G/STR/N/15/ECU  
6 October 2014  
(14-5711)  Page: 1/5  
Working Party on State Trading Enterprises  Original: Spanish  
 
  STATE TRADING 
NEW AND FULL NOTIFICATION PURS UANT 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 6 October 2014, is being circulated at the request of the 
delegation of Ecuador. 
 
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1  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 (i ncluding relevant ta riff item number(s)) 
The National Warehousing Unit mainly handles yellow flint maize, rice and cereals. 
2  REASON AND PURPOSE 
A. Reason or purpose for establishing an d/or maintaining state trading enterprise 
The National Warehousing Unit is chiefly responsible for the temporary warehousing and domestic 
marketing of agricultural surpluses, in particul ar yellow flint maize, rice and cereals, the 
management of strategic food reserves, and suppor t 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 significant part in domestic bulk 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; and 
 Executive Decree No. 12 of 30 May 2013. G/STR/N/15/ECU 
- 2 - 
  3  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 a recently created enterprise that is commencing operations. 
At present, it 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 commo dities in question are purchased from small 
producers at 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 tr ading enterprise that are allowed to engage 
in importation/exportation and conditions for participation 
Not applicable.  
D. How import/export levels are establis hed by the state trading enterprise 
Not applicable. E. How export prices are determined 
Not applicable. 
F. How the resale prices of im ported products are determined 
Not applicable. G. Whether long-term contracts are negoti ated 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). 
4  STATISTICAL INFORMATION (SEE TABLES I TO III ATTACHED)  
5  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. 
 6  ADDITIONAL INFORMATION ( AS APPROPRIATE ) 
Not applicable. 
   
  G/STR/N/15/ECU  
- 3 - 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 
(US$/tonne) 
(2) National 
production 
(tonnes) 
Yellow flint maize (10059011) 2013 124,493 0 
N/A 325 n/a 1,080,000 
Yellow flint maize 
(10059011) 2014 113,656 0 N/A 253 n/a 1,223,174 
Rice 
(1006300000) 2013 257 0 N/A 1,446 n/a 766,597 
Rice 
(1006300000) 2014 152 0 N/A 1,451 n/a 651,607 
Cereals 
(100850) 2013 49 0 N/A 2,985 n/a 1,802 
Cereals 
(100850) 2014 5 0 N/A 5,142 n/a 7,436 
 
(1) Not applicable, the State trading enterp rise does not engage in importation. 
(2) Not applicable, the State trading enterp rise does not engage in importation. 
 
                                               
1 In cases where no imports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire.  
2 Members may report either under co lumns 4 and 5 or under column 6.   
  G/STR/N/15/ECU  
- 4 - TABLE II 
STATE TRADING: NATIONAL WAREHOUSING UNIT 
STATISTICAL INFORMATION, EXPORTS 
Description of 
product(s) (including 
HS number(s)) Crop year Total quantity 
exported1 
(tonnes) Quantity 
exported by 
state trading 
enterprise1 Average 
procurement 
price2 
(US$/tonne) 
(1) Average 
representative 
domestic sales 
price 
(US$/tonne) Average 
export price 
(2) National 
production 
(tonnes) 
Yellow flint maize (10059011) 2013 748 0 N/A
 298 n/a 1,080,000 
Yellow flint maize 
(10059011) 2014 502 0 N/A  266 n/a 1,223,174 
Rice 
(1006300000) 2013 43,229 0 N/A  760 n/a 766,597 
Rice 
(1006300000) 2014 225 0 N/A  960 n/a 651,607 
Cereals 
(100850) 2013 110 0 N/A  3,652 n/a 1,802 
Cereals 
(100850) 2014 279 0 N/A  4,462 n/a 7,436 
 
(1) Not applicable, the State trading enterp rise does not engage in exportation. 
(2) Not applicable, the State trading enterp rise does not engage in exportation. 
 
                                               
1 In cases where no exports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire.  
2 In cases where the initial procurement price is augmented by other payments, additional paymen ts should also be reported.   
  G/STR/N/15/ECU  
- 5 - 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 (10059011) 2013 96,626 1,080,000 125,834 1,079,508 
Yellow flint maize 
(10059011) 2014 63,690 1,223,174 47,092 1,222,824 
Rice 
(1006300000) 2013 19,343 766,597 16,476 847,976 
Rice 
(1006300000) 2014 17,306 651,607 36,196 765,053 
Cereals 
(100850) 2013 0 1,802 0 1,741 
Cereals 
(100850) 2014 793 7,436 0 7,163 
 
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