within the country. The SPPAT does not cover material damage to vehicles or 
property.117 Previously, people purchased SOAT policies from private insurers established in 
Ecuador; now the payment is made to the State when a vehicle is registered. According to the 
authorities, the change was intended to improve the system by classifying it as a public service, and 
guaranteeing it as a right for all citizens.  
4.121.   To provide insurance or reinsurance services, national or foreign legal persons must be 
established in the country as joint stock corporations, or branches in the case of foreign companies. 
Unlike foreign financial institutions, foreign insurance or reinsurance companies cannot be 
established in the c ountry through representation offices. Insurance companies must also be 
included in the commercial register.  
4.122.   To set up business as an insurance company, legal entities must submit an application to 
the SCVS for approval. In addition, and prior to the reque st, foreign insurance or reinsurance 
companies must obtain SCVS authorization and fulfil the requirements for that purpose.118 Among 
other things, foreign insurance or reinsurance companies that are established as branches of 
                                                
113 General Law on Insurance of  23 November 2006, as last amended on 25 April 2018. During the 
review period, it was amended five times.  
114 Regulation implementing  the General Law on Insurance , Executive Decree No. 1510 of 18 June  1998, 
last amended on 15 August 2006.  
115 Statistics of the Supervisory Authority for Companies, Securities and Insurance.  
116 Article 31 of the Organic Law Amending  the Organic Law o n Land Transport, Traffic and Road Safety  
of 31 December 2014, and Executive  Decree No. 805  of 22 October 2015.  
117 Law Amending  the Organic Law on Land Transpor tation, Traffic and Road Safety of 
31 December  2014.  
118 Codification of JPRMF Resolutions. Book III.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 136 - 
  insurance and reinsurance entiti es abroad must satisfy the minimum paid -in capital requirement and 
other prudential obligations. They must also permanently maintain at least one general 
representative, approved by the SCVS, and be included in the commercial register. The company 
must als o state that the parent firm will be materially liable for all obligations that its general 
representative may contract.119 
4.123.   Once the establishment of the company has been approved, it will be included in the 
commercial register, and the SCVS will issue a cer tificate of authorization. The company must also 
obtain a specific certificate for the segment of activity from the same Super visory Authority .120 
Companies in Ecuador 's insurance sector can open branches or agencies either in Ecuador or abroad. 
In the latte r case, prior authorization from the SCVS is required. Domicile requirements for the board 
members of insurance and reinsurance companies also apply.121 
4.124.   Insurance companies that are legally constituted or established in Ecuador must contract 
domestic or fore ign reinsurance.122 When contracting with foreign reinsurance companies, these 
must be constituted and operate in accordance with international parameters, and be subject to the 
rules of the SCVS.  
4.125.   With regard to policies and rates, the SCVS will specify the mandatory clauses to be included 
in the policies, as well as clauses that are prohibited. Premium rates will require prior authorization 
from the Super visory Authority .123 
4.126.   Reinsurance brokers must be set up as commercial companies (joint -stock corporation or  
limited liability). Those domiciled abroad must satisfy the requirements specified for their registration 
in the SCVS124, which state that they can maintain a permanent representation in the country after 
fulfilling the requirements indicated in the resolut ion, and they must also designate a representative 
in Ecuador for notification purposes. The sole activity of reinsurance brokers is to manage and place 
reinsurance and retrocessions for one or more insurance or reinsurance companies. To be able to 
operate  in Ecuador non -resident insurance and reinsurance companies, brokers and auxiliary 
insurance service providers must register and renew their registration pursuant to the provisions of 
national legislation.  
4.127.   Ecuador applies a number of restrictions on cross -border trade in services, and in particular 
prohibits the contracting abroad of the following: (i) personal insurance, when the policy -holder is 
in Ecuadorian territory when the contract is signed; (ii) insurance against fire and additional risks 
on prope rty located in national territory; (iii) hull insurance for ships or aircraft registered in Ecuador; 
(iv) transport insurance for goods imported into the country; and (v) insurance against other risks 
that may occur in Ecuadorian territory. If no insurance  company authorized to operate in Ecuador 
can provide these services, the interested party may contract insurance on that risk abroad, subject 
to prior authorization from the SCVS.125 
4.5.1.5   Securities market  
4.128.   The securities  market in Ecuador is small and less devel oped than  the banking sector. 
Two stock exchanges operate in the country: one in Quito and another in Guayaquil. In 2017, 
securities totalling USD 802 million (including bonds, commercial paper, securitizations and shares) 
were issued on these bourses by 9 2 issuers ( Chart  4.10). Of this amount, 54 % were issues made 
through the Guayaquil Stock Exchange, and the remaining 46 % was channelled through the 
                                                
119 Article 19 of the General Law on Insurance . 
120 Article 10 of the General  Law on Insurance . 
121 Article 17 of the General Law on Insurance.  
122 Article 27 of the General Law on Insurance  and Article 9 of the Codification of Monetary, Financial, 
Securities and Insurance Resolutions.  
123 Article 25 of the General Law on Insurance . 
124 Codification of JPRMF Resolutions Book III and SCVS -INS Resolution 2018 -009. 
125 Article 66 of the General Law on Insurance . WT/TPR/S/383 /Rev.1 • Ecuador  
- 137 - 
  Quito  Exchange. In the same year, private banks lent a total of USD 11.197  billion to the productive 
sector126, nearly 14 times more than the funding generated by stock market issues.  
4.129.   Securities market activities are regulated by Book II of the COMF, which contains the 
Securities Market Law of 2006127, and by the respective Regulation.128 The Law governs the activities 
of the securities market in its securities market segment (issuance and offer of securities) and over 
the-counter segment (brokerage and securities), including the activities of stock exchanges and their 
participants (broker -dealers, fund managers and trusts, risk -rating agencies, issuers, external 
auditors, etc.) The Law was amended five times during the review period, most notably in May and 
September 2014 when it was incorporated into the COMF. In September, the key change s were 
institutional, whereas in May they occurred at a regulatory level, with the aim of increasing 
participation in the securities market by the productive sector, particularly SMEs.  
Chart 4.10 Total authori zed securities issues, 2011 -2017  
 
Source:  Boletín Ejecutivo de 2017 , Supervisory Authority for  Companies, Securities and Insurance.  
4.130.   In September 2014, the Securities Market Regulation Board (which in May 2014 had replaced 
the National Securities Council) was abolished, and its functions were transferred to the JPRMF. 
Oversight of the securities  market was maintained by the SCVS.  
4.131.   In May 2014, the Organic Law on the Strengthening and Optimization of the Corporate and 
Stock Market Sector (LOFOSSB) was enacted , which made important regulatory amendments to the 
Securities Market Law.129 These included significant changes to the corporate and capital structure 
of stock exchanges, and requirements governing participation in stock exchanges by securities 
brokers. The  creation of a special register for SMEs and a single stock market system was also 
established, and the legal concept of investment banking was introduced.  
4.132.   The LOFOSSB provided that in order to operate, stock exchanges had to change their legal 
format from  non-profit civil corporations to joint -stock companies. In addition, the requirement that 
only broker -dealer firms could be members of stock exchanges, for which they had to own shares in 
the stock exchange 's capital, was revoked. In other words, previous ly, only broker -dealer firms could 
be the owners of stock exchanges, and, as such, only they could participate in the corresponding 
activities. Following the amendments, however, since May 2014, any person can be a shareholder 
                                                
126 Supervisory Authority for  Companies, Securities and Insurance (2018), Boletín Ejecutivo Estadístico 
del Mercado de Valores (June 2018). Viewed at: 
https://portal.supercias.gob.ec/wps/portal/Inicio/Inicio/MercadoValores/Estadisticas/BoletinMensual . 
127 Securities Ma rket Law  of 22 February 2006, as last amended on 18 April 2017.  
128 General Regulation to the Securities  Market Law, Executive Decree No. 390  of 14 December 1998. 
The Regulation has not been amended since then.  
129 Law No. 0 of 20 May 2014, as last amended on 18 April 2017.  
1,7972,013
1,2361,554
789
634802110132
121
104
85
6592
020406080100120140
05001,0001,5002,0002,500
2011 2012 2013 2014 2015 2016 2017
Authorized issues No. of issuers(USD million) No. of issuersWT/TPR/S/383 /Rev.1 • Ecuador  
- 138 - 
  and therefore participate in the stock exchange.130 The LOFOSSB also provided that the shareholder 
of a stock exchange cannot directly or indirectly own more than 10 % of issued and currently trading 
shares, except in specific cases where a shareholder may own up to 30 % of the capital.131 
4.133.   The LOFOSSB creates the Special Securities Register (REB) for securities issued only by 
SMEs and popular and solidarity economy organizations that are traded on the stock market. The 
REB aims to increase the number of issuers, by making it easier for SMEs and organizations of the 
popular and solidarity economy to participate; and it also aims to promote stock market 
development. The securities assigned to the REB cannot be traded in other segments of the market. 
A single stock market system was also created  with the aim of consolidating stock market operations 
and promoting competition between the different exchanges. The system provides a single computer 
platform for trading in securities and financial instruments registered in the Public Securities Market 
Regist ry and in stock exchanges, including those traded through the REB.132 
4.134.   The LOFOSSB introduces the legal concept of investment banking to refer to activities 
involving investment prospecting and financing through the stock market. The Law provides that 
only broker -dealer houses and Banco del Instituto Ecuatoriano de Seguridad Social may engage in 
the activities in question.133 
4.135.   Agents that issue securities of any kind, including subscription and placement, and provide 
related services, must be included in th e Public Securities Market Register maintained by the SCVS. 
Prior to registration, a risk rating is required, except in the case of REB shares and other securities, 
for which rating is voluntary. Branches of foreign companies domiciled in Ecuador may issue  bonds 
subject to certain requirements.134 
4.136.   Entities legally classified as branches are not permitted in securities  market institutions. 
Broker -dealers, as well as fund managers and trustees, must be incorporated as joint -stock 
companies. Fund managers and tr ustees can represent foreign funds, and in fact are the only 
institutions authorized to manage or represent international funds. This means that funds which 
have been set up abroad and wish to raise financing from residents in Ecuador may do so only 
throug h a fund manager established in Ecuador, for which a representation agreement is required, 
assigning fiduciary responsibility and subject to SCVS information requirements.  
4.137.   Risk rating agencies must be incorporated as joint stock corporations or limited lia bility 
companies.135 
4.5.2   Telecommunications  
4.138.   The telecom munication s sector, which generated 2.1 % of Ecuador 's GDP in 2017, underwent 
several regulatory and institutional changes during the review period. These included publication of 
the new Organic Law on Teleco mmunications, which seeks to modernize the sector, and creation of 
the Telecommunications Regulation and Oversight Agency (ARCOTEL) in 2015. The new law 
promotes the provision of the universal telecommunications service, including Internet; and it 
contains  provisions on authorizations  for the supply  of communication and audiovisual services, 
consumer rights, service fees, conditions of competition, and penalties. In addition to a number of 
private firms, two public companies operate in the sector: the Natio nal Telecommunications 
Corporation  (CNT EP) and the public utilities company ETAPA  EP. 
4.139.   The Ecuadorian telecom munication s market basically encompasses four types of services : 
fixed-line telephony, advanced mobile phone service, fixed -line Internet, and subs criber television. 
CNT EP participates in all of these segments and competes with the other firms in providing the 
                                                
130 Through Resolution No. SCVS.IRQ.DRMV.2016.1745 and Resolution No. SCVS -INMV -DNAR -2016-
0004237  of 20 July and 27 July 2016, respectively, the SCVS ordered the Quito and Guayaquil Stock Exchange 
to be turned from civil corporations into publ ic limited companies. As such, the shareholders of a stock 
exchange, whether individuals or legal entities, exercise the corresponding shareholder rights. A brokerage 
house that is not a shareholder of a stock exchange can participate in the stock exchange  trading.  
131 Articles 44 -46 of Book II of the COMF.  
132 Article 51 of Book II of the COMF.  
133 Article 59 of Book II of the COMF.  
134 Articles 18, 160 and 164 of Book II of the COMF.  
135 Articles 77, 97 and 176 of Book II of the COMF.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 139 - 
  services. CNT EP has a dominant market share in fixed -line telephony and Internet services with 
market shares of 85 % and 51 %, respectively, i n June 2018. The advanced mobile service market is 
led by the foreign -owned América Móvil – Claro (53 %) and Telefónica – Movistar (30 %), while the 
domestic firm CNT EP had a 17 % market share in June 2018. EP ETAPA provides fixed -line phone 
and Internet ser vices locally. The television market is led by the foreign -owned AT&T - DIRECT TV 
(36%), while CNT EP has a 29 % share.  
4.140.   Data provided by the authorities, based on international studies, forecast that Ecuador 's 
telecom munication s market will grow from USD 3.3 billion in 2017 to USD 3.7 billion in 2022. The 
advanced mobile service is expected to account for over half of this total, and the Ecuadorian fixed -
line Internet market, which grew at an average annual rate of 9 % between 2015 and 2017, will also 
continue to expand. According to the authorities, the leading operators in the Ecuadorian market 
indicated that they planned to invest over USD 600 million in 2018 -2021, mainly mobile data and 
fixed-line Internet. CNT EP, for its part, announced an investment p roposal of approximately 
USD 230 million per year until 2021.  
4.141.   The telecom munication s sector is regulated by the Organic Law on Telecommunications 
(LOT)136, enacted in February 2015, and its General Regulation s137 issued in the following year. The 
LOT repeals t he Special Law on Telecommunications (and its amendments), along with the Law on 
Broadcasting and Television and its regulations, and all the provisions contained in other legal 
instruments that are contrary to it. The LOT regulates the establishment, inst allation and operation 
of networks, and the provision of telecom services, as well as audiovisual services, and the use and 
exploitation of the radio spectrum. The LOT does not cover content, however, which is regulated by 
the Organic Law on Communications138 and its  implementing  regulation s.139 
4.142.   In addition, two sets of regulations that complement the LOT were issued in 2016: the first140 
on granting authorizations  to provide telecommunication services and radio spectrum frequencies; 
and the second141 on the provis ion of subscription -based telecommunication and broadcasting 
services.  
4.143.   The key entities in the telecom munication s sector are the Ministry of Telecommunications 
and the Information Society (MINTEL) and ARCOTEL.  
4.144.   MINTEL  is responsible for formulating, directi ng and coordinating policies, guidelines and 
general plans for the telecom munication s sector. During the review period, it issued several 
documents providing guidelines for the sector 's development. In 2015, it published a document titled 
Políticas Pública s del Sector de las Telecomunicaciones y de la Sociedad de la Información 
2017-2021, which describes public policies for telecom munication s sector development, according 
to various criteria, such as accessibility, coverage and technological innovation. In 2016, it also 
published the National Plan for Telecommunications and Informati on Technologies of 
Ecuador  2016-2021, which contains planning and management guidelines for the sector, to expand 
digital inclusion and enhance the country's competitiveness. The  aim is to position Ecuador as a 
regional reference in terms of connectivity, access and production of information technology and 
communication services by 2021 . 
4.145.   ARCOTEL was created through the LOT in 2015, as a result of the merger of three public 
entitie s, with a view to simplifying administrative and regulatory processes. ARCOTEL brings 
together in a single institution the functions of administration, regulation and oversight of the 
provision of telecom and radio spectrum services that were formerly shar ed between the Supervisory 
Authority for  Telecommunications (SUPERTEL), the National Telecommunications Secretariat 
(SENATEL) and the National Telecommunications Council (CONATEL). ARCOTEL issues regulations, 
technical standards and technical plans to ensu re the proper functioning of the Law142; and, as a 
regulatory body, it also has responsibility for competition policy. ARCOTEL also issues resolutions 
                                                
136 Law No. 0  of 18 February 201 5, as last amended on 7 July 2017.  
137 Executive Decree No. 864  of 25 January 2016.  
138 Law No. 0 of 25 June 2013, as last amended on 7 July 2017.  
139 Executive Decree No. 214 of  27 January 2014, as last amended on 13 June 2017.  
140 Resolution 4 of  17 May 2016, as  last amended on 19 June 2018.  
141 Resolution 5 of  6 May 2016, as last amended on 19 June 2018.  
142 The two institutions, CONATEL, and SENATEL which is attached to CONATEL, were mandated to 
oversee, regulate and manage telecommunications and the radio spectrum, while the S upervisory Authority for  
Telecommunications was in charge of supervising the sector.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 140 - 
  that seek to regulate every aspect of the sector, ranging from technical elements, prices, spectrum 
or term inal allocation, to cable trenching. The most highly regulated areas are advanced mobile 
service and pay -TV, which are considered luxury services.  
4.146.   Under Ecuadorian law, the State has responsibility for providing public telecom services, 
which it can either  do through public companies, or else outsource the service to mixed enterprises 
(with a majority State shareholding) or private firms.143 To provide these services, any type of firm, 
whether public, mixed -ownership (with a majority State shareholding) or private, must obtain 
authorization from ARCOTEL. There is also a requirement for inclusion in the services register for 
any type of compan y wishing to provide carrier, value -added, Internet access or  radiocommunication 
services, or to perform submarine  cabling or international transport operations, among others. In 
addition, permits apply to private, mixed -ownership and foreign State -owned f irms wishing to 
provide audiovisual services on a subscription basis.  
4.147.   There are three types of authorization : simple authorizations, concessions and service 
records, which can be obtained either directly or through a public bidding process, depending on th e 
type of activity or service that is to be undertaken and on the type of company involved. Except for 
certain activities in which a permit or service records are required, public companies require a n 
authorization  that is granted directly, while private, mixed -ownership and foreign state -owned firms 
must obtain a concession that can be awarded either directly or through public bidding. Licences are 
obtained upon request, after fulfilling the corresponding requirements, except when the applicant 
firm wishes  to provide open -source audiovisual services or use and exploit the radio spectrum. The 
use and exploitation of the radio spectrum of public telecommunications networks is subject to public 
bidding, as also is the provision of open -signal audiovisual servi ces (except in the case of public 
companies). Public companies that provide telecom services will have preferential rights for the use 
and exploitation of the radio spectrum.144 Authorizations  can last for 15 or 20 years, depending on 
the type of firm and th e activity to be undertaken. Foreign private firms must establish legal domicile 
in Ecuador to obtain any type of authorization  (Table 4.15 ). 
Table 4.15 Licences for the provision of telecommunications and aud iovisual services  
 
Basic 
telecommunication s 
services  
Other 
telecommunication s 
services  
Use and exploitation 
of the radio 
spectrum  
Broadcasting 
services (audio and 
video) in open signal  
Broadcasting 
services (audio and 
video) by 
subscription  
Public 
enterprises  Authorization  
(20 years)  
(Direct award)  Registration of 
services  
(15 years)  
(Direct award)  Authorization  
(20 years)  
(Direct award or 
competitive 
bidding process)  Authorization  
(15 years)  
(Direct award)  Authorization  
(15 years)  
(Direct award)  
Joint ventures 
with a majority 
shareholding of 
the State  Concessions  
(15 years)  
(Direct award)  Registration of 
services  
(15 years)  
(Direct award)  Concessions  
(20 years) 
(Direct award or 
competitive 
bidding process)  Concessions  
(15 years) 
(Direct award or 
competitive 
bidding process)  Registration  
(15 years)  
(Direct award)  
Foreign 
State -owned 
firms Concessions  
(15 years)  
(Direct award)  Registration of 
services  
(15 years)  
(Direct award)  Concessions  
 (20 years) 
(Direct award or 
competitive 
bidding process)  Concessions  
(15 years)  
(Direct award or 
competitive 
bidding process)  Registration  
(15 years)  
(Direct award)  
                                                
143 Articles 14 and 15 of the Organic Law on Telecommunications . 
144 Article 55 of the Organic Law on Telecommunications . WT/TPR/S/383 /Rev.1 • Ecuador  
- 141 - 
   
Basic 
telecommunication s 
services  
Other 
telecommunication s 
services  
Use and exploitation 
of the radio 
spectrum  
Broadcasting 
services (audio and 
video) in open signal  
Broadcasting 
services (audio and 
video) by 
subscription  
Private firms  Concessions  
(15 years)  
(Direct award)  Registration of 
services  
(15 years)  
(Direct award)  Concessions  
 (20 years) 
(Direct award or 
competitive 
bidding process)  Concessions  
(15 years)  
(Direct award or 
competitive 
bidding process)  Registration  
(15 years)  
(Direct award)  
Note:  The selected  basic telecom services include fixed -line telephony, the advanced mob ile service and 
the advanced mobile service through a virtual mobile operator. The "Other telecommunications 
services" category includes carrier services, submarine  cable operators, international transportation, 
value -added services, Internet access, radio  communication, spectrum for specific use in free bands, 
among others.  
Sources:  Organic Law on Telecommunications, Regulation s on the Granting of Authorizations  to Provide 
Telecommunication Services and Radio Spectrum Frequencies, and Regulation s on 
Telecommunication and Frequenc y Authorizations , of 17 May 2016 . 
4.148.   The Law also establishes a general authorization regime145 under which service providers 
can add additional telecom services, including value -added services, to an existing licence through 
the respective annexes.  
4.149.   Providers of telecom services, except for broadcasting, are subject to a levy of 1 % of the 
total revenue received, payable to ARCOTEL on a quarterly basis.146 
4.150.   In terms of competition, ARCOTEL is responsible for determining the relevant ma rkets 
involved in telecom services or networks, in order to assess the level of competition in the sector 
and identify any providers with market power.147 To promote competition, ARCOTEL requires private 
providers to pay a percentage of their annual income b ased on their market share, which is 
calculated in terms of the number of subscribers or registered customers. This contribution varies 
between 0.5 % and 9 % of the supplier 's annual revenue ( Chart  4.11). ARCOTEL is also responsible 
for the sanctioning proce dures applicable to service providers.  
4.151.   Each company is free to set the prices it charges, but ARCOTEL defines maximum prices for 
a given service, which may vary across companies.148 These maximum rates are contained in the 
ARCOTEL tariff schedule and are spe cified in each operator's concession contract. According to the 
authorities, on average the public companies EP CNT and EP ETAPA have the cheapest basic monthly 
plans149 for fixed -line telephony, costing USD  6.3 and USD  4.3, respectively. The maximum per 
minute rates for local calls in the operator's network (On Net) set by ARCOTEL are currently 
USD 0.120 for EP CNT, EP ETAPA and Linkotel S.A; and USD  0.160 for TV Cable -Setel S.A., 
Claro Conecel S.A. and Level 3 -Global Crossing Communications Ecuador S.A. For  the mobile 
telephony service, the ceiling since 2012 has been USD  0.22 per minute for the three operators that 
provide this service. Nonetheless, the average per -minute cost in the prepaid mobile service dropped 
from USD  0.122 in 2013 to USD  0.099 in 2017.150 
                                                
145 The general authorization is n ot a licence as such, but a regulatory framework . 
146 Article 92 of the Organic Law on Telecommunications . 
147 Article 33 of the Organic Law on Telecommunications defines an operator with market power as one 
that has the capacity (individually or with others) to significantly influence prices in a given market, or in the 
connection or interconnection to its network . 
148 Article 63 of the Organic Law on Telecommunications.  
149 Price of a basic monthly plan: the fixed monthly amount that the company charges for the service 
and entitling the customer to consume a certain amount of a service.  
150 Information provided by the authorities . WT/TPR/S/383 /Rev.1 • Ecuador  
- 142 - 
  Chart 4.11 Payment to the State in respect of market concentration  
 
Source:  Article 34 of the Organic Law on Telecommunications.  
4.152.   The Law prohibits the rounding of units of time when calculating billing, and it also bans the 
application of rates or tariff plans based on cross -subsidies.151 However , preferential rates are 
allowed under the law and currently exist for fixed -line telephony services for the elderly or disabled. 
This is equivalent to a 50 % reduct ion in the basic residential rate, as also exists for the electricity 
service152, as well as for mobile telephony for socially disadvantaged (or vulnerable) groups.153 The 
Law also guarantees network neutrality.  
4.153.   Interconnection between public telecommunication  networks is mandatory for their 
operators . 
4.154.   In the event of infringement of the Law, ARCOTEL will apply the sanction provided for 
therein. Abuses of market power and/or the pursuit of anti -competitive practices are also considered 
a legal violation  of the law. 
4.155.   In terms of market structure, in December 2017 the fixed -line phone service was being 
provided by six companies: (i) EP CNT; (ii) Claro -Conecel S.A.; (iii) TV Cable -Setel S.A.; 
(iv) EP ETAPA ; (v) Linkotel S.A.; and (vi) Level 3 -Global Crossing Comunic aciones Ecuador S.A. All 
of these are private companies, except EP CNT and EP ETAPA, and f our have national coverage. 
CNT EP has the largest market share, with 84.9 % of all fixed lines registered. In the case of mobile 
telephony, an estimated 87.3 % of the population has access to the service,  and the provider 
Claro – Conecel S.A. has the largest market share at 54.3 %. The rest of the market is shared 
between two other companies, Movistar  – Otecel S.A. (31 %) and EP CNT (15 %). It is also estimated 
that 10.6 % of the population has a fixed -line Internet account, while 52.5 % have a mobile one. 
There are at least six companies operating in the fixed -line Internet market, of which EP CNT has 
the largest share, at 53.5 %, followed by Setel S.A., with 12.1 %. The mobil e Internet market has 
only three operators: Conecel (with a 55.6 % market share), EP CNT (32.5 %) and Otecel (11.8 %).154 
                                                
151 Article 62 of the Regulation s implementing  the Organic Law on Telecommunications . 
152 Article 15 of the Law on  the Elderly  and Article 7 9 of the Organic Law on Disabilities . 
153 ARCOTEL Resolution No. 1286 of 28 December 2017.  
154 ARCOTEL Statistical Bulletin for 2017 QIV and ICT Observatory. Viewed at: 
https://observatoriotic.m intel.gob.ec/estadistica . 
0.5%1%3%5%7%9%
012345678910
30% to 34.99% 35% to 44.99% 45% to 54.99% 55% to 64.99% 65% to 74.99% 75% to 100%Payment based on annual income
Market share (% of customers)WT/TPR/S/383 /Rev.1 • Ecuador  
- 143 - 
  4.156.   There are several trade and tax policy measures that affect the telecom munication s sector. 
Cellular phones (tariff line 8517) are subject t o an import duty of 15 %; and other devices, such as 
tablets (tariff line 851762), pay a tariff of between 5 % and 10 %. In conjunction with the 5 % foreign 
exchange exit tax (ISD), these duties significantly increase the costs of importing the products in 
question. Between 2012 and 2016, mobile phones were also subject to an import quota, which in 
2016 amounted to USD 250 million per year (or 2.6 million units).155 During t his period, the 
importation of cell phones delivered to natural persons through the Correos del Ecuador courier 
service was also prohibited. In addition, since 2016, business consumption of fixed and mobile 
telephony services has borne a 15 % special consum ption tax (ICE ).156 
4.5.3   Transport  
4.5.3.1   Air transport and airports  
4.157.   Ecuador has 21 airports: four international (Quito, Guaya quil, Latacunga and Manta), 
one cross-border airport (Esmeraldas) and 16 local ones (13 on the mainland and three in 
Galapagos). These facilitie s are used by a total of 14 passenger airlines, all private except for the 
national carrier (TAME EP). Three of these (Aerogal -Avianca, TAME EP and Latam) fly both domestic 
and international routes, while the rest only operate direct international routes t o and from  cities in 
Latin America, the United States and Europe. In 2017, international passenger traffic registered 
around 4 million departures and arrivals, while international cargo traffic totalled  45,081  metric  tons 
entering Ecuador and 192,723 ton nes leaving. The airports of Quito and Guayaquil handled the 
largest flows of both passenger and cargo traffic.  
4.158.   Several regulatory and institutional changes occurred during the period under review. A 
policy to deregulate air traffic, except for cabotage, was  adopted in 2018, along with more detailed 
and flexible provisions on charter flights. In the institutional sphere, in 2013 certain functions of the 
National Civil Aviation Council (CNAC) were transferred to the General  Directorate of Civil Aviation 
(DGAC)  and the Ministry of Transport and Public Works.  
4.159.   Air transport in Ecuador is chiefly regulated by the Civil Aviation Law and the Aeronautical 
Code, both published  in 2007 and subsequently amended. During the review period, the main 
changes in the regulator y framework were the implementation in 2018 of the Regulation s on 
Operating Permits to Provide Commercial Air Transportation Services, and Decree No. 256 through 
which the State undertakes to adopt a policy to liberalize air transport services, apart from cabotage 
(Table 4.16). This Decree provides for the negotiation of open -skies agreements with other 
countries, which must guarantee free competition and will cover only international airports on the 
mainland, thus excluding airports in the Galapagos Island s. In addition to improving the country 's 
connectivity, this new policy is expected to enhance competitiveness, by reducing transport costs 
for producers and exporters of flowers, frozen fish and other highly perishable products.  
4.160.   The new Regulations on Operating Permit s repeal the previous ones, and are intended to 
promote the new open -skies policy. Among other things, th ese regulation s include more detailed 
and flexible provisions on non -scheduled services, especially charter flights (see next section).  
Table 4.16 Main legal instruments that regulate the air transport sector  
Legal instrument  Description  Publication date  Most recent amendment  
Codification No. 16  Civil Aviation Law  11/1/2007  11/6/2018  
Codification No. 15 Aeronautical Code  11/1/2007  22/5/2016  
Civil Aviation Resolution 
No. 18  Regulation s on Operating 
Permits for the Provision of 
Commercial Air 
Transportation Services  26/2/2018  - 
Presidential Decree 
No. 256 Decree adopting a policy to 
deregulate air transportation 
services, except cabotage 
(December 27, 2017)  3/1/2018  - 
                                                
155 COMEX Resolutions No. 67  of 11 June 2012 and No. 49  of 29 December 2015.  
156 Organic Law to Balance  Public Finance s of 29 April 2016.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 144 - 
  Legal instrument  Description  Publication date  Most recent amendment  
Cartagena Agreement 
Decision No. 582  Decision on air transport 
within the Andean Community  9/11/2004  - 
Source:  WTO Secretariat, on the basis of information provided by  the authorities.  
4.161.   The key institutions with responsibilities in the air transport sector are the Ministry of 
Transport and Public Works (MTOP), through its Under -Secretariat of Civil Air Transportation; the 
DGAC; and the CNAC. The MTOP is responsible for p lanning, formulating and coordinating air 
transport and airport system policies, while the DGAC, attached to the MTOP, is responsible for the 
regulation of national aeronautical activity and the technical oversight of aircraft. The CNAC grants 
concessions and operating permits. In 2013, the Council was reformed, and some of its functions 
were transferred to the DGAC and the MTOP.157 The approval of air transport agreements became 
the responsibility of the DGAC, and the formulation and direction of aeronautica l policy were assigned 
to the MTOP. The CNAC consists of the Minister of Transport and Public Works as the State 
representative, along with the Minister of Tourism and the Minister of Foreign Trade. The General 
Director of Civil Aviation serves as secretar y to the Council, but does not have a vote.  
4.162.   The provision of air transport services, as well as the construction and operation of civil 
aerodromes, airports and heliports, along with their services, may be delegated to national or foreign 
companies by gran ting permits or concessions as appropriate.158 Only domestic air transport services 
(regular or non -scheduled) (cabotage) are reserved for natural persons of Ecuadorian nationality or 
companies established in Ecuador.159 Ecuador also maintains nationality requ irements for personnel 
employed in the air transport sector.  
4.163.   To provide domestic or international air transport services for passengers, cargo or mail 
(whether scheduled or otherwise), airlines need to obtain an operating permit from the CNAC, as 
well as t echnical certification from the DGAC. To obtain these permits, foreign airlines must set up 
a branch in Ecuador and have a representative or agent resident in the country. Operating permits 
for foreign airlines are granted in accordance with existing agree ments or conventions between 
Ecuador and the country to which the applicant airline belongs. If there is no agreement in force, 
the principle of reciprocity applies: the foreign airline then receives a permit with rights that are 
equivalent to those that E cuadorian airlines receive from the country in question.160 Exclusive 
operating permits cannot be granted to any company.161 Operating permits to provide public air 
transport services  will be issued to Ecuadorian airlines for a maximum period of five years, an d to 
foreign airlines for up to three years, in both cases renewable for equal periods. The operating 
permits for aerial work services, private services and related activities will be granted for a maximum 
of two years, renewable.162 There are no restrictions on the number of operators per route, or on 
the frequency of flights.  
4.164.   In order to start transport operations, in addition to an operating permit, airlines need to 
obtain an air operator certificate and comply with the operational  specifications issued by the DGAC, 
to ensure that the company is equipped to carry out operations safely and efficiently in the specified 
area or routes.163 
4.165.   To provide aerial work services and related activities, an operating permit is also required, 
which will be granted by the DGAC.164 
4.166.   Air transport companies are free to set their prices, but must register them with the DGAC.165 
                                                
157 Executive Decree No. 156  of 20 November 2013.  
158 Article 7 of the Regulation s on Operating Permits to Provide Commercial Air Transportation Services , 
and Articles 6, 33 and 415 of the Companies Law.  
159 Article 47 of the Civil Aviation Law and Article 117 of the Aeronautical Code.  
160 Articles 4 and 5 of the Regulation s on Operating Pe rmits to Provide Commercial Air Transportation 
Services.  
161 Article 121 of the Aeronautical Code . 
162 Articles 114 and 115 of the Aeronautical Code.  
163 Article 56 of the Regulation s on Operating Permits to Provide Commercial Air Transportation 
Services.  
164 Articles 108 and 111 -112 of the Aeronautical Code.  
165 Article 100 of the Aeronautical Code.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 145 - 
  4.167.   Ecuador generally maintains an open -skies policy. The member countries of the 
Andean  Community are granted the free exercise of third , fourth and fifth freedom rights, in 
scheduled and non -scheduled flights carrying passengers, cargo and mail, which are carried out 
within the subregion, although certain conditions apply in the case of non -scheduled passenger 
transport flights.166 
4.168.   Charter flights are allowed subject to authorization , and the 2018 regulations include more 
detailed and flexible provisions than before in this regard, among other items. For example, they 
allow domestic charter flights (whether passenger, cargo or mail) to be op erated by Ecuadorian or 
foreign airlines with a valid regular operating permit. Previously, only Ecuadorian airlines could 
operate under this modality, and there was a limit on the number of flights that could be made.167 
The 2018 regulations also provide th at, on an exceptional basis, an international charter flight to 
Ecuador may operate in national airports on the Ecuadorian mainland, provided that it is carrying 
tourist groups. This regulation also makes clear that fees will be paid according to the numbe r of 
flights each month, unlike the previous regulations which required a fixed annual payment 
irrespective of the number of flights .168 
4.169.   Ecuador maintains a number of nationality restrictions for aeronautical staff and requires 
that the services of pilots, o n-board crew, technicians, professionals and administrative staff be 
provided by Ecuadorian citizens, unless personnel of this nationality do not exist or are not available. 
In this case, the DGAC can authorize the hiring of foreign staff for up to six mon ths, when it is 
certified that there is no national personnel available; and only with this certification will it allow the 
hiring of foreign crew members. The authorization in question can be renewed for a similar period if 
necessary. Persons so hired wil l be required to give the necessary training to the Ecuadorian staff 
that will take their place within a period specified by the authorities.169 
4.170.   The construction and operation of new or existing airports in Ecuador can be outsourced to 
private enterprise thr ough a concession awarded in a competitive bidding process. If not under 
concession, national airports are administered and operated by the DGAC or else directly by the 
municipalities. A concession to build and operate new or existing airports will be made  in accordance 
with current legal regulations. Ecuador has 21 airports . The international airports are operated under 
concession (Quito, Guayaquil and Baltra), one has been delegated to the Municipality of Cuenca, 
while the rest are managed by the DGAC. Gu ayaquil and Quito airports handle the most international 
traffic in terms of both passengers and cargo. Quito airport handles the most cargo, while passenger 
traffic is divided almost equally between the two. In 2017, Quito airport was the departure and 
arrival point for around 55 % of all passengers, while Guayaquil airport captured about 44 % of 
departures and arrivals. Quito airport also dispatched and disembarked 88 % and 75 % of total cargo, 
respectively, while the corresponding figures for Guayaquil airpo rt were 8 % and 25 %. 
4.171.   In terms of incentives, in November 2017, the Government extended the aircraft fuel 
discount to all providers of passenger and cargo transportation services, provided their routes 
included airports run by the DGAC or the municipalities (except for routes to the Galapagos 
Islands).170 This discount amounts to 40 % of the fuel selling price, and since 2011 its scope has 
been progressively extended (Box 4.4). In 2018 it was decided that the DGAC would also develop 
an incentives plan, customize d to the needs of the airports it manages, to boost flight operations 
and make the most of the existing infrastructure.171 
                                                
166 Articles 1, 6 and 7 of Carta gena Agreement Decision 582 of  9 November 2004, which regulates air 
transportation within the Andean Community.  
167 National Civil Aviation C ouncil Resolution No. 3 of 4 March 2015, revoked in 2018.  
168 Articles 16 and 33 of the Regulation on Operating Permits to Provide Commercial Air Transportation 
Services.  
169 Articles 45 and 46 of the Civil Aviation Law.  
170 Executive Decree No. 204  of 9 Novembe r 2017.  
171 MTOP Ministerial Decision No. 013 of  5 July 2018.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 146 - 
  Box 4.4 Evolution of the air craft  fuel discount since 2011  
Executive Decree No. 338 of 2005 issued the Regulation s Governing the Prices of Petroleum Products. The 
regulation was amended by Executive Decree No. 799 of 2015, through which the State regulated the air 
transport incentive for airlines within Ecuador. The Decree establishes that only airlines operating on routes 
that include airports managed by the DGAC, except for the Galapagos airports, will receive a 40% fuel discount.  
Executive Decree No. 799 also determines the prioritized  routes, which constitute international routes of interest 
for Ecuador in passenger, cargo or combined operations. In principle, three routes were prioritized: São Paulo, 
Mexico City and Los Angeles. The airline that operates first in these destinations wi ll receive a 40% discount on 
the value of the fuel in any airport in Ecuador for a period of three years. Of the three prioritized routes, 
two were operated: Sao Paulo by TAME EP and Mexico by AEROMEXICO; and a request has been received from 
LATAM to prior itize the route to Santiago, Chile.  
Lastly, Executive Decree No. 204 of November 2017 amends Article 6 (4) of Decree No. 338, and provides that 
all airports run by the State or delegated to the municipality, as in the case of Cuenca, will receive a 40% fue l 
price discount.  
Source:  WTO Secretariat, based on Executive Decree No. 968 of  28 December  2011; Executive Decree 
No. 799 of 22 October 2015; and Executive Decree No. 204 of 9 November 2017.  
4.172.   As in the case with other public services, elderly persons or persons with a disability receive 
a 50% discount on all transport fares.172 
4.5.3.2   Maritime transport and ports  
4.173.   Maritime activities and port services are regulated by a variety of national laws, regulations 
and standards , as well as by international conventions (Tab le 4.17). These instruments date in many 
cases from the 1970s, such as the Maritime and Inland Waterway Transportation Law (1972) and 
the General Ports Law (1976), which basically include institutional provisions, along with regulations 
on maritime and por t activity. In 2016, regulations were enacted  governing port services in Ecuador, 
to complement the provisions described in the General Regulation on Port Activity.  
Table 4.17 Main legal instruments regulat ing the maritime transport sector  
Legal instrument  Description  Publication date  Most recent amendment  
Supreme Decree  Law on Maritime and 
Inland Waterway 
Transport  1/2/1972  26/8/2009  
Supreme Decree No. 289  General Ports Law  15/4/1976   
Supreme Decree No. 290 Law on the National Port 
Administration Regime  15/4/1976  2/12/1997  
Supreme Decree No. 1173  Law on the Oil Terminal 
Administration Regime  4/3/1974   
Executive Decree No. 168  Regulation s on Maritime 
Activity  27/3/1997  30/12/2008  
Executive Decree No. 467 General Regulation on 
Port Activity  13/6/2000  - 
Merchant Shipping  
Resolution No. 532  Implementing Rules for 
the Regulation s on 
Maritime Activity  27/5/1997  1/6/2010  
Executive Decree No. 810  Regulations for the 
Outsourcing of Public 
Transport Services  19/7/2011  - 
Resolution No. 60  Rules governing  port 
services in Ecuador  13/4/2016  31/5/2016  
Cartagena Agreement 
Decision No. 314  Reciprocity in Maritime 
Transportation of the 
Andean Group  19/3/1992  23/8/1996  
 
Cartagena Agreement 
Decision No. 422  Regulation s governing  the 
Reciprocity Principle in 
Maritime Transport  29/10/1996   
International agreement  Viña del Mar Agreement  7/5/1997   
                                                
172 Article 55 of the Civil Aviation Law.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 147 - 
  Legal instrument  Description  Publication date  Most recent amendment  
International agreement  United Nations 
Convention on the Law of 
the Sea  16/9/2010   
Source : Information provided by  the authorities and the WTO Secretariat.  
4.174.   The Ministry of Transport and Public Works, acting through the Under -Secretariat for Ports 
and Maritime and Inland Waterway s Transport (SPTMF), is responsible for formulating national 
maritime and inland waterway t ransport policy, and for regulating and overseeing the country 's ports 
(whether maritime or inland waterway). These latter functions were transferred to the 
Under -Secretariat in 2014, when the National Merchant Shipping  and Ports Council, which was the 
port authority until then, was eliminated.173 Similarly, the National Directorate for Aquatic Spaces 
(DIRNEA), attached to the General Marine  Command, is tasked with guaranteeing security in national 
waters and preventing unlawful acts, among other things. There are also two State -owned shipping 
companies: Empresa Pública de Transportes Navieros Ecuat orianos (TRANSNAVE) and 
Empresa  Pública Flota Petrolera Ecuatoriana (EP FLOPEC). EP FLOPEC is the only company 
authorized for the international maritime transpo rtation of hydrocarbons.  
4.175.   In general, foreign investment is allowed in the maritime transport and port sector, albeit 
subject to certain requirements. Certain activities are the exclusive responsibility of the State, such 
as the transportation of hydrocarbo ns; and others are reserved for Ecuadorian flag vessels, such as 
inland waterway transport for passengers and cargo and postal bags.174 In exceptional cases only, 
the SPTMF can authorize foreign -flag vessels to provide these services.  
4.176.   Any person wishing to e ngage in a port, maritime or inland waterway profession or activity 
must be registered with the SPTMF and obtain the requisite authorizations. Shipping agents and 
shipping companies must also be registered in Ecuador. The traffic and operation of foreign s hipping 
companies are governed by the reciprocity principle. The authorities indicated that in international 
waterborne transport, the principle of effective reciprocity applies, and Ecuador complies with the 
provisions of the waterborne transport conventi ons to which it is a party. Any vessel can operate in 
jurisdictional waters provided it meets  the legal requirements.  
4.177.   Crew and officers working on Ecuadorian -flag vessels must be Ecuadorian nationals. The 
hiring of foreign personnel can only be authorized for technical or operational reasons. The captains 
must also be Ecuadorian nationals, except for those operating yachts or sporting or pleasure 
boats.175 
4.178.   Foreign nationals may participate in the management, ope ration and maintenance of 
State -owned commercial  ports, under an authorization, permit or concession, as the case may be. 
A permit is also required to build and commercially operate ports or maritime or inland waterway 
facilities.176 To obtain a permit, concession or authorization, foreign companies must be incorporated 
in Ecuador. In the case of natural persons, they must be domiciled in Ecuador and have the 
corresponding authorization. Only the management of terminals and the provision of certain port 
services (loading, unloading and storage) for the tra nsport of hydr ocarbons are reserved for 
State -owned firms, or those with a majority State shareholding.  
4.179.   The law requires every State -owned commercial port to be managed and maintained through 
a port institution. Currently, each of the four State -owned comm ercial ports (Esmeraldas, Manta, 
Puerto Bolivar and Guayaquil) is managed by its own port authority.  
4.180.   The port authorities can outsource port management and operation either wholly or partially 
to private companies, either through concessions or through a p ublic-private partnership contract. 
Concessions can be awarded, either directly or through a public tender177, for a period of more than 
five years on the condition that the concession -holder makes investments to modernize or expand 
                                                
173 Executive Decree No. 1087 of  23 March 2012, as last amended on 11 September 2014.  
174 Article 125 of the Regulation s on Maritime Activity.  
175 Articles 102 an d 103 of the Regulation s on Maritime Activity.  
176 Merchant Marine  Resolution No. 55  of 11 January 2008 (specifying procedures for obtaining the 
permit to establish private commercial ports), as last amended on 31 May 2016.  
177 A public bidding process can be held in response to private or government initiative.  WT/TPR/S/383 /Rev.1 • Ecuador  
- 148 - 
  the facilities in questio n.178 Concession holders also have the exclusive right to provide services.179 
Public -private partnership contracts are awarded directly and are granted for up to five years or for 
a term that depends on the amount of the investment.  
4.181.   In 2016, two of Ecuador 's four publicly owned commercial ports (Puerto Bolívar and Manta) 
were placed under foreign management concessions, lasting 50 and 40 years respectively; and the 
construction of a new port terminal in Posorja, Province of Guayas, was awarded to DPW -POSORJA. 
The Guayaquil Port Authority also outsourced its port operations to two private companies. The 
outsourced terminals handle all types of non -oil cargo.  
4.182.   The State may also give authorization to build and operate private port facilities known as 
"authorized p ort terminals" (TPH), through a concession or a public -private partnership contract.180 
Thus, in addition to the four publicly  owned commercial ports, there are 52 TPHs, three oil terminals 
(Balao, La Libertad and El Salitral) and a State -owned international  waterway port.181 In 2017, most 
of the cargo (non -oil) was handled in the TPHs: 66 % of imports and 54 % of exports (in metric tons) 
(Chart 4.12). The hydrocarbons trade, and in particular exports, is concentrated in the Balao oil 
terminal.  
4.183.   Port service fees are set freely by the port authorities according to the current Tariff 
Regulation issued by the sector ministry. In cases where port services have been outsourced to port 
operators, the latter will consider the tariffs set by the port authorities as maximu m prices .182 
Chart 4.12 Exports and imports of non -oil cargo in the national port system, 2011 -2017  
 
Source: Report on port and maritime transport statistics 2017, SPTMF.  
                                                
178 Articles 34 -36 of the General Regulation on Port Activity.  
179 Article 2 of the General Regulation on Port Activity.  
180 Article 2 of the Rules Governing Port Services in Ecuador of 20 December 2016.  
181 Ministry of Transport and Public Works (2016), Reporte de Estadísticas Portuarias y de Transporte 
Marítimo 2016.  The number of terminals does not include private terminals for cabotage or thermoelectric 
activities.  
182 Articles 7 and 8 of the General Regulatio ns on Port Activity.  
024681012
2011
2012
2013
2014
2015
2016
2017A. Exports 
2011-2017
(Millons of metric tonnes)
024681012
2011
2012
2013
2014
2015
2016
2017B. Imports 
2011-2017
(Millons of metric tonnes )
Guayaquil Puerto BolívarTHP: 
Authorized 
Port 
Terminals Esmeraldas MantaWT/TPR/S/383 /Rev.1 • Ecuador  
- 149 - 
  5  APPENDIX TABLES  
Table A1. 1 Total merchandise exports by HS section, 2011 -2017  
(USD million and %)  
Description  2011  2012  2013  2014  2015  2016  2017   
(USD million)  
Total exports  22,343 23,852 24,958 25,724 18,331 16,798 19,122  
(% of exports)  
1 -  Live animals; animal products  6.7 6.9 8.4 11.1 14.0 17.0 17.3 
 03. Fish and crustaceans, 
molluscs and other aquatic 
invertebrates  6.6 6.8 8.3 11.0 13.9 16.9 17.2 
2 -  Vegetable products  14.8 13.4 13.9 14.7 21.5 23.1 22.4 
 08. Edible fruit and nuts;  peel of 
citrus fruit or melons  10.5 9.2 9.7 10.5 16.0 17.1 16.7 
 06. Live trees and other plants; 
bulbs, roots and the like; cut 
flowers and ornamental foliage  3.1 3.3 3.4 3.6 4.5 4.8 4.7 
 07. Edible vegetables and certain 
roots and tubers  0.5 0.5 0.4 0.4 0.7 0.8 0.8 
 09. Coffee, tea, maté and spices  0.5 0.3 0.1 0.1 0.2 0.2 0.2 
3 -  Animal or vegetable fats and 
oils 1.7 1.6 1.2 1.1 1.7 1.9 1.5 
4 -  Prepared foodstuffs; 
beverages, spirits and vinegar; 
tobacco and manufactured tobacco 
substitutes  9.7 9.6 10.6 10.5 13.4 14.5 13.3 
 16. Preparations of meat, of fish 
or of crustaceans  3.9 4.7 5.4 4.9 5.2 5.4 6.1 
 18. Cocoa and cocoa 
preparations  2.6 1.9 2.1 2.8 4.4 4.5 3.6 
 20. Preparations of vegetables, 
fruit, nuts or other parts of plants  1.1 0.9 0.9 1.1 1.4 1.4 1.2 
 23. Residues and waste from the 
food industries  0.7 0.6 0.8 0.6 0.9 1.2 1.0 
5 -  Mineral products  57.9 58.1 56.9 51.9 36.4 33.0 36.7 
 27. Mineral fuels, mineral oils 
and products of their distillation  57.8 57.8 56.5 51.6 36.3 32.7 36.2 
 26. Ores, slag and ash  0.1 0.2 0.3 0.2 0.0 0.2 0.5 
6 -  Products of the chemical or 
allied industries  0.9 1.0 0.7 0.5 0.9 0.8 0.6 
 30. Pharmaceutical products  0.1 0.1 0.1 0.2 0.4 0.3 0.2 
 34. Soap, organic surface -active 
agents, washing preparations, 
lubricating preparations  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
 38. Miscellaneous chemical 
products  0.1 0.2 0.2 0.1 0.1 0.2 0.1 
 35. Albuminoidal substances; 
modified starches; glues; 
enzymes  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
7 -  Plastics and articles thereof  0.9 0.9 1.0 0.9 1.0 1.0 0.8 
 39. Plastics and articles thereof  0.6 0.6 0.6 0.7 0.7 0.7 0.5 
 40. Rubber and articles thereof  0.3 0.3 0.3 0.2 0.3 0.3 0.3 
8 -  Raw hides and skins, leather, 
furskins and articles thereof; 
saddlery and harness  0.1 0.0 0.1 0.1 0.1 0.1 0.0 
9 -  Wood and articles of wood; 
wood charcoal  1.0 1.0 0.9 1.1 1.8 2.0 1.5 
 44. Wood and articles of wood; 
wood charcoal  1.0 1.0 0.9 1.1 1.7 2.0 1.5 
10 -  Pulp of wood or of other 
fibrous cellulosic material; paper 
and paperboard and articles thereof  0.3 0.3 0.3 0.3 0.3 0.3 0.3 
 48. Paper and paperboard; 
articles of paper pulp, of paper or 
of paperboard  0.3 0.3 0.2 0.2 0.2 0.2 0.2 WT/TPR/S/383 /Rev.1 • Ecuador  
- 150 - 
  Description  2011  2012  2013  2014  2015  2016  2017  
11 -  Textiles and textile articles  0.9 0.7 0.6 0.6 0.6 0.7 0.5 
 52. Cotton  0.1 0.1 0.2 0.1 0.1 0.2 0.2 
12 -  Footwear, headgear, 
umbrellas, sun umbrellas, walking -
sticks, seat -sticks, whips, riding -
crops and parts thereof; prepared 
feathers and articles made 
therewith  0.3 0.2 0.2 0.2 0.2 0.3 0.2 
13 -  Articles of stone, plaster, 
cement, asbestos, mica or similar  
materials; ceramic products; glass 
and glassware  0.2 0.2 0.1 0.2 0.2 0.3 0.2 
14 -  Natural or cultured pearls, 
precious or semi -precious stones, 
precious metals  0.6 1.7 1.9 3.9 4.1 1.8 0.9 
15 -  Base metals and articles of 
base metal  1.1 1.3 1.3 1.2 1.6 1.4 1.7 
 73. Articles of iron or steel  0.5 0.7 0.6 0.6 0.7 0.7 0.8 
 78. Lead and articles thereof  0.1 0.1 0.1 0.1 0.2 0.2 0.3 
 76. Aluminium and articles 
thereof  0.1 0.1 0.2 0.2 0.2 0.2 0.3 
16 -  Machinery and mechanical 
appliances; electrical equipment; 
parts thereof  0.8 0.9 0.8 0.8 0.9 1.2 1.0 
 85. Electrical machinery and 
equipment and parts thereof; 
sound recorders and reproducers  0.3 0.2 0.3 0.3 0.4 0.6 0.6 
 84. Nuclear reactors, boilers, 
machinery and mechanical 
appliances  0.5 0.6 0.5 0.5 0.5 0.6 0.4 
17 -  Vehicles, aircraft, vessels and 
associated transport equipment  1.8 2.1 0.7 0.6 0.9 0.6 0.4 
 88. Aircraft, spacecraft, and parts 
thereof  0.0 0.0 0.2 0.1 0.4 0.4 0.3 
 87. Vehicles other than railway or 
tramway rolling -stock, and parts 
and accessories thereof  1.7 2.1 0.6 0.5 0.5 0.1 0.1 
18 -  Optical, photographic, 
cinematographic, measuring, 
checking or precision instruments 
and apparatus  0.1 0.1 0.1 0.1 0.2 0.1 0.1 
19 -  Arms and ammunition; parts 
and accessories thereof  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 -  Miscellaneous manufactured 
articles  0.2 0.2 0.2 0.2 0.3 0.2 0.2 
21 -  Works of art, collectors' 
pieces and antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  0.0 0.0 0.2 0.0 0.0 0.0 0.4 
Source:  WTO Secretariat estimates based on Comtrade data. 
  WT/TPR/S/383 /Rev.1 • Ecuador  
- 151 - 
  Table A1. 2 Total merchandise imports by HS section, 2011 -2017  
(USD million and %)  
Description  2011  2012  2013  2014  2015  2016  2017   
(USD million)  
Total imports  24,286 25,197 27,064 27,518 21,387 16,189 19,845  
(% of imports)  
1 -  Live animals; animal products  1.5 1.1 0.8 0.8 0.8 0.9 0.8 
 03. Fish and crustaceans, 
molluscs and other aquatic 
invertebrates  1.2 0.7 0.4 0.4 0.4 0.5 0.4 
 05. Products of animal origin, not 
elsewhere specified or included  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
 01. Live animals  0.1 0.1 0.1 0.1 0.1 0.2 0.1 
2 -  Vegetable products  2.9 2.5 2.2 2.4 2.6 3.1 3.1 
 10. Cereals  1.8 1.4 1.1 1.3 1.5 1.8 1.8 
 08. Edible fruit and nuts; peel of 
citrus fruit or melons  0.5 0.5 0.5 0.5 0.5 0.5 0.5 
 07. Edible vegetables and certain 
roots and tubers  0.2 0.1 0.2 0.2 0.2 0.3 0.2 
 11. Products of the milling 
industry; malt; starches; inulin; 
wheat gluten  0.1 0.2 0.2 0.1 0.1 0.2 0.2 
3 -  Animal or vegetable fats and 
oils 0.8 0.7 0.7 0.6 0.7 0.8 0.7 
4 -  Prepared foodstuffs; 
beverages, spirits and vinegar; 
tobacco and manufactured tobacco 
substitutes  3.7 3.8 3.9 4.2 5.1 6.2 6.1 
 23. Residues and waste from the 
food industries  1.6 1.7 1.9 2.3 2.8 3.7 3.4 
 21. Miscellaneous edible 
preparations  0.7 0.7 0.8 0.8 0.9 1.1 1.0 
 19. Preparations of cereals, flour, 
starch or milk  0.4 0.4 0.5 0.4 0.5 0.5 0.5 
 17. Sugars and sugar 
confectionery  0.4 0.3 0.2 0.3 0.3 0.4 0.5 
5 -  Mineral products  22.7 22.8 23.8 24.8 19.9 16.6 17.3 
 27. Mineral fuels, mineral oils 
and products of their distillation  22.3 22.4 23.3 24.3 19.6 16.4 17.0 
 25. Salt; sulphur; earths and 
stone; plastering materials, lime 
and cement  0.4 0.4 0.5 0.5 0.3 0.2 0.2 
6 -  Products of the chemical or 
allied industries  11.8 12.1 11.7 11.9 14.3 16.6 14.1 
 30. Pharmaceutical products  3.9 3.9 3.8 3.9 5.1 5.8 4.6 
 38. Miscellaneous chemical 
products  1.7 1.9 1.9 2.0 2.3 2.8 2.2 
 29. Organic chemicals  1.6 1.6 1.5 1.5 1.7 2.3 1.8 
 31. Fertiliz ers 1.6 1.4 1.2 1.4 1.6 1.6 1.5 
 33. Essential oils and resinoids; 
perfumery, cosmetic or toilet 
preparations  1.1 1.2 1.2 1.1 1.3 1.4 1.4 
 28. Inorganic chemicals; organic 
or inorganic compounds of 
precious metals  0.6 0.6 0.6 0.6 0.7 0.8 0.8 
 32. Tanning or dyeing extracts; 
tannins and their derivatives; 
dyes, pigments and other 
colouring matter  0.6 0.6 0.6 0.6 0.7 0.8 0.8 
 34. Soap, organic surface -active 
agents, washing preparations, 
lubricating preparations  0.4 0.5 0.5 0.5 0.6 0.6 0.6 
7 -  Plastics and articles thereof  6.0 5.9 5.7 5.7 6.2 6.8 6.4 
 39. Plastics and articles thereof  4.4 4.2 4.2 4.4 4.7 5.3 4.8 
 40. Rubber and articles thereof  1.7 1.8 1.5 1.4 1.5 1.4 1.6 WT/TPR/S/383 /Rev.1 • Ecuador  
- 152 - 
  Description  2011  2012  2013  2014  2015  2016  2017  
8 -  Raw hides and skins, leather, 
furskins and articles thereof; 
saddlery and harness  0.2 0.2 0.3 0.2 0.3 0.2 0.2 
9 -  Wood and articles of wood; 
wood charcoal  0.2 0.3 0.3 0.2 0.2 0.2 0.2 
10 -  Pulp of wood or of other 
fibrous cellulosic material; paper 
and paperboard and articles thereof  2.2 2.1 1.9 1.9 2.0 2.2 2.1 
 48. Paper and paperboard; 
articles of paper pulp, of paper or 
of paperboard  1.8 1.7 1.5 1.5 1.6 1.8 1.7 
 49. Printed books, newspapers, 
pictures and other products of 
the printing industry  0.3 0.3 0.3 0.2 0.2 0.3 0.2 
11 -  Textiles and textile articles  3.1 2.9 3.1 3.1 3.4 3.1 3.3 
 62. Articles of apparel and 
clothing accessories, not knitted 
or crocheted  0.4 0.5 0.6 0.6 0.7 0.6 0.6 
 52. Cotton  0.6 0.4 0.5 0.4 0.4 0.4 0.5 
 55. Man -made staple fibres  0.5 0.4 0.4 0.4 0.5 0.4 0.4 
 54. Man -made filaments; strip 
and the like of man -made textile 
materials  0.3 0.3 0.3 0.3 0.3 0.4 0.4 
 61. Articles of apparel and 
clothing accessories, knitted or 
crocheted  0.4 0.4 0.5 0.4 0.5 0.4 0.4 
12 -  Footwear, headgear, 
umbrellas, sun umbrellas, walking -
sticks, seat -sticks, whips, riding -
crops and parts thereof; prepared 
feathers and articles made 
therewith  0.6 0.7 0.7 0.7 0.8 0.8 0.8 
 64. Footwear, gaiters and the 
like; parts of such articles  0.5 0.6 0.6 0.6 0.8 0.7 0.7 
 65. Headgear and parts thereof  0.0 0.0 0.1 0.1 0.0 0.1 0.1 
13 -  Articles of stone, plaster, 
cement, asbestos, mica or similar 
materials; ceramic products; glass 
and glassware  1.1 1.2 1.2 1.1 1.2 1.3 1.3 
 70. Glass and glassware  0.5 0.5 0.4 0.5 0.5 0.5 0.6 
 68. Articles of stone, plaster, 
cement, asbestos, mica or similar 
materials  0.2 0.3 0.3 0.3 0.3 0.4 0.4 
 69. Ceramic products  0.4 0.5 0.4 0.4 0.4 0.3 0.3 
14 -  Natural or cultured pearls, 
precious or semi -precious stones, 
precious metals  0.1 0.1 0.2 0.1 0.1 0.1 0.1 
15 -  Base metals and articles of 
base metal  8.4 7.8 8.1 7.8 7.4 7.0 7.5 
 72. Iron and steel  3.7 3.0 3.5 2.9 2.9 2.8 3.7 
 73. Articles of iron or steel  2.7 2.8 2.7 2.9 2.4 1.8 1.6 
 76. Aluminium and articles 
thereof  0.5 0.5 0.5 0.5 0.5 0.8 0.6 
16 -  Machinery and mechanical 
appliances; electrical equipment; 
parts thereof  20.9 22.3 22.6 21.6 22.3 22.2 20.6 
 84. Nuclear reactors, boilers, 
machinery and mechanical 
appliances  11.8 13.3 12.6 12.3 11.9 11.9 11.8 
 85. Electrical machinery and 
equipment and parts thereof; 
sound recorders and reproducers  9.1 9.0 10.0 9.3 10.4 10.2 8.7 
17 -  Vehicles, aircraft, vessels and 
associated transport equipment  9.7 9.3 8.5 8.6 7.8 7.5 9.5 
 87. Vehicles other than railway or 
tramway rolling -stock, and parts 
and accessories thereof  9.2 9.0 8.2 7.9 7.2 7.0 9.4 WT/TPR/S/383 /Rev.1 • Ecuador  
- 153 - 
  Description  2011  2012  2013  2014  2015  2016  2017  
18 -  Optical, photographic, 
cinematographic, measuring, 
checking or precision instruments 
and apparatus  2.1 2.2 2.2 2.3 2.7 2.4 2.6 
19 -  Arms and ammunition; parts 
and accessories thereof  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 -  Miscellaneous manufactured 
articles  1.4 1.5 1.7 1.5 1.6 1.5 1.9 
 94. Furniture; bedding, 
mattresses, mattress supports, 
cushions and similar stuffed 
furnishings; lamps and lighting 
fittings, not elsewhere specified 
or included  0.6 0.7 0.7 0.6 0.6 0.5 0.8 
 95. Toys, games and sports 
requisites; parts and accessories 
thereof  0.5 0.5 0.5 0.4 0.5 0.5 0.5 
 96. Miscellaneous manufactured 
articles  0.3 0.3 0.5 0.5 0.5 0.5 0.5 
21 -  Works of art, collectors' 
pieces and antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  0.4 0.4 0.5 0.4 0.5 0.6 1.6 
Source:  WTO Secretariat estimates based on Comtrade data.  
  WT/TPR/S/383 /Rev.1 • Ecuador  
- 154 - 
  Table A1. 3 Total merchandise exports by trading partner, 2011 -2017  
(USD million and %)  
Description  2011  2012  2013  2014  2015  2016  2017   
(USD million ) 
Total exports  22,343 23,852 24,958 25,724 18,331 16,798 19,122  
(% of exports)  
America  79.1 78.4 74.3 74.1 64.2 60.1 59.0 
 USA 43.5 44.7 44.6 43.7 39.4 32.4 31.7 
 Other America  35.6 33.7 29.7 30.4 24.8 27.7 27.3 
 Peru 7.9 8.3 7.5 6.1 5.1 5.6 6.7 
 Chile 4.9 8.4 9.9 9.0 6.2 6.8 6.5 
 Panama  4.7 3.9 2.5 5.4 2.4 3.9 4.9 
 Colombia  4.6 4.4 3.7 3.7 4.3 4.8 4.0 
 Argentina  0.4 0.4 0.6 0.8 1.2 1.3 1.4 
 Mexico  0.4 0.4 0.5 0.6 0.9 1.0 0.7 
 Brazil  0.4 0.6 0.5 0.5 0.6 0.9 0.6 
 Canada  0.4 0.5 0.5 0.5 0.6 0.5 0.5 
 Guatemala  0.5 0.4 0.6 0.2 0.2 0.3 0.4 
 Dominican Republic  0.2 0.2 0.2 0.2 0.3 0.4 0.3 
 Venezuela, Bolivarian Republic 
of 6.6 4.2 1.9 2.2 1.8 0.9 0.3 
 Bolivia, Plurinational State of  0.1 0.1 0.1 0.1 0.2 0.2 0.2 
 Costa Rica  0.1 0.1 0.1 0.1 0.2 0.1 0.2 
 Nicaragua  0.1 0.1 0.1 0.1 0.4 0.4 0.2 
Europe  13.2 11.5 13.6 12.9 17.0 17.9 17.5 
 EU(28)  12.0 10.3 12.2 11.6 15.1 16.9 16.6 
 Spain  2.1 1.9 3.1 2.0 2.6 3.3 3.1 
 Italy 2.6 2.1 1.7 1.7 1.8 2.7 3.1 
 Germany  2.2 1.6 1.7 2.0 3.0 3.2 2.6 
 Netherlands  1.6 1.4 1.7 2.0 2.5 2.5 2.5 
 France  0.9 1.0 1.3 1.2 1.5 1.7 1.5 
 EFTA 0.4 0.4 0.4 0.3 0.3 0.2 0.2 
 Norway  0.1 0.1 0.0 0.0 0.1 0.1 0.1 
 Switzerland  0.3 0.4 0.4 0.3 0.2 0.1 0.1 
 Other Europe  0.8 0.7 1.0 1.0 1.5 0.8 0.7 
 Turkey  0.4 0.4 0.9 0.7 1.2 0.7 0.6 
Commonwealth of Independent 
States (CIS)  3.5 3.4 3.9 3.9 4.6 5.3 5.1 
 Russian Federation  3.1 3.0 3.3 3.2 3.9 4.6 4.4 
 Ukraine  0.2 0.3 0.4 0.4 0.3 0.4 0.4 
 Kazakhstan  0.0 0.0 0.1 0.0 0.1 0.1 0.1 
 Georgia  0.1 0.1 0.1 0.2 0.2 0.1 0.1 
Africa  0.3 0.5 0.4 0.5 0.6 0.4 0.2 
 Morocco  0.0 0.0 0.0 0.0 0.0 0.1 0.1 
 South Africa  0.0 0.0 0.1 0.0 0.1 0.1 0.1 
Middle East  0.2 0.2 0.2 0.4 0.8 1.3 1.7 
 Saudi Arabia, Kingdom of  0.1 0.1 0.1 0.1 0.3 0.5 0.5 
 Iran 0.0 0.0 0.0 0.0 0.0 0.1 0.3 
 Iraq 0.0 0.0 0.0 0.0 0.0 0.1 0.3 
 United Arab Emirates  0.0 0.0 0.0 0.0 0.1 0.2 0.2 
Asia 3.4 6.0 7.1 8.2 12.7 15.0 16.5 
 China  0.9 1.6 2.3 1.9 3.9 3.9 4.0 
 Japan  1.6 2.7 2.3 1.3 1.8 1.9 2.0 
 Other Asia  0.9 1.6 2.6 5.0 7.0 9.2 10.5 
 Viet Nam  0.2 0.6 1.3 2.4 4.3 6.6 7.6 
 India 0.1 0.4 0.1 1.3 0.8 0.5 0.6 
 Korea, Republic of  0.1 0.2 0.2 0.2 0.9 0.5 0.6 WT/TPR/S/383 /Rev.1 • Ecuador  
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  Description  2011  2012  2013  2014  2015  2016  2017  
 Indonesia  0.0 0.0 0.1 0.1 0.1 0.3 0.5 
 Malaysia  0.0 0.2 0.1 0.1 0.4 0.4 0.5 
 New Zealand  0.1 0.1 0.1 0.1 0.2 0.2 0.2 
Other  0.4 0.1 0.3 0.1 0.1 0.1 0.0 
Source:  WTO Secretariat estimates based on Comtrade data.  
  WT/TPR/S/383 /Rev.1 • Ecuador  
- 156 - 
  Table A1. 4 Total merchandise imports by trading partner, 2011 -2017  
(USD million and %)  
Description  2011  2012  2013  2014  2015  2016  2017   
(USD  million)  
Total imports  24,286 25,197 27,064 27,518 21,387 16,189 19,845  
(% of imports)  
America  60.1 62.6 56.9 57.0 52.3 54.1 53.2 
 USA 21.2 26.9 25.2 28.0 23.8 23.2 20.0 
 Other America  39.0 35.8 31.8 29.0 28.5 30.9 33.2 
 Colombia  8.7 8.7 8.0 7.5 7.5 8.1 8.1 
 Panama  6.1 6.6 4.8 3.5 3.2 3.1 4.5 
 Brazil  3.9 3.7 3.4 3.1 3.4 4.2 4.4 
 Peru 3.8 4.5 3.7 3.3 3.3 3.8 3.8 
 Mexico  4.4 3.5 4.3 4.1 3.3 3.2 3.7 
 Chile 2.2 2.5 2.1 1.9 2.3 2.6 2.5 
 Argentina  2.3 1.9 1.6 1.9 1.4 1.6 2.1 
 Canada  1.3 1.2 1.2 1.2 1.5 1.4 1.3 
 Bolivia, Plurinational State of  0.7 0.1 0.7 0.7 1.0 1.4 1.2 
 Paraguay  0.1 0.0 0.1 0.2 0.3 0.2 0.4 
 Uruguay  0.2 0.3 0.2 0.2 0.3 0.3 0.3 
 Costa Rica  0.2 0.2 0.3 0.3 0.2 0.3 0.2 
 Guatemala  0.1 0.1 0.1 0.1 0.2 0.2 0.2 
 Dominican Republic  0.0 0.1 0.0 0.1 0.1 0.1 0.1 
 Curaçao  0.0 0.0 0.0 0.0 0.0 0.1 0.1 
 Venezuela, Bolivarian Republic of  4.0 0.9 0.3 0.1 0.1 0.1 0.1 
Europe  10.8 12.5 12.2 12.3 12.7 12.6 14.0 
 EU(28)  9.8 11.5 11.2 11.3 11.8 11.6 13.1 
 Spain  1.3 2.4 2.6 2.2 1.8 2.0 3.0 
 Germany  2.7 2.3 2.5 2.4 2.6 2.7 2.7 
 Netherlands  0.8 0.8 0.8 1.4 1.4 1.1 2.2 
 Italy 1.4 1.1 1.3 1.4 1.8 1.8 1.5 
 France  0.9 0.6 0.8 0.9 1.2 1.1 0.8 
 United Kingdom  0.8 1.9 1.5 0.8 0.6 0.5 0.6 
 EFTA 0.7 0.7 0.6 0.6 0.7 0.7 0.6 
 Switzerland  0.6 0.6 0.5 0.5 0.5 0.7 0.6 
 Other Europe  0.3 0.2 0.4 0.4 0.3 0.3 0.3 
 Turkey  0.2 0.2 0.4 0.4 0.2 0.3 0.3 
Commonwealth of Independent States (CIS)  0.9 0.7 0.6 0.5 0.9 1.2 0.9 
 Russian Federation  0.7 0.5 0.5 0.5 0.9 1.2 0.9 
Africa  0.6 0.5 0.1 0.1 0.1 0.1 0.3 
 Nigeria  0.2 0.0 0.0 0.0 0.0 0.0 0.1 
Middle East  0.4 0.4 0.4 1.0 1.1 0.3 0.3 
 Israel  0.1 0.1 0.2 0.2 0.1 0.1 0.1 
 Saudi Arabia, Kingdom of  0.1 0.1 0.1 0.7 0.9 0.1 0.1 
 United Arab Emirates  0.1 0.1 0.1 0.2 0.1 0.0 0.1 
Asia 26.5 22.8 29.5 28.8 32.6 31.2 31.0 
 China  13.7 11.2 16.7 16.8 19.0 19.1 18.6 
 Japan  3.7 2.9 3.2 3.2 3.3 2.9 2.6 
 Other Asia  9.1 8.8 9.6 8.8 10.2 9.2 9.8 
 Korea, Republic of  3.9 3.1 3.9 3.4 3.9 3.4 3.3 
 India 1.1 1.8 2.2 1.4 2.4 1.4 1.8 
 Thailand  1.1 1.2 0.9 0.9 0.7 0.7 1.3 
 Chinese Taipei  1.0 0.8 0.9 0.9 1.0 0.9 0.8 
 Viet Nam  0.2 0.1 0.3 0.3 0.6 0.9 0.8 
 Indonesia  0.4 0.3 0.3 0.5 0.4 0.5 0.5 WT/TPR/S/383 /Rev.1 • Ecuador  
- 157 - 
  Description  2011  2012  2013  2014  2015  2016  2017  
 Singapore  0.5 0.2 0.2 0.2 0.2 0.3 0.3 
 Malaysia  0.5 0.1 0.4 0.4 0.4 0.3 0.3 
Other  0.7 0.5 0.4 0.3 0.2 0.4 0.3 
Source:  WTO Secretariat estimates based on Comtrade data.  
 
  WT/TPR/S/383 /Rev.1 • Ecuador  
- 158 - 
  Table  A2. 1 Notifications submitted to the WTO as at  31 July 2018  
Agreement and 
Article  Description   Frequency  Document  
(most recent if 
submitted regularly)  Date  
Agreement on Agriculture  
Article 18.2 (ES:1 
and ES:2) Export subsidies  Annual  G/AG/N/ECU/44  22.5.2018  
G/AG/N/ECU/40  5.1.2016  
G/AG/N/ECU/35  19.2.2014  
G/AG/N/ECU/32  16.11.2012  
G/AG/N/ECU/28  27.5.2012  
Article 18.2 (DS: 1) Domestic support  Annual  G/AG/N/ECU/49  25.7.2018  
G/AG/N/ECU/48  25.7.2018  
G/AG/N/ECU/47  25.7.2018  
G/AG/N/ECU/42  13.1.2016  
G/AG/N/ECU/36  19.2.2014  
G/AG/N/ECU/34  16.11.2012  
G/AG/N/ECU/29  27.5.2011  
Article 18.3 (DS: 2) Domestic support  Annual  G/AG/N/ECU/45  24.7.2018  
G/AG/N/ECU/33  16.11.2012  
Articles 5.7 and 18.2 
(MA:5) Special safeguard  Annual  G/AG/N/ECU/43  22.5.2018  
G/AG/N/ECU/39  5.1.2016  
G/AG/N/ECU/37  19.2.2014  
G/AG/N/ECU/31  16.11.2012  
G/AG/N/ECU/27  27.5.2011  
Agreement on Rules of Origin  
Article 5 and 
Annex  II, paragraph 4   Modifications to 
preferential rules of 
origin; new 
preferential rules of 
origin  Ad hoc   G/RO/N/157  21.7.2017  
Agreement on Import Licensing Procedures  
Article  7.3 Replies to the 
questionnaire on 
import licensing 
procedures  Annual 
 G/LIC/N/…  
 Notification 
pending  
Articles 1.4(a) and  
8.2(b) Changes in laws, 
regulations and 
administrative 
procedures  Once only / 
Ad hoc   G/LIC/N/3  26.10. 2012 
G/LIC/N/6  23.9.2016 
Quantitative restrictions  
G/L/59/Rev.1  List of restrictions  Biennial G/MA/QR/N/  Notification 
pending  
Agreement on Preshipment Inspection  
Article  5 Changes in laws and 
regulations   Ad hoc   G/PSI/N/1/Rev.1  11.10. 2012 
Agreement on Implementation of Article VI of the GA TT 1994 (Anti -Dumping Agreement ) 
Article  16.4 Anti-dumping 
actions (preliminary 
and final) Ad hoc  G/ADP/N/228  8.5.2012  
G/ADP/N/227  4.5.2012  
Article  16.4 Anti-dumping 
actions (taken within 
the preceding 
six months)  Semi-annual   G/ADP/N/230/ECU  9.8.2012  
G/ADP/N/223/ECU  16.1.2012  
G/ADP/N/216/ECU  31.8.2011  
G/ADP/N/209/ECU  4.3.2011  
Article  18.5 Legislation  Once only / 
Ad hoc  G/ADP/N/1/ECU/3/Suppl.
1 13.5.2016  
G/ADP/N/1/ECU/3;  
G/SCM/N/1/ECU/3;  
G/SG/N/1/ECU/5  24.5.2011  
Agreement on Subsidies and Countervailing Measures  
Article  25.11  Countervailing duty 
actions (taken in the 
preceding 
six months)  Semi-annual   G/SCM/N/328 -  
G/SCM/N/219  15.12.2017 -  
5.1.2011  
Article  25.1 Subsidy programmes  Annual  G/SCM/N/315/ECU  26.2.2018  
G/SCM/N/284/ECU  14.7.2015  WT/TPR/S/383 /Rev.1 • Ecuador  
- 159 - 
  Agreement and 
Article  Description   Frequency  Document  
(most recent if 
submitted regularly)  Date  
G/SCM/N/253/ECU  17.7.2013  
G/SCM/N/220/ECU  16.6.2011  
Article  32.6 Legislation  Ad hoc   G/ADP/N/1/ECU/3/Suppl.1  13.5.2016  
G/ADP/N/1/ECU/3;  
G/SCM/N/1/ECU/3;  
G/SG/N/1/ECU/5  24.5.2011  
Agreement on Safeguards   
Article  12.6 Legislation  Ad hoc   G/SG/N/1/ECU/6  11.5.2012  
G/ADP/N/1/ECU/3;  
G/SCM/N/1/ECU/3;  
G/SG/N/1/ECU/5  24.5.2011  
Article  12.1(a) Safeguards  
(initiation of an 
investigation ) Ad hoc   G/SG/N/6/ECU/9  2.9.2014  
Article  12.1(b) Finding of serious 
injury or threat 
thereof  Ad hoc   G/SG/N/8/ECU/4  24.4.2015  
Article  12.4 Adoption of a 
provisional 
safeguard measure  Ad hoc   G/SG/N/7/ECU/3/Suppl.1  7.11.2014  
G/SG/N/7/ECU/3  23.10.2014  
Understanding on the Balance -of-Payme nts Provisions of the GATT 1994  
Balance -of-payment s restrictions  
Paragraph  9 Balance -of-
payment s 
restrictions  Article XII: 4 of 
the GATT  
Ad hoc  WT/BOP/N/84  20.6.2017  
WT/BOP/N/83  13.10.2016  
WT/BOP/N/82  10.5.2016  
WT/BOP/N/81  26.1.2016  
WT/BOP/N/79  7.4.2015  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7, Annex  B  Sanitary/  
phytosanitary  
regulations  Ad hoc  G/SPS/N/ECU/89  19.12.2011  
G/SPS/N/ECU/210  13.7.2018  
Agreement on Technical Barriers to Trade  
Article  2.9  Technical regulations  Ad hoc   G/TBT/N/ECU/12/Rev.1  4.4.2018  
G/TBT/N/ECU/66  17.1.2011  
Article  2.10 Technical regulations 
(urgent ) Ad hoc  G/TBT/N/ECU/249 -  
G/TBT/N/ECU/44  12.5.2014 - 
16.4.2009  
Article  5.6 Technical regulations  Ad hoc   G/TBT/N/ECU/73 -  
G/TBT/N/ECU/48  31.5.2011  
1.10.2009  
GATT 1994  
Article XVII:4( a) Activities of State 
trading enterprises  Annual (on a 
three -year basis 
for complete 
notifications 
and annual in 
the case of 
changes ) G/STR/N/16/ECU  6.7.2018  
G/STR/N/15/ECU  6.10.2014  
G/STR/N/14/ECU  20.12.2012  
Article XXVIII: 5 Modification of 
schedules 
(reservation of the 
right to modify 
schedules during a 
three -year period)  On a three -year 
basis G/MA/338  5.9.2017  
G/MA/290  5.8.2014  
G/MA/246  15.9.2011  
Article  VII  Valuation for 
customs purposes 
Domestic legislation  Ad hoc  G/VAL/N/1/ECU/3  19.2.2013  
Article  VII  
Decision  A.3  Notification on  
treatment of interest 
charges  Ad hoc  G/VAL/N/3/ECU/1  16.8.2013  WT/TPR/S/383 /Rev.1 • Ecuador  
- 160 - 
  Agreement and 
Article  Description   Frequency  Document  
(most recent if 
submitted regularly)  Date  
Article  VII 
Decision on the 
checklist of issues   
(G/VAL/5, B.3)  Checklist of issues  Ad hoc  G/VAL/N/2/ECU/1  1.11.2011  
General Agreement on Trade in Services  
Article V:7( a) Economic integration 
agreement  Ad hoc  WT/REG380/N/1  
S/C/N/876  3.3.2017  
Article VII: 4 Recognition 
agreements  Ad hoc  S/C/N/619  2.3.2012  
Agreement on Trade -Related Aspects of Intellectual Property Rights  
Article  63.2 Legislation  Once only / 
Ad hoc  IP/N/1/ECU/13/Rev.1;  
IP/N/1/ECU/O/3/Rev.1  18.4.2017  
IP/N/1/ECU/3;  
IP/N/1/ECU/C/8  25.1.2017  
IP/N/1/ECU/4;  
IP/N/1/ECU/C/9  25.1.2017  
IP/N/1/ ECU/5;  
IP/N/1/ ECU/C/10  25.1.2017  
IP/N/1/ ECU/6 -7; 
IP/N/1/ ECU/I/5 -6 25.1.2017  
IP/N/1/ ECU/8 -10; 
IP/N/1/ ECU/P/3 -5 25.1.2017  
IP/N/1/  ECU/11 -17; 
IP/N/1/  ECU/O/1 -7 25.1.2017  
Agreement on Trade Facilitation  
Article  15  Commitments 
designated under 
Category A  Once only  WT/PCTF/N/ECU/1  7.8.2014  
Sourc e: WTO Secretariat . 
  WT/TPR/S/383 /Rev.1 • Ecuador  
- 161 - 
  Table  A3. 1 Summary analysis of the MFN tariff  (excluding AVEs ), 2018  
Product description  MFN Bound tariff 
(range )a 
(%) Number 
of lines  Average  
(%) Range  (%) Coefficient 
of variation 
(CV)  
Total  7,997 10.9 0 – 85.5 1.1 5 – 85.5 
HS 01-24 1,407 21.5 0 – 85.5 0.6 5 – 85.5 
HS 25-97 6,590 8.6 0 - 40 1.1 5 - 40 
By WTO category       
Agricultural products  1,096 18.5 0 – 85.5 0.8 5 – 85.5 
 - Animals and animal products  139 26.8 0 – 85.5 0.8 5 – 85.5 
 - Dairy produc ts 36 34.9 5 - 54 0.3 20 - 72 
 - Fruit, vegetables and garden 
produce  313 19.6 0 - 30 0.5 5 - 30 
 - Coffee and tea  35 22.9 10 - 30 0.3 20 - 30 
 - Cereals and cereal preparations  141 19.1 0 – 67.5 0.7 5 – 67.5 
 - Oil seeds, fats and oils and 
their products  123 16.0 0 – 31.5 0.7 15 – 38.7 
 - Sugar and confectionery  29 28.4 0 - 45 0.6 5 - 45 
 - Beverages, alcohol and tobacco  79 19.6 1 - 30 0.6 20 - 30 
 - Cotton  8 4.4 0 - 10 0.7 10 - 20 
 - Other agricultural products 
n.e.s.  193 7.0 0 - 45 1.6 5 - 45 
Non-agricultural products 
(including  petroleum)  6,901 9.7 0 - 40 1.1 5 - 40 
 - Non-agricultural products 
(excluding petroleum)  6,852 9.7 0 - 40 1.1 5 - 40 
 - - Fish and fish products  401 25.6 0 - 30 0.4 15 - 36 
 - - Mineral products and metals  1,123 7.9 0 - 30 1.3 5 - 30 
 - - Chemicals and photographic 
products  1,653 2.5 0 - 20 2.2 5 - 20 
 - - Wood, wood pulp, paper and 
furniture  378 13.2 0 - 30 0.7 5 - 30 
 - - Textiles  699 16.1 0 - 30 0.5 15 - 30 
 - - Clothing  255 10.0 10 - 10 0.0 30 - 30 
 - - Leather, rubber, footwear and 
travel articles  215 10.2 0 - 30 1.0 10 - 30 
 - - Non-electrical machinery  799 6.4 0 - 30 1.2 10 - 30 
 - - Electrical machinery  428 10.0 0 - 30 1.0 10 - 30 
 - - Transport equipment  323 11.1 0 - 40 1.0 10 - 40 
 - - Non-agricultural products 
n.e.s.  578 16.2 0 - 30 0.8 10 - 30 
 - Petroleum  49 2.5 0 - 10 1.6 5 - 25 
By ISIC sectorb      
Agriculture and fishing  569 15.4 0 - 54 0.8 5 – 67.5 
Mining  108 0.5 0 - 10 3.3 10 - 25 
Manufacturing  7,319 10.7 0 – 85.5 1.1 5 – 85.5 
By HS section       
 01 Live animals; animal products  532 24.7 0 – 85.5 0.6 5 – 85.5 
 02 Vegetable products  441 15.7 0 – 67.5 0.7 5 – 67.5 
 03 Fats and oils  67 19.0 0 – 31.5 0.6 15 – 31.5 
 04 Prepared foodstuffs, etc.  367 24.2 0 - 45 0.4 5 - 45 
 05 Mineral products  214 1.5 0 - 10 2.1 5 - 25 
 06 Products of the chemical or 
allied industries  1,548 1.8 0 – 29.3 2.5 5 – 31.5 
 07 Plastics and rubber  328 8.4 0 - 30 1.1 10 - 30 
 08 Raw hides and skins,  leather  78 14.7 0 - 30 0.8 15 - 30 
 09 Wood and articles of wood  148 14.0 0 - 30 0.6 10 - 30 
 10 Pulp of wood, paper, etc . 199 10.9 0 - 30 1.0 5 - 30 
 11 Textiles and textile articles  941 13.9 0 - 30 0.5 10 - 30 
 12 Footwear and headgear  59 17.4 0 - 30 0.5 25 - 30 
 13 Articles of stone  175 11.7 0 - 30 0.9 15 - 30 
 14 Precious stones, etc . 59 7.0 0 - 30 1.7 10 - 30 
 15 Base metals and articles of 
base metal  717 9.3 0 - 30 1.1 10 - 30 
 16 Machinery and mechanical 
appliances  1,248 7.8 0 - 30 1.1 10 - 30 
 17 Vehicles, aircraft, vessels and 
associated transport equipment  335 11.0 0 - 40 1.0 10 - 40 WT/TPR/S/383 /Rev.1 • Ecuador  
- 162 - 
  Product description  MFN Bound tariff 
(range )a 
(%) Number 
of lines  Average  
(%) Range  (%) Coefficient 
of variation 
(CV)  
 18 Precision instruments  287 8.2 0 - 30 1.2 10 - 30 
 19 Arms and ammunition  69 27.2 15 - 30 0.1 20 - 30 
 20 Miscellaneous manufactured 
articles  178 25.3 0 - 30 0.3 15 - 30 
 21 Works of art, etc . 7 30.0 30 - 30 0.0 30 - 30 
By stage of processing       
First stage of processing  1,053 12.0 0 – 67.5 1.1 5 – 67.5 
Semi-processed products  2,578 6.7 0 - 45 1.4 5 - 45 
Fully processed products  4,366 13.1 0 – 85.5 0.9 5 – 85.5 
a The HS 2007 classification has been used for the bindings, and the HS 2017 classification for the 
applied rates;  as a result,  there may be differences between the number of lines included in the 
analysis . 
b ISIC (Rev.2),  excluding electricity (one line ). 
Sourc e: WTO Secretariat estimates  based on data provided by the authorities . 
  WT/TPR/S/383 /Rev.1 • Ecuador  
- 163 - 
  Table  A3. 2 Summary analysis of the MFN tariff  (including  AVEs), 2018  
Product description  MFN Bound tariff 
(range )a 
(%) Number 
of lines  Average  
(%) Range  (%) Coefficient 
of variation 
(CV)  
Total  7,997 12.2 0 – 422.2 1.2 5 – 85.5 
HS 01-24 1,407 21.5 0 – 85.5 0.6 5 – 85.5 
HS 25-97 6,590 10.2 0 – 422.2 1.4 5 - 40 
By WTO category       
Agricultural products  1,096 18.5 0 – 85.5 0.8 5 – 85.5 
 - Animals and animal products  139 26.8 0 – 85.5 0.8 5 – 85.5 
 - Dairy products  36 34.9 5 - 54 0.3 20 - 72 
 - Fruit, vegetables and garden 
produce  313 19.6 0 - 30 0.5 5 - 30 
 - Coffee and tea  35 22.9 10 - 30 0.3 20 - 30 
 - Cereals and cereal preparations  141 19.1 0 – 67.5 0.7 5 – 67.5 
 - Oilseeds, fats and oils and their 
products  123 16.0 0 – 31.5 0.7 15 – 38.7 
 - Sugar and confectionary  29 28.4 0 - 45 0.6 5 - 45 
 - Beverages, alcohol and tobacco  79 19.6 1 - 30 0.6 20 - 30 
 - Cotton  8 4.4 0 - 10 0.7 10 - 20 
 - Other agricultural products 
n.e.s.  193 7.0 0 - 45 1.6 5 - 45 
Non-agricultural products 
(including petroleum)  6,901 11.2 0 – 422.2 1.3 5 - 40 
 - Non-agricultural products 
(excluding petroleum)  6,852 11.2 0 – 422.2 1.3 5 - 40 
 - - Fish and fish products  401 25.6 0 - 30 0.4 15 - 36 
 - - Mineral products and metals  1,123 8.3 0 – 60.5 1.3 5 - 30 
 - - Chemicals and photographic 
products  1,653 2.5 0 - 20 2.2 5 - 20 
 - - Wood, wood pulp, paper and 
furniture  378 13.2 0 - 30 0.7 5 - 30 
 - - Textiles  699 21.5 0 – 422.2 1.2 15 - 30 
 - - Clothing  255 33.4 10 – 178.9 0.6 30 - 30 
 - - Leather, rubber, footwear and 
travel articles  215 10.6 0 - 30 0.9 10 - 30 
 - - Non-electrical machinery  799 6.4 0 - 30 1.2 10 - 30 
 - - Electrical machinery  428 10.0 0 - 30 1.0 10 - 30 
 - - Transport equipment  323 11.1 0 - 40 1.0 10 - 40 
 - - Non-agricultural products n.e.s.  578 16.2 0 - 30 0.8 10 - 30 
 - Petroleum  49 2.5 0 - 10 1.6 5 - 25 
By ISIC s ectorb      
Agriculture and fishing  569 15.4 0 - 54 0.8 5 – 67.5 
Mining  108 0.5 0 - 10 3.3 10 - 25 
Manufacturing  7,319 12.1 0 – 422.2 1.3 5 – 85.5 
By HS section       
 01 Live animals; animal products  532 24.7 0 – 85.5 0.6 5 – 85.5 
 02 Vegetable products  441 15.7 0 – 67.5 0.7 5 – 67.5 
 03 Fats and oils  67 19.0 0 – 31.5 0.6 15 – 31.5 
 04 Prepared foodstuffs, etc.  367 24.2 0 - 45 0.4 5 - 45 
 05 Mineral products  214 1.5 0 - 10 2.1 5 - 25 
 06 Products of the chemical or allied 
industries  1,548 1.8 0 – 29.3 2.5 5 – 31.5 
 07 Plastics and rubber  328 8.6 0 - 30 1.0 10 - 30 
 08 Raw hides and skins, leather  78 14.7 0 - 30 0.8 15 - 30 
 09 Wood and articles of wood  148 14.0 0 - 30 0.6 10 - 30 
 10 Pulp of wood, paper, etc . 199 10.9 0 - 30 1.0 5 - 30 
 11 Textiles and textile articles  941 24.2 0 – 422.2 1.1 10 - 30 
 12 Footwear and headgear  59 17.4 0 - 30 0.5 25 - 30 
 13 Articles of stone  175 13.0 0 – 60.5 0.9 15 - 30 
 14 Precious stones, etc . 59 7.0 0 - 30 1.7 10 - 30 
 15 Base metals and articles of base 
metal  717 9.5 0 – 40.7 1.1 10 - 30 
 16 Machinery and mechanical 
appliances  1,248 7.8 0 - 30 1.1 10 - 30 
 17 Vehicles, aircraft,  vessels and 
associated transport equipment  335 11.0 0 - 40 1.0 10 - 40 
 18 Precision instruments  287 8.2 0 - 30 1.2 10 - 30 WT/TPR/S/383 /Rev.1 • Ecuador  
- 164 - 
  Product description  MFN Bound tariff 
(range )a 
(%) Number 
of lines  Average  
(%) Range  (%) Coefficient 
of variation 
(CV)  
 19 Arms and ammunition  69 27.2 15 - 30 0.1 20 - 30 
 20 Miscellaneous manufactured 
articles  178 25.3 0 - 30 0.3 15 - 30 
 21 Works of art, etc . 7 30.0 30 - 30 0.0 30 - 30 
By stage of processing       
First stage of processing  1,053 12.1 0 - 121 1.1 5 – 67.5 
Semi-processed products  2,578 6.8 0 - 45 1.4 5 - 45 
Fully processed products  4,366 15.4 0 – 422.2 1.1 5 – 85.5 
a The HS 2007 classification has been  used for the bindings, and the HS 2017 classification for the 
applied rates; as a result,  there may be differences between the number of lines included in the 
analysis . 
b ISIC (Rev.2),  excluding electricity (one line ). 
Source:  WTO Secretariat estimates based on data provided by the authorities .  
  WT/TPR/S/383/Rev.1 • Ecuador  
 
- 165 - Table  A3. 3 Preferential quotas , 2018  
Preferential 
agreement  HS Chapter  Number of lines per 
chapter  Tariff range  (%) Volume 
(tonnes ) Volume used  
(tonnes ) In-quota  Out-of-quota  
Argentina  02. Meat and edible meat offal  11 0 17 - 30 50 0 
04. Dairy produce  34 0 5 - 54 175 0 
16. Preparations of meat, of fish or of crustaceans  3 0 30 10 0 
Brazil 02. Meat and edible meat offal 11 0 17 - 30 50 0 
04. Dairy produce  34 0 5 - 54 175 0 
16. Preparations of meat, of fish or of crustaceans  3 0 25.5 - 30 10 0 
European Union  02. Meat and edible meat offal  2 0 15 - 39.3 824 51 
16. Preparations of meat, of fish or of crustaceans  3 0 26.2 - 30 
04. Dairy produce  27 0 17.7 - 54 2,625 151 
05. Products of animal origin, not elsewhere 
specified or included  3 0 10 - 20 515 0 
07. Edible vegetables and certain roots and tubers  3 0 15 - 25 957.5 70 
20. Preparations of vegetables,  fruit 1 0 20 
18. Cocoa and cocoa preparations  2 0 16.4 750 0 
20. Preparations of vegetables, fruit  15 0 20 
21. Miscellaneous edible preparations  16 0 0 - 20 
23. Residues and waste from the food industries  7 0 0 - 45 1,639 16 
Guatemala  17. Sugars and sugar confectionery  2 0 15 21,000 3,869 
Paraguay  02. Meat and edible meat offal  11 0 - 19.5 15 - 27 50 0 
04. Dairy produce  34 0 20 - 30 175 0 
16. Preparations of meat, of fish or of crustaceans  3 12.8 - 19.5 22.5 - 27 10 0 
Uruguay  02. Meat and edible meat offal  11 10 - 15 17 - 30 50 0 
04. Dairy produce  34 0 - 30 5 - 54 175 0 
16. Preparations of meat, of fish or of crustaceans  3 15 25.5 - 30 10 0 
Note: These estimates are based on the files  entitled "Contingentes preferenciales OMC ", "Líneas arancelarias UE " and "Liberaciones ", which were sent by the authorities in 
May and June 2018 . 
Sourc e: WTO Secretariat estimates based on data provided by the authorities . 
  
  WT/TPR/S/383/Rev.1 • Ecuador  
 
- 166 - Table  A3. 4 Financial instruments of the  National Finance  Corporation (CFN), 2018  
 Beneficiary  Intended use   Minimum 
amount (USD ) Maximum 
amount  (USD) Maximum 
financing period  Maximum percentage of 
financing  
Working capital         
Direct credit         
Local direct credit   Natural or legal persons  Purchase of raw materials , 
local inputs, technical 
assistance and other items  50,000 25-50 million  5 years  New projects and construction 
projects for sale : 70%; ongoing 
projects : 100%  
"CFN Construye " Any type of enterprise  Construction of public -interest 
housing  and social -interest 
housing ; 51% of the housing 
must have a selling price that 
does not exceed USD  70,000 n/a 25-50 million  5 years   80% 
"CFN Construye Casa 
para Todos"  Any type of enterprise  Construction of public -interest 
housing and social -interest 
housing  n/a 25 million  5 years   80% 
"CFN Construye ¡Ya!"  Construction sector SMEs  Purchase of inputs and 
materials   n/a 2 million  5 years   80% 
Electronic factoring   Anchor enterprises with 
annual sales > 
USD 1 million  Advance payment for invoices   50,000 
(50 per invoice ) In accordance with 
limits set by the 
CFN 3 years  100%  
Continge ncies        
Local bank guarantee   Natural or legal persons   Suppliers,  customers  or other 
institutions related to the type 
of activity  50,000 25-50 million  According to 
terms of 
negotiation  100%  
Fixed assets         
Direct credit  – fixed 
assets   Natural or legal persons   Purchase of fixed  assets   50,000 25-50 million  15 years   New projects , ongoing forestry 
projects, and 
electricity -generation projects : 
70%; ongoing projects : 100%  
"Progresar - Cambio de 
la Matriz Productiva"  Natural or legal persons   Production chains defined as 
priority chains by the 
Inter-Institutional Committee 
for Changing the Production 
Matrix , and products  selected 
by the Ministry of Economic 
Policy Coordination according 
to strategic priorities  (export 
promotion , import 
substitution,  generation of 
value added and in novation)  50,000  25-50 million   15 years   New projects : 70% of amount 
invested  
Ongoing projects : 90% of 
amount invested  
Forestry financing   Any type of forestry sector 
enterprise or natural 
persons  Financing of forestry 
transformation activities and 
activities relating  to the use of 
non-timber by -products  50,000 10 million  
(financing for 
forest plantations ); 
2 million  
(per operation ) 20 years  New projects : 70% of amount 
invested  
Ongoing projects : 100% of 
amount invested   
  WT/TPR/S/383/Rev.1 • Ecuador  
 
- 167 -  Beneficiary  Intended use   Minimum 
amount (USD ) Maximum 
amount  (USD) Maximum 
financing period  Maximum percentage of 
financing  
Special programmes  – 
Public policy support         
CFN financing and 
refinancing  
"Apoyo Solidario "  Natural and legal persons 
that have received 
CFN financing , or new 
clients that require 
financing for investment in 
the provinces of Carchi, 
Sucumbíos, Manabí and  
Esmeraldas.  
Natural or legal persons 
that require resources to 
invest in  areas declared to 
be in a state of exception 
or emergency   Working capital : up to 5 years .  
Fixed assets : up to  15 years , 
depending on the analysis  of 
the project's cash flow   50,000 ( new 
clients ); 20, 000 
(CFN clients ) n/a 15 years  (fixed 
assets ); 5 years  
(working capital )  CFN clients : up to 100% of the 
amount invested in rehabilitation 
or reconstruction . New clients : 
up to 90% of the amount 
invested in new projects and up 
to 100% of the amount invested 
in expansion projects .  
Production and 
financial support   Natural or legal persons   Financing of liabilities with 
domestic suppliers  50,000 25-50 million  15 years  100%  
Second -tier financing       
   
Production financing  Natural or legal persons  Purchase of fixed assets , 
working capital and technical 
assistance  n/a 20,000 2 years  (technical 
assistance); 
3 years  (working 
capital ); 10 years 
(fixed assets )  100%  
"Progresar " 
programme         
National Guarantee Fund   MSMEs at the national 
level ("Garantía 
Tradicional"; "Garantía 
Emprende"); MSMEs in 
provinces (Manabí, 
Los Ríos, Esmeraldas, 
Guayas, Santo Domingo 
and Santa Elena) affected 
by the 2016 earthquake 
("Garantía Apoyo 
Solidario")  Purchase of fixed assets and 
working capital   2,000 ("Garantía 
Tradici onal"); no 
minimum amount 
("Garantía Apoyo 
Solidario"; 
"Garantía 
Emprende")  500,000 ("Garantía 
Tradicional", 
"Garantía Apoyo 
Solidario"); 
240,000 ("Garantía 
Emprende")  10 years  "Garantía Tradicional": 50%; 
"Garantía Apoyo Solidario": 
70%; "Garantía Emprend e": 
80% 
Venture Capital Fund   Qualified legal persons 
through capital financing 
process  Investment in share package 
of growth -stage innovative 
enterprises  n/a 500,000 12 years  40%  
  WT/TPR/S/383/Rev.1 • Ecuador  
 
- 168 -  Beneficiary  Intended use   Minimum 
amount (USD ) Maximum 
amount  (USD) Maximum 
financing period  Maximum percentage of 
financing  
Foreign trade        
Importation   Natural or legal persons   Importation of  raw, 
semi-processed or finished 
materials that are not 
produced, or that are 
produced in insufficient 
quantities , in Ecuador  50,000 25-50 million  5 years   100%  
Exportation   Natural or legal persons   Purchase of working capital 
that promotes the export of  
products made in Ecuador  50,000 25-50 million  5 years  100%  
International factoring  Any type of enterprise with 
annual sales > 
USD 100,000 that does not 
operate in the oil sector  Advance payment for invoices   n/a n/a 1 year 80% of the value of the export 
invoice (due date of at least 
30 days) 
Import letters of credit   Any type of enterprise with 
annual sales  > 
USD 100,000 Payments to exporters   50,000 n/a 180 days .. 
Export letters of credit   Any type of enterprise with 
annual sales > 
USD 100,000 that does not 
operate in the oil sector   Payments to importers  50,000 n/a 180 days .. 
Stand -by letters of credit   Any type of enterprise with 
annual sales  
> USD 100,000   Payments to foreign 
beneficiaries  50,000 n/a As negotiated  .. 
n/a Not applicable . 
.. Not available . 
Sourc e: CFN information available online at : https://www.cfn.fin.ec/category/programas -y-servicios . 
  
  WT/TPR/S/383/Rev.1 • Ecuador  
 
- 169 - Table  A3. 5 State enterprises under the EMCO EP , 2018  
Sector  Activity  Employees  Production  Exports  Imports  Marketing / 
distribution  Executive Decree  
(USD million ) 
Agricultur e 
Empresa Pública Unidad 
Nacional de Almacenamiento 
(UNA)  Agricultural services  (cleaning and 
drying ) for the production of  rice, 
maize , soya, qu inoa and 
by-products.  
Provision of inputs: fertilizers , 
agrochemicals and seeds.  
Food production : powdered milk and 
processed foods.        No. 12 of 
17 June 2013 
Mining  
Empresa Nacional Minera 
(ENAMI) (EP)  Mining exploration  86 n/a n/a n/a n/a No. 203 of 
14 January  2010 
Hydrocarbons         
Empresa Pública de 
Exploración y Explotación de 
Hidrocarburos 
PETROAMAZONAS  Hydrocarbon exploration and 
exploitation  7,386 n/a n/a 10.1 n/a No. 314 of 
14 April 2010 
Empresa Pública de 
Hidrocarburos del Ecuador 
PETROECUADOR  Transportation and marketing of 
crude oil  
Production, transportation and 
marketing of derivatives  4,418 n/a 1,779. 6 842.9 971.8  No. 740 of 
6 May 2011 
Electricity  
Empresa Pública Estratégica 
Corporación Eléctrica del 
Ecuador (CELEC)  Electricity production  
Electricity transmission  4,825 68.9 0.6 556.5 4,537. 8 No. 220 of 
11 February  2010 
Empresa Pública Estratégica 
Corporación Nacional de 
Electricidad (CNEL)  Distribution and marketing of 
electricity  6,949 n/a n/a 8.5 5,369. 0 No. 1459 of 
28 March  2013 
Manufacturing  
Empresa Pública Cementera 
del Ecuador (EPCE)  Distribution and marketing of 
cement  
Technical expertise   20 0.2 0.3 0.6 3.2 No. 207 of 
22 January  2010 
Empresa Pública Fabricamos 
Ecuador (FABREC)  Production of textiles and footwear  443 0.2 n/a n/a 21.2 No. 1134 of 
9 May 2012 
Empresa de Municiones 
Santa Bárbara  Production of weapons, ammunition 
and armour -plating  
Construction of light and heavy 
metal structures  114 0.3 n/a 4.3 18.1 No. 1121 of 
6 March  2015  
  WT/TPR/S/383/Rev.1 • Ecuador  
 
- 170 - Sector  Activity  Employees  Production  Exports  Imports  Marketing / 
distribution  Executive Decree  
(USD million ) 
Empresa Astilleros Navales 
Ecuatorianos (ASTINAVE)  Shipbuilding  
Fitting out ships with information 
and communication technologies  
Offshore activities  623 2.1 7.9 26.9 135.8 No. 1116 of 
11 April 2012 
Construction  
Empresa Pública Casa para 
Todos  Division of land into plots  
Housing construction  58 n/a n/a n/a n/a No. 622 of 
7 April 2015 
Empresa Ecuador Estratégico  Implementation of public 
infrastructure projects  
Construction and reconstruction in 
areas affected by natural disasters 
at the national level  
Implementation of the  "Casa para 
Todos" programme at the national 
level 280 n/a n/a n/a n/a No. 870 of 
11 September  2011 
Sewage and drinking water services  
Empresa Pública del Agua 
(EPA)  Commercial management (invoicing, 
collection, etc.)  
Technical and commercial assistance  
Operation and maintenance of 
infrastructure  
Project management  435 1.0 n/a n/a 1.6 No. 310 of  
30 April 2014 
Telecommunications         
Corporación Nacional de 
Telecomunicaciones (CNT)  Mobile; Internet; telephony; TV; 
Cloud/Data Centre Services  8,699 75.9 n/a n/a 918.0 No. 218 of 
3 February  2010 
Empresa Pública de Medios 
Públicos  Written communication  
Audiovisual communication  
Printing  
Digital media  1,052 n/a n/a 44.2 20.1 No. 1158 of 
22 August  2016 
Postal services  
Empresa Pública Correos del 
Ecuador  Traditional postal services  
Integrated logistics  (issuing of bill at 
time when reading taken ) 1,357 n/a 0.6 28.0 n/a No. 324 of 
3 May 2010 
Land transport  
Empresa Pública 
Ferrocarriles del Ecuador  Tren C rucero ( luxury train ) 
Train tours for tourists  433 0.4 n/a n/a 19.5 No. 313 of 
26 April 2010 
Air transport  
Empresa TAME (EP)  Domestic and international  
passenger air transport  1,375 13.2 n/a 54.5 n/a No. 740 of 
6 May 2011  
  WT/TPR/S/383/Rev.1 • Ecuador  
 
- 171 - Sector  Activity  Employees  Production  Exports  Imports  Marketing / 
distribution  Executive Decree  
(USD million ) 
Maritime transport  
Empresa Pública Flota 
Petrolera Ecuatoriana 
(FLOPEC EP)  Administration of agreements  
Rental of vessels  
Coastal shipping  
Maritime services  (for vessels in 
ports) 
Maritime transport of clean products  
(oil derivatives )  
Maritime transport of dirty products  
(crude oil ) 507 33.9 n/a n/a n/a No. 1117 of  
12 April 2012 
Tourism  
Empresa Pública Centros de 
Entrenamiento para el Alto 
Rendimiento (CEAR)  Sports accommodation/tourism  
Food 
Sporting, non -sporting and 
recreational facilities   
Medical and sports science research 
services  87 0.1 n/a n/a 0.3 No. 439 of 
15 September  2014 
Special Economic Development Z one (ZEDE)  
YACHAY EP  Advisory and consultancy services  
Data-processing products and 
services  
Academic events  618 0.189 n/a n/a n/a No. 1457 of  
28 March  2013 
Sourc e: Information provided by the Ecuadorian authorities . 
 WT/TPR/S/383/Rev.1 • Ecuador  
 
- 172 - 
 
  Table  A3. 6 Overview of intellectual property rights , 2018  
Legal 
framework  Subject matter/scope  Duratio n Comments, exclusions and limitations  
Patents  
Article  266 
et seq. , 
Code of 
Knowledge . "Any invention, whether 
of a product or a process, 
in all areas of technology, 
provided that it is new, 
involves an inventive step 
and is suscep tible of 
industrial application ". Twenty  years from 
the date of 
application.  Inventions that cannot be patented include : 
(i) inventions the prevention of the 
commercial exploitation of which is 
necessary to protect public order or morality 
or to avoid serious prejudice  to the 
environment  or ecosystem; ( ii) diagnostic, 
therapeutic a nd surgical methods for the 
treatment of humans or animals; 
and (iii) plants and animals and essentially 
biological processes for the production  
thereof . 
The protection afforded by a patent  does not  
confer the righ t to prevent the following 
acts: acts  perfor med in a private circle for 
non-profit -making purposes ; acts performed 
for experimental purposes on the subject 
matter of the patented invention ; acts 
performed solely for the purposes of 
teaching or scientific or academic research ; 
acts referred to  in Article 5 of the Paris 
Convention for  Industrial Property ; or acts 
carried out on patented  biolog ical material 
that is capable of being reproduced and used 
as the basis for obtaining  viable new material  
(except in the case of  repeated use of the 
patent ed material) . 
Industrial designs  
Article  345 
et seq. , 
Code of 
Knowledge . Industrial design: " The 
particular appearance of a 
product that results from 
any arrangement of lines 
or combination of colours, 
or any two -dimensional or 
three -dimensional 
external  shape, line, 
outline, form, texture or 
material, without the 
intended use or purpose 
of the said product 
thereby being changed ". 
To obtain protection, an 
industrial design must be 
new. Ten years from the 
date of application 
for registration.   An industrial design is not deemed to be new 
by virtue of the mere fact that it embodies 
secondary differences in relation to earlier 
creations , or if it has become available to the 
public prior to the application for 
registration . 
Protection does not cove r the elements or 
characteristics of the design dictated 
essentially by considerations of a technical 
nature  that do not  incorporate any arbitrary 
contribution by the designer . 
Utility models  
Article 321 
et seq. , 
Code of 
Knowledge . "Any new shape, 
config uration or 
arrangement of 
components of any 
device, tool, implement, 
mechanism or other 
object, or any other part 
thereof, that makes for 
improved or different 
operation, use or 
manufacture of the object 
incorporating it, or which 
endows it with any 
useful ness, advantage or 
technical effect that it di d 
not previously have. " Ten years from the 
patent  application . The following are excluded from 
patentability : procedures ; materials excluded 
from patent protection  for inventions ; 
sculptures , architectural works , paintings, 
engravings, prints or any other object of an  
aesthetic nature . WT/TPR/S/383/Rev.1 • Ecuador  
 
- 173 - 
 
  Legal 
framework  Subject matter/scope  Duratio n Comments, exclusions and limitations  
Layout -designs (topographies) of integrated circuits  
Article 326 
et seq. , 
Code of 
Knowledge . Any original layout -design , 
i.e. one  that is the result of 
the cr eator's own 
intellectual effort  and not 
commonplace among 
creators of layout -designs 
and manufacturers of 
integrated circuits at the 
time of its creation . Ten years from the 
earliest of the 
following dates: 
date when the 
layout -design was 
first commercially 
exploited;  or date 
of application for 
registration . A layout -design consisting  of a combination 
of elements or interconnecti ons that are 
commonplace can only be protected if the 
combination as a whole meets the originality 
requirement . 
The protection of a layout -design does not  
confer the righ t to prevent the following 
acts: those perfor med in a private circle for 
non-profit -making purposes ; those 
performed for the purposes of evaluation, 
analysis or experimentation;  
those performed solely for the purposes of 
teaching or scientific or academic research; 
or those referred to in Article 5 of the 
Paris Convention for Industrial Property . 
Trademarks  
Article  359 
et seq. , 
Code of 
Knowledge . Any sign that is capable of 
distinguishing goods and 
services on the market 
and that is capable of 
graphic representation . 
The following may 
constitute trademarks : 
words or word 
combinations;  images, 
figures, symbols, 
graphics, logotypes, 
monograms, portrai ts, 
labels, emblems and 
shields;  sounds, smells  
and tastes ; letters and 
numbers; a colour within 
an outline, or a colour 
combination;  the shape of 
the goods, their 
containers or their 
packaging;  reliefs or 
textures perceptible to 
the touch; animation s, 
gestures and sequences 
of movements ; 
holograms; or any 
combination  of these 
signs and elements . Ten years from the 
grant date , 
renewable for  
successive 
ten-year periods.  Signs not eligible for registration as 
trademarks include : those lacking 
distinctiveness ; those consisting of  the usual 
shape of a product or its container , or of 
shapes and characteristics resulting  from the 
nature or function of the  product or service 
concerned ; those consist ing solely  of a sign 
or statement that is the generic  or technical 
name of the product or service concerned ; 
those consist ing solely of, or which have 
become , the common or usual designation 
for the product or service concerned in the 
everyday l anguage or usage of the country ; 
those consisting of a colour co nsidered in 
isolation that is not  outlined to give it a 
specific shape ; and those that may mislead 
business circles or the public in particular as 
to the geographical source, nature, method 
of manufacture, characteristics , qualities or 
suitability for use of the  products or services 
concerned . 
Geographical indications  
Article  428 
et seq. , 
Code of 
Knowledge . Appellation of origin (AO):  
a geographical indication 
consis ting of the name of 
a country,  region , locality 
or specific geographical 
area, used to designate a 
product originating 
therein , when  the quality, 
reputation or other 
characteristics  of the 
product  are exclusively or 
essentially due to the 
geographical environment 
in which it is produced , 
mined or processed, 
including natural and 
human factors . Ten years , 
renewable  
indefinitely for 
successive 
ten-year periods.  The following indications may not be 
declared appellations of origin : those that 
are contrary to law, morality, p ublic policy or 
proper practice ; those liable to mislead the 
public  as to the geographical source, nature, 
means of manufacture, or quality, 
reputation, or other characteristics of the 
products concerned ; those constituting 
common or generic terms for the product 
concerned ; those for which a trademark  
application was made  in good faith before 
the appellation was protected in the country 
of origin; or those constituting the customary 
name of a grape variety that existed  in 
Ecuadorian  territory until 1995.  WT/TPR/S/383/Rev.1 • Ecuador  
 
- 174 - 
 
  Legal 
framework  Subject matter/scope  Duratio n Comments, exclusions and limitations  
 Indication of origin (IO): 
a name, expression, 
image  or sign that 
indicates or evokes a 
particular cou ntry, region, 
locality or place.    
New plant varieties  
Article  471 
et seq. , 
Code of 
Knowledge . New, distinct, 
homogenous and stable 
varieties of any plant 
genus or species .  Eighteen  years for 
varieties of  vines, 
forest  trees, fr uit 
trees, and 
ornamental trees; 
15 years from the 
granting of the 
certificate for 
other varieties . No protection is granted to varieties the 
growing, possession or use of which  is 
prohibited for reasons of human, animal or 
plant health , food sov ereignty or 
environmental safety . 
The following are excluded from protection: 
wild or native species in their natural state; 
those resulting from a mere discovery 
(except for mutations); those in which there 
exists or which involve a plant improvement 
process deriving from a simple long-term 
symbiotic relationship  between the species 
and human beings .  
Copyright and related rights  
Article  100 
et seq. , 
Code of 
Knowledge . All original literary, 
artistic and scientific 
works that may be 
reproduced or disclosed 
by any known or future 
means, such as : works 
expressed in books , 
brochures , leaflets , 
articles , novels , essays, 
and other works of a 
similar nature ; musical 
compositions and other 
audiovisual works ; 
projects and designs for 
architectural and 
engineering works ; 
graphics, maps and 
designs  relating to 
geography, topography 
and science in general ; 
and computer 
programmes  (software).  The author's 
lifetime and up to 
70 years after his 
death. Fair use that  does not conflict with normal 
exploitation of the work or prejudice the 
legitimate interests of the owner does not 
constitute violation of copyright .  
Acts such as the following do not require 
authorization to make use of a protected 
work: the inclusion of short extracts of 
another person's work in one's own work, 
where this is done for the purposes of 
illustration or an alysis, commentary or 
criticism ; the display, performance or public 
communication of a work at official events 
organized by State institutions; and the 
reproduction, adaptation, distribution  or 
public communication of a work for scientific 
or educational purposes.  
Sourc e: Code of Knowledge . 
__________