G/STR/N/16/ECU  
6 July 2018 
(18-4258) Page: 1/5 
Working Party on State Trading Enterprises  Original:  Spanish  
 
  
STATE TRADING  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVII.4(A)  
OF THE GATT 1994 AND PARAGRAPH 1 OF THE UNDERSTANDING  
ON THE INTERPRETATION OF ARTICLE XVII  
ECUADOR  
The following communication, dated 18 May 2 018, is being circulated at the request of  the 
delegation of Ecuador . 
 
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I. ENUMERATION OF STATE TRADING ENTERPRISES  
A. Identification of state trading enterprises  
The state trading enterprise is the National Warehousing Unit  (UNA EP). 
B. Description of products affected (including relevant tariff item number(s) ) 
The National Warehousing Unit  mainly handles  yellow flint maize, rice and cereals.  
II. REASON AND PURPOSE  
A. Reason or purpose for establishing and/or maintaining state trading enterprise  
The National Warehousing Unit  is chiefly responsible for the temporary warehousing and domestic 
marketing of agricultural products , in particular yellow flint maize, rice and cereals, the 
management of strategic food reserves, and support for the marketing and distribution of inputs . 
Its activities are geared towards implementing the food sovereignty mandate  enshrined in the 
Constitution . In practice, this enterprise plays a part – a significant part – in low and high volume 
domestic marketing . 
B. Summary of legal basis for granting the relevant exclusive or special rights or 
privileges, including legal provisions and summary of statutory or constitutional 
powers  
 Constitution of the Republic of Ecuador , Articles  281 and 315 ( Food Sovereignty Regime 
and Establishment  of State -Owned Enterprises ); 
 Organic Law on the Food Sovereignty Regime (LORSA ); 
 Organic Law on State -Owned Enterprises ; 
 Executive Decree No.  12 of 3 0 May 2 013; and 
 Executive Decree No. 821 of 17 November 2 015. G/STR/N/16/ECU  
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  III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
A. Summary statement providing overview of operations of the state trading 
enterprise  
The National Warehousing Unit is an enterprise which  focuses – exclusively – on support for the 
domestic marketing of agricultural staples for food sovereignty  purposes , the management of 
temporary warehousing, and transport and marketing of the harvest . The agricultural commodities  
in question are purchased from small producers a t domestic market prices . 
B. Specification of exclusive or special rights or privileges enjoyed by the state 
trading enterprise  
Not applicable.  
C. Type of entities other than the state trading enterprise that are allowed to engage 
in importation/exportation  and conditions for participation  
Not applicable.  
D. How import/export levels are established by the state trading enterprise  
Not applicable.  
E. How export prices are determined  
Not applicable.  
F. How the resale prices of imported products are determined  
Not applicable.  
G. Whether long -term contracts are negotiated by the state trading enterprise . 
Whether the state trading enterprise is used to fulfil contractual obligations 
entered into by the government  
The National Warehousing Unit  does not negotiate long-term contracts, nor is it used to fulfil 
contractual obligations entered into by the government . 
H. Brief description of market structure  
There are various companies  providing warehousing and marketing services for agricultural 
products . The UNA  EP is a state -owned enterprise that has entered into competition with the other 
firms under normal market conditions, and it accounts for 21 % of the country's total warehousing 
capacity, including that of the private sector (700,000 t/year).  
IV. STATISTICAL INF ORMATION (SEE TABLES I TO III ATTACHED ) 
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE ( AS APPROPRIATE ) 
The National Warehousing Unit has not participated in the export or import of these commodities . 
However , other operators have been recorded as engaging in foreign trade operations involving 
the products handled by the UNA EP.  
 
VI. ADDITIONAL INFORMATION ( AS APPROPRIATE ) 
Not applicable.  
   
  G/STR/N/16/ECU  
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TABLE  I 
STATE TRADING: NATIONAL WAREHOUSING UNIT  
STATISTICAL INFORMATION, IMPORTS  
Description of  
product(s) (including 
HS number(s))  Crop year  Total quantity 
imported1 
(tonnes)  Quantity 
imported by state 
trading 
enterprise1 Average import  
price  
(US$/t)  
(1) Average 
representative 
domestic sales 
price  
(US$/tonne)  Mark -up2 
(2) National 
production  
(MT) 
Yellow flint maize  2015 32,954  0 n/a 221 n/a 1,734,000  
Yellow flint maize  2016 63,398  0 n/a 202 n/a 1,319,000  
Rice 2015 193 0 n/a 1,406  n/a 1,786,000  
Rice 2016 95 0 n/a 1,386  n/a 1,715,000  
Cereals  2015 39 0 n/a 728 n/a 11,681  
Cereals  2016 00 0 n/a n/a n/a 8,517  
(1) Not applicable, the State trading enterprise does not engage in importation.  
(2) Not applicable, the State trading enterprise does not engage in importation.  
 
                                                
1 In cases where no exports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire . 
2 Members may report either under columns 4 and 5 or under column 6.    
  G/STR/N/16/ECU  
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TABLE II  
STATE TRADING: NATIONAL WAREHOUSING UNIT  
STATISTICAL INFORMATION, EXPORTS  
Description of  
product(s) (including 
HS number(s))  Crop year  Total quantity 
exported3 
(tonnes)  Quantity 
exported by 
state trading 
enterprise1 Average 
procurement 
price4 
(US$/tonne)  
(1) Average 
representative 
domestic sales 
price  
(US$/tonne)  Average 
export price  
(2) National 
production  
(tonnes)  
Yellow flint maize  2015 106 0 n/a 410 n/a 1,734,000  
Yellow flint maize  2016 22 0 n/a 1,146  n/a 1,319,000  
Rice 2015 1,112  0 n/a 909 n/a 1,786,000  
Rice 2016 207 0 n/a 1,095  n/a 1,715,000  
Cereals  2015 1,438  0 n/a 3,850  n/a 11,681  
Cereals  2016 1,771  0 n/a 2,707  n/a 8,517  
(1) Not applicable, the State trading enterprise does not engage in exportation.  
(2) Not applicable, the State trading enterprise does not engage in exportation.  
 
                                                
3 In cases where no exports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire.  
4 In cases where the initial procurement price is augmented by other payments, additional payments should also be reported.    
  G/STR/N/16/ECU  
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TABLE III  
STATE TRADING: NATIONAL WAREHOUSING UNIT  
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
Description of  
product(s) (including 
HS number(s))  Crop year  Domestic purchases by 
state trading enterprise  
(tonnes)  National production 
(tonnes)  Domestic sales by state 
trading enterprise  
(tonnes)  National consumption 
(tonnes)  
Yellow flint maize  2015 61,248  1,734,000  181,941  1,500,000  
Yellow flint maize  2016 16,823  1,319,000  133,694  1,500,000  
Rice 2015 141 1,786,000  3,457  815,000  
Rice 2016 15,869  1,715,000  1,017  835,375  
Cereals  2015 2,082  11,681  7,819  9,684  
Cereals  2016 7,260  8,517  3,889  7,639  
 
 
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