WT/BOP/G/24  
4 May 2016  
(16-2496)  Page: 1/2  
Committee on Balance-of -Payments Restrictions  Original: Spanish  
 
  CONSULTATIONS WITH ECUADOR 
COMMUNICATION FROM ECUADOR 
 The following letter, dated 29 April 2016 and addressed to the Chairman of the Committee, 
is being circulated at the request of the delegation of Ecuador. 
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Mr Chairman:  I am writing in reference to document WT/BOP/G/23, in which the Government of Ecuador 
announced  the timetable for dismantling the balance-of-payments safeguard measure that has 
been in force since March 2015. Ecuador was due to dismantle this measure fully by June 2016.  
On this occasion, and with a view to maintaining the transparency of the steps taken by Ecuador 
d u r i n g  t h i s  p r o c e s s ,  i t  i s  m y  d u t y  t o  i n f o r m  y o u ,  i n  a c c o r d a n c e  w i t h  p a r a g r a p h  1  o f  t h e  Understanding on the Balance-of-Payments Provisions of the GATT 1994, that the Ecuadorian 
Government is unavoidably oblige d to modify this timetable. 
 This decision is based solely on events that have recently taken place in the country, and relates to the earthquake measuring 7.8 on the Richter Scale that was recorded in the coastal provinces of 
Manabí, Guayas and Esmeraldas, where the main economic activities are tourism and the 
production of at least three of Ecuador's leading export products: tuna, coffee and shrimp.  
This serious situation has occurred in the most unfavourable circumstances for Ecuador. As 
explained by the delegation that has travelled to Geneva on three occasions, the prevailing 
macroeconomic conditions show a severe deterioration in the balance of payments, which the 
country has been unable to resolve fully despite the remedies applied through the current 
safeguard measure and other additional measures taken by the Ecuadorian Government to address the crisis. International oil prices, together with the strength of the dollar, continue to put pressure on external accounts, which now have the additional burden of restoration, reconstruction 
and emergency humanitarian assistance, a situation that will put even more pressure on foreign 
exchange outflows. Ecuador has already taken the relevant economic measures, and has activated 
all the contingency loans to which it has access. These loans cannot, however, provide enough to 
deal with this new and complex situation. 
 The earthquake has so far claimed more than 655 human lives and injured more than 
4,600 people. It has also caused significant damage in several cities, in some cases destroying 
more than 80% of buildings, and has severely affected road, tourist, sanitary, energy, educational, production and agricultural infrastructure, as well as the provision of basic services in general. The damage recorded in the area amounts to serious devastation that will require huge amounts of 
resources and many years to redress. 
 While the Ecuadorian Government is preparing detailed information on this matter, to be circulated 
at the forthcoming meeting of the Committee on Balance-of-Payments Restrictions in June 2016, 
preliminary calculations show that the reconstruction of quake-devastated areas alone will require vast amounts of resources, without taking into account the serious humanitarian consequences 
that will also need addressing in terms of assistance to those who have been orphaned, widowed 
and left with disabilities. WT/BOP/G/24 
- 2 - 
   
In view of the foregoing, the Government of Ecua dor has decided to extend for an additional year 
the reduction timetable proposed and discussed in the Committee under your honourable chairmanship, so that the reduction of the existing surcharges by one third, originally scheduled 
for April 2016, as set out in document WT/BOP/G/23, will take effect in April 2017, and so on and 
so forth until the safeguard is completely eliminated in June 2017.  
Nevertheless, as a gesture of good will and in response to the concerns expressed by Member 
countries in the Committee, Ecuador has decided to eliminate the 5% surcharge, which means that the one-year extension will apply to the rates of 40%, 25% and 15%.  
Mr Chairman, I am sure that the members of th e Committee on Balance-of-Payments Restrictions 
will understand the difficult situation currently facing Ecuador and support this new arrangement. It will remain in effect for as long as is warranted by the current conditions and will come to an 
end when these same conditions permit. 
 Lastly, Mr Chairman, may I request that, through the WTO Secretariat, you circulate this 
communication to the members of the Committee that you most honourably chair, so that they are 
made aware of the situation I have described and can make any arrangements they deem necessary.  
Yours sincerely, 
Diego Esteban Aulestia Valencia MINISTER OF FOREIGN TRADE 
 
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