WT/TPR/M/383  
26 April 2019  
(19-2842) Page: 1/47 
Trade Policy Review Body   
5 and 7 March 2019  
  
TRADE POLICY REVIEW  
ECUADOR  
MINUTES OF THE MEETING  
Chairperson: H.E. Mr Eloi Laourou (Benin)  
CONTENTS  
 
1  INTRODUCTORY REMA RKS BY THE CHAIRPERSON  ................................ .......................  2 
2  OPENING STATEMENT  BY THE REPRESENTATI VE OF ECUADOR  ................................ .... 4 
3  STATEMENT BY THE DISCUSSANT  ................................ ................................ ..............  10 
4  STATEMENTS BY MEM BERS  ................................ ................................ ........................  14 
5  REPLIES BY THE RE PRESENTATIVE OF ECUA DOR AND ADDITIONAL C OMMENTS  ....... 40 
6  CONCLUDING REMARK S BY THE CHAIRPERSON  ................................ .........................  46 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies provided 
by Ecuador  are reproduced in document WT/TPR/M/ 383/Add.1  and will be available online at 
http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm . WT/TPR/M/383 • Ecuador  
 
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  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The third Trade Policy Review of Ecuador was held on 5 and 7 March 2019. The Chairperson, 
H.E. Mr Eloi Laourou (Benin), welcomed the delegation of Ecuador, h eaded by Mr Diego Caicedo, 
Vice Minister of Foreign Trade; the rest of the delegation; and the discussant, 
H.E. Ambassador  Sperisen -Yurt (Guatemala) . 
1.2.  The Chairperson inform ed Members that , as stated in the Addendum to the Airgram  for this 
meeting (WTO/AIR/TPR/80/Add.1), the United Nations Industrial Deve lopment Organization 
(UNIDO) had  requested to attend, as an ad hoc observer, the upcoming Trade Policy Reviews of the 
East African Community Members and Bangladesh. Thus, he sugges ted that Members grant UNIDO 
observer status for these meetings, and accordingly invite d the representative of UNIDO to 
participate, as had  been done in the past.  
1.3.  The Chairperson recalled the purpose of trade policy reviews and the main elements of 
procedures for the meeting. The report by Ecuador  was co ntained in document WT/TPR/G/383  and 
that of the WTO Secr etariat in document WT/TPR/S/383 . 
1.4.  Questions by the follow ing delegations had been submitted in writing before the deadline: 
Mexico; Iceland; Canada; El Salvador; European Union; Chile; Brazil; Dominican Republic; and 
China . The following delegations submitted written questions after the deadline: Guatemala; 
Philippines; Thailand; United States; Colombia; Singapore; India; and Turkey . 
1.5.  At the time of the previous Review in 2011, Members had praised Ecuador for weathering the 
global economic downturn, without adopting trade protectionist measures other than those ta ken in 
2009 for balance -of-payments purposes on a temporary basis. At that time, Members had noted 
that Ecuador 's dependence on oil revenue and expatriate remittances had left its economy vulnerable 
to external shocks.  
1.6.  During the previous Review, Members had welcomed the reduction of the average MFN applied 
tariff rates; however, it had been noted that there had been an increase in the average MFN tariff 
levels for agricultural products. Ecuador had been  congratulated on its trade facilitation 
achievements , and on developments in government procurement and competition legislation. 
Improvements in IPR protection in Ecuador had also been mentioned. The areas where Members 
mentioned reforms could take place included: the need to increase productivity; the need  to step up 
efforts to diversify exports and seek new markets; the need to improve the business and investment 
environment; and the need to submit ad valorem  equivalents (AVEs) of compound duties and to 
observe binding levels. Some of these issues were also mentioned in the advance written questions 
for this TPR.  
1.7.  Turning to the current review period, as noted in the Secretariat 's report, Ecuador 's major 
export, petroleum, declined sharply in recent years, mainly reflecting lower international oil prices. 
The share of oil exports in total exports fell from 57% in 2013 to 36% in 2017. As a result, the 
economy was severely affected in 2014 -15, which led to an increase in the current account deficit 
and a sharp decline in reserves. GDP growth slowed down in 2014  and 2015 and, in 2016, GDP 
contracted by 1.6%. In March 2015, to deal with the crisis, Ecuador adopted, amongst other 
measures, a balance -of-payments safeguard in the form of tariff surcharges. The measure was the 
object of consultations in the WTO 's Bala nce of Payments Committee; it was dismantled by 
mid-2017, as agreed. Members were interested in knowing more about the effect of this measure 
on Ecuador 's economy.  
1.8.  Regarding regional integration, an important development, since the previous Review, was 
Ecuador 's accession to the EU -Colombia/Peru free trade agreement in 2016. The authorities noted 
that Ecuador attache d great importance to the multilateral trading system. Ecuador was in the 
process of ratifying the Trade Facilitation Agreement (TFA). Membe rs looked forward to learning 
more about the progress in this regard.  
1.9.  In Ecuador, trade policy measures are actively used to achieve both macroeconomic and 
developmental goals. Thus, Members raised advance written questions regarding issues related to: 
customs procedures; the transparency and predictability of using the Andean Price Band System; 
the application of non -tariff barriers and its relationship with the selective import substitution policy; WT/TPR/M/383 • Ecuador  
 
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  the role of state -owned enterprises in the economy; the use of government procurement as an 
instrument to promote domestic production; agriculture policies; and market access conditions in 
the telecommunications market.  
1.10.   This meeting would  give Members the opportunity to discuss in more detail these and other 
issues related to Ecuador 's trade policies, which are of interest to them and of systemic importance 
to the multilateral trading system. The Chairperson was looking  forward to a productive discussion.  
  WT/TPR/M/383 • Ecuador  
 
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  2  OPENING STATEMENT BY  THE REPRESENTATIVE OF ECUADOR (MR.  DIEGO CAICEDO ) 
2.1.  I should like to begin by extending a special greeting to Ambassador Eloi Laourou of Benin, 
Chairperson of the Trade Policy Review Body. I wish to thank him for his opening words and 
reflections on Ecuadorian trade policy. I also wish to th ank Ambassador Eduardo Sperisen -Yurt for 
acting as discussant today for this important exercise in transparency for my country. My thanks go 
as well to Mr  Willy Alfaro, Director of the Trade Policy Review Division, and his team, for supporting 
Ecuador in t his exercise and for making known the trade policy steps recently taken by my country.  
2.2.  It is an honour for me to address you today, in my capacity as Vice -Minister of Foreign Trade 
of Ecuador and as head of my country's delegation, on the occasion of Ecuad or's third trade policy 
review, covering the period 2012 -2018.  
2.3.  I wish to convey warm greetings from the Ecuadorian Government, as represented by our 
President, Lenín Moreno Garcés, and our Minister of Production, Foreign Trade, Investment and 
Fisheries, Pa blo Campana.  
2.4.  In May of this year, two years will have passed since President Lenín Moreno assumed 
leadership of our country.  
2.5.  Many of the new guidelines and policies adopted by Ecuador to pursue its development 
objectives are framed by a firm decision to op en Ecuador to the world.  
2.6.  One of the fundamental objectives of the current government is to position Ecuador as a 
strategic actor on the international stage, as a destination offering trade and investment 
opportunities and as a key and reliable partner in the region and the rest of the world.  
2.7.  The current government has managed to re -establish dialogue at all levels: within the 
government, between the public and private sectors, and between Ecuador and other countries.  
2.8.  We have improved our business and inves tment climate and are now viewed differently by our 
principal trading partners and the world.  
2.9.  I would like to start by thanking all the Member countries that have sent questions to Ecuador.  
2.10.   We are aware that during much of the review period the Ecuadorian economy adopted an 
endogenous development model based on strong State intervention in productive processes, with 
the intention of strengthening the country's economic system.  
2.11.   However, that model was not conducive to sustained, long -term economic growth and  was 
driven by a high level of debt that contributed to imbalances in the fiscal accounts.  
2.12.   In addition to the performance of Ecuador's economy, there were other factors, such as the 
appreciation of the dollar; the significant decline in oil prices; reduced  investment; declining export 
income; and the terrible losses suffered following the earthquake in Ecuador in April  2016.  
2.13.   Between 2016 and 2017, to minimize the negative effects of these factors, Ecuador applied 
the following measures:  
• reduction of public investment;  
• reduction of current expenditure;  
• mobilization of domestic financing sources; and  
• application of a balance -of-payments safeguard, between March  2015 and the first semester 
of 2017.  
 
2.14.   It is important to stress that Ecuador fully carried out the s afeguard measure and its 
dismantlement and lifting process, as it agreed to do in the WTO Committee on Balance -of-Payments 
Restrictions. This was acknowledged by the Organization's Member countries.  
2.15.   As I indicated, one of the problems with the economic dev elopment model of the previous 
government was its sustainability.  WT/TPR/M/383 • Ecuador  
 
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  2.16.   That model caused a shift in private sector activity within the economy, to the detriment of 
efficiency. It encouraged the implementation of a protectionist system that led to a slowdown in 
foreign trade, depriving Ecuador of the expansion that other partners in the region experienced and 
isolating us from even our most important trading partners.  
2.17.   For these reasons, starting in May  2017, Ecuador launched a process of structural changes 
within  the framework of its public trade policy, replacing its endogenous development system with 
a model based on productive sector investment. The new model seeks to sustain dollarization 
primarily through agricultural exports, industrial development, strength ening of tourism, large -scale 
mining, oil production and the attraction of foreign investment in general.  
2.18.   We firmly believe that the private sector should act as an engine of growth in Ecuador and 
that the State should maintain a more favourable investment  climate. This applies to Ecuador's 
entire business fabric, including micro, small and medium -sized enterprises (MSMEs) and the 
organizations of the popular and solidarity economy, among others.  
2.19.   This change to the system was the result of national governme nt efforts to promote dialogue 
and joint work with the various productive, social and economic sectors as a mechanism for solving 
the country's problems and reintegrating Ecuador's economy into international trade markets.  
2.20.   Why was openness to such dialogue  so important?  
2.21.   The national economy today no longer depends exclusively on public investment.  
2.22.   As it always should have, the economy now depends on the efforts of both MSMEs and large 
enterprises; on the popular and solidarity economy; on the endeavours of our young people; on 
farmers, fishermen and livestock producers; on tourism and on other sectors.  
2.23.   Based on that dialogue, the government presented a fiscal stabilization and productive 
strengthening economic programme to reduce the size of the State, merge  institutions and make 
them more efficient, and re -open the doors to foreign investment through a pragmatic trade policy 
and a vision inspired by humanism and solidarity. Consistent with that programme was the adoption 
of the Law for the Promotion of Produ ction, which provides incentives for new investments to 
generate employment and new business ventures.  
2.24.   There were also institutional changes, to provide the legal security and predictability so 
essential to the normal conduct of economic and trade activiti es in the country.  
2.25.   We have strengthened our institutions for different State functions, making them truly 
autonomous, bringing us closer once again to the international community and helping us regain its 
confidence.  
2.26.   These improvements have served to creat e a good business climate and generate a significant 
level of confidence in our country.  
2.27.   Positioning Ecuador as a strategic actor on the international stage has required the adoption 
of measures consistent with the principles of democracy, freedom and stau nch opposition to 
corruption.  
2.28.   These measures have been accompanied by pragmatic decisions and actions to strengthen 
the economy by promoting good relations with our strategic partners, diversifying our exports and 
attracting investment.  
2.29.   The country's poten tial and advantages are being promoted among foreign investors, and 
consideration is being given to schemes and mechanisms for integrating our economy into 
international trade, taking advantage of economies of scale, productive efficiency, the country's 
participation in global or subregional value chains and productive complementarity.  
2.30.   Ecuador's negotiating agenda reflects the demands and needs of the productive sectors, the 
opportunities for attracting investment, and the economic potential generated by st rengthened trade WT/TPR/M/383 • Ecuador  
 
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  relations with partners that share Ecuador's vision and contribute to the achievement of national 
development objectives.  
2.31.   Within that framework, Ecuador is pursuing negotiations with member countries of the 
Pacific  Alliance, India, Costa R ica and Guatemala. It is also engaged in a process of rapprochement 
with the Eurasian Economic Union, Panama and the Dominican Republic.  
2.32.   With South Korea and Turkey, we are analysing the best alternatives for reactivating bilateral 
negotiation processes.  
2.33.   We have reactivated mechanisms for trade dialogue with the United States and are interested 
in initiating conversations with Canada and Japan to strengthen trade relations.  
2.34.   Ecuador has focused its foreign trade policy on a search for instruments conducive to the 
development of productive chains and real market access.  
2.35.   The National Development Plan (2017 –2021), with the title "Toda una Vida" ("Lifetime"), is 
the instrument on which the public policies, programmes and projects in our country, including trade 
policy, are based.  
2.36.   Objective 5 of the Plan – boosting productivity and competitiveness and promoting exports – 
can be achieved by strengthening existing industries, promoting growth in basic industries, 
supporting the creation of new industries and fosteri ng an inclusive industrialization process that 
helps to integrate most of the population into the productive sector, so that the benefits will be 
collective. All of this is framed by the State's production policy.  
2.37.   This policy includes guidelines for enhanc ing the industrial sector by strengthening local 
export -oriented chains. The strategy for achieving its objectives is based on investment, 
productivity, quality, innovation and markets, value added, entrepreneurship and the improvement 
of human talent.  
2.38.   In terms of fiscal policy, implementation of the Prosperity Plan for 2018 -2021 began in 2018. 
The Plan establishes a solid institutional framework for developing the productive apparatus, offering 
opportunities for employment, development and well -being.  
2.39.   the Prosperity Plan is based on four pillars:  
• fiscal consolidation and monetary stability;  
• equal opportunities and social protection;  
• employment and production sector revitalization; and  
• efficient and transparent management of the resources of all Ecuadorians.  
 
2.40.   The Plan has set clear fiscal management targets based on criteria of prudence and 
responsibility. As indicated in the government's report, the deficit is expected to fall by 
USD 1,300  million per year to reach the primary fiscal balance and an overall d eficit of less than 
1% of GDP by 2021.  
2.41.   The following steps have been taken as part of the Prosperity Plan:  
• We restored relations with the international agencies and obtained their support for 
comprehensive financing. The International Monetary Fund, the Wo rld Bank, the 
Inter-American Development Bank, the Andean Development Corporation and the 
United  Nations Development Programme are now our strategic allies for the development of 
Ecuador and the social protection of vulnerable groups.  
• We adopted the Law for the Promotion of Production and its implementing regulations, 
together with a series of institutional transparency and revitalization policies, to create a 
good business environment in the country, inspire investor confidence and reactivate 
production.  WT/TPR/M/383 • Ecuador  
 
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  • We have laid the groundwork for Ecuador to become part of the Organisation for  Economic 
Co-operation and Development (OECD).  
2.42.   This Prosperity Plan has put Ecuador back on track towards sustained and solid growth.  
2.43.   Fiscal policy continues to reflect a commit ment to social policy, allocating additional resources 
to the government's social programmes in order to strengthen social protection. This measure forms 
part of the country's policy for reduction of the existing poverty and extreme poverty gaps.  
2.44.   The new i nvestment policy is based on a legal framework that provides various tax incentives 
to attract new investments, including:  
• Right to exemption from the foreign exchange exit tax (ISD) for payments made abroad.  
• Income tax exemption for 15 years for investmen ts in basic industries. This exemption will be 
extended for an additional five years for investments made in cantons situated along the 
country's borders.  
• Exemption from income tax and advance payments thereof for 12 years for investments 
outside of the ur ban jurisdictions of the cantons of Quito and Guayaquil, and eight years for 
investments in those urban zones.  
• Exemption for 15 years for new productive investments in the Manabí and Esmeraldas zones 
severely affected by the earthquake in 2016.  
2.45.   Investors may also be granted exceptional temporary residence that is not subject to 
maximum stays outside of Ecuador and that allows them multiple admissions into the country.  
2.46.   As part of this new national investment policy, Ecuador presented to its trading partners  a 
new model Bilateral Investment Agreement to serve as reference for possible negotiations to define 
new bilateral investment treaties (BIT).  
2.47.   The model is designed to attract productive investment, update and modernize previous BITs 
and balance the rights  and obligations of the State and investors within the constitutional framework 
that has existed in Ecuador since 2008.  
2.48.   This new agreement has been presented to several WTO Member countries, and information 
meetings have been held on the subject with repre sentatives of several governments.  
2.49.   Moreover, until 2017, a long list of trade -related concerns were being raised about Ecuador 
by a number of its principal partners. The current government has been committed to fostering 
dialogue to address and definitivel y resolve issues affecting trade relations. Actions to be noted in 
this regard include the following:  
• The review and updating of current technical regulations with a view to ensuring consistency 
with their original legitimate objectives, and the amendment of such regulations, as 
appropriate, to reflect international agreements or international norms used as benchmarks. 
The aim is to avoid duplication in the use of controls.  
• As part of this effort, certain regulations were amended to facilitate trade. This w as the case 
of Regulation 034, "Minimum Safety Features for Automotive Vehicles", where the 
implementation of requirements for N3 category vehicles (gross weight exceeding 12  tonnes) 
was postponed until the introduction of 2021 model vehicles to give the i ndustry time to adapt 
to the measure, going far beyond the obligations established in the WTO TBT Agreement. 
Similarly, in strict application of national treatment, implementation of the measure was 
corrected to cover imported as well as domestically produ ced vehicles.  
• An annual quantitative restriction was introduced in 2012 for imports of cellular telephones 
but discontinued in 2017.  WT/TPR/M/383 • Ecuador  
 
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  • A similar annual quantitative restriction was put in place for imports of vehicles but also 
discontinued in 2017.  
• The custo ms service fee (TSA) was eliminated in June  2018, having posed complications for 
many trading partners and led to continuous complaints from many countries.  
• Ecuador is engaged in an in -depth review of regulations put in place by the previous 
administration , a regulatory moratorium having been initiated for technical regulations.  
• It is important to stress that the number of observations made in respect of Ecuador by 
Member countries, particularly in the Committee on Technical Barriers to Trade, has declined 
considerably.  
2.50.   These are examples of changes that have made it possible to reactivate the domestic 
production sector and restore Ecuador's image and trade relations with its principal partners.  
2.51.   This new vision has enabled the country's non -oil exports to re ach their highest level in the 
last ten years. Such exports have exceeded USD 12,800  million, which amounts to an increase of 
USD 600  million – 5% more than in 2017 and 13% more than in 2016.  
2.52.   Imports have also risen – by 8.3%. It is noteworthy that nearly 60% of those purchases 
consist of raw materials and capital goods, confirming that the country's productive apparatus has 
been reactivated.  
2.53.   I should now like to furnish some clarifications about Ecuador's trade policy for the agricultural 
sector in respons e to questions received from some of the Member countries.  
2.54.   Ecuador is in full compliance with multilateral provisions. Looking first at certain objectives of 
the Agreement on Agriculture, it maintains a "fair and market -oriented agricultural trading system " 
that takes into account non -trade -related concerns, such as food sovereignty.  
2.55.   Article 334 of the Constitution of the Republic of Ecuador provides that the State shall promote 
equitable access to inputs and shall therefore "develop policies to foster dome stic production in all 
sectors, particularly in order to guarantee food sovereignty ...".  
2.56.   Based on those provisions, my country has adopted policies to guarantee food sovereignty 
without affecting domestic and foreign trade. The aim is to achieve a balance  between domestic 
production and imports such that adequate food supplies are continuously maintained and the 
country's resources are coordinated with international market availability.  
2.57.   I should also like to respond to questions raised about the issuance o f import licences, which 
is not subject to any condition or requirement that a scarcity be declared and imports subsequently 
authorized. These licences are administered to determine and control annual food balances for the 
principal food chains, in accorda nce with the constitutional mandate of the Food Sovereignty Regime.  
2.58.   It is important to note that the Andean Price Band System is provided for in the trade 
agreement that Ecuador maintains within the Andean Community (CAN), under Decision 371. The 
objective  set out in that decision is to "stabilize the cost of importing a special group of agricultural 
products characterized by significant instability or distortions in international prices".  
2.59.   This stabilization is achieved by raising the ad valorem  tariff when  the international price falls 
below a specified floor and lowering it to zero when the price rises above a specified ceiling. This 
tariff is adjusted automatically to counteract external fluctuations in international prices.  
2.60.   The levels of the Andean Price  Band System, added to the applied tariffs for products covered 
by the measure, cannot exceed Ecuador's binding commitments for the products in question, as 
established in Decision 371.  
2.61.   This mechanism should therefore not be a cause of concern for the Memb ership: it respects 
our commitments with respect to tariff bindings and predictability and requires reference prices to 
be published on a bimonthly basis.  WT/TPR/M/383 • Ecuador  
 
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  2.62.   In addition, the Ecuadorian Customs Service's ECUAPASS Internet platform provides for 
advance publication of the bimonthly prices for all products included in the Andean Price Band 
System. All trade operators have access to the tool.  
2.63.   The State -owned company UNA, the country's only state trading enterprise, performs storage 
and marketing activities for agricultural products, administers the strategic reserve of those 
products, and markets and distributes inputs.  
2.64.   The intermediation activity performed by UNA between agricultural producers and the 
agro-industrial sector takes place at market prices, so there is no form of domestic support or price 
support measure.  
2.65.   Its effect on imports and exports is minimal. For the purchase of corn and rice, for instance, 
UNA only bought 2% and 3% of local production, respectively. It focuses mainly on strategic reserv es 
and did not perform any export activities during the period under review.  
2.66.   Agricultural imports are subject to border measures such as customs duties (tariffs) and taxes 
that apply to similar imports, without distinction as to origin. This is consistent with WTO 
commitments with respect to Article XI of the GATT 1994.  
2.67.   I am pleased to report that Ecuador has now joined the list of countries that have ratified the 
Trade Facilitation Agreement (TFA), having sent notification of measures in categories A, B an d C. 
Many of the measures approved in that agreement have already been applied by my country for 
several years, although for certain aspects we require technical and financial assistance as part of 
the special and differential treatment that we hope will a pply as per the provisions of this important 
instrument.  
2.68.   On another point, somewhat unrelated to the present exercise, there have been some 
systemic issues of concern, to us and to several other Members, about how this Organization – and 
its dispute settle ment mechanism in particular – have been functioning.  
2.69.   Ecuador calls upon the Members to consider the proposals presented and find a way out of 
this impasse. Once we have dealt with that issue, we can move ahead with the discussions on the 
multilateral trad ing system as a whole.  
2.70.   We are also concerned to see the limited progress made in the negotiations on subsidies in 
the fisheries sector, an area of interest to my country. Until 2018 we had an accelerated process 
that appeared on the verge of completion, as  planned at the start of that year based on the Member 
positions compiled in document TN/RL/W/274/Rev.6.  
2.71.   And yet today, there appears to be a desire to reconsider the topics included in that document. 
Ecuador considers it essential to continue with the pro gramme as previously established, within the 
framework of the negotiating mandates of Hong Kong and Buenos Aires. We need to be mindful that 
the deadline for achieving target 14.6 of the Sustainable Development Goals is fast approaching and 
that it is our responsibility to help see it achieved.  
2.72.   Lastly, given the new reality in Ecuador, as described in part today, I wish to reaffirm the 
importance my country attaches to the multilateral trading system. I believe I have explained and 
illustrated the path we wish to follow with our trade policy.  
2.73.   Exercises like this one provide our government with a pragmatic evaluation of the trade 
measures and practices we have adopted.  
2.74.   We regard any observation or clarification that may be offered in this setting as an oppor tunity 
to help us better integrate Ecuador into the international economy.  
2.75.   I wish to thank the distinguished representatives of the Member countries for attending this 
third Trade Policy Review of Ecuador.  
2.76.   Mr Chairperson, Ambassadors, distinguished delegat es, we eagerly await your comments. 
Thank you.  WT/TPR/M/383 • Ecuador  
 
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  3  STATEMENT BY THE DIS CUSSANT  
3.1.  It is an honour for me to serve as discussant for this third Trade Policy Review of Ecuador, at 
a time when the country has deepened its process of trade liberalization and economic  reform to 
maintain sustainable and inclusive economic growth. In that connection I wish to acknowledge the 
exhaustive reports prepared by the Government of Ecuador and the WTO Secretariat for this 
meeting.  
3.2.  In the next few minutes I will attempt to emphasi ze the most important aspects I identified in 
the reports and will share some additional comments.  
Overview of the economic environment  
3.3.  Ecuador lies in the northwest corner of South America, bordered by Colombia to the north, Peru 
to the east and the Pacif ic Ocean to the south. With a total area of 283,561 km2, it has a population 
of more than 16  million predominantly Roman Catholic inhabitants, 72% of whom are mestizo. 
Ecuador's diverse landscape includes Amazon jungle, Andean highlands and the Galapagos i slands, 
rich in wildlife. Quito, the country's capital, situated on the flank of the Andes at an altitude of 2,850 
metres, is known for its Spanish colonial city centre, with its beautiful, highly decorated palaces and 
impressive religious sites dating bac k to the 16th and 17th centuries, much of which remains intact.  
3.4.  As you know, Ecuador is a developing country with a growing economy that is committed to 
the multilateral trading system. It has been an active participant in the negotiations and in this 
Organization's various regular committees and negotiating groups.  
3.5.  Since joining, Ecuador has been a very active member of the WTO. Its interventions with 
respect to the settlement of disputes have been highly significant and have put the Organization's 
system to the test. In the Doha Round, Ecuador presented concrete proposals on several matters. 
The country's participation in regional trade agreements and in the WTO has enabled it to diversify 
its productive structure and exports.  
3.6.  As demonstrated since May  2017, Ecuador has changed the endogenous development system 
adopted ten years ago to a model based on investment in its productive sector, with agricultural 
exports, tourism, large -scale mining, oil production and the attraction of foreign investment in 
gener al as the main sectors helping to underpin dollarization.  
3.7.  That earlier model had very little connection with the private sector and encouraged a 
protectionist system, to the detriment of Ecuador's foreign trade, isolating the country from 
international tra de markets and its principal trading partners.  
3.8.  Under its new National Development Plan 2017 -2021, entitled "Toda una Vida", Ecuador seeks 
inter alia  to strengthen its socially benevolent economic system, maintain its dollarization regime 
and improve the po pulation's participation in and access to local resources for the generation of 
national wealth, through such means as:  
• austere and efficient management of public resources;  
• the creation of incentives for private investment;  
• the development of public -private partnerships as a mechanism for rapidly and effectively 
injecting resources into the country; and  
• support and impetus for business ventures through production credits and tax incentives.  
3.9.  During the period under review, Ecuador's economy showed cons tant improvement, growing 
at an average annual rate of 3.3% between 2011 and 2017. Real GDP growth during this period 
ranged from of 7.9% in 2011 to -1.3% in 2016. Inflation remained low and exchange rates stable. 
The poverty rate declined during the perio d under review, from 29.6% in June  2011 to 24.5% in 
June 2018; extreme poverty declined from 12.4% to 9%. But poverty levels remain high and pose 
a significant economic challenge for Ecuador.  WT/TPR/M/383 • Ecuador  
 
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  3.10.   Social policy, a subject of vital importance long emphasized in all areas of public policy, is 
being strengthened with additional resources and new social programmes, such as the "Human 
Development Bond", which will help to reduce the existing poverty and extreme poverty gaps.  
3.11.   The Prosperity Plan for 2018 -2021 rests on  four pillars:  
• Boosting competitiveness and job creation.  
• Protecting the poorest and most vulnerable.  
• Strengthening fiscal sustainability and the institutional foundations for dollarization.  
• Improving transparency and strengthening the fight against corrup tion. 
3.12.   This provides a solid new institutional framework for fostering productive capital, making our 
economy more dynamic and diverse and offering opportunities for employment, development and 
well-being. It will also reduce the deficit by USD 1.3  billion per year, to reach primary fiscal balance 
and an overall deficit of less than 1% of GDP by 2021.  
3.13.   Looking at exports, Ecuador has in recent years maintained stable trade relations with its 
traditional partners, including the United States, the European Unio n and the Americas, and 
developed a roadmap for its relations with new partners, such as China and Russia.  
3.14.    Ecuador's balance -of-payments current account was characterized by moderate deficits 
between 2011 and 2014. In 2015, the deficit rose to USD 2,223  million, equivalent to 2.2% of GDP, 
owing to deterioration in the balances for goods and services. That deterioration resulted in turn 
from a sharp decline in exports, caused principally by falling oil prices. In March  2015, as indicated 
in the repor t for this review, Ecuador adopted a balance -of-payments safeguard measure that 
affected 38% of tariff headings and led to a significant reduction in imports. That reduction was not 
sufficient, however, to avoid an increase in the deficit. The safeguard me asure, which remained in 
place until 1  June 2017 and largely explains the reduced trade deficits recorded in 2016 and 2017, 
was accompanied by provisions to slow the growth in domestic demand, which also had an impact 
on imports.  
Trade policy  
3.15.   Ecuador is an  original Member of the WTO and believes firmly that a properly functioning 
multilateral trading system is the best vehicle for protecting the interests and improving the 
participation of small developing economies, as evidenced by its membership of the gr oup of small, 
vulnerable economies.  
3.16.   The outlines of Ecuador's trade policy are specified in the 2008 Constitution and did not change 
during the period under review. The highest priorities for trade integration are with the Andean, 
South American and Latin American countries, as evidenced by its active membership of the Andean 
Community (CAN) and of the Latin American Integration Association (LAIA).  
3.17.   The legal framework for the new investment policy, intended to support fiscal, tax, tariff and 
development mea sures, was strengthened in August  2018 through the approval of the "Organic Law 
on the Promotion of Production, Attraction of Investment, Generation of Employment and Fiscal 
Stability and Balance" or "Law on the Promotion of Production", which will help to  boost 
competitiveness, restore fiscal balance and, above all, diversify its trade sectors, supporting both 
imports and exports and improving the mechanisms for attracting investments to the country.  
3.18.   Another aspiration of the new government is to sustain a nd strengthen public -sector 
investment in infrastructure and other development projects through public private -partnerships 
(PPP), applying a legal and institutional framework to make PPPs a mechanism for optimizing the 
development of infrastructure projec ts with repayment capacity and private investment.  
3.19.   Ecuador is not a signatory to the Agreement on Trade in Civil Aircraft and has not yet ratified 
the Protocol amending the TRIPS Agreement. Neither is Ecuador a signatory to the Agreement on 
Government Proc urement or an observer in the Committee on Government Procurement. Ecuador WT/TPR/M/383 • Ecuador  
 
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  offers MFN treatment to all its trading partners. The country submitted several notifications to the 
WTO Secretariat during the period under review. Within the framework of the Prot ocol of Amendment 
incorporating the Trade Facilitation Agreement, Ecuador submitted a notification of its category A 
commitments, which refer to provisions that the Member applies upon entry into force of the 
Agreement. The country has yet to deposit the i nstrument of ratification with the WTO.  
3.20.   With respect to its tariff structure, in the Uruguay Round Ecuador bound all of its tariffs at 
rates ranging between 5% and 85.5%. It grants preferential tariffs, however, for imports from fellow 
members of the CAN ( the Plurinational State of Bolivia, Colombia and Peru), provided they comply 
with CAN rules of origin. It grants similar treatment to imports from the Bolivarian Republic of 
Venezuela, as well as those resulting from agreements signed within the framework of LAIA.  
3.21.   With respect to competition, the Organic Law on the Regulation and Control of Market Power 
has remained in effect since the last review. The purpose of this law is to prevent, correct, eliminate 
and sanction anti -competitive and unfair conduct, fo r the benefit of markets and consumers.  
3.22.   While not a signatory to the WTO Agreement on Government Procurement, Ecuador has, with 
a view to optimizing government spending and transparency, made public procurement one of its 
strategic public policy objectives  that incentivize and promote national production and the 
participation of artisans and MSMEs in these processes.  
3.23.   In terms of intellectual property, the legal framework that regulates intellectual property 
rights in Ecuador underwent several modifications during the period under review. In 2016, Ecuador 
promulgated the Organic Code on the Social Economy of Knowledge, Creativity and Innovation 
(Code  of Knowledge), which repealed the earlier Intellectual Property Law of 1998. Since 2017, the 
new National Inte llectual Rights Service  (SENADI) has been charged with regulating industrial 
property, copyright and related rights, new plant varieties and traditional knowledge.  
Sectors  
Agriculture  
3.24.   In terms of its contribution to GDP and employment, and as a key generator of foreign 
exchange for the country, agriculture is extremely important for Ecuador, a net exporter of 
agricultural products. During the period under review, the agricultural trade surplus increased from 
USD 2,967  million in 2011 to USD 3,797  million in 2017. According to the Secretariat's report, the 
growth observed in Ecuador's agricultural sector during the period under review is largely 
attributable to policies that have facilitated greater access to agricultural inputs and technology and 
created market conditions favourable to the producer.  
Mining  
3.25.   The mining sector in Ecuador represented approximately 1.5% of GDP in 2017. Traditionally 
characterized by artisanal and small -scale operations, mining was declared a strategic sector in 
2009, after which various regulatory and institutional reforms were 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.  
Hydrocarbons  
3.26.   The Ecuadoria n economy continues to rest largely on the hydrocarbons sector, the largest 
contributor to the State budget and Ecuador's leading generator of foreign exchange. Ecuador 
produces crude oil, natural gas and their derivatives. The most important of these is c rude oil, the 
country's leading export product. In 2017, Ecuador exported 135  million barrels of crude oil worth 
USD 6.190  billion, which accounted for approximately 32% of total exports.  
Services  
3.27.   Financial services accounted for approximately 3.4% of GDP in 2017. While banks and 
insurance companies are numerous, each of these markets continues to be dominated by a limited 
number of firms. The country's securities market is small and relatively undeveloped. During the WT/TPR/M/383 • Ecuador  
 
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  period under review, Ecuador made signi ficant changes to its regulatory and institutional framework 
to strengthen the financial system, increase lending to the productive sector, promote microcredit 
and develop the securities market, among other objectives. Significant changes resulted from the  
promulgation in 2014 of the Organic Monetary and Financial Code, which repealed approximately 
30 laws and consolidated regulations governing financial, insurance and securities activities in a 
single document.  
Transport  
3.28.   Ecuador has 21 airports, four of th em international. Among the country's regulatory changes 
during the review period was the adoption in 2018 of a policy to liberalize air traffic, excepting 
cabotage, and more detailed and flexible rules on charter flights.  
3.29.   To conclude, this brief evaluatio n has enabled us to review the main efforts made by the 
Government of Ecuador to strengthen its trade policy regime and improve its overall economic 
performance.  
3.30.   The country's growth, its policy implementation and strategic approach in recent years, and 
its efforts to diversify exports and strengthen trade facilitation measures, are very positive signs. 
We hope they will pave the way for faster growth and a successful economy.  
3.31.   Once again, I am grateful for the opportunity to participate as discussant in thi s Trade Policy 
Review of Ecuador and wish the Members and Ecuador a fruitful discussion in the days ahead.  
  WT/TPR/M/383 • Ecuador  
 
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  4  STATEMENTS BY MEMBER S 
MEXICO 
4.1.  During the period under review, the value of Ecuador's imports and exports contracted by 15% 
and 22%, respectively. Factors contributing to that result included the abrupt decline in international 
oil prices in 2015, which caused GDP to contract by 1.2% and kept annual growth below 3% 
thereafter – far from the 7% rate achieved in 2011.  
4.2.  Another factor contributing to thi s contraction in foreign trade was Ecuador's recourse to a 
balance -of-payments safeguard measure consisting of a surcharge applied to nearly 40% of the 
tariff schedule and reaching 45% ad valorem  in some cases. The surcharge was eliminated in 2017, 
but tra de levels have still not recovered completely.  
Market access  
4.3.  Ecuador's economy stands to benefit from open markets and from its recent accession to the 
trade agreement between the European Union, Colombia and Peru, which includes major 
commitments in respe ct of goods and services, as well as from other efforts, as detailed by 
Vice-Minister Caicedo. Despite the significant regulatory improvements, however, importers 
continue to face several barriers, as indicated in the Secretariat's report:  
4.4.  Tariff peaks of up to 422% for some items of clothing.  
4.5.  Product surveillance measures that impede imports of goods whose unit price is 5% lower than 
that specified by the Government of Ecuador.  
4.6.  A non -automatic import licence requirement for other goods according to the extent to which 
they complement national production in meeting domestic demand.  
4.7.  Ecuador has an export -oriented economy for commodities such as hydrocarbons, bananas, 
shrimp and mining products, with exports concentrated in a small number of products. This situation 
is likely to be aggravated by some specific export impediments, including:  
4.8.  A ban on exports for nearly 500 tariff lines, starting with iron and steel.  
4.9.  Export restrictions for nearly 200 tariff lines, including seeds, fish, certain species of 
crustaceans and vegetables, in the form of authorization, certification, licensing, registration, permit 
and export quota requirements.  
Bilateral trade relations  
4.10.   The balance -of-payments restrictions imposed by Ecuador had a significant impact on our 
bilateral trade. From 2014 to 2017, our exports declined by 30%, from USD 905  million to 
USD 622 million. The measures affected more than 1,600 tariff headings, bringing trade in items 
under 650 of these to a standstill. Among the products most affected were light v ehicles, flat -screen 
televisions, cement, corn seed and personal hygiene products.  
4.11.   Going forward, we hope that our bilateral trade will return to the growth rates observed prior 
to the imposition of those measures.  
Legislative improvements  
4.12.   On the other han d, my delegation wishes to acknowledge Ecuador's legislative initiatives to 
promote productivity and improve the well -being of its people, including:  
4.13.   The introduction of the Ecuadorian Single Window for foreign trade, which incorporates 
23 State entities.  WT/TPR/M/383 • Ecuador  
 
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  4.14.   The adoption of the Organic Law on Public -Private Partnership and Foreign Investment 
Incentives, which seeks  to increase private -sector participation in national development.  
4.15.   The enactment of the Organic Law to Strengthen and Optimize the Corporate and Stock 
Market Sector, which favours the inclusion of small and medium -sized enterprises in the securities 
market.  
4.16.   We hope that such measures, as well as broader processes to improve the country's foreign 
trade regime, will contribute to greater integration of the Ecuadorian economy into international 
trade flows and a more diversified productive structure.  
Conclusion  
4.17.   To conclude, we thank Ecuador for its replies to our delegation's questions and wish it every 
success in this review.  
ICELAND  
4.18.   Despite the geogr aphical distance between Iceland and Ecuador our two countries enjoy 
excellent bilateral trade relations. Last summer Ecuador and the EFTA countries, Iceland, 
Liechtenstein, Norway and Switzerland, signed a Comprehensive Economic Partnership Agreement, 
in Hólar in Hjaltadalur, in Iceland. The agreement covers all areas of a modern free trade agreement 
and is a solid base to increase trade and investment between our countries. We look forward to 
seeing trade and investment between our countries develop furth er and deepen as business 
opportunities for economic actors on both sides are seized.  
4.19.   Ecuador is amongst the WTO members that have highlighted the importance of gender and 
trade. On the occasion of the 11th Ministerial Conference in Buenos Aires, more than  120 Members 
and observers, including Ecuador, launched a joint declaration on women and economic 
empowerment that aims , inter alia , at sharing best practices and working together here at the WTO 
to remove barriers for women 's economic empowerment and incr ease their participation in trade. 
This declaration is the fruit of the Trade Impact Working Group that was established under the 
auspices of the International Gender Champions – Geneva, that Iceland is co -chairing with Botswana 
and the ITC.  
4.20.   The trade pol icy review provides an excellent opportunity to share best practices in this field. 
Iceland submitted advance written questions on the participation of women in the economy of 
Ecuador, as well as on the initiatives that Ecuador is undertaking on making eco nomic growth more 
inclusive. We wish to thank Ecuador for the responses to our written questions. We will review the 
answers thoroughly and request clarifications as necessary during the course of this TPR. The 
answers are very useful as we implement the j oint declaration on trade and women 's economic 
empowerment and gather best practices, which we will present at the next Ministerial conference.  
4.21.   Iceland appreciates Ecuador 's active engagement in WTO and their continued support for the 
multilateral trading system. We wish the delegation of Ecuador every success for their third trade 
policy review.  
CANADA  
4.22.   Ecuador suffered a devastating earthquake in April 2016, which took nearly 700 lives, injured 
many thousands more, and had a material effect on infrastructu re and the economy. Canada was 
proud to stand with Ecuador as a friend and partner following that earthquake and provided USD 2 
million in funding for humanitarian assistance in the aftermath.  
4.23.   In addition to the tremendous challenge of reconstruction following the earthquake, Ecuador 
has faced a continued additional challenge due to the negative effect that the prolonged decrease in 
oil prices has had on its economy, damaging critical trade -related infrastructure. Ecuador has 
committed to structural reforms that are creating an environment of confidence. These focus on 
supporting growth in key sectors such as manufacturing and mining, containing current -account 
expenditures, and addressing the ro ot causes of volatility in the economy. Ecuador has also applied 
a number of temporary measures and policies to address imbalances, which helped to moderate the WT/TPR/M/383 • Ecuador  
 
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  effects of the external shock and to finance reconstruction following the earthquake. Canada 
supports a number of multilateral institutions and civil society initiatives that undertake innovative 
partnerships projects in Ecuador.  
4.24.   I would now like to highlight areas where Ecuador is making progress in the implementation 
of policies that promote stab ility, growth and economic development .  
4.25.   First and foremost, Canada applauds the steps Ecuador has taken in achieving political 
stability. This has led to stronger global partnerships, which should contribute significantly to 
Ecuador achieving the SDGs. Ec uador 's commitment to promote an economic model based on 
productive -sector investment, in which dollarization would be sustained chiefly by agricultural 
exports, tourism, large -scale mining, oil production and the attraction of foreign investment, is 
promi sing.  
4.26.   Second, Canada encourages Ecuador to implement its 2018 -2021 Prosperity Plan, which aims 
at establishing a solid institutional framework that will boost productive capital and produce a 
dynamic and diverse economy, providing employment and development oppo rtunities.  
4.27.   Third, we applaud the achievements Ecuador has made in the area of investment policy, by 
creating a legal framework comprising laws and regulations governing budgetary, tax and tariff 
measures as well as measures to promote production. Legislat ion adopted in August 2018 provides 
an improved environment to boost competitiveness, restore the fiscal balance, reduce debt and 
make investment more attractive.  
4.28.   Fourth, we are encouraged by Ecuador 's commitment to openness with entry into force of the 
Multipartite Trade Agreement with the EU and with the European Free Trade Association; to become 
an associate of the Pacific Alliance; to seek to join the OECD; and to negotiate other trade 
agreements.  
4.29.   Fifth, the mechanisms Ecuador has implemented to suppo rt its WTO participation are 
increasingly important as Ecuador seeks to pursue more open and inclusive trade. Canada welcomes 
Ecuador 's support of the Buenos Aires Declaration on Women and Trade, the Joint Statement on 
MSMEs, and more recently its acceptan ce of the Trade Facilitation Agreement and encourages its 
participation in initiatives such as on e -commerce and investment facilitation.  
4.30.   Canada also commends Ecuador for having achieved an agreement for long -term financing 
with the major IFIs, including the IMF.  
4.31.   Along with these promising initiatives and progress, there remain areas which would benefit 
from further focus by Ecuador.  
4.32.   Further reforms to reduce the cost of doing business are key to encouraging foreign 
investment. Canada also continues to cal l on Ecuador to boost competitiveness, diversify its exports 
and reduce its dependency on oil income.  
4.33.   Foreign -investment partners were disappointed with Ecuador 's termination of its bilateral 
investment treaties in 2017. Canada encourages Ecuador to take t he necessary legislative steps to 
establish new, modern, progressive bilateral investment protection and promotion treaties with 
investor -state dispute -resolution provisions.  
4.34.   In closing, we wish Ecuador a productive and useful third Trade Policy Review, an d we look 
forward to a constructive exchange of views this week.  
EL SALVADOR  
4.35.   It is an honour for El Salvador to participate in this transparency exercise. In these times of 
global uncertainty, in which the validity and relevance of the multilateral trading  system is constantly 
being called into question, this exercise helps to give Members a broad vision and deep knowledge 
of our trading partners' trade and trade -related policies.  WT/TPR/M/383 • Ecuador  
 
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  4.36.   Turning to the matter before us, on the economic front I wish to highlight Ec uador's good 
macroeconomic performance. The Ecuadorian economy grew at an average annual rate of 3.3% 
between 2011 and 2017, and the country maintained moderate inflation during the period under 
review. It should also be noted that, in 2017, GDP per capita  was USD 6,217, compared to 
USD 5,193 in 2011. The Ecuadorian Government's efforts to reduce poverty have led to significant 
decreases in the rates of poverty (from 29.6% in 2011 to 24.5% in 2018) and extreme poverty 
(from 12.4% to 9% over the same period) . 
4.37.   Like El Salvador, Ecuador has a dollarized economy, and thus has no monetary policy. This 
makes it difficult for the country to respond to external risks, and fiscal policy is therefore its main 
tool for macroeconomic adjustment.  
4.38.   During the period under review, oil remained Ecuador's leading export product. Exports of oil 
combined with those of mineral products, accounted in 2017 for approximately 36.7% of total 
exports. Agricultural products, led as in the past by bananas, were the country's second large st 
export, accounting for nearly one -fourth of total exports.  
4.39.   One of the challenges to be faced by the Ecuadorian Government going forward is to continue 
boosting initiatives for the diversification of exportable supply while decreasing the economy's 
depen dence on oil and bananas.  
4.40.   Bilateral relations between El Salvador and Ecuador are guided by a Partial Scope Agreement, 
in force since 2017. Key aspects of this Agreement include:  
• A cooperation component under which Ecuador will provide agricultural technic al assistance, 
particularly in respect of research concerning commodity crops and the management of water 
resources for agricultural use, and share its experiences of strategies for boosting the cacao 
sector.  
• The possibility for parties to use alternative mechanisms for international payments in 
connection with reciprocal trade operations conducted under the Agreement.  
• Once in force, the Agreement is expected to make it easier for Salvadoran importers to import 
Ecuadorian inputs for the production of shoes,  nectars and articles of aluminium. It also 
includes tariff benefits for imports of flowers, vegetables, cacao products, tyres, furniture and 
white goods.  
4.41.   We believe this instrument will strengthen trade relations between our countries.  
4.42.   Ecuador has been an  active participant in the multilateral trading system and, like El  Salvador, 
believes the system must be inclusive and fair, providing benefits for all and contributing to 
development. We congratulate Ecuador on the significant number of notifications it submitted to the 
WTO Secretariat during the period under review.  
4.43.   That said, we encourage Ecuador to ratify the WTO Trade Facilitation Agreement as soon as 
possible. The country has introduced a series of measures to facilitate trade, including the ECUAPASS  
electronic customs system and the Ecuadorian Single Window (VUE) (2018); a risk management 
approach to the procedure for carrying out checks; the use of automatic inspection and X -ray 
inspections; and the Authorized Economic Operator (AEO) programme.  
4.44.   We thank Ecuador for the answers to our questions, which we have transmitted to our 
authorities in San Salvador.  
4.45.   We wish Ecuador every success in this review.  
EUROPEAN  UNION  
4.46.   Ecuador 's 3rd Trade Policy Review since it joined the WTO in 1996 gives us an opportunity to 
take stock of the developments in Ecuador 's trade policies and practices since 2011. In these 8  years, 
we have seen several positive developments, and we are convinced that a prosperous and open 
Ecuador can only serve to the benefit of its r egion and the global community.  WT/TPR/M/383 • Ecuador  
 
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  4.47.   The EU would like to start by highlighting some of the major positive developments that we 
have seen during the review period.  
4.48.   First of all, we commend Ecuador´s efforts to address macroeconomic imbalances while 
protecting s ocial expenditures during the review period, which has resulted in declining poverty rates 
in Ecuador. However, we recogni ze that Ecuador keeps facing important challenges in its economic 
situation. We therefore encourage it to swiftly implement the announ ced economic reforms, in 
particular the recently approved Law on the Development of Production of 2018, as well as other 
measures aimed at containing the fiscal deficit.  
4.49.   We are also encouraged by Ecuador 's increasing openness to international trade. This includes 
the major step of concluding an agreement with the EU and thereby acceding to what is now the EU 
Colombia/Ecuador/Peru Trade Agreement. We also welcome the conclusion of a trade agreement 
with the European Free Trade Association (EFTA), and more r ecently a request by Ecuador to become 
an associate state of the Pacific Alliance.  
4.50.   We commend Ecuador for its positive engagement with the WTO, and its firm support to the 
multilateral trading system, including the joint initiatives on trade and gender an d MSMEs. We were 
glad to see that Ecuador has become the latest country to ratify the Trade Facilitation Agreement in 
January 2019 and encourage to proceed to implement it timely.  
4.51.   During the period under review, there have been major changes to the legal framework 
governing EU -Ecuador trade relations. As I referred to before, Ecuador has joined our Trade 
Agreement with Colombia and Peru on 1 January 2017. The Secretariat 's report recogni zes that the 
EU has become a more important trade partner of Ecuador o n both the import and export side. In 
fact, the implementation of the Trade Agreement with the EU since January 2017 has produced 
encouraging results.  
4.52.   To give two examples, bilateral trade between the EU and Ecuador has increased by 20% 
after the first ye ar of implementation of the Trade Agreement, reaching €5.32 billion compared to 
€4.4 billion in 2016. In 2017, Ecuador 's exports to the EU increased by 12% while EU exports to 
Ecuador increased by more than 30%. Ecuador has also addressed a number of bilat eral trade 
irritants raised by the EU under the institutional bodies established by the Agreement.  
4.53.   We are equally pleased to see a positive start to the implementation of the Trade and 
Sustainable Development chapter of the Agreement. The EU looks forward  to continuing its close 
cooperation with Ecuador in the further implementation of the Agreement. This will bring benefits 
on business, consumers and civil society in general for both sides.  
4.54.   As highlighted by a number of detailed questions that the EU sub mitted for the purposes of 
Ecuador 's TPR, there are also some areas where we believe there is scope for improvement, or where 
we believe Ecuador should pay special attention.  
4.55.   First, and as a general remark, we believe that there is still considerable scop e for the 
improvement of Ecuador 's business environment. We note that Ecuador has regressed in several 
classifications that relate to business climate, such as the Global Competitiveness index, or the "Ease 
of doing business " index. In that regard, we woul d refer to examples such as the comparatively high 
cost to start a business, or the absence of a bankruptcy law. We are convinced that renewed efforts 
in these areas would be beneficial to increase Ecuador 's competitiveness. Also, as Ecuador is seeking 
to attract higher levels of foreign direct investment, it is important to ensure a predictable and 
transparent business environment, which improves the investment climate and makes it easier to 
invest in Ecuador.  
4.56.   Secondly, a number of unjustified barriers or trade irritants would need to be addressed. As 
examples, I would point out two market barriers that the EU is particularly concerned about:  
• We have specific concerns with regard to discriminatory measures applicable in the spirits 
sector. The situation is that imported spirits are subject to the cost of a fiscal stamp on their 
bottles, while Ecuador exempts domestically produced spirits from any such cost.  WT/TPR/M/383 • Ecuador  
 
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  • EU operators also continue facing burdensome procedures for their exports of agricultural 
products. T hese include cumbersome tariff -quota management, long processes for the 
granting of import licenses, with some refusals being made on the grounds of the existence 
of national production.  
4.57.   In these two instances, we believe it is important for Ecuador to al ign itself with the best 
international trade practices.  
4.58.   Despite these specific trade issues, the EU would like to underline that we are making this 
statement in a highly positive and constructive tone. Overall, we salute the direction Ecuador and 
its curr ent Government is taking in its trade policy, and we are equally positive about where our 
bilateral trade relationship is heading. We thus encourage Ecuador to continue on this path and are 
looking forward to our future cooperation.  
4.59.   On behalf of the EU, I look forward to a constructive exchange of views during this review and 
I wish the delegation of Ecuador "mucho éxito " during its 3rd TPR.  
CHILE  
4.60.   Relations between Chile and Ecuador date back to the start of our independence in the 
nineteenth century. Since  then, the relationship between the two countries has been marked by 
growing cooperation and understanding, born of similar ideals and political views.  
4.61.   This is evidenced by the signing of a series of agreements, including the Partnership 
Agreement signed i n 2008, to strengthen and deepen bilateral relations grounded in our community 
of interests, our historical friendship and the principles of solidarity and equity.  
4.62.   With respect to trade relations, in 1994 Chile and Ecuador signed an Economic 
Complementarit y Agreement for the Establishment of an Extended Economic Area (ACE No.  32), 
which was deepened in 2008 through ACE No.  65. The objective of this Agreement is to establish an 
extended economic area between the two countries allowing for the free circulatio n of goods, 
services and production factors; the total elimination of levies; and the elimination of restrictions on 
imports originating in the signatory countries.  
4.63.   A Public Consultation Mechanism, established in 1990, provides a space for regular, ongoing  
dialogue on relevant aspects of the bilateral agenda and helps to realize commitments made in other 
forums.  
4.64.   Bilateral trade between our countries has a long history, the annual total having "peaked" in 
2013 at more than USD 3,000  million. The decline obse rved since 2015 explains the negative growth 
of 6.2% recorded for the 2012 -2017 period. Even so, Chile was the third largest destination for 
Ecuador's exports during the period under review.  
4.65.   Chilean investments in Ecuador now total nearly USD 700  million i n about 30 companies, 
many of them engaged in activities in the mining (hydrocarbon exploration activities), services, 
energy and industry sectors, generating significant numbers of jobs.  
4.66.   In terms of Ecuador's economic and trade performance, one of the sig nificant shifts that 
occurred in the Ecuadorian economy's sectoral structure during the review period was the oil sector's 
diminished share of GDP. That shift is a good sign, given the need to diversify the country's economy.  
4.67.   It should also be highlighted that Ecuador's GDP per capita rose by nearly 20% from 2011 to 
2017, to approximately USD 6,220.  
4.68.   Another positive reflection of economic growth during the review period was a decrease of 
more than 5% in the poverty rate, to 24.5% in 2018.  
4.69.   Ecuadorian authorities have taken important steps to strengthen their fiscal institutions and 
re-establish a competitive economy led by the private sector. The recently approved Law on the 
Promotion of Production makes some important improvements in fiscal policy. Th e changes go in WT/TPR/M/383 • Ecuador  
 
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  the right direction but could use some fine -tuning. We also recognize the important efforts being 
made to increase fiscal transparency, improve the legal framework for investors and facilitate trade.  
4.70.   Nevertheless, the Ecuadorian economy als o faced a series of pressures during the review 
period.  
4.71.   Under the effect of fluctuating international oil prices, combined with an increase in public 
expenditure, Ecuador recorded a fiscal deficit every year between 2011 and 2017. This resulted in 
an incre ase in public debt, an overvalued real effective exchange rate and vulnerabilities in the 
country's balance of payments.  
4.72.   While adjustments are now being made to gradually reduce the fiscal deficit, Ecuador had to 
take measures during the review period to d eal with the situation, including the adoption of a 
balance -of-payments safeguard between March  2015 and June  2017, which affected 38% of tariff 
lines, causing a significant reduction in imports.  
4.73.   Ecuador's notification to the WTO in 2015, stating that it h ad temporarily adopted an 
ad valorem  tariff surcharge to remedy critical balance -of-payments problems, had some unfortunate 
consequences for trade with our country, although this situation seems to have been reversing in 
recent years. While understanding t he need for such a measure, and recognizing the gradual 
adjustments being made in recent years, we encourage you to restore the MFN tariff levels in place 
in 2015 for some of the affected tariff lines.  
4.74.   We take this opportunity to underscore a point mention ed in the Secretariat's report: 
Ecuador's belief that trade should be inclusive and fair.  
4.75.   Ecuador also believes that it participates actively in the multilateral trading system, having 
among other things submitted a significant number of notifications duri ng the period under review.  
4.76.   That attests to the country's commitment to the rules -based multilateral system, which in our 
judgment represents a fundamental value, and we wish to highlight that.  
4.77.   It should also be mentioned that, while the prospects for econ omic growth and inflation are 
favourable for Ecuador, some structural problems still pose significant challenges, including the need 
to continue promoting economic diversification and reducing poverty levels, which, despite the 
progress made, remain high, posing a significant economic and social challenge. We trust that 
Ecuador will be able to contend with these problems in an appropriate and timely manner.  
4.78.   For this third review, Chile formulated 14 questions relating to our interest in improving 
bilateral trade relations. These questions referred to Ecuador's investment regime; its anti -dumping, 
countervailing and safeguard measures; measures affecting production and trade; 
telecommunications; and air transport and airports.  
4.79.   We thank Ecuador for the respons es provided and encourage it to maintain and, where 
appropriate, improve the communication channels that facilitate the mutual exchange of the 
information needed to nourish and deepen our trade relations.  
4.80.   To conclude, we wish Ecuador a successful trade pol icy review.  
BRAZIL  
4.81.   Ecuador has had a positive economic performance in recent years, with an average annual 
rate of GDP growth of 3.3% between 2011 and 2017, although there was some fluctuation during 
those years. With economic recovery underway in Brazil, there is potential for greater commercial 
dynamism and productive integration of our two economies.  
4.82.   Brazil notes with satisfaction that Ecuador implemented trade facilitation measures during the 
review period, such as single window and authorized economic operator, despite not having ratified 
the TFA. Nevertheless, Ecuador requires a number of pre -import control documents, including the 
register of importers, permits, prior import authorization, certificates of inspection or verification of WT/TPR/M/383 • Ecuador  
 
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  classification i ssued at origin, the customs destination document, certificates of recognition, and 
automatic and non -automatic licensing.  
4.83.   Ecuador also requires a certificate of recognition or Conformity Verification Certificate as a 
supporting document for the import cu stoms declaration for certain goods subject to technical 
regulations when the value exceeds USD 2,000. For textiles, clothing and footwear, there is no 
threshold, and the Conformity Verification Certificate is necessary in all cases. Brazil believes 
Ecuado r could benefit from streamlining and enhancing transparency and predictability of trade 
policy if such measures would abolished.  
4.84.   With regard to its trade multilateral obligations, Brazil encourages Ecuador to continue to 
increase transparency of its trade  policy. Tariff protection for agricultural products is substantially 
higher than that for non -agricultural products. Imports of agricultural products require a sanitary or 
phytosanitary import permit and may also require other prior control documents. Acc ording to the 
Secretariat, during the review period, certain agricultural products were subject to non -automatic 
import licences not granted in periods when domestic goods are being produced. In addition, Ecuador 
intervenes in the marketing of certain agri cultural commodities by establi shing "minimum support 
prices " to ensure that the producer gets a "fair price ", without providing much explanation about 
those terms.  
4.85.   Ecuador is a relevant partner for Brazil in the region. In 2017, Brazil was the fifth country that 
most exported to Ecuador, but only the 19th destination of Ecuadorian exports in the world. Last 
year, trade between the two countries returned to US$ 1 billion, a level not seen since 2012. In 
2018, the main products exported by Brazil to Ecu ador were rolled products of iron or steel, plastics, 
footwear, medicines and machinery. The main Ecuadorian products imported by Brazil were lead, 
prepared and preserved fish, cocoa products and cotton fabrics. In 2017, the stock of Brazilian 
investments in Ecuador was US D 97 million, while Ecuadorian investments in Brazil amounted to 
USD 6 million in 2016. There is potential to improve the bilateral trade and investments.  
4.86.   Another area where our trade relations needs a turnaround refers to the following: f rom 2017 
onwards, Ecuador initiated administrative procedures against the declaration of origin of Brazilian 
exports in the sectors of footwear, textiles, vehicles and steel products, in a clear and unjustified 
retaliation for Ecuador 's difficulties in exp orting shrimp and bananas to Brazil. In 2018, Ecuadorian 
shrimp and banana imports were allowed into Brazil but the unjustified origin investigations in 
Ecuador were maintained. Brazil believes Ecuador would benefit if those measures are removed and 
bilate ral trade flows were normalized.  
4.87.   Brazil requests that Ecuador immediately remove those measures.  
4.88.   Let me conclude  by thanking the delegation of Ecuador for the replies to Bra zil's questions 
and by wishing Ecuador a very successful Trade Policy Review.  
DOMIN ICAN  REPUBLIC  
4.89.   The Dominican Republic shares close ties of friendship with Ecuador, both being members of 
the same regional group (GRULAC) and of the WTO Group of Small and Vulnerable Economies. Trade 
between our two nations has increased over the years. In  2017, the value of the 
Dominican  Republic's exports to Ecuador, led by pharmaceutical products and cosmetics, reached 
approximately USD 23  million. The value of our imports from Ecuador, according to figures from 
"Trade Map", reached approximately USD 76  million that same year, led by tobacco and 
pharmaceutical products.  
4.90.   What stands out in this third review of Ecuador, in terms of economic performance, is the 
significant decline in the oil sector's share of GDP, which fell from 13.2% in 2011 to only 4.8% i n 
2017. The review period was also characterized by the increasing share of GDP attributable to 
services, led by construction, commerce, education, and social and health -related services. The most 
dynamic sectors during the period under review were aquacul ture and shrimp fishing. The 
agricultural sector is the country's second largest sector of economic importance, after petroleum.  
4.91.   The Ecuadorian economy grew at an average annual rate of 3.3% between 2011 and 2017. 
As described in the Secretariat's report, the United States dollar has been legal tender in Ecuador WT/TPR/M/383 • Ecuador  
 
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  since March  2000. Ecuador is therefore not able to implement an active and independent monetary 
policy, which limits its capacity to respond to external risks. Because of its dollarized economy, fis cal 
policy is the main instrument available to Ecuador for macroeconomic adjustment. This was the 
situation that obliged Ecuador to take measures to safeguard its balance of payments in 2015, having 
already contended with a significant reduction in revenue s owing to lower oil prices and the sharp 
depreciation of the dollar. We therefore congratulate Ecuador for having achieved its objectives and 
for having gradually scaled these measures back until they were eliminated in 2017.  
4.92.   We also congratulate Ecuador for the measures it has taken since 2012 to facilitate trade, 
such as: implementation of the ECUAPASS electronic customs system and the Ecuadorian Single 
Window (VUE) (2018); the introduction of risk management as the procedure for carrying out 
checks; the  use of automatic inspection and X -ray inspections; and the Authorized Economic 
Operator (AEO) programme. We urge them to deposit the instrument of ratification for the 
WTO Trade Facilitation Agreement as soon as possible.  
4.93.   The Secretariat's report also indicates that the applied MFN tariff in 2018 exceeds the bound 
rate for eight subheadings and six items. We urge Ecuador to correct this situation.  
4.94.   We are pleased to see that several changes were made during the review period  to the 
regulatory framework for plant and animal health in order to update national regulations and 
harmonize them with the international legal framework. We are pleased as well that the entities 
operating in this field were reformed. It is interesting to  see that the legislation on competition 
applies to all sectors of the economy, including the strategic sectors and those for which regulatory 
agencies exist. We congratulate Ecuador on these achievements.  
4.95.   We also see that the legal framework regulating in tellectual property rights (IPRs) underwent 
various changes during the review period. In 2016, Ecuador promulgated the Organic Code on the 
Social Economy of Knowledge, Creativity and Innovation (Code of Knowledge), which repeals the 
1998 Intellectual Prope rty Law (LPI) and establishes rules pertaining to industrial property, copyright 
and related rights, new plant varieties and traditional knowledge.  
4.96.   It is also a positive development that Ecuador made significant changes during the review 
period to its regu latory and institutional framework for services, including financial services, 
telecommunications and air transport. These reforms have undoubtedly had a positive influence on 
the growth in services as a share of Ecuador's GDP, which rose from 60.8% in 201 1 to 64.6% in 
2017, when it accounted for 62.2% of total employment.  
4.97.   The Dominican Republic has submitted a number of questions to Ecuador about measures to 
support the diversification of exports, the application of tariff surcharges, and various measures that 
regulate imports, among other topics. We thank Ecuador for its replies and wish it every success in 
this trade policy review.  
CHINA  
4.98.   China commends Ecuador on its efforts of developing their economies and witnesses an annual 
GDP growth rate of 3.3% bet ween 2011 and 2017. We are pleased to notice that the rate of poverty 
in Ecuador fell from 29.6% to 24.5% during the review period, while extreme poverty declined from 
12.4% to 9%. We are encouraged by the ambition of Ecuador in the National Development Pl an 
2017-2021, and believe that, with the concerted efforts of the government and people, Ecuador will 
achieve macroeconomic sustainability and advance the country 's development.  
4.99.   Ecuador has been a Member of the WTO since 1996. China commends Ecuador on it s actively 
participation in the multilateral trading system and its efforts of submitting a significant number of 
notifications.  
4.100.   China and Ecuador are friendly countries. A rapid and smooth progress has been witnessing 
in bilateral economic and trade rela tions. Ecuador is now the ninth biggest trading partner of China 
in Latin America, and China is the third biggest trading partner of Ecuador in the world. During the 
first eleven months of 2018, the bilateral trade increased 38.9% to reach US D 5.16 billion. China is 
the second main sources country of foreign direct investment into Ecuador, and has directly invested 
USD 107 million to all sectors of Ecuador last year.  WT/TPR/M/383 • Ecuador  
 
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  4.101.   According to the statistics, Ecuador has trade  deficit with China. In this re gard, we would 
kindly invite Ecuador to participate in the second China International Import Expo (CIIE) with a good 
will to increase China 's import from Ecuador.  
4.102.   Regarding the business environment, since the change of Ecuador 's government in 2017, 
the bus iness operation of many Chinese companies in Ecuador has been interfered due to the lack 
of policy continuity. Fortunately, feedbacks from some of the Chinese companies in Ecuador show 
that now their problems are on the process of being solved and their si tuation is improving. We 
encourage Ecuador to maintain a sustainable and predictable business policies for the foreign 
investors and enterprises, and further improve its trade and investment environment to make it 
more attractive to the business people.  
4.103.   To conclude, we would wish Ecuador delegation a full success review.  
GUATEMALA  
4.104.   Guatemala and Ecuador share a very similar history: that of multicultural and multi -ethnic 
countries with great ancestral heritages perpetuated and passed on from generation to ge neration.  
4.105.   For Guatemala, Ecuador is an important trading partner within Latin America that shares 
interests and ideals with us on several fronts in this Organization, particularly as members of the 
Group of Small and Vulnerable Economies. We are convinced that both countries will continue to 
build trust and work tirelessly to expand their strategic alliances, both here and in other regional 
forums.  
4.106.   In terms of the bilateral relations between Guatemala and Ecuador, 19  February marked the 
sixth anniversary of  the entry into force of the Partial Scope Agreement, signed by both countries.  
4.107.   In 2017, out of the top 50 trading partners for Guatemala, Ecuador ranked 29th in terms of 
exports and 28th in terms of imports. For Ecuador, Guatemala ranked 37th and 27th, respectively.  
4.108.   The main products that Guatemala imported from Ecuador were shrimp and lobster; 
petroleum products; electromechanical domestic appliances; plastic materials; machinery and 
mechanical equipment for electrotechnical use; items made of animal skin ; ceramic products; and 
edible fats and oils.  
4.109.   The main products that Guatemala exported to Ecuador, by order of importance, were 
insecticides, fungicides and disinfectants; prepared animal fodder; paper and cardboard; 
pharmaceutical products; various chemi cal industry products; sugars and sugar confectionery; 
sugar; manure and fertilizer; beverages, spirits and vinegar; and aluminium.  
4.110.   In terms of this review, it is important to underscore, as several previous speakers have 
done, the positive economic perfor mance observed in Ecuador since its previous trade policy review.  
4.111.   During the period covered this time, as indicated in the report, Ecuador has implemented an 
investment policy in all economic sectors, which has helped to boost national competitiveness and 
exports.  
4.112.   It is important to highlight Ecuador's National Development Plan for 2017 -2021, entitled 
"Toda una Vida", and its Prosperity Plan for 2018 -2021, both aimed at boosting competitiveness, 
developing strategic sectors as generators of income and jobs,  maintaining fiscal sustainability and 
dollarization, and enhancing anticorruption transparency measures, thereby contributing to 
economic, social and cultural well -being in the country.  
4.113.   We recognize the efforts made through legislative reforms in various areas of trade policy 
and the creation of new institutions that strengthen the State's dynamic role, such as the National 
Intellectual Rights Service  (SENADI), which is responsible for the administration and concession of 
intellectual property rights. Anot her notable achievement is the Code of Knowledge, which contains 
legal and administrative measures to ensure adequate protection for intellectual property rights and 
sanctions non -compliance.  WT/TPR/M/383 • Ecuador  
 
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  4.114.   Among the challenges highlighted in the Secretariat report, it i s worth emphasizing the 
importance for Ecuador of continuing to look for ways to enhance its business climate and strengthen 
its resilience to sudden changes in the global economy.  
4.115.   In conclusion, Guatemala's wish is that, in implementing its economic and trade policies, 
Ecuador may reap further success in terms of economic growth and development. Guatemala is 
confident that our two countries will continue to strengthen their commercial and neighbourly ties.  
4.116.   We appreciate the replies to our questions, which  we shall send to our capital for analysis.  
4.117.   Guatemala acknowledges Ecuador's efforts over the period covered by this report and wishes 
its delegation a successful conclusion to the country's trade policy review.  
PHILIPPINES  
4.118.   Ecuador 's economy underwent considerable changes during the period under review. The 
Ecuadorian economy grew at an annual average rate of 3.3% between 2011 and 2017, fluctuating 
between a GDP growth rate of 7.9% in 2011 and a 1.3% contraction in 2016.  
4.119.   The Philipp ines notes that Ecuador is a net exporter of agricultural products and its 
agriculture sector is valuable to its economy because of its contribution to GDP and employment. 
Agriculture also serves as its second -largest generator of foreign exchange after pe troleum.  
4.120.   The Philippines and Ecuador are both co -sponsors of the Joint Statement on MSMEs, thus we 
recognize the importance of Ecuador 's Under -Secretariat for MSMEs and Crafts in the Ministry of 
Industry and Productivity as it promotes the development of MSMEs through formulation of public 
policies and strategies to stimulate, formalize and boost the production capacity of micro, small and 
medium enterprises. It also creates production networks and chains that will help MSMEs integrate 
in domestic and inte rnational markets.  
4.121.   The Philippines has submitted some advanced written questions on Ecuador 's trade policy 
review reports, and we kindly thank the delegation of Ecuador in advance for their responses.  
4.122.   The Philippines looks forward to further enhancing th e mutually beneficial economic relations 
between our two countries through bilateral, regional, and multilateral fora.  
THAILAND  
4.123.   Thailand and Ecuador have growing bilateral trading relations. Ecuador is the sixth largest 
trading partner of Thailand in Latin  America, and Thailand is the second largest trading partner of 
Ecuador in ASEAN. Total trade between the two countries has steadily expanded in recent years. In 
2018, bilateral trade amounted to US D 279 million, increasing by 18% from 2017. Thailand hopes  
that our bilateral trade will help further strengthen economic relations.  
4.124.   Thailand welcomes the impressive growth of Ecuador 's per capita GDP of 20% from 2011 to 
2017. The rate of poverty fell during the review period from 29.6% in 2011 to 24.5% in 2018. 
However, poverty rates are still high and represent a significant economic challenge for Ecuador. In 
this regard, Thailand commends Ecuador 's consistent efforts t o improve income distribution.  
4.125.   Thailand welcomes Ecuador 's structural reforms aiming to stren gthen the production system, 
generate value added and spur innovation in order to reduce external vulnerability. Since 2012 
Ecuador has taken measures to facilitate trade, including the implementation of an electronic 
customs system and the Ecuadorian Sing le Window and the use of automatic inspections and X -ray 
inspections. In addition, Thailand congratulates Ecuador on ratifying the Trade Facilitation  
Agreement on 15 January 2019.  
4.126.   Although Ecuador has adopted several measures to facilitate trade, it has s till used a number 
of pre -import control documents, including the register of importers, permits, prior import 
authorization, and non -automatic licensing. Thailand would like to encourage Ecuador to consider 
simplifying such requirements in order to reduce  trade costs.  WT/TPR/M/383 • Ecuador  
 
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  4.127.   Thailand continues to value Ecuador 's contribution and commitment to preserving and 
strengthening the multilateral trading system. During the review period, Ecuador submitted a 
significant numb er of notifications to the WTO.  
4.128.   In this review, T hailand submitted a set of questions, covering the policies and measures of 
our interests, including the Andean Price Band System and the imposition of the 28% import 
surcharge of all tariff lines, which caused applied tariffs to exceed the bound levels. T hailand would 
like to thank Ecuador in advance for written responses.  
4.129.   In conclusion, we wish Ecuador a successful outcome in this Trade Policy Review. Thank you.  
UNITED  STATES  
4.130.   Much has changed in Ecuador since its last TPR in November 2011, and the United  States 
commends Ecuador for all that it has since achieved. Important steps have been taken by the 
government of Ecuador to integrate its economy into the global trading system. As the Secretariat 
report notes, regional integration continues with Latin Am erican and Caribbean countries through 
the Andean Community and the Latin American Integration Association, as well as through 
agreements with Guatemala, Nicaragua, and El Salvador.  
4.131.   As Ecuador 's number one trading partner, the United States has a growing commercial 
relationship with Ecuador. In 2017, total trade between the counties was approximately 
USD 11.2 billion. The United States had a goods trade deficit with Ecuador of USD 1.6 billion in 2017, 
a 16% decrease over 2016. U.S. goods exports to Ecuador were USD 4.8 billion, up 15 % from the 
previous year. Corresponding U.S. imports from Ecuador were USD 6.4 billion, up 5.3 %.   
4.132.   Since 2017, there have been notable policy improvements and we applaud the use o f 
macroeconomic policy to address structural imbalances in order to improve economic sustainability 
and advance development. The National Development Plan 2017 -2021 identifies a broad set of 
policies for reaching those objectives. Similarly, the 2018 Law o n the Development of Production 
contains marked improvements in the fiscal policy framework and efforts to increase fiscal 
transparency.  
4.133.   While an overdependence on oil export revenues has been a persistent concern in Ecuador, 
as it causes the economy to b e vulnerable to future external shocks, there has been a notable decline 
in the oil sector 's share of GDP during the period under review. In 2011, the oil sector 's share of 
GDP was 13.2 %, and by 2017, it had declined to barely 4.8 %. There was also notable growth in the 
share of services, which increased by several percentage points between 2011 and 2017. Like others, 
we appreciate that Ecuador took steps to phase out the trade measures it had in place using balance 
of payments justifications. Further, it is  commendable that Ecuadorian authorities have been able to 
strengthen fiscal institutions and work to re -establish a competitive private -sector driven economy.  
4.134.   We do have some specific concerns in this review. Since 2013, Ecuador 's Committee of 
Foreign Tr ade and the Ministry of Agriculture and Livestock have imposed a mandatory and 
cumbersome process for allocating import licenses for a number of agricultural products. The 
Ministry of Agriculture and Livestock does not grant import licenses automatically b ut rather issues 
them based on the level of domestic production relative to demand and reviews importers ' yearly 
import requirements. The United States would like greater clarity on how this Ministry determines 
whether to allocate import quotas.  
4.135.   The Secret ariat's report notes that 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. It further notes that when estimated ad valorem  equivalents 
(AVEs) are included, products subject to a rate over 45 % include clothing and other textile articles, 
which carry tariffs of up to 422.2 %. We would like greater clarity on the specific and compound tariff 
rates that result in exceptional ly high ad valorem equivalent tariff rates (AVEs) for textiles and 
apparel that exceed Ecuador 's tariff bindings, and we urge Ecuador to consult with other Members 
and the WTO Secretariat to bring its AVEs in line with its WTO commitments.  
4.136.   Ecuador has mad e good progress on intellectual property rights issues in the past year. We 
thank Ecuador for sharing draft regulations of the new Code of Knowledge and for participating in WT/TPR/M/383 • Ecuador  
 
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  technical discussions with U.S. government experts. We have specific questions on the implementing 
regulations of the Code of Knowledge, implementation plans for the Marrakesh Treaty, how 
regulations for compulsory licenses under the Code of Knowledge are consistent with TRIPS 
standards, how Ecuadorian law addresses geographical indicat ions, regulations for voluntary 
copyright registration, and enforcement of intellectual property rights.  
4.137.   The United States appreciates the opportunity to engage in this dialogue. We are committed 
to continue our growing trade and economic engagement with E cuador and support Ecuador 's 
progress along the path of global economic integration.  
COLOMBIA  
4.138.   For Colombia, Ecuador is a sister country sharing warm historical ties of friendship and trade 
with our own. It is no accident that in 2018 it ranked fourth as a destination for our exports and we 
ranked ninth as a destination for theirs. According to the Banco de la República, our central bank, 
investment in both directions exceeded USD  1,000  million, and binational tourist flows were 
estimated at nearly half a  million persons in 2018. Our free trade zone, which includes Peru and 
Bolivia, is nearly 30 years old and our trade institutions around 50.  
4.139.   The relationship between our countries has many dimensions and our peoples share 
historical and family ties. One might  well conclude that Ecuadorians and Colombians share a 
commitment to continue deepening our trade integration.  
4.140.   In terms of the progress observed in this review, Colombia welcomes Ecuador's decision to 
adapt its technical regulations to Andean provisions, facilitating trade flows and fulfilling its 
international commitments, including those set out in the Mutual Recognition Agreement with 
Colombia, in force since 2016.  
4.141.   The Secretariat's report also shows, however, in the case of products subject to plant and 
animal health requirements, that additional certificates are required and that obtaining them is a 
complex process. Colombia would be grateful to know how Ecuador is making sure that the 
administrative formalities required in that connection do not con stitute technical barriers to free 
trade in the products concerned.  
4.142.   The Secretariat reports further that Ecuador has bound its entire tariff schedule at rates 
ranging from 5% to 85.5%, but that the applied MFN tariff exceeds the bound tariff for 
eight subheadings and six items. It would be important for Columbia to have clarity about the legal 
and practical reasons behind this approach.  
4.143.   On the whole, Colombia considers the macroeconomic situation in Ecuador to be positive, 
but is concerned about delays in t he achievement of certain fiscal targets, as mentioned in the 
Secretariat's report.  
4.144.   Other noteworthy developments include the increase in GDP per capita, the country's success 
in reducing poverty, and the government's strategy for reducing the country's de pendence on world 
trade in certain raw materials, and most notably oil.  
4.145.   Colombian exports were affected during the review period by several administrative 
measures, including the balance -of-payments safeguard, the tariff service charge, the foreign 
exchang e exit tax (ISD), the restrictions imposed by the Organic Law on Communications  (LOC) and 
the "product surveillance measures". It is our hope that the corrections being made by the 
Government of Ecuador will help to avoid the reinstatement of such measures  and eliminate those 
still in place.  
4.146.   Uncertainty over whether such measures may be applied undermines the expectations that 
bilateral trade flows can be increased, and this is clearly an area where we must work together more 
actively. One way to avoid thes e pitfalls in the future is to integrate our industrial and service 
platforms more closely to create regional and global value chains. Ecuador's recent accession to the 
trade agreement between Colombia and Peru and the European Union offers an example of w hat 
may become an opportunity going forward. Ecuador's competitive agribusiness and fisheries sectors WT/TPR/M/383 • Ecuador  
 
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  warrant exploration as avenues for greater integration and interconnection between our countries 
and the global economy.  
4.147.   We cannot conclude without first wishing Ecuador a highly successful trade policy review and 
thanking Ambassador Aulestia and his team in Geneva for the excellent working relations and 
cooperation between our two missions.  
SINGAPORE  
4.148.   Singapore and Ecuador enjoy warm economic ties. Our bila teral trade and investment, while 
currently modest, has the potential to grow. Our total bilateral trade in goods in 2018 saw a 29.1% 
increase from the previous year, while our total trade in services in 2017 saw a 7% increase from 
the previous year. Our b ilateral agreements for the Avoidance of Double Taxation and for Air Services 
have also contributed to building links between our businesses and peoples.  
4.149.   We are encouraged by Ecuador 's efforts to promote a pro -business regulatory framework 
and conditions t hrough its National Development Plan 20172021. This includes policies to promote 
market competition and stimulate domestic and foreign investment. We also appreciate Ecuador 's 
good WTO notification record. We welcome Ecuador 's recent submission of its inst rument of 
ratification to the WTO Trade Facilitation Agreement (TFA) on 15 February 2019, and are pleased 
that Ecuador has submitted notifications for Category A, B and C. This will allow Ecuador to avail 
itself to the flexibilities and technical assistanc e opportunities built into the Agreement.  
4.150.   We are concerned that Ecuador 's applied tariffs rates appear to exceed bound rates for eight 
subheadings and six items. We call on Ecuador to bring its tariff regime into conformity with its WTO 
commitments as soon  as possible. This will bring greater predictability to trade. We also hope that 
Ecuador will ratify the Protocol amending the TRIPS Agreement in the near future and encourage 
Ecuador to consider joining as an observer to the Government Procurement Agreeme nt (GPA) 
Committee.  
4.151.   Thank you, and we wish Ecuador every success in its 3rd Trade Policy Review.  
INDIA  
4.152.   During the period under review, the structure of Ecuador 's economy has undergone 
considerable changes. There was notable decline in the oil sector 's shar e and growth of services 
sector driven by construction, trade, education, health and other services in the economy. The 
annual average growth rate of Ecuador 's economy was 2.3% between 2011 -17, though with 
fluctuations in growth ranging from a high of 7.9%  in 2011 to a low of 1.3% in 2016. GDP per capita 
has also registered a growth and stood at USD 6217 in 2017 and the poverty rates have also 
declined. However, as a small economy, Ecuador also faces challenges which include high 
dependence on oil revenue, vulnerability to external risks, diversification of the economy and 
addressing human development indices including poverty and other social indicators. We commend 
the Government of Ecuador for the various measures it is taking to address these challenges f or 
promoting growth and investment which include the national development plan 2017 -21 "A Lifetime " 
based on broad based pillars of "rights for all ", "economy at the service of society " and "more society 
and better state ".  
4.153.   India and Ecuador share warm, close and friendly relations with regular political and 
economic exchanges. The bilateral trade between both countries stood at USD 474 million in 
2017-18. There is a considerable potential for promoting trade between both countries in areas 
including auto mobiles, pharmaceuticals, electrical machinery, chemicals, plastics, gems and 
jewellery, iron and steel, aluminium and other products. Regular exchanges of visits of business 
chambers of both countries are also taking place.  
4.154.   India has a vibrant developmen t partnership cooperation with Ecuador. For capacity building 
and human resources development, India is regularly offering scholarships to Ecuadorian 
professionals in various fields under India 's Economic and Technical Cooperation programme. A 
Centre of Ex cellence in Information Technology has also been established under an MoU between 
both countries at the Northern Technical  University in Ibarra.  WT/TPR/M/383 • Ecuador  
 
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  4.155.   We have raised a few questions and the responses received will be reviewed by our 
authorities. We also hope Ec uador will address some issues impacting the trade between both 
counties, especially the high tariffs in textile and other measures for facilitating trade and investment 
between India and Ecuador.  
4.156.   To conclude, we look forward to working closely with the a uthorities of Ecuador for further 
expanding and harnessing the potential of our trade and investment ties for mutual benefit. We wish 
the delegation of Ecuador a productive and successful TPR.  
TURKEY  
4.157.   We are pleased to see that during the review period, the  GDP per capita of Ecuador increased 
almost 20% and poverty rate decreased considerably.  
4.158.   However, Ecuador also faced serious challenges and macroeconomic imbalances during the 
same period. Due to a bottleneck on balance of payments (BOP), Ecuador needed t o apply a BOP 
safeguard measure between 2015 and 2017, affecting the imports in almost 40% of the tariff lines, 
which was the most important issue regarding trade policy of Ecuador during the review period. We 
should also note that the general level of imp ort tariffs has also increased during the review period.  
4.159.   We observe that the main challenge of the Ecuadorian economy is its commodity -dependent 
structure, which renders the economy vulnerable against the commodity price fluctuations in the 
world markets.  
4.160.   Against this background, we see that since 2013, developing the manufacturing industries 
has become a priority for the Government and several policy actions have been taken for widening 
industrial base, transforming the economy towards diversification and guiding economic activity to 
higher  value -added production. In this regard, we observe that the Industrial Policy Plan for the 
period between 2016 and 2025 is a good blue -print.  
4.161.   For diversification, we also would like to underline the crucial role of inves tment and note 
recent legal and institutional reforms in Ecuador. We are of the view that improvement in investment 
environment would reveal the real potential of the country and increase the attractiveness of the 
economy.  
4.162.   We believe that ratification and  smooth implementation of the Trade Facilitation Agreement 
also would help Ecuador in these terms.  
4.163.   Ecuador is an important partner for Turkey in the region.  
4.164.   However, while Turkey 's imports from Ecuador have been stable during the review period, 
Turkey 's exports to Ecuador declined almost 25% as of 2017 compared to 2011, which was mainly 
because of the Balance of Payment safeguard measures of Ecuador. We need to explore ways to 
change this trend upward, through policies encouraging stronger commercial li nks between our 
countries.  
4.165.   In this sense, we look forward for further developing the institutional framework of bilateral 
economic relations and our bilateral cooperation in all possible areas both in bilateral and multilateral 
fora. 
4.166.   We would like to wish Ecuador a successful review.  
COSTA  RICA 
4.167.   Costa Rica is pleased to participate in this Trade Policy Review of Ecuador, a country with 
which we maintain both cultural and commercial ties.  
4.168.   Our bilateral trade with Ecuador grew at an average annual rate of 8.5% between 2009 and 
2018, rising from USD 37  million in 2009 to USD 77  million in 2018. During that same period, exports 
and imports grew at average annual rates of 6.5% and 11.4%, respec tively. Within South America, WT/TPR/M/383 • Ecuador  
 
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  Ecuador ranks second as a destination for Costa Rica's exports, while investments in our country 
from Ecuador (in real estate), totalled USD 20  million, again for the same period.  
4.169.   Turning to this specific review, we would sing le out the efforts made by Ecuador to increase 
the stability of its economy, particularly when under the stress of falling prices for hydrocarbons, 
the main source of income for Ecuador's economy. We take a positive view of the transition being 
made by the  Ecuadorian Government from one economic model (focused primarily on public 
investment) to another (focused more on private investment, domestic as well as foreign).  
4.170.   The promulgation of the Law on the Promotion of Production , together with the boost given 
to investments by the PPP framework, count among the measures taken to improve the country's 
investment climate based on the government's new economic model.  
4.171.   Other measures being taken to better integrate Ecuador into the international economy, and 
which a re an essential part of trade policy, include trade facilitation measures implemented by the 
Ecuadorian Government such as the Ecuadorian Single Window, the Authorized Economic Operator 
(AEO) programme and the electronic customs system. We are pleased to n ote that Ecuador recently 
deposited the instrument of ratification for the Trade Facilitation Agreement, which will help further 
improve the country's trade and investment climate.  
4.172.   Services account for a significant share of Ecuador's GDP and are an import ant source of 
jobs. However, despite changes introduced in the telecommunications and financial services sectors, 
the market is still dominated by a small number of companies. It would be useful to know if Ecuador 
has plans to introduce additional reforms in those sectors to encourage broader participation in the 
market.  
4.173.   As indicated in the Secretariat's report, Ecuador applied a temporary balance -of-payments 
safeguard between March  2015 and June  2017 to remedy critical problems in its balance of 
payments a nd correct the lack of liquidity then being experienced in the country's economy. At the 
time, Costa Rica expressed concerns about how this measure might affect trade, and urged caution. 
We believe such instruments should be used sparingly by the Members o f this Organization. We are 
therefore pleased to see that Ecuador has gradually dismantled this measure, following a timetable 
proposed and discussed in the Committee on Balance -of-Payments Restrictions.  
4.174.   With respect to its energy policy, we take note of t he intention of the Ecuadorian Government 
to reduce the use of fossil fuels and promote substitution for non -renewable sources. Could Ecuador 
share more information about the public policies designed to achieve this?  
4.175.   Lastly, we wish to express our interest  in working hand -in-hand with our Ecuadorian brothers 
and sisters to further deepen our trade and investment relations for the benefit of our countries. We 
wish Ecuador every success in this trade policy review.  
PERU 
4.176.   Peru and Ecuador are sister countries w ith deep historical ties and a very close relationship. 
Since 1998, when the Brasilia Peace Accords were signed, that relationship has improved by great 
strides. Cooperation has been diversified and borne fruit in wide -ranging fields, including joint 
water shed management, development in border areas, security, cultural exchange and, of course, 
the promotion of investment and trade. Our relations are currently at a very high point, as evidenced 
by the regular mechanisms we have maintained since 2007 for poli cy dialogue and cooperation at 
the presidential and ministerial levels. Known as binational cabinets, they have become a valuable 
model for coordination that has been replicated in several of our bilateral endeavours.  
4.177.   Both of our countries are members of C AN and LAIA, which help to strengthen regional and 
subregional trade, production chains and competitiveness. Our trade in goods within CAN has been 
totally exempt from tariffs for many years.  
4.178.   It is therefore natural that the trade between our countries is considerable and growing, 
exceeding USD 2,300  million in 2017. The goods we trade are highly diverse and largely 
manufactured, which is beneficial for our industries and for job creation. At the same time, as WT/TPR/M/383 • Ecuador  
 
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  discussed in the reports prepared for this revi ew, the private sector in each country has reciprocally 
invested in the other, deepening our economic integration still further.  
4.179.   Against the backdrop of this broad and promising economic and commercial relationship, we 
welcome with great anticipation Ecuad or's interest in joining the Pacific Alliance. We are prepared to 
work with Ecuador and members of the Pacific Alliance to tighten this important and strategic 
relationship.  
4.180.   During the period under review, particularly between 2015 and 2017, Ecuador impose d a 
balance -of-payments safeguard measure that adversely affected our bilateral trade, and particularly 
Peruvian exports of handicrafts, textiles and agricultural products. Peru therefore invites Ecuador to 
thoroughly verify the requirements of the General  Agreement on Tariffs and Trade (GATT) 1994 
when adopting this type of measure.  
4.181.   Peru notes with satisfaction Ecuador's favourable economic performance during the review 
period, including the increase in GDP, the decrease in poverty, the development of majo r 
infrastructure and the massification of renewable energy sources. We also express our hope that 
Ecuador's Prosperity Plan for 2018 -2021 will achieve its objective of establishing a solid institutional 
framework less dependent on debt and fiscal policy, a s indicated in Ecuador's report for this review. 
With respect to trade, Ecuador has confirmed its intention to accede to the Multiparty Trade 
Agreement with the European Union, to which Colombia and Peru are also States parties. We are 
pleased to note that , according to the Ecuadorian Government's estimates, signature of this 
agreement will enable it to accelerate its economic growth and create numerous jobs. We also take 
note of Ecuador's interest in soon negotiating preferential trade agreements with seve ral of its 
principal trading partners. Peru recognizes the important steps taken by Ecuador with respect to 
trade facilitation, including implementation of the single window for foreign trade formalities and 
establishment of the electronic customs system " ECUAPASS". That said, we call upon Ecuador to 
step up its efforts to improve the country's tariff procedures for imports at entry so as to make its 
regime more favourable to trade. We take this opportunity to highlight Ecuador's recent ratification 
of the WTO Trade Facilitation Agreement, which represents an important gesture in terms of 
sustaining the multilateral trading system.  
4.182.   Lastly, Peru is confident that by staying on the path of integration, cooperation and dialogue, 
both of our countries can achiev e better economic results in the years ahead, for the benefit of all 
of our citizens. With that intention in mind, I have only to wish Ecuador a successful trade policy 
review.  
ARGENTINA  
4.183.   Argentina is pleased to see that the contraction observed in various sectors and economic 
activities owing to Ecuador's balance -of-payments crisis did not prevent the country's economy from 
growing at an average rate of more than 3% during the review period.  
4.184.   Argentina joins the IMF in recognizing the efforts Ecuador has mad e to improve its legal 
framework for investors. We were, in fact, one of the country's leading investors during the review 
period.  
4.185.   We also wish to highlight the measures taken by Ecuador since 2012 to facilitate trade, 
including the electronic customs syst em ECUAPASS, the Ecuadorian Single Window and the 
Authorized Economic Operator programme  in 2018. In the same vein, we welcome Ecuador's recent 
ratification of the Trade Facilitation Agreement.  
4.186.   Bilaterally, we share a positive agenda with Ecuador. In the c ontext of cooperation financed 
through the Argentine Fund for South -South and Triangular Cooperation (FOAR), Ecuador is one of 
the eight countries that have received the most technical cooperation from Argentina. The 
Third Bilateral Cooperation Programme ( 2017-2019) now in effect supports technological and 
productive innovation, agribusiness and social development.  
4.187.   While expressing our appreciation of this fresh opportunity to exchange information and 
reflections on Ecuador's trade policies and practices, we again draw attention to the importance of WT/TPR/M/383 • Ecuador  
 
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  this exercise in transparency, in all its aspects. We wish the autho rities of Ecuador a successful 
conclusion to this review.  
MALAYSIA  
4.188.   Malaysia applauds Ecuador 's effort in keeping the various programs to strive its economy, 
while facing a challenging period throughout the review period which saw the decline in growth, yet  
the ability to reduce the poverty rate, which Malaysia commends Ecuador on this. Additionally, we 
recognize the impact of the challenging global macroeconomic environment on Ecuador 's economic 
performance in throughout 2011 to 2017.  
4.189.   In 2018, Malaysia 's total trade with Ecuador amounted to USD  159.4 million, increased by 
2.4%. Malaysia is among the 4th largest trading partner among ASEAN member countries with 
Ecuador. Ecuador was Malaysia 's 9th largest trading partner among the Latin American Countries. 
Main good traded between Malaysia and Ecuador include rubber product, electrical and electronic 
product and crude petroleum among others.  
4.190.   At the multilateral front, we commend the efforts by Ecuador for the ratification of the Trade 
Facilitation Agreement. W hile so we note that Ecuador has yet to accept the amendments to the 
Protocol Amending the Agreement on Trade -Related Aspects of Intellectual Property Rights (TRIPs 
Agreement). As such, we encourage Ecuador to accept the amendments to the protocol. While 
ensuring that the issues under Doha are being pursued, we note that Ecuador is as Malaysia, 
subscribes to the Joint Statement adopted at the previous 11th Ministerial on MSMEs and such 
Malaysia looks forward to working closely with Ecuador and all other Mem bers on moving these 
initiatives forward in the WTO.  
4.191.   We would also like to express our appreciation to the Permanent Representative of Ecuador, 
Ambassador Diego Aulestia and his committed team for their tireless efforts and constructive 
engagement with oth er delegations here in Geneva. We wish Ecuador for a productive and successful 
third Trade Policy Review.  
SRI LANKA  
4.192.   We observe that during the period under review, the Ecuadorian economy has been able to 
maintain an average economic growth of 3.3%, despite  the formidable challenges the economy 
underwent, including the oil price decline and tragic natural disasters. We also observe that services 
sector has increased its share in GDP to nearly two -thirds, and contributing to employment by 62%. 
It is interesti ng to note the self -defined limitations set by the Ecuadorian Government, such as a 
limitation on Central Government expenditure and the limit for public debt to GDP. Though some of 
these set targets are difficult to achieve, we believe that these practice s bring certain disciplines on 
well economic functioning. Going through these set targets and through effective functioning of new 
laws which target fiscal adjustments, will therefore guarantee the intended fiscal stability of Ecuador.  
4.193.   On multilateral fro nt both Ecuador and Sri Lanka share similar concerns on many subject 
issues. As small and vulnerable economies, the challenges both countries face at multilateral and 
national front, are similar. The Trade Facilitation Agreement welcomed Ecuador as the lat est member 
to ratify it in January 2019. We encourage the Government of Ecuador to fulfil other obligations 
embedded in the Trade Facilitation Agreement, sooner, including simplification of documents needed 
for importation and relaxation of import procedur es. It was interesting to hear during Deputy 
Minister 's introductory remarks in the morning that most of the TFA provisions are already in place 
in Ecuador. However, it is with concern we note that the average applied tariff of Ecuador has 
increased slight ly from 9.3% in 2011 to 12.2% in 2018.  
4.194.   The bilateral trade between Ecuador and Sri Lanka stands at a very moderate level, but with 
an increasing phase. Sri Lanka 's export to Ecuador is dominated by Ceylon Cinnamon followed by 
pneumatic tyres and some rubbe r and apparel articles. Sri Lanka and Ecuador established Diplomatic 
relations in 2011 and both countries have shared perspectives and common interests on many 
regional and global matters.  
4.195.   In concluding, my delegation appreciates Ecuador 's contribution to the multilateral trading 
system. In this regard, the role played by Ambassador Diego Aulestia, the Permanent Representative WT/TPR/M/383 • Ecuador  
 
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  of Ecuador to the WTO and his team is commendable. Ambassador Aulestia is playing an excellent 
role as the Chair of the Committee of  Trade and Development in the WTO. I also wish the delegation 
of Ecuador a successful deliberation at this third trade policy review.  
URUGUAY  
4.196.   Our country wishes to start by congratulating Ecuador on the increased share of its GDP 
devoted to services during  the review period, boosted by the performance of construction, 
commerce, education, social services and health, with aquaculture and shrimp fishing representing 
the most dynamic activities.  
4.197.   We also welcome the country's diversification of exports in non -traditional markets, the 
increase in its per capita GDP and the significant number of notifications it submitted to the 
WTO Secretariat during the review period.  
4.198.   We note that during the same period the poverty rate declined from 29.6% in June  2011 to 
24.5% in June  2018, with extreme poverty falling from 12.4% to 9%. Despite fluctuations, the 
Ecuadorian economy grew by an annual average of 3.3% between 2011 and 2017, with only 
moderate inflation during the period under review.  
4.199.   We also note, however, that the simple average  for Ecuador's applied MFN duties rose 
between 2011 and 2018 and that the tariff protection provided for agricultural products is 
substantially greate r than that for non -agricultural products.  
4.200.   Uruguay's exports to Ecuador in 2017 totalled USD 13  million, a 41% increase on the 
previous year, and we ranked 14th that year in the list of Latin American suppliers to the Ecuadorian 
market. Over the entire review period, Uruguay's imports from Ecuador widely exceeded its exports 
to the country.  
4.201.   Uruguay's main exports to Ecuador are antiserums, medicines, insecticides  and cleaning 
products. Our main imports from the country consist of food products, including bananas, prepared 
fish products, crustaceans and dates.  
4.202.   It should be highlighted that on 15  January, Ecuador deposited its ratification instrument for 
the Trade F acilitation Agreement, and that since 2012, it has implemented the electronic customs 
system, the single window and the Authorized Economic Operator programme.  
4.203.   While Ecuador has taken measures to facilitate trade, the Secretariat reports that the country 
also requires various control documents prior to importation, including the register of importers, 
prior import authorization , and certificates of recognition . 
4.204.   From a multilateral standpoint, we share the vision that the multilateral trading system 
should b e inclusive and fair, disseminating benefits to all economic operators, including MSMEs.  
4.205.   We note that Ecuador provides incentives for MSMEs, including preferential financing 
mechanisms, access to public procurement processes and facilitated procedures for the 
establishment of businesses. The country implemented various public policies and strategies during 
the review period to help MSMEs penetrate international markets.  
4.206.   To conclude, I wish to recognize the outstanding job being done by Ambassador Diego Aule stia 
as head of the Mission in Geneva and as Chairperson of the Committee on Trade and Development.  
4.207.   Uruguay wishes Ecuador every success in its third Trade Policy Review.  
REPUBLIC  OF KOREA  
4.208.   We highly value Ecuador 's active participation in the multilateral trading system and all the 
efforts the Government has taken to moderate the effects of external shock which includes the 
decline in oil prices and the earthquake in 2016. Ecuador 's economy showed some recovery in the 
short term, but the low growth trend is  expected to continue. Hence, we support Ecuador 's policy WT/TPR/M/383 • Ecuador  
 
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  reforms to improve the investment climate and promote private sector participation to overcome 
the difficulties ahead.  
4.209.   Korea and Ecuador have been building a solid bilateral relationship, especially since 
Ecuador 's presidential visit to Korea in 2010. In recent years, Korea has increased its imports of 
Ecuador 's agricultural and fishery products such as shrimp, banana and other resources including 
copper. Ecuador has increased its imports o f automobiles, automobile parts and organic compounds 
from Korea.  
4.210.   We understand the Government of Ecuador has been working on a proposal to reform the 
national quality system so that it meets the needs of the production sector in terms of regulations 
and quality, all aimed at providing legal certainty, confidence and transparency. Also, we believe the 
starting point of the reform process should be the country 's current regulatory framework as well as 
the WTO Agreement on Technical Barriers to Trade and int ernational agreements on technical 
regulations.  
4.211.   In this context, Korea would like to ask Ecuador to consider easing the application of 
excessive quality certification schemes for Korean medicines and flour -based products.  
4.212.   On 14 June 2018, Ecuador 's Natio nal Agency of Regulation, Control and Sanitary Supervision 
(ARCSA) redefined its internal regulations regarding the homologation process for medications from 
abroad, thereby affecting the confirmation procedures for Korean medications.  
4.213.   The ARCSA allows onl y five active principles, or Active Pharmaceutical Ingredients (API), 
from anywhere in the world to be homologated. Thus, when the condition of the homologation of 
five active ingredients has already been met, this restricts the homologation of new active principles 
that Korea has developed, representing a barrier to entry of Korean medicines into the Ecuadorian 
market.  
4.214.   Meanwhile, according to the technical regulations of the Ecuadorian Service for 
Standardization (INEN), the ingredients of imported flour -based products must include thiamine, 
niacin ingredients, minerals, iron ingredients, etc. In addition, the product must be labelled  as 
"nutritionally fortified " flour. Due to these regulations, Korean manufacturers of products such as 
ramen and cookies have had difficulty exporting their products to the Ecuadorian market. In general, 
Korean ramen and other flour -based products do not contain the nutritional compo nents specified 
above.  
4.215.   It is also our hope that Ecuador will continue to actively participate in helping strengthen the 
WTO multilateral trading system. With this, I would like to conclude by expressing my sincere 
appreciation to the Ecuadorian delegation  for its hard work and wish Ecuador every success in its 
third TPR.  
JAPAN  
4.216.   We would like to welcome the long -standing close relationships between Japan and Ecuador. 
Specifically, 2018 was the year of 100th anniversary of the establishment of diplomatic rela tions 
between Japan and Ecuador.  
4.217.   Despite the economic contraction triggered by the balance of payments crisis in 2015 and 
2016, in this review period Ecuador achieved a significant increase in per capita GDP, as well as a 
decrease in the poverty rate. The  poverty rate is still high, however, and the fiscal deficit has not 
been decreased as planned in Ecuador. Also, if the current account deficits Ecuador is facing 
continue, the country may be inclined to impose greater regulations on imports.  
4.218.   In order to facilitate development of domestic industries, we believe that Ecuador should 
adopt macro -economic policies to further open up its economy for competition and provide incentives 
for foreign investment. In this regard, we encourage Ecuador to enhance the pr edictability and 
transparency of the market. Therefore, we welcome Ecuador 's continuous efforts to submit 
notifications to the WTO. Also, it is important to develop a solid foundation for effectively protecting 
IPRs. In this regard, we truly appreciate the  recent significant changes in the legal framework for 
IPRs in Ecuador, and expect a full and swift transition to the new framework.  WT/TPR/M/383 • Ecuador  
 
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  4.219.   In general, we appreciate Ecuador 's active participation in the multilateral trading system. 
And we understand that the dev elopment dimension is crucially important for Ecuador. At the same 
time, we encourage Ecuador to make further commitments to the WTO agreements in order to 
effectively sustain the multilateral trading system.  
4.220.   For example, we appreciate Ecuador 's efforts f or trade facilitation such as its implementation 
of an electronic customs system as well as the single window system. Also, we truly appreciate that 
Ecuador has recently submitted its instrument of ratification of the Trade Facilitation Agreement 
(TFA).  
4.221.   Meanwhile, Ecuador is not a party to the Government Procurement Agreement (GPA). In 
order to reduce its fiscal deficits to 2.3% of GDP by 2021, Ecuador has to avoid discretionary action 
in public procurement and ensure the quality and transparency of public  expenditure. In this respect, 
we believe it is beneficial for Ecuador to join the GPA.  
4.222.   Additionally, we appreciate Ecuador 's active engagement in some of the joint statement 
initiatives based on agreements at MC11 in Buenos Aires in December 2017. Taking  this opportunity, 
we encourage Ecuador to participate in the joint statement initiative on electronic commerce as well, 
as we strongly believe electronic commerce will bring benefits to Ecuador 's economy such as 
increased employment and greater competitiv eness of its services sector, which corresponds to over 
60% of the country 's GDP.  
4.223.   In conclusion, we are sure that Ecuador will be well placed to continue pursuing open, 
transparent and non -discriminatory markets by observing its commitments to the WTO. We  wish 
Ecuador a successful and productive TPR, and look forward to hearing of further progress regarding 
its trade and investment policies at its next TPR.  
INDONESIA  
4.224.   This review process is important to Indonesia, for Indonesia has been forging a mutually 
beneficial trade relationship, with Ecuador. In the five years between 2013 and 2017, our bilateral 
trade, in non -oil products, has recorded a positive trend of 6.97% per annum. This positive trend 
becomes significant in the time period between 2017 and 201 8, where total bilateral trade improves 
by 53.87%. And in the that 2017 and 2018 years, our bilateral trade balance went in favour of 
Ecuador. So , excellency Vice -Minister, I see a bright future in our trade relationship, and much scope 
yet to be explored.  
4.225.   Indonesia applauds Ecuador for its tireless endeavour  in restoring macroeconomic stability. 
There are a handful indicators of success to this noble quest, as demonstrated, amongst others by 
a notable decline in the oil sector 's share of GDP; a growth in t he share of services in GDP; a rise in 
per capita GDP as compared to previous years; a decline in the rate of poverty; a decline in extreme 
poverty; and a moderate level of inflation.  
4.226.   Indonesia takes note of the trade and industrial policies that Ecuador h ad undertaken during 
the review period. Not only because these policies served as valuable lessons, but also because 
some of them were uniquely applied. In conclusion, my delegation wishes the delegation of Ecuador 
success in this trade policy review.  
PANA MA 
4.227.   Panama takes this opportunity to highlight the progress Ecuador's economy has made during 
the period under review. Along with other Members, we expressed concern about the 
balance -of-payments measures applied by Ecuador between 2015 and 2017. Panama mus t therefore 
now applaud, as we did at the time, the country's decision to eliminate those measures according 
to a timetable established in the Committee on Balance -of-Payments Restrictions.  
4.228.   It should be noted that the country's air transport services sector underwent some important 
changes during the review period, including the adoption in 2018 of an air traffic liberalization policy.  WT/TPR/M/383 • Ecuador  
 
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  4.229.   COPA, Panama's main airline, has been operating out of Quito and Guayaquil for 25 years, 
with up to nine flights daily  from Panama City. Among the foreign airlines serving Ecuador, COPA 
offers the greatest number of flights and seats, accounting for 17.5% of the market.  
4.230.   Bilateral trade between our countries was particularly robust in 2017, when it grew by 22% 
from 2016, w ith imports and exports increasing to USD  55.6 million and USD  2.3 million, 
respectively.  
4.231.   Ecuador makes significant use of the Panama Canal. Between 75% and 80% of the country's 
exports pass through it, heading mainly to markets in Europe and on the East C oast of the 
United  States.  
4.232.   Panama and Ecuador share a vision of, and both participate actively in, the multilateral 
trading system, seeking to help foster inclusive and fair trade and promote development. We wish 
to highlight Ecuador's recent ratification of the Trade Facilitation Agreement and measures to 
facilitate investment. We also recognize Ecuador's active participation in WTO negotiations, 
particularly those concerning rules for eliminating fisheries subsidies; its recent initiatives and 
discussions  on MSMEs and the promotion of investments for development; and the outstanding work 
being done in general by Ecuador's mission in Geneva.  
4.233.   Panama stands ready and willing to strengthen our cooperation with Ecuador, with a view to 
promoting trade and invest ment between our countries. We wish Ecuador every success in this 
review.  
HONDURAS  
4.234.   Amongst other things, Ecuador and Honduras share many common goals, including the 
promotion of social welfare and economic development. We are pleased to note that Ecuadoria ns 
make up the second largest community attending the El Zamorano Pan -American Agricultural School 
in Honduras, which reaffirms the ties of friendship that exist between our countries.  
4.235.   In terms of our bilateral relations, our countries seek to deepen integ ration and 
complementarity within a bilateral framework that promotes the expansion and diversification of 
trade, trade cooperation and economic complementarity. Both countries have shown interest in 
completing the negotiations on the Partial Scope Economi c Cooperation Agreement now under 
discussion.  
4.236.   We hope to consolidate and strengthen our bilateral trade, which is already significant. 
Imports to Honduras from Ecuador totalled approximately USD 60  million, and consisted principally 
of mineral fuels , miner al oils and products of their distillation; bituminous substances; plastic and 
plastic manufactured goods; pharmaceutical products; and residues and waste from the food 
industries. Exports from Honduras to Ecuador totalled about USD 23  million, consisting of coffee, 
tea, mate and spices, lead and articles thereof, tobacco and manufactured tobacco substitutes, 
among others.  
4.237.   Our countries also share positions within this Organization. For instance, regardless of the 
outcomes of our negotiations, it is imperat ive that we give priority to development and to special 
and differential treatment, allowing flexibility for developing and least developed countries.  
4.238.   Turning to the reports, we note some significant shifts in the sectoral structure of Ecuador's 
economy an d see an increased share of GDP from services, led by construction, commerce, 
education and social services and health. Overall, the share of services increased from 60.8% in 
2011 to 64.6% in 2017. Services accounted for 62.2% of total employment in 2017 c ompared to 
61.1% in 2011.  
4.239.   Hydrocarbons continue to serve as a pillar for Ecuador's economy, contributing more to the 
State budget and generating more foreign exchange than any other sector. Agriculture also 
continues to be important, in terms of its contri bution to GDP and employment and as the second 
largest generator of foreign exchange, after oil.  WT/TPR/M/383 • Ecuador  
 
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  4.240.   We note that Ecuador made significant changes during the review period to the regulatory 
and institutional framework for its financial, telecommunications and air transport sectors, among 
others.  
4.241.   We also see that the country's regulatory structure captures the essence of the 
Basel  Committee objectives. It has strengthened the prudential requirements for controlled financial 
entities and laid the groundwork for t hem to strengthen their internal risk management processes.  
4.242.   Lastly, we are pleased to see that Ecuador's poverty rate declined during the review period, 
from 29.6% in June  2011 to 24.5% in June  2018, with extreme poverty falling from 12.4% to 9%.  
4.243.   Honduras congratulates Ecuador for its significant achievements during the review period 
and wishes the country every success.  
BENIN 
4.244.   The Delegation of Benin would like to pay tribute to the efforts made by Ecuador since 2012, 
despite the uncertain global economic s ituation.  
4.245.   Ecuador's economy has solid foundations: efficient fiscal administration, large financial flows 
to the public sector from abroad, plentiful electric power, declining production costs and an improved 
road system, affording producers and exporters easy access to domestic and foreign markets and 
the means to participate in production activities in different parts of the country. These factors have 
contributed to average annual growth of 5.2% in Ecuador's GDP, higher than that for Latin America 
(3.5% between 2010 and 2014).  
4.246.   It is worth stressing the knock -on effects of different branches of production pre -2014, such 
as construction, electric power supply, aquaculture and financial services, supported by a National 
Development Plan for 2017 -2021, entitl ed "Toda una Vida".  
4.247.   Added to that are positive trends in foreign trade, as reflected by surpluses following the 
deficits experienced between 2012 and 2017. The country's exports are led by crude oil, but other 
products (bananas, plantains, cacao, processed  cacao, tuna and other fish, shrimp, coffee, processed 
coffee and non -traditional export products) have had consistent shares of the exports to leading 
destinations.  
4.248.   In the multilateral trade arena, Ecuador has adopted a trade and integration policy with a  
strategy based on an agenda of negotiations that will enable it to consolidate its principal export 
markets, penetrate new markets, expand its range of export products, and undertake domestic 
reforms to create an attractive environment for foreign direct investment.  
4.249.   The delegation of Benin welcomes the key role played by Ecuador and its major contribution 
to the work done in the Doha Round multilateral trade negotiations. We also recognize the historic 
and dynamic role that Ecuador continues to play in building Central and South American regional 
integration.  
4.250.   We are grateful for the quality of cooperation we have had with Ecuador. In an economic 
environment marred by external factors – appreciation of the dollar at a time when neighbouring 
countries have  been depreciating their currencies, the fall in crude oil prices, a notable decline in 
export receipts and the considerable damage and losses caused by the earthquake of April  2016 – 
it is our hope that the country's efforts, initiatives and reforms will contribute to sustainable and 
inclusive development over the short, medium and long term.  
4.251.   The delegation of Benin thanks the WTO Secretariat and the Government of Ecuador for their 
highly informative reports for this trade policy review of Ecuador. We wish  Ecuador every success 
and a useful conclusion to its review.  
EGYPT  
4.252.   Egypt wishes to highlight a few commendable macroeconomic indicators that paint a 
promising path for Ecuador 's development. We note that in spite of the complex global economic WT/TPR/M/383 • Ecuador  
 
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  and politic al challenges during the period under review, Ecuador 's per capita GDP increased by 
almost 20% while maintaining moderate inflation levels. In addition, poverty rates fell by a margin 
of 5% of the total population during the review period.  
4.253.   Much of this suc cess owes to Ecuador 's implementation of a mix of policies targeting 
structural transformation, higher diversification and a stronger backbone of an open, 
outward -looking productive economy.  
4.254.   Egypt would like to praise Ecuador 's active participation in the  multilateral trading system, 
particularly its constructive engagement in discussions, and ability to present positive ideas in 
various deliberations. In addition, the Secretariat 's report highlights that Ecuador submitted a 
significant number of notificat ions to the WTO during the review period. The report also underscores 
that Ecuador is not a recurrent user of trade protection measures, as it did not implement any anti -
dumping or countervailing measures, nor did it initiate any investigations in this reg ard during the 
period 2012 -2018. Also, we highly appreciate the sincere efforts exerted by H.E. Ambassador Diego 
Aulestia as Chairman of the Committee on Trade and Development.  
4.255.   In fact, Ecuador has taken several measures to facilitate trade and enhance the  country 's 
integration in global value chains. The implementation of the single window in 2018, the electronic 
customs system, and the Authorized Economic Operator Program me, are only a few of such 
manifestations.   
4.256.   The ITC Trade Map Database offers a few promising figures regarding our bilateral trade 
relations in the years under review. For instance, Egypt heavily relied on imports of fruits and fish 
from Ecuador, that peaked in 2015 to reach USD 60 million. Furthermore, Egypt 's exports to Ecuador 
have mo re than quadrupled in 2017 when compared to the average exports across previous years.  
4.257.   Finally, Egypt strongly commends Ecuador for achieving an impressive economic 
performance in the period reviewed and wishes the delegation of Ecuador a successful Trade Policy 
Review.  
JAMAICA  
4.258.   Jamaica joins in congratulating Ecuador on the considerable progress made since its last 
trade policy review in 2011. As part of the Latin American and Caribbean region, Jamaica and 
Ecuador have had a longstanding history of friendsh ip and cooperation, including in the field of trade, 
and it is anticipated that this will further strengthen in the coming years.  
4.259.   In general terms, the trade balance has been skewed in favour of Ecuador. In 2018 alone, 
the trade deficit peaked at US D 138.34 million, due mainly to fuel imports which is Jamaica 's main 
purchase from Ecuador. These had been suspended since 2005 but were resumed in 2016. Other 
imports from Ecuador include items such as banana and plantain chips, prepared or preserved fish, 
fruits and vegetables, cut flowers and stoves, among others. In contrast, Jamaica 's exports to 
Ecuador fluctuated over the period and included rum and other spirits, paper and paperboard with 
some re -exports, mainly machinery and transport equipment.  
4.260.   The repo rts highlight that despite a challenging international economic landscape, Ecuador 
succeeded in recording an average annual growth of 3.3% between 2011 and 2017 with inflation 
kept at a moderate level and poverty rates reduced. This is commendable. In addi tion, it is noted 
that while the hydrocarbons sector, and crude oil , in particular, continues to be the leading 
contributor to the budget and the country 's largest foreign exchange earner, there have been efforts 
to reduce Ecuador 's vulnerability to extern al shocks through promoting greater diversification. At 
the same time, agricultural products continue to be the second largest export category, accounting 
for almost a quarter of total exports with the Ecuador 's main agricultural exports being bananas and 
coffee.  
4.261.   Since its accession to the WTO in 1996, Ecuador has continued to participate actively in the 
multilateral trading system. We take note of the steps taken by the country to fulfil its transparency 
and notification requirements under the various Agreements. We further commend Ecuador for its 
recent submission of its instrument of ratification to the Agreement on Trade Facilitation consistent 
with the commitment which it has shown si nce 2012 to pursuing measures to facilitate trade, WT/TPR/M/383 • Ecuador  
 
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  including through the implementation of an electronic customs system, ECUAPASS, and the 
Ecuadorian Single Window (VUE) in 2018, among others.  
4.262.   We note that the promotion of Micro Small and Medium Enterpris es (MSMEs) and enhanced 
integration and trade with countries of the Latin American and Caribbean region, as well as with key 
bilateral partners continue to be among the strategic objectives of Ecuador.  
4.263.   We, therefore, further commend the steps taken by the Government of Ecuador to further 
mainstream and create an enabling environment for trade and investment including through 
legislation such as the Organic Law on the Promotion of Production, Attraction of Investment, 
Generation of Employment, and Fiscal Sta bility and Balance of 2018 which aims to achieve fiscal 
adjustment and progressively reduce the country 's fiscal deficit to 2.3% of GDP by 2021, as well as 
the National Development Plan. These efforts should be further strengthened going forward. Also, 
during the review period, Ecuador made significant legal, regulatory and institutional changes aimed 
at bolstering its competition and Intellectual Property protection regimes. These measures together 
will doubtless serve to ensure Ecuador 's enhanced integrat ion and participation within the 
multilateral trading system towards the fulfilment of its development objectives.  
4.264.   As members of the Small Vulnerable Economies (SVEs) Group, Jamaica, like Ecuador, is 
resolute in the view that an effective, rules - based mul tilateral trading system is of critical 
importance given that trade remains the primary vehicle for the pursuit of economic growth, job 
creation and national development, as well as the attainment of the Sustainable Development Goals.  
4.265.   We, therefore, wish to congratulate again the Ecuadorean delegation and extend best wishes 
for a successful review.  
SWITZERLAND  
4.266.   Ecuador is a country with tremendous potential. As has been pointed out in various reports, 
the dollarization of the economy has had a stabilizing e ffect. Against this backdrop of enhanced 
financial stability, the economy has been able to diversify. Dependence on oil production as a main 
source of GDP growth has been successfully reduced.  
4.267.   The adoption of a foreign currency as an anchor for economic p olicy entails certain 
constraints. As an independent monetary policy is no  longer feasible, much of the size of monetary 
base hinges on foreign trade earnings. But this can have a stimulating effect as a special focus by 
policy makers must be placed on the continuous improvement of the competitiveness of the export 
industry.  
4.268.   Moreover, fiscal policy as a tool is subject to confines other economies do not have. 
Exceptional fiscal spending in Ecuador is to a la rge measure contingent upon the  inflow of foreign 
capital, which may be costly when it comes to servicing the accumulated debt. Indeed, spreads for 
Ecuadorian bond issues have gone up. The recent stand -by programme agreed with staff of the IMF 
will no doubt do much to help overcome the current difficulties . 
4.269.   Key to a successful reform package will be the re -establishment of competitiveness of the 
country 's export base. The real effective exchange rate will have to continue to come down.  
4.270.   A slight modernization of Ecuador 's trade and investment regimes might p ossibly contribute 
towards achieving that objective.  
4.271.   While it may be true that no major changes have been made to the country 's customs 
regulations, it is striking to note that an impressive amount of specific trade measures — both for 
imports or for expor ts — are being applied by the Ecuadorian authorities.  
4.272.   There is a plethora of different import regimes, all operating under different criteria. Each 
regime entitles to various benefits ranging, for instance, from complete or partial exemption of duties 
or other levies. Moreover, as tariffs are an instrument for the government to promote an industrial 
policy, applied tariffs may be susceptible to modifications. At the same time, there are three different 
export regimes with different procedures. Some exports may be regulated or restricted and controls 
can be imposed.  WT/TPR/M/383 • Ecuador  
 
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  4.273.   The use of these measures seems to imply a somewhat heavy -handed bureaucracy and a 
lot of red tape. One may wonder whether the regulatory framework could not be simplified and 
hence be made more u ser-friendly and predictable for economic operators at the same time.  
4.274.   One is somewhat puzzled by the fact that Ecuador decided to rescind a whole range of 
bilateral investment protection agreements, many o f which had involved important and traditionally 
reliable foreign investors. It is difficult to see to how these decisions will help attract much needed 
foreign capital and assist the process of integrating the Ecuadorian economy into global value chains.  
4.275.   Ecuador 's commitment and contribution to the rules -based international trading system is 
much appreciated. Switzerland hopes that Ecuador will soon submit its instrument of ratification of 
the Agreement on Trade Facilitation. Likewise, we would like to encourage the country to at least 
become an obse rver to the Government Procurement Agreement. These steps would serve to bols ter 
Ecuador 's ties with the WTO . 
4.276.    Together with its partners from the Europea n Free Trade Association EFTA, Switzerland has 
already bolstered its ties with Ecuador by signing a compreh ensive Free Trade Agreement last year. 
The agreement will constitute a dynamic tool for developing the trade relations between Switzerland 
and Ecuador.  
  WT/TPR/M/383 • Ecuador  
 
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  5  REPLIES BY THE REPRE SENTATIVE OF ECUADOR  AND ADDITIONAL COMM ENTS  
5.1.  In this second intervention, I should  like to thank the delegations that commented last  Tuesday 
on the Secretariat's and my Government's reports on trade policy in Ecuador. We note the 
considerable interest and recognition expressed, most notably regarding the government policies 
introduced t o foster development objectives that are consistent with the multilateral trading system. 
I should now like to refer to some key features of our economic and trade policies that were touched 
on by certain WTO Members.  
5.2.  Since 2000, as you know, Ecuador has m aintained a dollarized monetary system. That system 
has instilled confidence and stability among economic operators and citizens in general. It has posed 
challenges, however, from a policy formulation standpoint, for the country's efforts to diversify its 
productive and export structure, increase its competitiveness, encourage investment and promote 
social protection for the most fragile segments of society.  
5.3.  During the period under review, as pointed out by our partners that took part in this 
transparency e xercise, Ecuador had to contend with various external conditions. These included 
falling prices for oil and other goods that generate foreign exchange for the Ecuadorian economy 
and help to stabilize our balance of payments, and appreciation of the dollar,  which affected the 
competitiveness of our exports. Added to these factors were the economic losses and social impact 
of the 2016 earthquake.  
5.4.  The scenarios described pose additional challenges for a dollarized economy, given that we lack 
the full range of economic policy tools available to other Members. The Ecuadorian Government has 
nevertheless taken steps to ensure that our fiscal and trade policy is designed to correct these 
external imbalances and to equip producers and social actors with mechanisms to  sustain our 
economic performance.  
5.5.  We are grateful to the Membership for recognizing the circumstances behind Ecuador's 
balance -of-payments safeguard measure, and for the positive comments about timely compliance 
with our commitments to dismantle the measu re. 
5.6.  With respect to the Trade Facilitation Agreement, I would like to reiterate that Ecuador ratified 
the Agreement on 15  January  2019 and deposited the corresponding instrument with the WTO. We 
also notified the Organization of our category A, B and C mea sures, which is not reflected in the 
report owing to the June  2018 cut -off date.  
5.7.  As several Members acknowledged in their interventions, Ecuador has adopted provisions to 
improve and simplify its investment regime, with significant benefits derived from th e Organic Law 
for the Promotion of Production, which entered into force in August  2018. That law provides fiscal 
incentives for investment, ensures fiscal stability and establishes national and international 
arbitration mechanisms for signed investment con tracts. In addition, and in response to comments 
received, we reaffirm our intention to negotiate a new generation of bilateral investment agreements 
offering the conditions needed for investment in the country.  
5.8.  We are grateful to hear Members acknowledge the trade facilitation measures taken by 
Ecuador, including the single trade window, the Authorized Economic Operator scheme, the reduced 
use of physical inspections and the creation of an environment favourable to investment, thanks to 
the Law on the Prom otion of Production.  
5.9.  We have listened attentively to Members' concerns about the issues discussed in the report.  
5.10.   In terms of import procedures, Ecuador's practices are fully in line with our multilateral 
obligations in that area, in particular those set ou t in the SPS and TBT Agreements and the Import 
Licensing Agreement. It should be stressed that the procedures for obtaining these documents are 
clearly spelled out in the national regulations.  
5.11.   With respect to applied tariffs and bound levels , Ecuador reaff irms that its applied tariffs are 
consistent with Article II of the GATT and its Schedule of Concessions. Document RD/TPR/1032 
provides detailed information and examples in that regard.  WT/TPR/M/383 • Ecuador  
 
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  5.12.   Regarding ad valorem  equivalents for compound tariffs , it should be no ted that Ecuador 
provided the information requested about its tariff levels, which are fully in line with the country's 
commitment as set out in its Schedule of Concessions.  
5.13.   It is important to note that the surveillance measures applied by Ecuador do not " impede 
imports". They do not restrict imports in any way and are fully in harmony with international 
normative provisions, serving also as a preventive mechanism and a means to gather information 
before adopting any trade defence measures.  
5.14.   With respect to future work, an important challenge for Ecuador, as mentioned by several 
Members, is to continue the activities for improving its business climate and competitiveness. We 
will do that by pursuing legal reforms through a second Law on the Promotion of Produ ction – 
covering aspects related to development of the securities market, improvement of the regulatory 
framework with respect to quality, creation of a business -friendly environment and modernization 
of the regulatory framework for the aquaculture and fis heries sector – and a new law on bankruptcy. 
All these efforts will open new opportunities for businesses choosing to invest in our country.  
5.15.   Lastly, I should like to refer to various issues currently under discussion within the WTO.  
5.16.   Ecuador reaffirms the i mportance of appointing members to the Appellate Body as soon as 
possible so that it will not have to stop operating in December. My country has made use of the 
dispute settlement mechanism and considers it one of the greatest achievements of the multilate ral 
trading system. Its survival is therefore vital.  
5.17.   Special and differential treatment  also represents a fundamental element of the multilateral 
trading system, as clearly provided for under the GATT. In the proposals under discussion, access 
to such treatment would be determined on a case -by-case basis for each Member or issue, which 
could  be detrimental for developing countries like Ecuador.  
5.18.   To conclude, my country has been observing with interest the discussions on e -commerce and 
investment facilitation for development, but is disappointed by the lack of similar momentum and 
interest in t he agricultural negotiations pending from the Doha Round. In the same vein, we do not 
think it makes sense to discuss the reform of an organization if its dispute settlement mechanism, 
its spinal column, ceases to function. This issue warrants involvement,  commitment and energy from 
the entire Membership in pursuit of a joint solution.  
5.19.   Ecuador wishes to reaffirm its commitment to the multilateral trading system and express its 
appreciation for the Members' participation and interest in the trade policies of  our country. We also 
appreciate the Secretariat's hard work in preparing this exercise in transparency, the discussant's 
valuable observations and the Chairperson's skilful leadership of this meeting.  
DISCUSSANT  
5.20.   After such an interesting session this Tues day, in which the Vice -Minister and intervening 
delegations highlighted the efforts made by the Government of Ecuador to improve its trade policy 
and business climate during the period under review, my perception is that we have had a fruitful 
meeting and that this process has accomplished the objectives for which it was created.  
5.21.   It is important to recall that trade policy reviews represent a good combination between a 
factual presentation on a country's trade policy, for purposes of impact analysis, and ab ove all, a 
detailed review of specific and sensitive areas illustrating the efforts governments have made to 
improve their institutional structures, adopt legislative reforms and make projections based on new 
business models and trade strategies. It also l ays out some high priority challenges requiring 
attention in the near term.  
5.22.   Through this exercise, Ecuador has undergone an in -depth evaluation by the Membership, 
taking each question raised as an opportunity for reflection and analysis to obtain a critica l and 
constructive view of areas for improvement. The review has also provided an opportunity to 
congratulate Ecuador on aspects that highlight the efforts it has made to improve its trade policy. 
All of this provides a good road map for future work.  WT/TPR/M/383 • Ecuador  
 
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  5.23.   I com mend the delegation of Ecuador for its efforts to cover the various questions raised. I 
believe the statement just made by Vice -Minister Caicedo should in large measure satisfy the 
Members who have raised concerns or made suggestions, confirming that this process has permitted 
a constructive exchange.  
5.24.   To conclude this exercise in an objective manner, I should like to point out some positive 
findings of this review and then some challenges for the Government of Ecuador going forward.  
5.25.   As highlighted during ou r discussions, the Government has taken a number of effective 
measures:  
• Replacement of the country's endogenous development system with a system based on 
investment in the productive sector, focused on such sectors as tourism, agricultural exports, 
oil production and mining.  
• The creation of public -private partnerships as an essential ingredient for the country's 
economic development.  
• Greater trade openness and fluidity in foreign trade during the review period.  
• The country's Development Plan 2017 -2021, e ntitled "Toda una Vida", and its Prosperity Plan 
2018-2021, which have been the basis for new strategies to promote competitiveness and 
develop strategic sectors as generators of income and jobs.  
• Fiscal sustainability and dollarization as ways to strengthe n the country's economy.  
• Transparency measures to combat corruption.  
• Social policy as an element of social and cultural development.  
• Institutional restructuring, creating entities that effectively strengthen the various sectors 
concerned with trade policy.  
• Legislative reforms as an important instrument for further formalizing the economy.  
• The country's strong commitment to the multilateral trading system, as reflected by its active 
participation in the various bodies of this Organization and in the current negotiations.  
5.26.   Members also recommended some adjustments to Ecuador's trade policy, to help strengthen 
the efforts mentioned earlier. I would summarize those as follows:  
• Verify the requirements of the General Agreement on Tariffs and Trade (GATT) and the WT O 
Agreement on Safeguards when resorting to measures such as those applied between 2015 
and 2017.  
• Revise the country's tariff policy to avoid the application of extreme tariffs for some tariff 
items.  
• Maintain constant control in applying the Andean Price B and System to avoid causing concern 
to the Membership with respect to bound tariff commitments.  
• Streamline customs clearance and release procedures for goods.  
• Strengthen processes related to trade facilitation and the procedures for granting import 
licence s. 
• Continue to formulate and implement policies for the reduction of inequality and poverty.  
5.27.   Based on the Members' interventions and the political and institutional will demonstrated by 
the Ecuadorian authorities, we are confident that the country is movin g in the right direction. With WT/TPR/M/383 • Ecuador  
 
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  the reforms undertaken and still to be completed, together with Ecuador's commitment to 
rules-based free trade, we are confident that the country will continue to effectively address current 
and new challenges in pursuit of n ational development.  
5.28.   I also encourage Ecuador to maintain its role within this Organization, as embodied in its 
dynamic Geneva -based Mission team led by Ambassador Diego Aulestia, as it seeks to balance 
growth in trade with impact on development. Their con structive spirit and ever optimistic attitude 
are appreciated by the Membership.  
BARBADOS  
5.29.   Barbados commends Ecuador on its social and economic resilience over the review period 
2011–2018. We note that despite the fall in the global market price for oil - the country 's main 
commodity export; an extended national balance -of-payments crisis from 2015 –2017; and the 
debilitating impacts of the 2016 earthquake, Ecuador has experienced growth in services which 
accounted for 64.7 % of GDP in 2017 and exponential growth in non -oil sectors like bananas, 
aquaculture and fisheries. During this period, Ecuador also managed to decrease its poverty rate 
from 29.6% in 2011 to 24.5% in June 2018 and its extreme poverty rate from 12.4% in 2011 to 
9% in 2018. These accomplis hments though small in measure to some, are the product of sound 
leadership and the implementation of rigorous fiscal policies and comprehensive legislative and 
regulatory reforms.  
5.30.   We take note of the continued challenges of faced by Ecuador in advancing its socio -economic 
development as well as the difficulties it faces in overcoming them. Barbados therefore applauds 
Ecuador 's efforts to diversify its economic base away from a dependence on primary commodity 
sectors, towards the production of higher value -added goods and services and expansion beyond 
traditional markets into new markets. While we acknowledge that there has been a significant 
expansion of its geographical distribution of exports from its traditional markets to China, Russia 
and Vietnam and that it has experienced phenomenal growth in non -traditional export sectors like 
aquaculture and fisheries and services, we note that this expansion is still limited to the production 
of primary commodities. We therefore commend Ecuador on the implementati on of the Law on the 
Promotion of Production, Attraction of Investment and Generation of Employment; the development 
of its National Development Plan 2017 –2021; and the 2018 -2021 Prosperity Plan, which seeks to 
develop a firm institutional framework aimed at enhancing productive capital and creating a vibrant 
multifaceted economy, providing employment and development opportunities and supporting the 
livelihood of the Ecuadorian people. We wish them well in the implementation of their renewed 
strategic orien tation and look forward to the hearing of the positive impacts that these will have on 
the Ecuadorian economy during the country 's next trade policy review.  
5.31.   We are pleased to see that since the issuance of its report, Ecuador has become the 141st 
WTO Membe r to ratify the Trade Facilitation Agreement and have subsequently submitted the 
definitive dates for their Category B designations. We are particularly pleased to note that even 
before Members agreed to the text of Trade Facilitation Agreement (TFA), Ecua dor, in keeping with 
their development outlook, had started to undertake a number of key reforms towards improving 
their customs procedures and facilitating trade at the border. We consider that while there is still 
significantly more work to be done in th is area, Ecuador has identified a number of technical 
assistance needs in their Category C designations which would assist the country in building capacity 
to strengthen its institutional and regulatory frameworks and in the implementation of the 
Agreement . 
5.32.   Like Ecuador, Barbados strongly believes that any outcome in the multilateral negotiations 
must prioritise development and special and differential treatment for developing and least 
developed countries. We also believe that it is crucial for small econo mies to be allowed the 
necessary policy space required to formulate and implement trade and national development policies 
in accordance with our developmental needs. Such measures will enable small, vulnerable economies 
to continue to successfully pursue t heir trade and sustainable developmental objectives and more 
fully integrate into the multilateral trading system.  
5.33.   In closing, Barbados wishes Ecuador a successful conclusion to its third Trade Policy Review.  
  WT/TPR/M/383 • Ecuador  
 
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  UNITED  STATES  
5.34.   The delegation of the United St ates thanks Vice Minister Caicedo for his excellent stewardship 
of Ecuador 's Trade Policy Review.  
5.35.   We also wish to recognize and express our appreciation for the extensive effort made by 
Ecuador 's Geneva Mission, and other government officials, to respond to the questions posed by 
members. We look forward to reviewing the responses to our submitted questions.  
5.36.   To Ambassador Sperisen -Yurt, we thank you for your insightful remarks, which helped guide 
us through this review, and we greatly value the work of th e Secretariat staff in preparing the 
documents that made these discussions possible.  
5.37.   We appreciate Vice Minister Caicedo 's remarks acknowledging Members ' questions on 
Ecuador 's import licensing regime for agricultural products.  
5.38.   We note with particular in terest the steps Ecuador has taken to open its economy to trade, 
such as the implementation of ECUAPASS and the conclusion of trade agreements with other 
Members.  
5.39.   We thank Ecuador for submitting its TFA Section 2 notification in February. We are pleased t o 
see Ecuador 's ambitious deadlines for implementing its Category B commitments.  
5.40.   We also note that Ecuador has notified article 5.3, regarding Test Procedures, as a Category  C 
commitment requiring technical assistance and capacity building.  
5.41.   The United St ates is currently drafting an experience sharing paper on how we implement this 
commitment domestically, and we plan to share that paper with TF Committee Members later this 
year.  
5.42.   We would be glad to follow up with Ecuador 's Geneva delegates or capital -based experts once 
that paper has been submitted.  
5.43.   The active participation of Members in this Trade Policy Review has highlighted the keen 
interest we share in trade -related developments in Ecuador.  
5.44.   Ecuador is an important trading partner for the United States. We appreciate the opportunity 
to have participated in this TPR and we offer our sincere congratulations to Vice Minister Caicedo 
and to the entire delegation, for a successful Trade Policy Revi ew. 
EUROPEAN  UNION  
5.45.   Let me first thank Ecuador for the comprehensive overview presented last Tuesday and this 
morning of the main developments which have occurred during the review period.  
5.46.   The EU is pleased to note that this review has been very useful for better understanding the 
trade policies of Ecuador and we hope that it will duly take into account the challenges and concerns 
highlighted by Members.  
5.47.   The EU appreciates the timely replies provided to the EU questions by Ecuador and is looking 
forward to o ur future cooperation.  
MR. DIEGO  CAICEDO  (HEAD  OF DELEGATION)  
5.48.   Only a few closing words. I wish to thank the two delegations who spoke this morning - the 
United States and the European Union - and to renew my thanks to the Secretariat for its support 
in con ducting this transparency exercise. My thanks go as well to our discussant, Ambassador 
Sperisen -Yurt, for his valuable contributions to this exercise. And thanks, finally, to the Member 
countries for their observations and comments on this review. The road  ahead of us may still be 
long, but we are clearly moving in the right direction.  WT/TPR/M/383 • Ecuador  
 
- 45 - 
 
  5.49.   I thank the Chairperson for his wise leadership of this meeting and the team from the 
Vice-Ministry of Trade for their valuable support in this effort. Without them it would have been very 
difficult to complete this exercise and coordinate it internally with the many institutions involved in 
my country. I also wish to thank Ambassador Diego Aule stia and his team at the Permanent Mission 
of Ecuador to the WTO for all their hard work in support of this transparency exercise. Such 
coordination between institutions and entities can only reinforce the coherence of Ecuador's trade 
policy while, above a ll, ensuring its consistency with multilateral provisions. My thanks again to the 
entire Secretariat team and the interpreters.  
  WT/TPR/M/383 • Ecuador  
 
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  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  This third Trade Policy Review has allowed us to deepen our understanding of Ecuador 's trade 
and investment policies, in particular in regard to the reforms and changes introduced since the last 
Review in 2011. I would like to thank the Ecuadorian delegation headed by Mr. Diego Caicedo, 
Vice-Minister of Foreign Trade, for its engagement th roughout this exercise. I would also like to 
thank our discussant, Ambassador Eduardo Sperisen -Yurt, Permanent Representative of Guatemala 
to the WTO, for his remarks, which set an important basis for this Review, as well as the 
33 delegations which took t he floor.  
6.2.  Ecuador was praised for restoring macroeconomic stability in the aftermath of the balance of 
payments crisis which occurred during the review period. It was noted that GDP had grown at an 
average annual rate of 3% between 2011 and 2017, leading t o an increase in per capita GDP and a 
decrease in poverty. However, the fiscal deficit had not declined as planned and the public debt had 
increased; some Members were of the view that servicing the accumulated debt could be costly. 
While noting that dolla rization had served the economy well, it had also limited Ecuador 's policy 
options and increased its dependency on exports and inflows of capital. Observing that foreign direct 
investment, a traditional source of financing in Ecuador, had declined since 20 14, Members urged 
Ecuador to further open its economy to foreign investment by enhancing the predictability and 
transparency of its policies. In this context, Members enquired about Ecuador 's decision to rescind 
bilateral investment protection agreements a nd encouraged Ecuador to take the necessary steps to 
provide an appropriate framework for the resolution of disputes.  
6.3.  Members observed that Ecuador remains highly dependent on oil exports, which renders the 
economy vulnerable to commodity price fluctuation s in world markets. In this respect, Members 
urged Ecuador to continue its efforts towards diversification to reduce its vulnerability to external 
shocks. Ecuador 's economy had been severely affected by the dec line in oil prices in 2014 -2015, 
which had led  to an increase in the current account deficit and a sharp decline in reserves. To deal 
with the crisis, among other measures , between 2015 -2017, Ecuador had adopted a 
balance -of-payments safeguard in the form of tariff surcharges,  affecting some 40% of it s tariff 
lines. Members appreciated Ecuador 's steps to phase out this trade measure. Nevertheless, some 
Members noted that their bilateral trade had been affected by this measure and considered it to be 
Ecuador 's most noticeable trade policy issue during t he review period. Overall, Members urged 
Ecuador to adopt the appropriate policies to deal with challenging economic situations, so that in the 
future there is no need to resort to the use of similar import restrictive measures. In this respect, 
they welco med the significant decline of oil in the share of exports in recent years and the increase 
in the share of exports of agricultural and fish products , and urged Ecuador to continue in this path.  
6.4.  Members appreciated Ecuador 's participation in the multilate ral trading system, and took note 
that the development dimension was crucial for Ecuador. Members welcomed Ecuador 's continuous 
efforts to submit notifications to the WTO and its contribution to the negotiations on fisheries 
subsidies. It was also noted th at Ecuador was a signatory to some of the MC11. At the same time, 
they encouraged Ecuador to consider making further commitments to the WTO  Agreements. In this 
regard, several Members encouraged Ecuador to join or to, at least, become an observer to the 
Government Procurement Agreement (GPA). This could help Ecuador to reduce its fiscal deficit, 
enhance transparency in public expenditure, and reduce discretionality.  
6.5.  During the review period, Ecuador had also actively pursued further regional integration, a nd 
had concluded an agreement with the EU (the EU Colombia/Ecuador/Peru) and the EFTA countries.  
6.6.  Members congratulated Ecuador for its recent ratification of the Trade Facilitation Agreement. 
They acknowledged that since the last Review, Ecuador had adopte d a number of measures to 
facilitate trade, such as the implementation of an electronic customs system, a single window for 
foreign trade and a risk management system, as well as the introduction of an Authorized Economic 
Operator scheme. However, some Mem bers noted that Ecuador still used many pre -import control 
documents, including registration of importers, prior import permits and authorizations, and 
non-automatic licensing. Ecuador was encouraged to consider simplifying such requirements and 
increase e fforts towards regulatory transparency, in order to reduce trade costs.  
6.7.  Some Members observed that tariffs were used as an instrument to promote industrial policy, 
and could be modified as required. In this respect, Members noted that, in addition to the WT/TPR/M/383 • Ecuador  
 
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  balance -of-payments safeguard surcharge, the general level of tariffs had also increased during the 
review period. Members also expressed concern about the predictability of the Andean Price Band 
Mechanism and urged Ecuador to supply ad valorem  equivalents.  Some Members noted that applied 
tariff rates for some tariff lines appeared to exceed bound rates and called on Ecuador to bring its 
tariffs into conformity with its WTO commitments.  
6.8.  Members noted the importance of developing a solid foundation to effect ively protect IPRs in 
Ecuador. In this regard, Members appreciated the significant changes in the legal framework and 
expected a swift transition to it. Members had specific questions regarding the implementation of 
the new legal framework, on compulsory l icensing, and enforcement of intellectual property rights.  
6.9.  Members remarked that imports of agricultural products faced higher tariffs than imports of 
non-agricultural products. Concerns were expressed regarding some sanitary and phytosanitary 
requirement s, which could become a barrier to trade. Some Members noted that there were 
burdensome procedures affecting their exports of agricultural products, including cumbersome 
tariff-quota management and long processes for the granting of import licences, in cer tain instances 
linked to the availability of domestic production. In addition, Members mentioned that Ecuador 
intervened in the marketing and pricing of certain agricultural commodities. In general, Members 
encouraged Ecuador to increase the transparency o f its trade -related agricultural policies.  
6.10.   Ecuador has received around 220 advance written questions, and has provided answers to 
almost all of them. This TPR will be successfully concluded once Ecuador has replied to all outstanding 
questions that emerged  during the meeting in a month 's time. I believe Members felt that Ecuador 
is well placed to continue opening its markets and pursuing transparent and non -discriminatory 
policies by observing its commitments to the WTO, to address the remaining challenges.  I hope that 
the discussion held during this Review will prove useful to Ecuador in the continued implementation 
of economic and trade reforms to help attract the needed foreign investment and assist in the 
process of integrating the Ecuadorian economy int o the global value chains.  
__________