WT/REG380/1  
14 January 2019  
(19-0203) Page: 1/57 
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION  
ACCESSION OF EC UADOR TO THE TRADE AGREEMENT BETWEEN THE EUROPEAN UNION  
AND COLOMBIA AND PERU  
(GOODS AND SERVICES)  
Report by the Secretariat  
This report, prepared for the consideration of the Accession of E cuador to the Trade 
Agreement  between the European Union a nd Colombia and Peru , has been drawn up 
by the WTO Secretariat on its own responsibility and in full consultation with the 
Parties. The factual presentation reproduces as closely as possible the terminology 
used in the  Agreement and in the comments provided and does not imply official 
endorsement or acceptance by the Secretariat of such terminology. The report has 
been drawn up in accordanc e with the rules and procedures contained in the Decision 
for a Transparency Mech anism for Regional Trade Agreements (WT/L/671) and thus 
does not imply any value judgement by the Secretariat regarding the contents of the 
Agreement.  
Any technical questions arising from this report may be addressed to Ana Cristina 
Molina (tel: +41 22 739 6060) . Any statistical questions arising from this report may 
be addressed to Rowena Cabos  (tel: +41 22 739 5185).  
 
 
 
  WT/REG3 80/1 
 
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  TABLE O F CONTENTS  
Page 
1   TRADE ENVIRONMEN T .................................................................................................  5 
1.1   Merchandise trade  ....................................................................................................... 5 
1.2   Trade in services and investment  .................................................................................. 8 
2   CHARACTERISTIC E LEMENTS OF THE AGREE MENT  .................................................... 11 
3   PROVISIONS ON TR ADE IN GOODS  ........................................................................... 13 
3.1   Import duties and charges, and quantitative restrictions ..................................................13  
3.1.1    General provisions  ...................................................................................................13  
3.1.2    Liberalization of trade and tariff lines  .........................................................................13  
3.1.3    Liberalization schedule  .............................................................................................14  
3.1.3.1    The European Union ..............................................................................................14  
3.1.3.2    Ecuador  ...............................................................................................................16  
3.1.4    Tariff- rate quotas  .....................................................................................................18  
3.1.5    Price-band and entry -price systems ...........................................................................19  
3.2   Rules of origin  ............................................................................................................20  
3.2.1    Requirements for the determination of origin  ..............................................................21  
3.2.2    Cumulation  .............................................................................................................21  
3.2.3    De minim is rule  .......................................................................................................21  
3.2.4    Absorption rule  ........................................................................................................22  
3.2.5   Other factors affecting the originating status of a good  .................................................22  
3.2.6    Administration of the rules of origin  ...........................................................................22  
3.3   Export duties and charges, and quantitative restrictions  ..................................................23  
3.4   Regulatory provisions on trade in goods  ........................................................................23  
3.4.1    Standards  ...............................................................................................................23  
3.4.1.1    Sanitary and phytosanitary measures ......................................................................23  
3.4.1.2    Technical barriers to trade  .....................................................................................23  
3.4.2    Safeguard mechanisms ............................................................................................24  
 Global safeguards ................................................................................................. 24 
3.4.2.2    Bilateral safeguards ...............................................................................................24  
3.4.2.3    Agricultural safeguards ..........................................................................................25  
3.4.2.4    Other special safeguards ........................................................................................25  
3.4.2.5    Safeguards related to the balance of payments  .........................................................25  
3.4.3    Anti-dumping and countervailing measures  ................................................................. 25 
3.4.4    Subsidies and State -aid ............................................................................................26  
3.4.5    Customs -related procedures ......................................................................................26  
3.5   Sector -specific provisions on trade in goods  ...................................................................26  
4   PROVISIONS ON TR ADE IN SERVICES  ....................................................................... 26 
4.1   Scope and definitions  ..................................................................................................26  
4.2   Denial of benefits  .......................................................................................................27  
4.3   General provisions on trade in services  .........................................................................27  WT/REG3 80/1 
 
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  4.3.1    Market access  .........................................................................................................27  
4.3.2    National treatment and MFN  ......................................................................................28  
4.3.3    Commercial presence  ...............................................................................................28  
4.3.4    Movement of natural persons  ....................................................................................28  
4.3.5    Performance requirements  ........................................................................................29  
4.3.6    Senior Management and boards of directors  ................................................................29  
4.4   Liberalization commitments  .........................................................................................29  
4.4.1    The EU  ...................................................................................................................29  
4.4.1.1    Horizontal commitments  ........................................................................................30  
4.4.1.2    Sector -specific commitments  ..................................................................................30  
4.4.2    Ecuador  ..................................................................................................................34  
4.4.2.1    General Overview  ................................................................................................. 34 
4.4.2.2    Horizontal commitments  ........................................................................................34  
4.4.2.3    Sector -specific commitments  ..................................................................................34  
4.5   Regulatory provisions  ..................................................................................................38  
4.5.1    Domestic regulation  ................................................................................................. 38 
4.5.2    Recognition  .............................................................................................................39  
4.5.3    Subsidies  ................................................................................................................39  
4.5.4    Safeguards  .............................................................................................................39  
4.6   Sector specific provisions on trade in services  ................................................................39  
4.6.1    Electronic commerce  ................................................................................................39  
4.6.2    Other sector -specific provisions  .................................................................................39  
5   GENERAL PROVISIO NS OF THE AGREEMENT  ............................................................. 39 
5.1   Transparency  .............................................................................................................39  
5.2   Current payments and capital movements  .....................................................................40  
5.3   Safeguards  ................................................................................................................40  
5.4   Exceptions  .................................................................................................................40  
5.5   Accession and Withdrawal ............................................................................................40  
5.6   Institutional framework  ...............................................................................................41  
5.7   Dispute settlement  .....................................................................................................41  
5.8   Relationship with other agreements concluded by the Parties  ...........................................42  
5.9   Government procurement  ............................................................................................43  
5.10   Intellectual property rights  .........................................................................................45  
5.10.1   Copyrights  ............................................................................................................45  
5.10.2   Trademarks and well -known marks  ..........................................................................46  
5.10.3   Geographical indications  .........................................................................................46  
5.10.4   Designs  ................................................................................................................47  
5.10.5   Patents  .................................................................................................................47  
5.10.6   Plant varieties  .......................................................................................................47  
5.10.7    Provisions on biodiversity and traditional knowledge  ...................................................47  WT/REG3 80/1 
 
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  5.11   Competition policy  ....................................................................................................47  
5.12   Environment and labour  ............................................................................................48  
ANNEX 1  ........................................................................................................................ 49 
ANNEX 2  ........................................................................................................................ 52 
 
  WT/REG3 80/1 
 
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Key Facts  
 
Parties to the Agreement:  the European Union, and 
Colombia, Peru, and 
Ecuador . 
 
Date of Signature:    11 November 2016 
 
Date  of application:   1 January 2017 
 
Date of Notification:    2 March 2017 
 
Full implementation:   2034 
 
 
1  TRADE ENVIRONMENT  
1.1.  In 2016 , the European Union (EU) , Colombia, Peru and  Ecuador signed the Accession Protocol 
of Ecuador to the Trade Agreement signed between the EU , and Colombia and Peru in 2012 
(hereinafter referred to as the Agreement) . This factual presentation focus es on the accession of 
Ecuador to the Agreement and thus on the commitments  taken by Ecuador and the EU towards 
each other . The Agreement, which covers goods and services , is the EU's 40 th1 and Ecuador 's 
4th2 regional trade agreement (RTA) notified to the WTO.  
1.2.  The E U and Ecuador differ substantially in the size of their economies and their participation 
in world trade. The EU is the second largest  economy in the world behind China.  In 20163, the 
EU's GDP amounte d to US$16.4 trillion compared to US$98 billion for Ecuador . In terms of trade, 
in the same year, the EU was the second largest exporter and importer in the world (excluding 
intra-EU trade) while Ecuador ranked 48th (US$16.8 billion) in terms of exports and 57th 
(US$1 6.3 billion) for imports. With regard to services, the EU is the world leading exporter and 
importer  while Ecuador ranked respectively 77th (US$1.9 billion) and 63rd (US$3.1 billion) in the 
world in 2016.  
1.3.  At the bilateral level, the EU is Ecuador 's second largest export market behind the United 
States, and the third largest supplier after the United States and China.  In 2016, it accounted for  
about 17% of Ecuador' s total goods exports and 1 1.5% of its imports. In contrast, Ecuador  is a 
relatively small provider and buyer of goods for the EU. It accounts for 0.16 % of the EU total 
imports and captures an even smaller sh are of the EU total exports (0.09 %), making Ecuador the 
EU's 54th and 71th largest import and export partner.  
1.1  Merchandise trade  
1.4.  Chart 1.1 shows the Parties' global and bilateral merc handise trade for the period 2000- 2016.  
During most of this period, the EU's trade balance registered a trade deficit which in 2013 turned 
into a surplus  and has remained positive since then.  Ecuador also  exhibited a trade deficit since 
2008, except in  2016 when exports exceeded imports.  At the bilateral level, t he EU maintained a 
trade deficit with Ecuador, which reach ed €1 billion euros in 2016.  
                                                
1 Counting the RTA with Colombia, and Peru, and the subsequent accession of Ecuador, as one RTA.  
2 Counting the Latin American Integration Association (LAIA), and the subsequent of accession of Cuba 
to LAIA as one RTA.  
3 WTO Trade Profiles (latest data).  WT/REG3 80/1 
 
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  Chart 1.1 European Union and Ecuador:  Merchandise bilateral trade and with the world, 
2000- 2016  
 
Note: Data for 2000 -2003 is EU(15); 2004 -2006 is EU(25); 2007- 2012 is EU(27); and 2013 onwards is 
EU(28). For Ecuador, the exchange rates of EUR per USD used in the calculations are: 1.09 (2000), 
1.12 (2001), 1.06 (2002), 0.89 (2003),  0.81 (2004), 0.80 (2005), 0.80  (2006), 0.73 (2007), 0.68 
(2008), 0.72 (2009), 0.76 (2010), 0.72 (2011), 0.78 (2012), 0.75 (2013),  0.75 (2014), 0.90 
(2015), and 0.90 (2016).  
Source:  Eurostat UNSD Comtrade database.  
 0.00.51.01.52.02.53.03.54.04.55.0
0510152025
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016B. Ecuador 2000 -2016
(€billions)
Imports from EU (Right Axis)
Exports to EU (Right Axis)
Total Imports
Total Exports
0.00.51.01.52.02.53.03.54.04.55.0
02004006008001,0001,2001,4001,6001,8002,000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016A. EU 2000 -2016 
(€billions)
Imports from Ecuador (Right Axis)
Exports to Ecuador (Right Axis)
Total Imports
Total ExportsWT/REG3 80/1 
 
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  Chart 1.2 European Union and Ecuador: product composition of merchandise trade , 
annual average (2014-2016)  
 
Note: For Ecuador the exchange rates of EUR per USD used in the calculations are: 0.75 (2014), 0.90 
(2015),  and 0.90 (2016) . 
Source:  Eurostat and UNSD, Comtrade database. 
 
1.5.  Chart 1.2 exhibits the Parties' tra de basket for the three years prior to the entry into force  of 
Ecuador's Protocol of Accession to the Agreement. The data shows that there are some 
complementarities between the Parties, which are already being exploited. During 2014- 2016, the 
EU's main gl obal exports were machinery, vehicles, chemicals, base metals, and minerals together 
accounting for 69% of its total exports. These products were also Ecuador's main imports from the 
world, and all were already being sourced from the EU, accounting for 81%  of its bilateral imports . 
The EU, on the other hand imported mainly vegetables, prepared food, and live animals from 
Ecuador , representin g almost the totality ( 95%)  of its bilateral imports . Of these exports, all 
ranked among Ec uador's top five global exports. T he EU also imported from the world machine ry, 
minerals, chemicals, vehicles, and textiles , of which only minerals ranked among Ec uador's main 
global exports.  28
27156553326Ecuador's imports from EU (%)
22
21
148765332225Ecuador's Global Imports(%)
26
16
156654443229EU's Global Exports(%)41
1914133226Ecuador's Global Exports (%)
40
31235EU's imports from Ecuador (%) 
23
22
97664433338EU's Global Imports (%)
Total: €2.6 b illion Total: €1,711 billion
Total: €18.2 billion Total: €1,746 billionTotal:  €17.0 billion
Total:  €2.1 billion
Animal or vegetable 
fats and oilsVegetablesLive animals
ChemicalsMineralsPrepared foods
Wood pulpWood and articles of 
woodPlastics
Base metalsPrecious stonesTextiles Optical
VehiclesMachinery
Other
MiscellaneousWT/REG3 80/1 
 
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  1.2  Trade in services and investment  
1.6.  Charts 1.3 and 1.4 depict the Parties' global trade in  commercial services during 2010- 2016. 
During this period, the EU recorded a trade surplus in services while Ecuador  exhibited a trade  
deficit , which expanded in 2016 after a five -year period of contraction . In 2016, t he EU's main 
export categories were:  other business (27%) , transport  (17%)  and telecommunications (14%) 
services; of these categories o ther b usiness (34%)  and transport  (17%)  services were also EU's 
main imports , followed by charges for the use of intellectual property  (16%). For Ecuador, the 
main exports were travel, which alone a ccounted for 73% of its total ex ports, followed by 
transport (19%) and telecommunication (3%) services.  For imports, transport, travel, insurance, 
and pension services were the most important categories accounting for  78% of its total imports.  
1.7.  Data for bilateral trade in services are not available.  
Chart 1.3 European Union : Trade in commercial services with the world, 2010-2016  
 
Source:  Eurostat based on BPM6.  Manufacturing services on 
physical inputs owned by others
Maintenance & repair services, 
n.i.e.
Transport services
Travel servicesInsurance and pension 
services
Financial services
Charges for the use of 
intellectual property n.i.e.Telecom, computer and 
information services
Other business servicesConstruction services
Personal, cultural and 
recreational services0100200300400500600700800
2010
2011
2012
2013
2014
2015
2016A. EU imports from extra -EU
2010 -2016
(€Billion)
0100200300400500600700800900
2010
2011
2012
2013
2014
2015
2016B. EU exports to extra -EU
2010 -2016
(€Billion)WT/REG3 80/1 
 
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  Chart 1.4 Ecuador : Trade in commercial services with the  world, 2010 -2016  
 
Note: Exchange rates to convert US$ to Euro for 2005 -2016 are: 2010 (0.76); 2011 (0.72); 2012 (0.78); 
2013 (0.75); 2014 (0.75); 2015 (0.90) and 2016 (0.90).  
Source:  WTO Statistics database based on BMP6.  
1.8.  Charts 1.5 to 1.6  show the Parties' global and bilateral foreign direct investment stocks and 
flows.  Ecuador is a net recipient of FDI flows fr om the world during 2013- 2016. The EU, generally  
a net provider of FDI, has seen its FDI flows fluctuate  significantly during the same period.  At the 
bilateral level, the EU was in general a net provider of FDI to Ecuador  during 2013- 2016.  There is 
no data for Ecuador's FDI flows and stock with the EU.  Manufacturing services on 
physical inputs owned by others
Maintenance & repair services, 
n.i.e.
Transport services
Travel servicesInsurance and pension 
services
Financial services
Charges for the use of 
intellectual property n.i.e.Telecom, computer and 
information services
Other business servicesConstruction services
Personal, cultural and 
recreational services0.00.51.01.52.02.53.0
2010 2011 2012 2013 2014 2015 2016A. Ecuador imports from world
2010 -2016
(€Billion)
0.00.51.01.52.02.53.0
2010 2011 2012 2013 2014 2015 2016B. Ecuador exports to world
2010 -2016
(€Billion)WT/REG3 80/1 
 
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  Chart 1.5 European Union : FDI stock and flow with Ecuador and world, 2013 -2016  
 
Source:  Euros tat. 
 
Chart 1.6 Ecuador : FDI stock and flow with the world, 201 3-2016 
 
Note:  Exchange rates to convert US$ to Euro for 2013 -2016 are: 2013 (0.75); 2014 (0.75); 2015 (0.90) 
and 2016 (0.90).  
Source:  UNCTAD.  
 01,0002,0003,0004,0005,0006,0007,000
2013 2014 2015 2016FDI stock with Ecuador
(€Million ) 
Outward Inward
-300-1001003005007009001,100
2013 2014 2015 2016FDI flow with Ecuador
(€Million) 
Outward Inward
01,0002,0003,0004,0005,0006,0007,0008,000
2013 2014 2015 2016FDI stock with extra -EU
(€Billion )
Outward Inward
0100200300400500600700800
2013 2014 2015 2016FDI flow with extra -EU
(€Billion ) 
Outward Inward
02,0004,0006,0008,00010,00012,00014,00016,000
2013 2014 2015 2016FDI stock with world
(€Million ) 
Outward
Inward
02004006008001,0001,2001,400
2013 2014 2015 2016FDI flow with world
(€Million) 
Outward
InwardWT/REG3 80/1 
 
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  2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  
2.1.  In 2017 Ecuador joined the  Trade Agreement between  the European Union and Colombia and 
Peru (hereafter the Agreement) , signed in 2012 and notified to the WTO in 2013.  The Protocol of 
Accession  of Ecuador to the Agreement (hereafter the Accession Protocol) was signed on 11 
November 2016, and has been applied by the EU and Ecuador  on a provisional basis since 1 
January 201 7.4 It was notified to the WTO on 2 March 2017 under Article  XXIV:7(a) of the GATT 
1994 and Article V:7(a) of the GATS . The Accession Protocol complements the A greement , which 
was considered in the Committee for RTAs in 2015 and described in t he corresponding factual 
presentation (WTO Document WT/REG333/1 of 19 January 2015).5  
2.2.  The text s of the Agreement  and the Accession Protocol , along with its schedules and 
annexes, are  available on the Parties' websites.6 The provisions of the Agreement apply to bilateral 
trade relations between, the EU, and, Colombia, Peru and Ecuador and do not apply to trade 
relations between Colombia, Peru and Ecuador, which are regulated by the Andean Community. 
The Accession Protocol applies exclusively to the trade relationship between  the EU and Ecuador, 
and amends  inter alia , the title of the Agreement to include  Ecuador as a signatory, as well as  a 
number of  articles and annexes of the Agreement . For instance, Annex III of the Accession 
Protocol on tariff elimination  by the EU and Ecuador , is incorpor ated into Annex I of the 
Agreement. The Agreement is co mposed of 14 Titles an d Annexes , while the Accession Protocol 
consists of 11 Sections and 19 Annexes .  
2.3.  Box 2.1 below summarizes the structure of the Agreement  and the Accession Protocol.  
                                                
4 EU and Peru have been provisionally applying the Agreement since  1 March 2013, and EU and 
Colombia since 1  August 2013 . 
5 The Agreement was signed on 26 June 2012 and has been applied on a provisional basis by the EU 
and Peru, since 1 March 2013, and, by EU and  Colombia, since  1 August 2013.  
6 The text of the Agreement, including the Protocol of Accession can be found in: 
http://www.comercioexterior.gob.ec/acuerdo -comercial -ecuador -union- europea  (for Ecuador ); and http://eur -
lex.europa.eu/legal -content/EN/TXT/?uri=OJ:L:2016:356:TOC  (for the EU).  WT/REG3 80/1 
 
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  Box 2.1 Structure of the Protocol of Accession of Ecuador and the Agreement  
 The Protocol of Accession of Ecuador  
Section I  Contracting Parties  
Section II  Provisions of the Agreement  
Section III  Tariff Elimination schedules  
Section IV  Rules of Origin  
Section V  Agricultural safeguard measures  
Section VI  Sanitary and Phytosanitary measures  
Section VII  Trade in services, establishment and electronic commerce  
Section VIII  Government procurement  
Section IX  Geographical indications  
Section X  Joint declarations  
Section XI  General and Final provisions  
 Annexes I -XIX 
 The Agreement between the European Union, and Colombia, Peru and Ecuador  
Title I  Initial provisions  
Title II  Institutional provisions  
Title III  Trade in goods  
 Chapter 1 : Market access for goods  
 Chapter  2: Trade remedies  
 Chapter 3 : Customs and trade facilitation  
 Chapter 4 : Technical barriers to trade  
 Chapter 5 : Sanitary and Phytosanitary measures  
 Chapter 6 : Movement of goods  
 Chapter 7 : Exceptions  
Title IV  Trade in services, establishment and electronic commerce  
 Chapter 1 : General provisions  
 Chapter 2 : Establishment  
 Chapter 3 : Cross -border supply of services  
 Chapter 4 : Temporary presence of natural persons for business purposes  
 Chapter 5 : Regulatory framework  
 Chapter 6 : Electronic commerce  
 Chapter 7 : Exceptions  
Title V  Current payments and movement of capital  
Title VI  Government procurement  
Title VII  Intellectual property  
Title VIII  Competition  
Title IX  Trade and sustainable development  
Title X  Transparency and administrative proceedings  
Title XI  General exceptions  
Title XII  Dispute settlement  
Title XIII  Technical assistance and trade -capacity building  
Title XIV  Final provisions  
 Annexes I -XIV 
Source:  WTO Secretariat based on the Agreement. WT/REG3 80/1 
 
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  3  PROVISIONS ON TRADE IN GOODS 
3.1  Import duties and charges, and quantitative restrictions  
3.1.1  General provisions  
3.1.  Trade in goods between the Parties  is governed by Chapter 1 of Title III of the Agreement 
and the Accession Protocol . Chapter  1 (Articles 17 -36) includes provisions on national treatment, 
tariff elimination, export and import restrictions, customs fees and charges, export taxes , import 
licensing, S tate trading enterprises, and the management of customs' administrative errors. The 
chapter also  includes a section dedica ted to  agriculture  with provisions on safeguards, export 
subsidies, and goods pricing system s maintained by the  Parties.  The content of Chapter 1 
remained unchanged following the Accession of Ecuador to the Agreement, except for Article 30 
which was amende d under the Accession Protocol to indicate that Ecuador may apply the Andean 
Price Band System (see section 3.1.5).  
3.2.  Under Chapter 1, t he Parties agree to grant national treatment to each other's goods in 
accordance with Article  III of GATT 19947, and not t o use non- tariff measures that prohibit or 
restrict their bilateral imports, except as provided in Article XI of the GATT 1994.8 They also  
commit to eliminate customs duties on originating goods according to their respective schedules 
and to not increase a ny existing duty, or introduce a new one on an originating good, unless 
otherwise specified. According to the Agreement, they can: (a) increase a customs duty up to the 
level established in their tariff schedule following a  unilateral reduction; and (b) maintain or 
increase a customs duty when authorized by the WTO Dispute Settlement Body. Upon request, the 
Parties will hold consultations to accelerate and broaden the scope of tariff elimination (Article 22).  
3.3.  The Parties shall also follow the WTO Agreement  on import licensing , which is  incorporated 
into the Agreement, and Article VIII of the GATT for the application of trade related fees and other 
charges other than customs duties (Articles  24 and 26). Moreover, they agree to notify to each 
other their existi ng export licensing procedures .9 
3.4.  The Parties agree to establish a S ub-committee on M arket Access and a Sub-committee  on 
Agriculture . The former will meet upon request and be responsible among others for  addressing 
any non- tariff measure which m ay res trict trade (Article 35), while the S ub-committee on 
Agriculture will monitor the implementation of  the agricultural provisions of the Agreement; and 
meet at least onc e a year unless agreed  otherwise (Article  36). 
3.1.2  Liberalization of trade and tariff lines 
3.5.  The Parties ' tariff elimination schedule and staging categories are detailed in Annex II of the 
Accession Protocol. The base rates are the MFN rates of 2007.  Tariffs will be removed 
progressively over a period of at most eleven  years for Ecuador's market access to the EU and at 
most 18 years for EU's market access to Ecuador  starting upon the Agreement's entry into force, 
and ending in 2027 and 2034, respectively . Both Parties exclude certain products from 
liberalization. Ecuador excluded 242 tariff lines from the Agreement  (at the 10 -digit level)  and the 
EU 340 lines (at the 8 -digit level).  Of these lines,  162 lines are subject to the price-band system  in 
the case of Ecuador  and 28  lines to the EU's entry -price band system .  
                                                
7 Article  III of GATT 1994 and its interpretative notes are incorporated into the Agreement. 
8 Article XI of the GATT 1994 and its interpretative notes are incorporated into the Agreement. 
9 The Parties informed that notifications of export licencing procedures had not been done yet. The 
Parties also noted that Col ombia's D ecree number 925 of 2013  in which provisions related to registrati on 
requests and import licensing are established was notified in due form to the WTO ; Ecuador does not apply 
export licences; and Peru does not apply import licences.  WT/REG3 80/1 
 
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  3.1.3  Liberalization  schedule  
3.1.3.1  The European Union  
3.6.  Table 3.1 shows the EU 's tariff elimination commitments under the Agreement.10 Before the 
Agreement 's entry into force, 24.8% of  the EU 's tariff was already duty free on an MFN basis, 
corresponding to 8.9% of its  imports from Ecuador during 2014- 2016. In  2017, when the 
Agreement began to be applied, the EU  liberalized another 70% of its  lines, which accounted for 
61% of its imports from  Ecuador . In 2027, after ten years of implementation, 96.5% tariff lines 
will be duty -free corresponding to 70 % of imports from  Ecuador .  
Table 3.1 The European Union : Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out 
period  Number of lines  % of total lines in 
EU's tariff 
schedule  Value of EU's 
imports from 
Ecuador  
(2014 -2016)  
€ million  % of EU's total 
imports from  
Ecuador  
2014 -2016  
2017 (MFN)  2,415  24.8 233.1  8.9 
2017 6,804  70.0 1,599.8  61.0 
2020 5 0.1 0.0 0.0 
2022 19 0.2 0.0 0.0 
2024 117 1.2 0.0 0.0 
2027 20 0.2 0.0 0.0 
Remain dutiable  340 3.5 788.4  30.1 
Total  9,720  100.0  2,621.4  100.0  
Note: Tariff lines subject to in- quota rates are excluded in the computation. 
 Based on the HS2007 nomenclature. 
Source:  WTO estimates based on data provided by EU authorities. 
 
3.7.  Table 3.2 and Chart 3.1 show the EU 's tariff elimination, by HS section and chapter with 
regard to imports from  Ecuador . Of the lines that will remain dutiable after 2027, a ll but 25 lines,  
refer to agricultur al products  in sections I -IV. These sections exhibit average rates ranging 
between 9.6 % and 13 %. Animal products (I) (13  %) and prepared food (IV) (12.4%) show the 
highest average preferential tariffs.  The remaining 25 dutiable lines refer to  chemicals (VI) (10 %). 
Table 3.2 The European Union : Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines under 
the  
MFN 2017  Number of duty -free lines 
under the Agreement  
Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  2017  
2020  
2022  
2024  
2027  
I 8.8 803 114 404 1 14 102 20 148 13.0 
II 5.9 531 125 325   12  69 9.6 
III 6.0 124 21 101 1  1    
IV 14.5 834 93 638 2 1 2  98 12.4 
V 0.9 244 158 86       
VI 4.2 1,272  341 906     25 10.0 
VII 4.7 351 67 284       
VIII 3.0 150 43 107       
IX 2.3 213 99 114       
X 0.0 220 220        
XI 7.9 1,190  45 1,145        
                                                
10 Of the total number of the EU's tariff lines (i.e. 9,720), about 10% are subject to non- ad valorem  
duties. WT/REG3 80/1 
 
- 15 - 
 
  HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines under 
the  
MFN 2017  Number of duty -free lines 
under the Agreement  
Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  2017  
2020  
2022  
2024  
2027  
XII 8.0 113 2 111       
XIII 4.0 258 34 224       
XIV 0.7 63 48 15       
XV 1.9 999 511 483 1 4     
XVI 2.5 1,477  305 1,172        
XVII 4.7 287 32 255       
XVIII 2.5 339 90 249       
XIX 2.2 27 5 22       
XX 2.6 218 55 163       
XXI 0.0 7 7        
Total  4.9 9,720  2,415  6,804  5 19 117 20 340 11.6 
Note: Tariff lines subject to in- quota rates are excluded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included.  
 Based on the HS2007 nomenclature. 
Source:  WTO estimates based o n data provided by EU authorities. 
 
3.8.  At the HS chapter level, products in 17 chapters will remain subject to duties (Chart 3.1). 
Average preferent ial tariffs will range between 7.4% and 21%, with the highest tariffs applying to  
preparations of vegetables (Chapter 20), sugars (Chapter 17) (17.4%) , and meat and meat offals 
(Chapter 2) (13%). The comparison between the MFN and preferential average tariff  of a given 
chapter could be computed only for six of the 17 dutiable chapters  because the other ten chapters 
included  lines subject to a specific rate at the preferential and/or MFN level.  For the six chapters 
where the calculations could be made , the average preferential and MFN rates were  the same, 
except for one case - vegetables (Chapter 7)  – whose preferential average rate is  higher .11 
                                                
11 Chapter 7 contain lines subject to compound rate s and to the entry-price system . Following the 
Agreement's entry into force, the ad valorem  compon ent of some of the compound rates will be eliminated, so 
that at the end of the Agreement's implementation Chapter 7 would consist of lines subject to compound rates, 
the entry -price system , or specific rates. For the calculation of the average rates, line s subject to the entry-
price system  or specific rates are not included and for lines subject to compound rates, only the ad valorem  
component is included. In accordance with this methodology, the preferential average rate of Chapter 7 
reflects the ad valorem component o f the compound rate of one line (9.6%), while the MFN average rate of 
Chapter 7 reflects the average of the  ad valorem  component of four lines (i.e. 9.6%, 9.6%, 5.1%, and 5.1%) 
subject to a compound rate.  WT/REG3 80/1 
 
- 16 - 
 
  Chart 3.1 The European Union : Average of dutiable rates, by HS Chapter  
 
* HS Chapters 4, 8, 10, 11 and  22 contain specific duties at the MFN and preferential level. 
** The lines under HS Chapter 7 that will remain dutiable at the end of the Agreement's 
implementation will be subject to compound rates , specific rates or to the entry-price system . At the 
MFN, these lines are subject to compound rates, or the entry-price system .  
*** HS Chapters 17, 18, 19, 20, 21 and  33 contain specific duties at the preferential tariffs level. 
 Tariff lines subject to in- quota rates are excluded in the computation: for the c alculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included.  
 Based on the HS 2007 nomenclature.  
Source:  WTO estimates based on data provided by EU authorities. 
3.1.3.2  Ecuador  
3.9.  Table 3.3 shows Ecuador 's tariff elimination commitments under the Agreement.12 Before the 
entry into force of the Agreement, 37.4% of Ecuador 's tariff lines were already duty free on an 
MFN basis, which corresponded to about 46% of its imports from the EU  during 2014- 2016. Upon 
the Agreement's entry into force,  Ecuador liberalized  another 23% of lines which accounted  for an 
additional 24% of its imports from the EU . Further tariff eliminations will take place in subsequent 
years and by 2026, after 10 years of implementation, 7 9.9% of Ecuador 's tariff lines will be duty -
free, corresponding to 86.9% of its imports from  the EU . Between 2027 and 2034 - the end of t he 
implementation period -, the share of duty -free lines  will increase to 97% accounting for 98.8% of  
its bilateral imports . Of the 242 lines that will remain dutiable, 162 are subject to a price-band 
system .13  
Table 3.3 Ecuador : Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out 
period  Number of lines  % of total lines in 
Ecuador's tariff 
schedule  Value of 
Ecuador's imports 
from EU  
(2014 -2016)  
€ million  % of Ecuador's 
total imports 
from EU  
2014 -2016  
2017 (MFN)  2,817 37.4 924.8 45.5 
2017 1,732 23.0 493.8 24.3 
2020 16 0.2 3.3 0.2 
2022 1,302  17.3 269.8 13.3 
2024 139 1.8 73.6 3.6 
2027 1,279 17.0 243.1 11.9 
                                                
12 Of the total number of Ecuador's ta riff lines (i.e. 7,534), about 5% are subject to non- ad valorem  
duties (see section 3.1.5).  
13 Ecuador confirmed that all lines subject to a  price-band system  under the Agreement are also subject 
to the price-band system  at the MFN level. 0510152025
02
*04
**07
*08
*10
*11
16
***17
***18
***19
***20
***21
*22
29
***33
35
38Average Duty Rate
HS ChapterPreferential MFNWT/REG3 80/1 
 
- 17 - 
 
  Duty phase -out 
period  Number of lines  % of total lines in 
Ecuador's tariff 
schedule  Value of 
Ecuador's imports 
from EU  
(2014 -2016)  
€ million  % of Ecuador's 
total imports 
from EU  
2014 -2016  
2032 4 0.1 0.4 0.0 
2034 3 0.0 0.2 0.0 
Remain dutiable  242 3.2 25.3 1.2 
Total  7,534  100.0  2,034.3  100.0  
Note: Tariff lines subject to in- quota rates are excluded in the computation.   
 Exchange rate EUR per USD are: 0.75 (2014), 0.90 (2015), 0.90 (2016).  
 Based on the HS20 12 nomenclature. 
Source:  WTO estimates based on data provided by Ecuadorian authorities . 
 
3.10.   Almost all the remaining dutiable lines  (238 lines) refer  to agricultural products and falls 
into HS sections I to IV (Table 3.4). The average preferential tariff for thes e sections range s 
between 15% and 24 %, with section III for animal and vegetable fats  containing lines subject to 
the price-band system . The other dutiable lines – four lines – will fall in HS section VI which refers 
to chemicals and exhibit  an average preferential tariff of 15 %. 
Table 3.4 Ecuador : Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Avg. 
% No. of 
lines Duty -
free 
lines 
under 
the  
MFN 
2017  Number of duty -free lines under the Agreement  
Remain 
dutiable  
Avg. Final 
Tariff 
(Dutiable ) 2017  
2020  
2022  
2024  
2027  
2032  
2034  
I 24.0 426 73 243  6 1 12 1 3 87 22.7 
II 15.3 424 115 121  96 4 51 1  36 18.8 
III 15.2 65 12 10    3   40 0+ variable 
component 
under the 
PBS 
IV 21.9 319 18 92 16 49 1 66 2  75 14.0 
V 1.5 214 171 21  20  2     
VI 1.9 1,446  1,188 54  128 49 23   4 15.0 
VII 8.9 314 127 39  27 40 81     
VIII 14.7 78 18 12  12  36     
IX 14.8 108  5  40  63     
X 11.2 195 63 19  19  94     
XI 14.0 929 85 235  586  23     
XII 17.0 55 1 26  21  7     
XIII 11.8 167 51 14  36 4 62     
XIV 7.0 59 43 2  1 2 11     
XV 9.7 697 314 136  70  177     
XVI 8.2 1,224  361 515  115  233     
XVII 13.5 289 79 62  36 37 75     
XVIII 8.2 288 94 118  11  65     
XIX 27.5 69  4  21  44     
XX 25.8 161 4 4  8 1 144     
XXI 30.0 7      7     
Total  10.7 7,534  2,817 1,732 16 1,302  139 1,279 4 3 242 17.8 
Note: For tariff lines subject to TRQs , only the out- of-quota duty is included in the calculation of the 
average tariff . Similarly, for lines subject to other non- ad valorem , only the ad valorem  component  
of the alternate rate is  included, while specific duties are excluded from the calculation.  
Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on data  provided by Ecuadorian authorities . WT/REG3 80/1 
 
- 18 - 
 
  3.11.   At the HS chapter level, Ecuador  will continue to apply duties on 17  Chapters at the end of 
the Agreement's implementation with average preferenti al tariffs ranging between 9% and 30% 
(Chart 3.2). The HS chapter with the highest average preferential tariffs at the end of 
implementation will be sugars (Chapter 17) followed by dairy products (Chapter 4), preparations  
of meat and fish (Chapter 16) and meant and meat offals (Chapter 2). For ten chapters, the 
average preferential rate will be lower than the average MFN rate, thus providing additional 
prefer ences to imports from the EU . These chapters include : meat and meat offals (Chapter 2), 
cocoa and co coa preparations (Chapter 18), preparations of vegetables (Chapter 20),  cereals 
(Chapter 10),  and dairy products (Chapter 4).  For two chapters the average MFN and pre ferential 
rate will be the same, and for one chapter (Chapter 17-  sugars) the average pref erential rate will 
be higher .  For four  chapters, the average tariff coul d not be computed as they include only lines 
subject to  the price band system . 
Chart 3.2 Ecuador : Average of dutiable lines, by HS chapter  
 
* HS Chapters 12, 15, 23 and 35 are subject to the price -band system . 
** In HS Chapter 17  only one tariff line (1701130000) is subject to an ad valorem  duty (30%)  and the 
rest are subject to the price -band system . 
 Tariff lines subject to in- quota rates are excluded in the computation: for the calculation of 
averages, only the ad valorem parts of alternate rates are included. Specific rates and lines subject 
to the price -band system  are excluded.  
 Based on the HS 2012 nomenclature . 
Source:  WTO estimates based  on data provided by Ecuadorian authorities.  
 
3.1.4  Tariff -rate quotas  
3.12.   Both Parties apply bilateral tariff -rate quotas (TRQs) under the Agreement in addition to the 
TRQs they maintain at the multilateral level; in some cases,  there is an overlap. The EU applies 
preferential TRQs to 10 agricultural products, which benefit from a zero- in-quota rate under the 
agreed quota. These products represent 107 tariff lines (at the 8- digit level) (Table A1.1. in 
Annex  1), and are mushrooms, sweet corn, refined and raw sugar, maize, garlic, rice, manioc 
starch and rum. Of these products, rice, manioc starch, maize and refined sugar are also subject 
to TRQs at the multilateral level (Table A1.1 in Annex 1).  
3.13.   Ecuador applies preferential TRQs to 8 types of products: food preparati ons for animals, 
offal, dairy products, vegetables, sweet corn, potatoes, animal meat, and products with high sugar 
content which correspond to 81 tariff lines (at the 10 -digit level) (Table A2.1 in Annex 2). At the 
MFN level, Ecuador applies TRQs to certa in dairy product s. 
WT/REG3 80/1 
 
- 19 - 
 
  3.1.5  Price -band and entry -price system s 
3.14.   Both Parties apply , on an MFN -level,  a system that controls  the import price of certain 
agricultural  goods . Under the Agreement , each Party can continue to apply these mechanisms 
(Articles 30 and 31) . The EU and Ecuador refer to these systems as the entry -price system  and the 
Andean P rice-Band System , respectively. Colombia and Peru also maintain a price -band system  
similar to that of Ecuador , which they can also continue to apply under the Agreement.   
3.15.   The EU entry -price system  applies to  28 tariff lines (at the 8 -digit level) covering 16 types 
of fruits and vegetables such as tomatoes, cucumbers, apples and pears (Table 3.5) . Under this 
mechanism, a product is subject to a spec ific duty in addition to its ad-valorem  duty if its price is 
lower than the minimum entry price set out by the authorities. The ad -valorem  component can 
vary with the season, while the specific duty component depends on the difference between the 
import pr ice and the reference entry price. Upon the Agreement's entry into force, the EU remove d 
the ad-valorem  component for imports originating in  Ecuador for all lines subject to the entry -price 
system , except for sweet oranges  (one line), whose ad -valorem  comp onent will be removed over a 
period of five years  for the imports taking place between 1 November and 30 April .  
Table 3.5 Products subject to the EU entry price system   
Product  Tariff code  Ad-valorem  component under the EU entry price system  
Tomatoes  07020000  8.8% or 14.4% depending on the season  
Cucumbers  07070005  12.8% or 16% depending on the season  
Globe artichokes  07099080  10.4%  
Courgettes  07099070  12.8%  
Sweet oranges  08051020  3.2%, 4.8%, 10.4% or 16% depending on the season  
Clementines (including 
mandarins, tangerines, 
and satsumas)  08052010  
08052030 
08052050 
08052070 
08052090  16% 
16% 
16% 
16% 
16% 
Lemons  08055010  6.4% 
Apples  08081080  6.4%, 4.8% or 11.2% depending on the season  
Pears 08082050  8%, 4%, 2.5% or 10.4% depending on the season  
Table grapes  08061010  8%, 11.5%, 14.1%, 14.4% or 17.6% depending on the season 
and variety  
Apricots  08091000  20% 
Cherries  08092005  
08092095  12% 
12% 
Peaches (including) 
Nectarines  08093010  
08093090  17.6%  
17.6%  
Plums  08094005  6.4% or 12% depending on the season  
Grape juice  20096110  
20096919 
20096951 
20096959  22.4%  
40% 
22.4%  
22.4%  
Wine of fresh grapes  22043092  
22043094 
22043096 
22043098  22.4% +20.6 €/100kg  
22.4% +20.6 €/100kg  
40% +20.6 €/100kg  
40% +20.6 €/100kg  
Source: EU Regulation No. 2017/1925  of 12 October 2017 amending Annex I to Council Regulation (EEC) 
No. 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff . 
3.16.   Ecuador's price-band system  covers 162 tariff lines  (at the 10 -digit level), all on  agricultural 
products, except for two lines for  chemicals. Under this mechanism, a product is subject to an 
ad-valorem  duty (variable component) in addition to its current duty (fixed component)  (which is 
also ad-valorem ) if its CIF price (reference price) is lower than a "floor" price (Decision 371 of 
1994 by the Andean Community). A tariff reduction can also apply if the CIF price (reference price) 
is higher than a "ceiling" price  (Articles 2 of the Accession Protocol and 30 of the Agreement) . Of 
the 162 lines subject to the price -band system , 97 are fully excluded from liberalization, and 
65 lines will have the ir fixed component removed gradually or upon the Agreement's entry into 
force (Table  3.6). WT/REG3 80/1 
 
- 20 - 
 
  Table 3.6 Ecuador 's price -band system  (PBS) under the Agreement   HS  
Chapter  
Description  
No. of 
lines  
MFN 2017  Treatment under 
the RTA 
(category)  Fixed 
component 
eliminated in  
02 Meat and Edible Meat 
Offal 1 
31 45% 
30% to 85.5%  P 
Excluded  - 
04 Dairy produce; birds' 
eggs; natural honey; 
edible products of animal 
origin, not elsewhere 
specified or included   
14  
25% to 54%   
Excluded   
- 
11 20% to 25% + variable 
component under the PBS  Excluded  - 
10 Cereals  2 
 
8 
 67.5%  
 
15% to 25% + variable 
component under the PBS  Excluded  
 
Excluded  
 
 - 
 
 
11 Products of the milling 
industry; malt; starches; 
inulin; wheat gluten 3 20% + variable component 
under the PBS   
 
Excluded  
  
- 
 
12 Oil seeds and oleaginous 
fruits; miscellaneous 
grains, seeds and fruit; 
industrial or medicinal 
plants; straw and fodder  2 15% + variable component 
under the PBS  Excluded  - 
4 0% + variable component 
under the PBS  IFa 2017 
9 0% to 20 % + variable 
component under the PBS  IJ - IK eleven equal 
stages  
    
15 Animal or vegetable fats 
and oils and their 
cleavage products; 
prepared edible fats; 
animal or vegetable 
waxes  5 0% + variable component 
under the PBS  IGa 2017 
1 20% + variable component 
under the PBS  II eight equal 
stages  
34 15% to 20 % + variable 
component under the PBS  IJ - IK eleven equal 
stages  
16 Preparations of meat, of 
fish or of crustaceans, 
molluscs or other aquatic 
invertebrates  1 
 
3 30% 
 
30%  P 
 
Excluded   
 
- 
17 Sugars and sugar 
confectionery  16 0% to 25% + variable 
component under the PBS  Excluded  - 
23 Residues and waste from 
the food industries; 
prepared animal fodder  1 45%  B1 - 
5 
 
 
 
1 0% to 20%  + variable 
component under the PBS  
 
15% + variable component 
under the PBS  Excluded  
 
 
 
B1 - 
2 0% to 1 5% + variable 
component under the PBS  IH six equal 
stages  
6 15% + variable component 
under the PBS  IJ eleven equal 
stages  
35 Albuminoidal substances; 
modified starches; glues; 
enzymes  2 0% to 15% + variable 
component under the PBS  Excluded  - 
a Duty-free upon entry into force . 
Source:  Based on  data provided by the Ecuadorian authorities . 
 
3.2  Rules of origin  
3.17.   Annex II to the Agreement specifies the requirements a good must meet to acquire 
originating status and be granted preferential treatment.  Annex VI to the Accession Protocol  
amends this Annex by  mainly replacing some of  the sp ecific rules of origin. Moreover, Chapter 3 
provides for the creation of a Sub -committee on Customs, Trade Facilitation and Rules of Origin 
(see section  3.4.5). WT/REG3 80/1 
 
- 21 - 
 
  3.2.1  Requirements for the determination of origin  
3.18.   A good qualifies as originating if it is:  
• wholly obtained in one of the Parties; 
• produced in one of the Parties using non -originating materials but which have undergone 
sufficient working or processing in the Party (Article 2 of Annex II of the Agreement). 
The working or processing requirements ca n take the form of a change in tariff 
classification (CTC); a percentage of the ex -works price  of the product;14 a specific 
processing requirement or any other applicable requirement set out in  Appendix 2 of 
Annex II of the Agreement and Annex VI to the Acc ession Protocol.   
3.2.2  Cumulation  
3.19.   The Agreement allows for bilateral cumulation  between the EU and signatory Andean 
countr ies (Article 2  of Annex II of the Agreement) . 15  
3.20.   The Agreement al so provides  for diagonal cumulation  between signatory Andean countries 
and the following countries: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, 
Venezuela and Bolivia. Materials originating in any of these countries shall be considered as 
originating materials from Colom bia, Ecuador, or Peru  provided that (a) the working or processing 
of the materials carried out in the  signatory Andean Countries goes  beyond the insufficient working 
or processing operations listed in section 3.2.5; (b) the materials originated in one of the countries 
listed  above are subject to rules of origin that are identical to those applicable if such materials 
were exported directly to the EU ; and  (c) existing arrangements in force between the signatory 
Andean c ountries and the other countries provid e for adequate administrative and verification 
procedures ensuring the implementation of the diagonal cumulation (Article 3 of Annex II of the 
Agreement) . 
3.21.    At the request of a signatory Andean Country or the European Union, materials originating 
in a Central American (including Mexico), South American or Caribbean country shall be considered 
as materials originating, respectively, in a signatory Andean Countr y or in the European Union. 
Those materials shall be considered as originating provided that:  (a) the working or processing of 
the materials carried out in the signatory Andean Countries or in the EU went beyond the 
insufficient working or processing opera tions listed in section 3.2.5 ; (b) the materials originated in 
a non- Party are subject to rules of origin that are identical to those applicable if such materials 
were exported directly to the signatory Andean Countries or to the European Union, respective ly; 
and (c) the signatory Andean Countries, the European Union and the non- Party or non -Parties 
concerned have an arrangement on adequate administrative and verification procedures which will 
ensure the implementation of the cumulation of origin (Article 4 of Annex II of the Agreement) .  
3.22.   Cumulation of origin with third countries may be applied provided that:  a) there are 
preferential trade agreement in conformity with Article XXIV of the GATT 1994 between the 
Andean Countries and the non- Party concerned, an d between the EU and such non -Party; b) 
equivalent cumulation provisions are contained in these agreements for the cumulation to apply in 
reciprocal manner ; and c) the notices indicating the fulfilment of the necessary requirements to 
apply cumulation are published. Moreover,  it is required that the Sub -committee reach a prior 
agreement on the materials for cumulation will be applicable and the Parties within the Sub -
committee may agree additional conditions for its application.  
3.2.3  De minimis  rule 
3.23.   The Agreemen t includes a de minimis  or tolerance provision, under which a good qualifies 
as originating if the value of all non -originating materials used in its production which do not 
satisfy the rules of origin in Annex II of the Agreement do not exceed 10% of the ex -works  price of 
                                                
14 This criterion specifies the  maximum amount of non- originating materials that can be used as a 
percentage of the ex -works  price. 
15 This implies that a Party can use originating inputs of the other Party in the production of a good as if 
they were their ow n. The final good will qualify as originating as long as the inputs have undergone working or 
processing that go beyond the activities listed in section 3.2.5. WT/REG3 80/1 
 
- 22 - 
 
  the good  (Article 6 of Annex II of the Agreement) . Specific rules are defined for textiles and 
apparel  (chapters 50 -63) (Appendix 1 to Annex II of the Agreement ). 
3.2.4  A bsorption rule  
3.24.   The Agreement also allows for an absorption rule, which implies that when determining the 
origin status of a final product, the Parties will not take into account the non -originating materials 
contained in an intermediate good that has already acquired ori ginating status and that has been 
used in the manufacture of the final product (Article 6 of Annex  II of the Agreement ). 
3.2.5  Other factors affecting the originating status of a good  
3.25.   The Agreement also lists the insufficient working or processing  operations th at do not confer 
originating status to a good. This list includes  packing, cleaning, washing, labelling, as well as 
operations that guarantee the preservation of goods (Article 7 of Annex II of the Agreement). The 
Agreement also specifies how to determine the (origin) status of goods sent for exhibition s; 
accessories, spare parts and tools; neutral materials (e.g. energy an d fuel) used in the production 
of a good; and sets of goods (Article s 9-11 and 14 of Annex II  of the Agreement).16  
3.26.   In addition, the Agre ement includes provision s on the principle of territoriality, and direct 
transport . Under the principle of territoriality any originating good exported from the Parties to 
another country and re -imported to the Parties will lose its originating status unless it is proved to 
the customs authorities that the returning good is the same as th e one that was exported and has 
not undergone any operation beyond that necessary to preserve it in good condition while abroad 
(Article 12 of Annex II of the Agreement). Under the principle of direct transport, preferential 
treatment applies only to produ cts, satisfying the requirements of Annex II, which are transported 
directly between EU and the Andean countries . However, transport involving trans -shipment or 
temporary warehousing in third countries is allowed in the case of products constituting one single 
consignment, provided that these products remain under the surveillance of the customs 
authorities in the country of transit or warehousing and do not undergo operations other than 
unloading, reloading or any operation designed to preserve them in good condition. Originating 
products may be transported by pipeline across the territories of third parties (Articles 12 and 13 
of Annex II  of the Agreement ).  
3.2.6  Administration of the rules of origin  
3.27.   The procedures for the administration of the rules of origin  are described in Annex II of the 
Agreement . To claim preferential treatment under the Agreement, importers must present a 
movement certificate known as EUR.1 or, in certain cases, an "invoice declaration", except for 
private packages and travellers' perso nal items worth less than €500 and €1, 200 respectively for 
imports into the EU, and USD 2 ,000 and USD 1, 000 for imports into a signatory Andean country . 
Both documents are valid for 12  months. A movement certificate EUR.1 will be issued by the 
customs and the competent  authorities of the exporting country following a request  by exporters, 
while an "invoice declaration" can be made by an approved exporter or by any exporter with a 
shipment consisting of originating products whose value does not exceed €6,000 . The customs 
authorities can grant the status of approved exporter to any frequent exporter subject to 
conditions they consider appropriate; and withdraw it at any time  (Articles 15, 16, 20, 21, 22 and 
25 of Annex II  of the Agreement ).  
3.28.   The Parties shall cooperate in the verification of the good's origin, including the authenticity 
of the movement certificate EUR. 1 and the invoice declarations. If an importer or an exporter 
draws  up a document , or causes a document to be drawn up,  which contains incorrect information 
for the purpose of obtain ing preferential tariff treatment , the Parties can impose penalties. In case 
a dispute resulting from the verification procedures cannot be resolved between the customs 
authorities of the Parties, the Parties will submit it to the Sub -committee on Customs, Trade 
Facilitation and Rules of Origin , and if no solution is found , to the Agreement 's dispute settlement 
mechanism. D ispute s arising between the importer and the customs authorities of the importing 
country shall be settled under the legislation of that P arty (Articles 30 -33 of Annex II ). 
                                                
16 Neutral  materials ar e goods used in the production of a good but that are not physica lly incorporated 
into the good such as fuel and energy, and machines and tools. WT/REG3 80/1 
 
- 23 - 
 
  3.29.   Finally, the Agreement indicates that although Ceuta and Melilla are not considered part of 
the European Union, products originating in Ceuta and Melilla and imported into the Andean  
countries , or vice versa, would benefit from the same preferential regime established under the 
Agreement (Article 35 of Annex II  of the Agreement ).  
3.3  Export duties and charges, and quantitative restrictions  
3.30.   Export taxes  or duties (other than  internal charges) are prohibited under the Agreement  
(Article  25). The Agreement also  forbids the application of any measure that prohibits or restricts 
exports of the other Party, except as provided in Article  XI of the GATT 1994, which is incorporated 
into the Agreement (Article 23). These provisions were not subject to any change under the 
Accession Protocol.  
3.4  Regulatory provisions on trade in goods  
3.4.1  Standards  
3.4.1.1  Sanitary and phytosanitary measures  
3.31.   In Chapter 5  (Articles 85 -104) on sanitary and phytosanitary  (SPS)  measures, the Parties 
reaffirm their rights and obligations under the WTO SPS Agreement (Article 86).  In addition, the 
Parties include provisions on import requirements  (Article 91) , import procedures (Article 92), 
verifications (Article 93), the recogniti on and determination of pest-  and disease -free areas, and 
low-pest and low -disease prevalence (Article 94), the development of provisions on equivalence 
(Article 95),  transparency and exchange of information (Article 96 ), notification and consultation 
(Article 97), the adoption of emergency measures (Article 98), the adoption of alternative 
measures (Article 99), special and differential treatment in case a signatory Andean country has 
difficulties by a proposed measure by the EU (article 100), technical assistance and capacity 
building (Article 101), and collaboration on animal welfare (Article 102).  These provisions build 
upon the WTO SPS Agreement, and are in general more detailed.  
3.32.   The Parties also establish a Sub -committee on S anitary and P hytosanitary Measures whose 
functions include monitoring the implementation of chapter 5. The Sub-committee s hall meet at 
least once a year and for the first time within  the first year following  the Agreement's entry into 
force (Article 103) . In the event of a dispute,  the Parties may hold technical consultations under 
the Sub -committee on Sanitary and Phytosanitary Measures or under the framework of the 
Agreement's dispute settlement mechanism (Article 104). Finally, Ecuador (like Colombia and 
Peru) will allow goods or iginating in the EU to benefit from the harmonised procedures and 
requirements applicable between the signatory Andean countries. The latter will also try to foster 
the harmonization of their SPS measures and promote the harmonization or mutual recognition  of 
their controls and inspections (Article 105).   
3.33.   In the area of SPS, the Accession Protocol only added the information regarding the contact 
points and competent authorities for Ecuador (Article 8 of Accession Protocol).    
3.4.1.2  Technical barriers to trade  
3.34.   In Chapter 4 (Articles 71 -84) on technical barriers to trade (TBT), the Parties reaffirm their 
rights and obligations under the  WTO TBT Agreement (Article 7 3), which is incorporated into the 
Agreement (article 73) . In addition, they include provisions on cooperation and trade facilitation 
(Article 75), technical regulations (Article 76), standards (Article 77), conformity assessment (78), 
and transparency and notification procedures (Article 79). In general, these provisions are more 
detailed and go beyond th e WTO TBT Agreement.   
3.35.   In the area of cooperation and trade facilitation, the Parties commit to identify, dev elop and 
promote initiatives that facilitate trade  such as the exchange of information, simplification of 
certification procedures, elimination of a dministrative requirements established in standards or 
technical regulations, and the alignment or establishing the equivalence of technical regulations 
and conformity assessment . Where a Party detains at a port of entry a good originating in the 
territory  of the other Party due to a perceived failure to comply with a technical regulation, it shall 
immediately notify the importer of the reasons for the detention  (Article 75). WT/REG3 80/1 
 
- 24 - 
 
  3.36.   Other novelties are also found in  the provisions on TBT measures and transparency . For 
instance, the Parties shall, upon request, provide any information regarding a technical regulation 
(except for confidential information) in case the other Party would like to develop a similar one to 
avoid duplication of work. They commit to apply th e WTO TBT Committee  decision  on the 
principles for developing international standards. They also recognize that there a number of 
mechanisms to facilitate the acceptance of the results of conformity assessment procedures 
conducted by another Party, such as  self-declaration, unilateral recognition, voluntary recognition 
agreements between conformity assessment bodies, and accreditation. Regarding self -declaration 
as a form of recognition, Ecuador committed under the Accession Protocol to recognise a self -
declaration from the supplier that the product conforms to the EU technical regulations as a 
sufficient proof of conformity with Ecuadorian technical regulations (Article 2 and Annex I of the 
Accession Protocol). This is the only modification brought by the A ccession Protocol to the 
Agreement in the area of TBT. In the area of transparency, all proposed or new technical 
regulations and conformity assessment procedures must be transmitted electronically directly to 
the other Party or via the WTO Secretariat. The Parties will allow at least 60 days (from the date of 
the notification ) for the other Party to provide comments , and when p ossible 90 days; and provide, 
upon request, written answers to the comments received, and publish its answers to significant 
comments. They also specify that the period between the publication and the entry into force of a 
technical regulation and conformity assessment procedures must be at least six months  
(Article s 76-79).  
3.37.   The Parties also in clude  provisions on border control a nd market surveillance, marking and 
labelling, technical assistance and capacity building and the exchange of information 
(Article s 80-82 and 84) , and on the creation of  a Sub -committee on Technical Barriers to Trade . 
The Sub-committee will meet at least once a year, and be responsible inter alia  for monitoring and 
evaluating the implementation of chapter 4 (Article 83) . 
3.38.   Finally, Ecuador ( like Colombia and Peru ) will allow goods originating in the EU to benefit 
from the harmonised TBT measures applicable between the signatory Andean countries . The latter 
will also try to foster the harmonization of th eir TBT measures (Article 105).  
3.4.2  Safeguard mechanisms  
The Agreement allows for the application of global and bilateral safeguards. It also permits 
the application of a quantity -based safeguard measure for certain agricultural products, as well as 
safeguard measures for balance of payments reasons (Article 297 ) (see Section 5.3).  
The same good cannot be subject sim ultaneously to a bilateral, global or agricultural 
safeguard (Articles 29 and 45).  
Global safeguards  
The Parties retain their rights and obligations under Article XIX of the GATT 1994 and the 
Agreement on Safeguards (hereafter the Safeguards Agreement), and do not take any additional 
commitments under the Agreement in this area  (Article  43), except for transparency and 
notifications . Upon request by  another Party, a  Party initiating a safeguard investigation or 
intending to adopt a safeguard measure shall immediately notify the other Party of its intention 
and provide relevant information (Article 44).  
The dispute settlement mechanism under the Agreement (see section 5.6) does not apply to 
the provisions on global safeguards (Article 47).   
3.4.2.2  Bilateral safeguards  
The Parties may apply bilateral safeguards if as a result of the trade liberalization under the 
Agreement imports of a good cause injury or a threat thereof to sectors in the importing Party 
producing a like or directly competitive good. The measure can be applied only following an 
investigation by the Parties' competent authorities and during a transition period , in general, of ten WT/REG3 80/1 
 
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  years from the date of entry into force of the Agreement.17 The measure will consist of a 
suspension of further tariff reductions under the Agreement or the increase of tariffs to a level that 
will not exceed the MFN applied tariff in effect at the time the action is taken or the  rate as 
specified in the Parties' schedule. The maximum period of application of a bilateral safeguard  is 
four years, including a two- year extension (which is shorter than under the Safeguards 
Agreement) . The period of application of a  provisional measure  shall not exceed 200 days. T he 
measure can be appl ied to the same good only once for half the time of initial application and after 
a period of non -application of a least one year  (Articles 48 -53). These provisions are  also more 
stringent than under the Safeguards Agreement, which allows that a safeguard measure be 
applied twice to the same good after a no n-application period of at least two years . With respect to 
Ecuador, compensation in the form of concessions or suspension of substantially equivalent  
concessions will take p lace only after the measure of bilateral safeguard has been appl ied for a 
period o f three years ( Article 54 and paragraph 12 of Annex I of the Accession Protocol). Upon 
termination of the bilateral safeguard, the applied rate shall be that established in the Parties' tariff 
schedules  (Article 55) .  
For investigations involving the outer most regions of the European Union (e.g. Guadeloupe 
and Saint Martin ), the application of a safeguard measure may be limited to the territory of the 
regions concerned (Article 5 6).   
3.4.2.3  Agricultural  safeguards  
Ecuador  (like Colombia and Peru)  may apply  an additional import duty to onions, shallots, 
beans and blue- veined cheeses originating in the EU  if imports of the se goods exceed a certain 
level (i.e. trigger level) . These products correspond to 13 tariff lines at the 8 -digit level and are 
described in Annex VII of the Accession Protocol.  Following  the application  of the safeguard , the 
amount of any additional import duty and any other customs duty on such goods may not exceed 
the lesser of: (i) the MFN rate applied; or (ii) the base tariff rate as speci fied in Annex I (tariff 
elimination schedules).  An agricultural safeguard cannot be applied at the same time as a bilateral 
or global safeguard. The agricultural safeguard cannot be applied  after the good is fully liberalized, 
or after 17 years for blue -veined cheeses . (Article 29 ). Goods subject to a TRQ are also excluded 
from the application of an agricultural safeguard . 
The EU may also apply a safeguard measure on bananas  (tariff line 08030019)  originating 
in Ecuador under a so -called "stabilisati on clause" and over a transition period lasting until 2019. 
Under this clause, the EU may suspend the application of the preferential tariff for a maximum 
period of three months  (within the same year)  once the trigger volume is  reached  during t he 
correspon ding calendar year  and following an examination of the impact of these import volumes 
on the situation of the EU's  banana market . In case preferential treatment is suspended, the EU 
shall apply the lower  of the MFN rate or the base rate; and immediately en ter into consultations 
with Ecuador to assess the situation  (Annex II of the Accession Protocol ).  
3.4.2.4  Other special safeguards 
For Ecuador, serious injury or threat of harm serious injury to domestic producers referred 
to in Article 48 of the Agreement shall also be understood as serious injury or threat of serious 
injury in an infant industry" industries (paragraph 11 of Annex I of the Accession Protocol).  
3.4.2.5  Safeguards related to the balance of payments  
3.48.   The Parties may maintain safeguards for balance of paym ents reasons (See Section 5.3).  
3.4.3  Anti -dumping and countervailing measures 
3.49.   The Parties confirm their rights and obligations under th e WTO Agreements on Antidumping, 
Subsidies and C ountervailing measures , and Rules of Origin (article 37) , and grant exclusive 
jurisdiction to the WTO dispute settlement system over these issues by proscribing the use of the 
dispute settlement mechanism under the Agreement  (article 42).   
                                                
17 For goods that have a tariff -elimination period of ten years or greater, the "transition period " 
corresponds to the tariff -elimination period plus three years (Article 49 ). WT/REG3 80/1 
 
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  3.50.   The Agreement also includes provis ions on transparency and the participati on of private 
sector representatives during the investigation  (Articles 38 -39). 
3.51.   The provisions on anti- dumping and countervailing measures were not subject to any 
change under the Accession Protocol.  
3.4.4  Subsidies and State -aid 
3.52.   The Parties prohibit the applica tion of export subsidies (or other measures with equivalent 
effect) on agricultural goods which are fully liberalized under the Agreement , and express their 
commit ment to work jointly in the WTO to reach an agreement on the elimination of export 
subsidies. If a Party maintains, introduces or reintroduces subsidies on the export of goods 
liberalized (partially or fully) under the Agreement, the importing Party may apply an additional 
tariff that will increase customs duties for imports of such good up to the level of the MFN applied 
duty or the base rate set out in the Parties t ariff schedules, whichever is lower, for the period the 
export subsidy is applied. The elimination of this additional tariff requires that the exporting  Party 
removes the subsidy  (Article 32).  
3.53.   The Parties also reaffirm their existing rights and obligations under Article XVII  of the GATT 
on State trading enterprises , and it s understanding, w hich are incorporated into the A greement. In 
particular, they comm it to ensure that S tate-owned companies act in accordance with the 
Agreement (Article  27).  
3.54.   All the above provisions remained unchanged under the Accession Protocol.  
3.4.5  Customs -related procedures  
3.55.   In Chapter 3 on customs and trade facilitation  (Articles 58 -70), the Parties agree to promote 
and reinforce cooperation on customs and trade facilitation matters, and to establish transparent, 
and simplified procedures to reduce costs and ensure predictability for exporters and importers. 
Such procedures include the i ssuance of advance rulings regarding a future shipment, the use of 
risk management systems to target high -risk goods and simplify the release of low -risk goods, and 
the adoption of an authorized economic operators system (Articles 58 -62). The latter, as we ll as 
certain provisions on advance rulings will apply to Ecuador two  years after the entry into force of 
the Accession Protocol (Article 14 of Annex I of the Accession Protocol ). This two-year period of 
non-implementation  was the only  amendment made by the Accession Protocol to Chapter 3.   
3.56.   The Parties commit to make publicly  available all their customs related regulations, and 
procedures; and maintain inquiry points concerning customs matters. To the extent possible, they 
also commit to publish any proposed customs related regulations and procedures, and allow time 
for comments  (Articles 64).  The Parties shall apply the WTO Agreement on Customs Valuation to 
their bilateral trade , and commit to ensure freedom of transit through their territory  (Article  63 
and 65) .  
3.57.   Finally, the Parties shall assist each other in customs matters (Article 67), and establish a 
Sub-committee on Customs, Trade Facilitation and Rules of Origin, which will inter alia  monitor the 
implementation of Chapter 3 and Annex II (on the adm inistration of rules of origin) (Article 68) .  
3.5  Sector -specific provisions on trade in goods  
3.58.    Besides provision s such as agricultural export subsidies  and agricultural safeguard , there is 
no other sector -specific provision on trade in goods in the Agreement . 
4  PROVISIONS ON TRADE IN SERVICES  
4.1  Scope and definitions  
4.1.  Trade in services is governed by Title IV . This title consists of seven chapters  which cover 
inter alia  cross- border trade in services, establishment of investors, movement of natural persons, 
and electronic commerce. Chapter  3 on cross- border trade in services covers GATS modes of 
supply 1 (Cross border trade) and 2 (Consumption abroad), while Chapter 2 on establishment WT/REG3 80/1 
 
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  covers mode 3 and Chapter 4 covers temporary  presence of natural persons for busin ess 
purposes. Chapters 2 and 3 are complemented by Annexes IX-XVI of the Accession Protocol which 
contain the Parties' commitments for modes 1, 2, 3 and 4.  Title IV does not apply to government 
procurement, subsidies, measures affecting natural persons seeking access to the labour market of 
a Party, or  to measures regarding citizenship, residence or employment on a permanent basis 
(Article 107 ).  
4.2.  Chapter 2 on establishment also cover s investment -related matters  for services and non -
services.  In fact, the Agreement defines an  investor  of a Party as a natural or juridical person of 
that Party that seeks,  through concrete actions to perform, is performing or has performed an 
economic activity in another Party through setting up an establishment (Article 1 10). Chapter 2 
does not include provisions on investment protection nor investor -State dispute settlement 
procedures (Article 111). Dispute settlement mechanisms established under any existing or future 
international agreement concluded by any of the Parties and relating to investment cannot be 
applied to alleged breaches of Chapter 2 on establishment  (Article 115) . The disputes arising  under 
Chapter 2 of the Agreement  are covered by the dispute resolution mechanism of the Agreement, 
except disputes encountered between the signatory Andean Countries .  
4.3.  Commitments in modes 1, 2 and 3 apply to all sectors, except for audio- visual services, 
maritime cabotage services and m ost of air transport services. The Agreement's coverage 
regarding air transport services is broader than in the GATS as it covers ground handling services 
and airport operation services (excluded from the GATS) in addition to aircraft repair and 
maintenanc e services, computer reservation system services, and the sale and marketing of air 
transport  services (Articles 111 and 118) . For mode 3, mining, manufacturing and processing of 
nuclear materials as well as the production and trade of arms and munitions a re also excluded 
(Article 111 ).  
4.4.  The Agreement contains a review clause  on investment promotion under which the Parties 
shall review the investment legal framework, the investment environment and bilateral investment 
flows with the  view to a progressive liberalization of investment. The first review shall take place 
no later than five years following the agreement entry into force (Article 11 6). 
4.5.  The main change brought by the Accession Protocol to Title IV was t he inclusion of 
Annexes  IX-XVI, mentioned in p aragraph 4.1.  
4.2  Denial of benefits 
4.6.  The Agreement does not contain a "denial of benefits" provision per se. However, only 
companies of a Party can access the benefits of the Agreement where  "companies of a Party" are 
defined as companies that have been set up in accordance with the Party's  legislation , have their 
main office registered in the terri tory of that Party and possess a "real and continuou s link" with 
the economy of that Party (Article 108 ).  
4.7.  Shipping companies established outside the Parties but controlled by nationals of one of the 
Parties can be beneficiaries of the provisions of the Agreement if their vessels are registered in 
that Party and fly the flag of one of the Parties (Article 108) . 
4.3  General provisions on trade in services 
4.3.1  Market acce ss 
4.8.  The Parties agree to grant services, service suppliers , establishments and investors of  
another Party treatment no less favourable than that provided for in their lists of commitments  
(Annex es IX-XVII to the Accession Protocol)  with respect to market access. Moreover, the Parties 
prohibit the application, unless otherwise specified in its list of reservations,  of six type s of 
measures, which mirror those described in Article XVI of the GATS (Article 112  and 119).  For 
mode 3, all six measures are prohibited, while for modes 1- 2, the Parties  prohibit three , namely : 
(a) limitations on the number of services suppliers whether in the form of numerical quotas, 
monopolies, exclusive service suppliers or the requirements of an economic needs test; (b ) 
limitations on the total value of service transactions or assets in the form of numerical quotas or 
the requirement of an economic needs test; and (c) limitations on the total number of service WT/REG3 80/1 
 
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  operations or on the total quantity of service output expres sed in terms of designated numerical 
units in the form of quotas or the requirement of an economic needs test (Article 119).18 
4.3.2  National treatment and MFN  
4.9.  In sectors where market access commitments are unde rtaken, the EU and Ecuador  shall 
grant na tional trea tment to services, servic e suppliers , establishments and investors  of the other 
Party with respect to any measure  affecting the cross- border supply of services, and 
establishment , respectively (Article s 113 and  120 of the Agreement and Article 2 and Annex I of 
the Accession Protocol ). 
4.10.   The Agreement does not make reference to MFN treatment.  
4.3.3  Commercial presence  
4.11.   Chapter 2 of Title IV deals with the establishment of juridical persons. The Parties allow the 
establishment of juridical persons of a P arty to conduc t an economic activity in the territory of the 
other Party and make commitments on national treatment and market access (see previous 
section ) according to a positive  list approach. The  commitments apply to all measures affecting 
establishment subject to t he reservations listed in Annexes IX and X of the Accession Protocol and 
to all sectors except for audio -visual  services;  national maritime cabotage ; mining, manufacturing , 
and processing of nuclear materials; arms and munitions; and most of ai r transport services 
(Article 111 ).  
4.3.4  Movement of natural persons  
4.12.   Chapter 4 of Title IV  describes the conditions for the temporary entry of business persons in 
the Parties' territory . Under the Agreement, the definition of natural persons covers only the 
nationals of a  Party (as in the GATS ) (Article 108).19 Upon the fulfilment of certain conditions, the 
Parties commit to authorize the temporary entry of: (a) key personnel, (b)  graduate trainees, 
(c) business services sellers, (d ) contractual services suppliers in certain sectors , (e) independent 
professionals in certain sectors , and (f) short term visitors for business purposes.  The Chapter  is 
complemented by  Annexes  XIII-XVI of the Accession Protocol which contain s the Parties' lists of 
reservations with respe ct to the movement of key personnel, graduate trainees and contractual 
services suppliers  (Artic les 14- 17 of the Accession Protocol) . 
Table 4.1 Business persons authorized by the Parties  
Authorized categories and scope of application  Length of stay that is allowed by the 
Parties  
Key personnel (includes business visitors  and intra -
corporate transferees)   
Employees of a company of the other P arty who are responsible 
for the setting -up or management of an establishment, or 
Management and operation of an establishment. Commitments 
apply to sectors in which mode 3 commitments are made  and are 
subject to reservations.  Maximum three years , for intra-
corporate transferees, and 90 days in a 
year for business visitors.  
Graduate trainees   
Graduates employed in a company of a Party for at least one 
year and who are temporar ily transferred to  an establishment in 
the other Party for training or career development purposes.  
Commitments apply to sectors in which mode 3 commitments 
are made  and are subject to reservations.  Maximum one year.  
                                                
18 The three other limitations that are not listed are on the total number of natural persons that may be 
employed in a particular sector; on the participation of foreign capital and requirements regarding the type of 
legal entity for companies. 
19 Under the GATS, natural persons cover only nationals as neither Party has made any notification 
under GATS Article XXVIII  (k) to include residents in the definition of natural persons . WT/REG3 80/1 
 
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  Authorized categories and scope of application  Length of stay that is allowed by the 
Parties  
Business services sellers   
Representatives of a company of one Party who seek  to negotiate 
on behalf of its company the sale of a service in the other Party. 
Commitments apply to sectors  in which mode 1 -3 commitments 
are made  and are subject to reservations.  Maximum 90 days per year  
Contractual services supplier   
Employees of a company of one Party without commercial 
presence in the other Party , who enter that Party to supply a 
service pursuant to a contract concluded by their company and 
operate in any of the sectors listed in Article 126 of the 
Agreement and Annex  1 of the Accession Protocol . Commitme nts 
are subject to reservations.  Cumulative period of maximum six 
months, and in the case of Luxembourg 
for a period of 25 weeks per year, or the 
duration of the contract, whichever is 
less. 
Independent professionals   
Self-employed person of a Party without commercial presence in 
the other Party , who pursuant to a contract seeks to temporarily 
enter that Party to supply a service listed in Annex I of the 
Accession Protocol to a consumer there. Commitments are 
subject to reservations.  Cumulativ e period of maximum six 
months , and in the case of Luxemb ourg 
for a period of 25 weeks per year or the 
duration of the contract, whichever is 
less. 
Short -term visitors for business purposes   
Business persons willing to conduct research and design 
activities, as well as marketing research/analysis. Commitments 
are subject to reservations.  Maximum 90 days per year  
Sourc e: Chapter 4 of Title IV of the A greement . 
4.3.5  Performance requirement s 
4.13.   The Agreement does not contain any specific provision on performance requirements.  
4.3.6  Senior Management and boards of directors  
4.14.   The Agreement does not contain any specific provision regarding the composition of 
senior/executive management of companies.  
4.4  Liberalization commitments  
4.15.   The Parties schedule their c ommitments in trade in services for modes 1- 4 using a  positive 
list. Audio -visual services are excluded from liberalization.  Commitments with respect to mode 3 
are presented in Annexes IX and X to the Accession Protocol, while commitments for modes 1 and 
2 are described in Annexes X and XII. Finally, Annexes XIII -XVI contain the Parties  commitments  
with respect to mode 4.  
4.16.   The following sections refer to the Parties horizontal and sector -specific commitments for 
modes 1- 3. Commitments (in terms of sc ope) in Mode 4 are described in section 4.3.4.  
4.4.1  The EU  
4.17.   Under the Agreement, the EU made commitments in 49 subsectors out of  the 55 subsectors 
identified in that classification, which were in general broader than those under the GATS which 
contains commitmen ts for 48 subsectors.20 Like in the GATS, no commitments were made in 
audio -visual services. T he EU listed reservations in all sub -sectors except computer and related 
services.  The EU schedule under the Accession Protocol replaces the one contained in the 
Agreement, and therefore regulates not only the relationship between the EU and Ecuador, but 
also between the EU, and Colombia and Peru. In general , the schedule in the Acc ession Protocol is 
the same as that in the Agreement, except that it also includes Cr oatia, as a Party .    
4.18.   The following section describes EU commitments under the Agreement and compares them 
to its GATS schedule. This exercise is based on the consolidated version21 of the GATS schedule for 
                                                
20 This Factual Presentation follows the WTO Services Sector Classification list, which is based on the UN  
Central Product Classification (CPC) (WTO document MTN.GNS/W/120). The list comprises 11 sectors and 155  
subsectors.  
21 The WTO ratification of the cons olidated version is still pending.  WT/REG3 80/1 
 
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  the EU  (25), which was certified by WTO Members on  18 December 2006 (S/L/286).22 The process 
of certification of the GATS schedules for the EU(27) and EU(28) is still ongoing.  
4.4.1.1  Horizontal commitments 
4.19.   Under the Agreement , as under the GATS, the EU registers, inter alia , a horizontal "public  
utilities carve -out",23 on the form of certain legal entities, and a carve -out for subsidies and 
grants . It also reserves the right to grant a different treatment to subsidiaries , and to branches or 
agencies of foreign companies established in the EU . Most of the EU M embers  also reserve the 
right to apply restrictions on the acquisition of land  and real state by foreign investors, and some 
apply restrictions on the establishment of a foreign services supplier. In general, the same 
reservations are included in the EU GATS sch edule.  
4.4.1.2  Sector -specific commitments   
4.20.   Compared to its GATS schedule, the EU's sect or-specific commitments are in general  
broader.  Table 4.2 compares the EU's sectoral commitments under the Agreement and under its 
GATS schedule for modes 1- 3. 
Table 4.2 The EU 's sector -specific liberalization under the Agreement, excluding mode 4  
Sectors (CPC Classification)  GATS  RTA 
RTA as 
compared to the 
GATS  Sectoral 
commitmentsa Sectoral 
commitmentsb 
1. Business services     
A. Professional  Services  Partial  Partial  Improved  
B. Computer  and Related  Services  Partial  Full Improved  
C. Research  and Development  Services  Partial  Partial  Improved  
D. Real  Estate  Services  Partial  Partial  Improved  
E. Rental/Leasing  Services  without  Operators  Partial  Partial  Improved  
F. Other  Business  Services  Partial  Partial  Improved  
2. Communication services     
A. Postal  services  None Partial  Improved  
B. Courier  services  Partial  Partial  Improved  
C. Telecommunication  services  Partial  Partial  Improved  
D. Audiovisual  services  None None Same 
E. Other  None None Same 
3. Construction and related engineering services     
A. General  construction  work for buildings  Partial  Partial  Improved  
B. General  construction  work for civil Engineering  Partial  Partial  Improved  
C. Installation  and assembly  work  Partial  Partial  Improved  
D. Building  completion  and finishing  work  Partial  Partial  Improved  
E. Other  Partial  Partial  Improved  
4. Distribution services     
A. Commission  agents'  services  Partial  Partial  Improved  
B. Wholesale  trade services  Partial  Partial  Improved  
C. Retailing  services  Partial  Partial  Improved  
D. Franchising  Partial  Partial  Improved  
E. Other  None None Same 
5. Education services     
A. Primary education services  Partial Partial Improved  
B. Secondary education services  Partial Partial Improved  
C. Higher education services  Partial Partial Improved  
D. Adult education  Partial Partial Improved  
E. Other education services  Partial Partial Improved  
6. Environmental services     
A. Sewage services  Partial Partial Improved  
B. Refuse disposal services  Partial Partial Improved  
C. Sanitation and similar services  partial  partial  Improved  
D. Other  Partial Partial Improved  
                                                
22 WTO document S/C/W/273, and Add.1 and Suppl.1.  
23 The EU commitments are without prejudice to the existence of public monopolies and exclusive rights  
as described in the list of commitments on establishment (Annex VII).   WT/REG3 80/1 
 
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  Sectors (CPC Classification)  GATS  RTA 
RTA as 
compared to the 
GATS  Sectoral 
commitmentsa Sectoral 
commitmentsb 
7. Financial services     
A. All insurance  and insurance -related  services  Partial  Partial  Improved  
B. Banking  and other financial  services  Partial  Partial  Improved  
C. Other  None None Same 
8. Health related and social services     
A. Hospital services  Partial Partial Improved  
B. Other Human Health Services  Partial Partial Improved  
C. Social Services  Partial Partial Improved  
D. Other  Partial Partial Improved  
9. Tourism and travel related services     
A. Hotels  and restaurants  (including catering)  Partial Partial Improved  
B. Travel  agencies  and tour operators  services  Partial Partial Improved  
C. Tourist  guides  services  Partial Partial Improved  
D. Other  Partial Partial Improved  
10. Recreational and cultural and sporting services     
A. Entertainment  services  Partial Partial Improved  
B. News agency services  Partial Partial Improved  
C. Libraries, archives, museums and other cultural services  Partial Partial Improved  
D. Sporting and other recreational services  Partial Partial Improved  
E. Other  None Partial Improved  
11. Transport services     
A. Maritime Transport Services  Partial  Partial Improved  
B. Internal Waterways Transport  Partial  Partial Improved  
C. Air  Transport  Services  Partial  Partial  Improved  
D. Space  Transport  None None Same 
E. Rail  Transport  Services  Partial  Partial Improved  
F. Road  Transport  Services  Partial  Partial Improved  
G. Pipeline  Transport  Partial  Partial Improved  
H. Services  auxiliary  to all modes  of transport  Partial  Partial  Improved  
I. Other  Transport  Services  Partial Partial Improved  
12. Other Services not Included Elsewhere  Partial  Partial  Improved  
a Except as indicated in the GATS horizontal commitments. 
b Except as indicated in the Agreement's  horizontal reservations. 
Source:  WTO Secretariat based on the Agreement.  
 
4.4.1.2.1  Business services  
4.21.   In business activities, the EU made broader commitments but continues to exclude some 
activities and maintain a number of country -specific reservations in particular in professional 
services. In professional services, the EU expands its geographical coverage in particular in mode 
2 in for example, accounting, bookkeeping, architectural, taxation, and veterinary services. Mode 1 
remains subject to restrictions or unbound for a number of su bsectors and EU Member States,  
such as auditing services, medical and dentals services, veterinary services, and midwives 
services, which reflect to a large extent the commitments under the GATS. In mode 3, it expands 
geographical coverage but maintains so me exclusions and country -specific reservations, including 
legal entity and authorization requirements, and the application of economic needs tests.  
4.22.   The EU made full commitments in computer and related services, which under the GATS 
were subject to country -specific restrictions. It also made broader commitments in research and 
development services, restricted under the GATS, while maintaining only one reservation, under 
which publicly -funded projects can be conducted only by EU nationals or companies having  their 
headquarters in the EU . In real estate, it made in general full commitments in mode 3. It also 
made full commitments in mode 2, which is unbound for some EU Members under the GATS. In 
mode 1, it did not make any broader commitments. In rental/leasing services without operators, it 
also made broader commitments by expanding their geographical coverage, while maintaining 
some establishment requirements .   
4.23.   In other business  services, the EU made full commitments for all modes in advertising , 
market research and public opinion polling services, management consulting services, packaging, 
and convention services, which are restricted or unbound for certain EU Member States under the 
GATS. The EU made also some commitments in scientific and tech nical consulting services, which WT/REG3 80/1 
 
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  are excluded under the GATS. Other business activities remain subject to restrictions or largely 
unbound like, for instance, investigation services or placement and supply services of personnel.  
4.4.1.2.2  Communication services   
4.24.   In communication services, the EU expands its commitments by adding postal services, 
which are excluded from its GATS schedule and expanding geographical coverage in courier 
services, which are bound for most EU Member States under the GATS.  
4.25.   In addition, the EU expands its commitments in telecommunications by making full 
commitments for services consisting of the transmission and reception of signals by 
electromagnetic means, which are unbound or restricted for certain EU Member States under the 
GATS.  The EU made also commitments in satellite broadcast transmission services, excluded under 
the GATS, while maintaining some reservations . 
4.26.   Like in the GATS, no commitments were made in audio- visual services.  
4.4.1.2.3  Construction and related engineering services 
4.27.   In const ruction and related engineering services, the EU made broader commitments  in 
modes 1- 3 by expanding geographical coverage or removing GATS restrictions . For instance, all EU 
Members made f ull commitments in m ode 2, which was unbound for certain EU Members  States  
under the GATS . Finally, the EU  removed all  GATS restrictions  for mode 3 for some EU Members  
States , while for others mode 3 remain ed unbound .  
4.4.1.2.4  Distribution services   
4.28.   In distribution services, the EU made some broader commitments by expanding the 
geographical coverage in commission agents', wholesale trade and retailing services, whi le 
maintaining some reservations. For instance, some EU Members States reserve the right to 
maintain a state monopoly on tobacco, while s ome others  requir e an economic need s test for the 
establishment of wholesale pharmacies, and department stores . Other reservations under the 
Agreement affect the distribution of tobacco, alcoholic beverages, pharmaceuticals , chemical 
products and precious metals . 
4.29.   In franchi sing services, which are unbound for a few EU countries under the GATS, the EU 
expands its GATS commitments to all EU Member States for modes 1 -3.  
4.4.1.2.5  Education services  
4.30.    Modes  1 and 2 remain unbound for a number of  EU Member States . In mode 3, the EU 
expands  geographical coverage for some activities like primary and secondary education services 
but maintains some reservations. For instance, it requires a concession to private operators to 
participate in the education network and maintains nationality requirem ents for the members of 
the management boards, as well as some other country -specific reservations.  
4.31.   Publicly funded education services are not covered by the Agreement and the GATS.  
4.4.1.2.6  Environmental services  
4.32.   In environmental services, the EU made full commitments in modes 2 and 3, which are 
unbound under the GATS for some countries. In m ode 1, mostly unbound under the GATS,  the EU 
made commitments only with respect to environmental consultancy services.  
4.4.1.2.7  Financial services  
4.33.   The EU's cross- border commitments on  financial services are similar to those in the GATS 
with some commitments made in insurance services for risks relating to maritime shipping, 
commercial aviation, space launching and freight, and to goods in international. In some cases, 
such commitments also cover related intermediation services and are accompanied by country -
specific reservations. In banking and other financial services, most EU Member States made WT/REG3 80/1 
 
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  commitments for mode 1 in advisory and other auxiliary services (excluding intermediation), and 
provision of financial information and financial data processing, while maintaining some 
reservations. Some EU Member States  made commitments also in other sub -sectors, like for 
example lending, financial leasing, payment and money transm ission services and acceptance of 
deposits. The EU, except for  a few Member States , made no commitments in mode 2.  
4.34.   With respect to mode 3, a number of reservations are listed for insurance and insurance 
related services . These include authorization, legal entity , and establishment requirements applied 
by some EU M ember States . In banking and other financial services, the EU apply only one 
reservation under which it applies an establishment requirement for firm willing to conduct certain 
investment activities.  
4.4.1.2.8  Health related and social  services  
4.35.   Mode 1 remains largely unbound. In mode 2, the EU made broader commitments by 
extending its GATS commitments to almost all EU countries, for which this mode is unbound under 
the GATS. In mode 3, it expands the geographical and sectoral coverage (to include ambulance 
services), and removes the requirements for hospital services (e.g. limitations on the number of 
beds) but maintains a few reservations. For example, the EU requires a concession to private 
operators to par ticipate in the health and social network, and reserves the right to apply economic 
needs test. Also, for some EU M embers all activities or some remain unbound.   
4.36.   Publicly funded health and social services are not covered by the Agreement and the GATS.  
4.4.1.2.9  Tou rism and travel related services  
4.37.   The EU made full commitments in mode 2 for tourism and travel related services, which 
under the GATS is unbound or restricted for a f ew Members States . In mode 1, the EU expands its 
geographical coverage for certain activities. For example, it made full commitments for tourist 
guides services  or travel agencies and tour operators services for certain EU Members  States . In 
mode 3, the EU also expands geographical coverage in particular for hotel, restaurant, catering, 
travel agency and tour operators' services, while maintaining some reservations, which include 
establishment and licensing requirements, and economic need tests.  
4.4.1.2.10  Recreational, cultural  and sporting services 
4.38.   The EU made full commitments in news and press agencies services and some recreational 
services (i.e. recreation park and beach services) for modes 1 and 2, unbound for some EU 
Members  States  under the GATS. In entertaining, libraries, archives museum and ot her cultural 
services, commitments under the Agreement mirror those under the GATS schedule. Modes 1 and 
2 for these activities remain largely unbound. In sporting services, the EU expands its geographical 
coverage, in particular for mode 1.  
4.39.    In mode 3, th e EU made full commitments in news press and press agency services, 
unbound or restricted for some EU M embers  under the GATS , while maintaining one reservation.  
Under the latter, France applies foreign capital restrictions for companies issuing publication s in 
French, and allows the establishment of foreign press agencies subject to reciprocity. The EU also 
made full commitments in recreational park and beach services but maintained unbound sporting 
services for some EU Members. Commitments under the Agreem ent in entertaining, libraries, 
archives, museums, and other cultural services reflect to a large extent those under the GATS and 
continue to be unbound or restricted for some number of EU Members for entertaining services 
and for most EU M embers in the ca se of libraries, archives, museums, and other cultural services.  
4.4.1.2.11  Transport  services  
4.40.   Commitments in transport services under the Agreement build on  those under the GATS, 
like for instance, in maritime, rail and road transport services.  Internal waterways t ransport, 
largely unbound under the GATS, the EU made some commitments in modes 1 and 2 for 
passenger and freight transportation for some EU Members but continue to apply some 
restrictions. In services auxiliary to transport, the EU made in general full commitments in 2, 
which are unbound for a number of EU countries under the GATS, but excludes or restricts some WT/REG3 80/1 
 
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  activities in mode 1 such as rail and maritime pushing and towing services, maritime cargo 
handling services, and air catering services. Pipeline transport services remain in general unbound. 
In Air transport services, commitments reflect those under the GATS, except in maintenance and 
repair services of aircrafts where mode 2 is bound for all EU Member States.   
4.41.   With respect to establishment, the EU made commitments in passenger and freight 
transportation for maritime, internal waterways, rail and road transport services while excluding 
certain activities or maintaining a number of reservations at the EU and country level. For 
instance, some EU Members apply authorization requirement to provide maritime feedering 
services. The EU also reserves the right to restrict the establishment of a registered company for 
the purpose of operating a fleet under the national fla g of the State of establishment. Some EU 
Members also apply nationality requirements or economic needs test in road transport.  In air 
transport services, the EU made full commitments for maintenance and repair services of aircrafts 
but continue to apply re strictions nationality, foreign capital and registration requirements for 
rental services of aircraft with crew. The EU made also commitments in pipeline transport of goods 
(other than fuel), largely unbound under the GATS, while maintaining a  reservation  for one 
Member  State , under which the rights to provide these services may be granted only to EU 
nationals or companies having their headquarters in the EU. In services auxiliary to transport, 
unbound for some EU Members under the GATS, expand the geographical coverage while 
excluding certain activities and maintaining some reservations including,  establishment and 
nationality requirements, and the application of economic need tests.     
4.42.   No commitments (modes 1 -3) were made in space transport service s under the Agreement . 
4.4.2  Ecuador  
4.4.2.1  General Overview  
4.43.   Ecuador made in general broader commitments than in the GATS in all sectors identified in 
the WTO Services Sector Classification, except for education and environmental services, where 
commitments under the A greement are the same as in  the GATS.  
4.4.2.2  Horizontal commitments 
4.44.   Under the Agreement, Ecuador maintains nine reservati ons affecting at least one mode of 
supply . None of these reservations are listed in the GATS.  For example , Ecuador prohibits 
foreigners from a cquiring  land (or having  concessions)  in national security  zones and  reserves the 
right to restrict foreign nationals ' ownership rights in border areas. It also reserves the right to 
apply establishment and authorization requirements (e.g. concession rights or licences ) to 
investment s and companies willing to provide public services or services in strategic sectors, such 
as public drinking and irrigation, sanitation, electricity, telec ommunications, highway 
administration, port and airport infrastructure services, services related to the exploitation of 
energy and non -renewable natural resources.  It applies a currency outflow tax to any transfers or 
remittances,  nationality requirements  to the staff of companies  with more than 10 employees, as 
well as establishment and residency requirements  for national and foreign willing to operate in 
Ecuador. Other res ervations  apply to the publishing industry, and activities related to Ecuador's 
national security, cultural and natural heritage, as well as activities using the social economy 
model as defined in the Constitution.  
4.4.2.3  Sector -specific commitments   
4.45.   Compared to its GATS schedule, Ecuador's sector -specific commitments are in general 
broader. I t made commitments in 38  sub-sectors out of 55, compared to 22 under the GATS. It 
made  broader commitments in for example, construction and related engineering services, and 
distribution  services, while maintaining some restrictions in almost all sectors c ommitted. Like in 
the GATS, no commitments were made in education services.  Table 4.3 compares Ecuador 's 
sectoral commitments under the Agreement and under its GATS schedule for modes 1- 3. WT/REG3 80/1 
 
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  Table 4.3 Ecuador sector -specific liberalization under the Agreement, excluding mode 4  
Sectors (CPC Classification)  GATS  RTA 
RTA as 
compared to the 
GATS  Sectoral 
commitmentsa Sectoral 
commitmentsb 
1. Business services     
A. Professional  Services  Partial  Partial  Improved  
B. Computer  and Related  Services  Partial  Partial  Improved  
C. Research  and Development  Services  None None Same  
D. Real  Estate  Services  None Partial   Improved  
E. Rental/Leasing  Services  without  Operators  Partial  Partial   Improved  
F. Other  Business  Services  Partial  Partial   Improved  
2. Communication services     
A. Postal  services  None Partial  Improved  
B. Courier  services  None Partial  Improved  
C. Telecommunication  services  Partial  Partial  Same 
D. Audiovisual  services  None Partial  Improved  
E. Other  None None  Same  
3. Construction and related engineering services     
A. General  construction  work for buildings  None Full Improved  
B. General  construction  work for civil Engineering  None Full Improved  
C. Installation  and assembly  work  None Full Improved  
D. Building  completion  and finishing  work  None Full Improved  
E. Other  Partial  Full Improved  
4. Distribution services     
A. Commission  agents'  services  None Partial  Improved  
B. Wholesale  trade services  Partial  Partial  different  
C. Retailing  services  None Partial  Improved  
D. Franchising  None Full Improved  
E. Other  None None Same  
5. Education services     
A. Primary education services  None None Same  
B. Secondary education services  None None Same 
C. Higher education services  None None Same 
D. Adult education  None None Same 
E. Other education services  None None Same 
6. Environmental services     
A. Sewage services  Full Full Same 
B. Refuse disposal services  Full Full Same 
C. Sanitation and similar services  Full Full Same 
D. Other  Full Full Same 
7. Financial services     
A. All insurance  and insurance -related  services  Partial  Partial  Improved  
B. Banking  and other financial  services  Partial  Partial  Improved  
C. Other  None None Same 
8. Health related and social services     
A. Hospital services  Full Partial  Different  
B. Other Human Health Services  None None Same  
C. Social Services  None None Same  
D. Other  None None Same  
9. Tourism and travel related services     
A. Hotels  and restaurants (including catering)  Full Full Same 
B. Travel  agencies  and tour operators  services  Full Full Same 
C. Tourist  guides  services  None Full Improved  
D. Other  None None Same  
10. Recreational and cultural and sporting services     
A. Entertainment  services  Full Partial  Different  
B. News agency services  None Full Improved  
C. Libraries, archives, museums and other cultural services  Full Full Same  
D. Sporting and other recreational services  Full Full Same  
E. Other  None None Same  
11. Transport services     
A. Maritime Transport Services  None Partial  Improved  
B. Internal Waterways Transport  None Partial  Improved  
C. Air  Transport  Services  Partial  Partial Improved  
D. Space  Transport  None None Same 
E. Rail  Transport  Services  None Partial  Improved  
F. Road  Transport  Services  Partial  Partial  Different  
G. Pipeline  Transport  None None Same WT/REG3 80/1 
 
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  Sectors (CPC Classification)  GATS  RTA 
RTA as 
compared to the 
GATS  Sectoral 
commitmentsa Sectoral 
commitmentsb 
H. Services  auxiliary  to all modes  of transport  Partial  Partial  Improved  
I. Other  Transport  Services  None None Same 
12. Other Services not Included Elsewhere  None  None  Same  
a Except as indicated in the GATS horizontal commitments. 
b Except as indicated in the Agreement's horizontal reservations. 
Source:  WTO Secretariat based on the Agreement.  
4.4.2.3.1  Business services  
4.46.   Compared to its GATS schedule, Ecuador made broader  commitments under the Agreement 
in all subsectors of business services, except in research and development services which remain 
unbound. In prof essional services, it made partial commitments integrated engineering services 
and medical and dental services. In the other sub- sectors the level of commitments under the 
Agreement and the GATS are the same, except for accounting services which under the Agreement 
are subject to a nationality and registration requirement. Veterinary services and services provided 
by midwives, nurses, physiotherapists and para- medical personnel remained unbound.  In 
computer and related services, Ecuador made full commitment s (modes 1 -3) for maintenance and 
repair services of office equipment, not included in the its GATS schedule, and made commitments 
in mode 1 for consultancy services related to the installation of computer hardware, unbound 
under the GATS. In real estate s ervices, excluded from the GATS, Ecuador made commitments in 
mode 3.  In rental and leasing services without operators, it also expanded its  GATS sectoral and 
modal coverage by adding for example commitments (modes 1- 2) in services related to aircraft 
and o ther machinery and equipment, both excluded from the GATS. It also made commitments in 
mode 1, unbound under the GATS, for services relating to vessels but add ed a reservation for 
mode 3 under which national waterborne and cabotage are reserved for  vessels flying the 
Ecuadorian flag. International maritime transport services for hydrocarbons are also reserved for  
State -owned vessels.  In other business services, Ecuador expanded its GATS sectoral coverage, 
which was limited to four activities, by making some  commitments in another thirteen activities  
out of the 20 falling in this category . These activities included advertising, market research, 
photographic services as well as services incidental to fishing, manufacturing, agriculture, hunting, 
forestry . Ecua dor also made commitments in mode 1, unbound under the GATS, for services 
incidental to mining and scientific and technical consulting services, and listed for mode 3 
nationality requirements in services related to fishing, as well as restrictions on the n umber of 
establishment s, and of operations and for total production in forestry and logging. Like in the 
GATS, no commitments were made in  printing, publishing, investigation, and security services.  
4.4.2.3.2  Communication services   
4.47.   In communications services, Ecuad or made partial commitments in postal, courier, and 
audio -visuals services, all  unbound under the GATS. In telecommunications services, it did not 
undertake any further commitment, so that basic telecommunications services remain unbound.24 
In postal and co urier services, Ecuador made commitments  in services related to the handling of 
postal items for modes 1 to 3 while maintaining some reservations in modes 1 and 3. In mode 3, 
Ecuador reserves  the provision of some of the services related to the handling of  postal items to 
the State during the first five years following the Agreement's  entry into force . At the end of this 
transition period , no restriction will apply . During this period, m ode 1 will be also unbound, after 
which, Ecuador will make full commitm ents for these services.  In audio -visuals, Ecuador made 
commitments in modes 1 -3 for signals' transmission and reception services using any 
electromagnetic means, and satellite services to connect television and radio broadcasting stations 
but maintain s some reservations. It reserves the right to apply any authorization or concession 
requirement to provide these services. It also reserves the right to maintain any measure to 
ensure preferential assignment of radio spectrum to its public operator to guarantee access to 
universal telecommunication services in certain areas.  No commitments are made for 
broadcasting , which  is not covered by the Agreement.    
                                                
24 Under the GATS, Ecuador made full commitments in value -added services, with some exceptions.   WT/REG3 80/1 
 
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  4.4.2.3.3  Construction and related engineering services 
4.48.   In construction and related engineering services,  largely unbound under the GATS,  Ecuador 
made full commitments  for all sub -sectors. Under the GATS , Ecuador's commitments  are limited to 
preparation works for mining.   
4.4.2.3.4  Distribution services   
4.49.   In distribution services, Ecuador made commitments in commission agent's services, 
retailing services and franchising, all of which are excluded under the GATS. It also made broader 
commitments  in wholesale trade services by including  modes 1- 3, except for services involving 
energy  goods, minerals, chemicals and pharmaceutical goods but including wholesale trade 
services for telecommunications terminal equipment, commercial motor vehicles, motorcycles and 
snowmobiles and parts and accessories thereof, which are not covered by the co rresponding CPC 
category. Under the GATS , mode 1 is unbound for this subsector and no exceptions are listed . 
4.4.2.3.5  Education services 
4.50.   Like under the GATS, Ecuador did not undertake any commitments in  education services.  
4.4.2.3.6  Environmental services  
4.51.   Like under the GATS, Ecuador made full commitments in environmental services.   
4.4.2.3.7  Financial services  
4.52.   In financial services, Ecuador expanded its GATS commitments while maintaining a number 
of reservations , some of which are also reflected in the GATS.  In insurance services,  commitments 
in mode 3 are almost the same as under the GATS, but broader for modes 1 and 2.  For modes 1 
and 2, which are unbound under the GATS, Ecuador made commitments for direct non -life 
insurance and insurance intermediation for risk in surance relating to goods transportation 
(i.e. maritime, air, space and freight) and international transfers in these modes . It also made 
commitments for reinsurance and retrocession, and certain auxiliary services to insurance. Like in 
the GATS, no commitments were made in life insurance services for modes 1 -2. In addition 
Ecuador listed a number of reservations.  For instance, it reserves the right to adopt or maintain 
measures restricting the acquisition of obligatory insurance outside Ecuador, or requiring that an 
obligatory insurance be purchased from suppliers established i n Ecuador. The same reservation  
applies to the acquisition of reinsurance and/or retrocession relating to such obligatory insurance.  
Ecuador does not allow foreign insurance and reinsurance companies, n or their intermediaries , to 
open representati ve offices in Ecuador.  
4.53.   In bankin g and other financial services, Ecuador expand ed its  GATS sectoral coverage by 
making commitments in modes 1- 3 in money broking servi ces and securities participation and 
related services, which are the only two activities unbound  under the GATS . Yet, some 
reservations are applied.  For example, the est ablishment of branches  is not allowed in the 
securities  market , but is allowed in the r est of the financial sector (see below).  Also b anking 
institutions cannot hold share s in companies providing insurance, securities, or related services.  In 
addition, Ecuador listed a number of reservations applying to the entire sector. For instance , 
branches of foreign financial institutions  (except in the securit ies market)  can be established in 
Ecuador provided that they meet a minimum capital requirement and that creditors in Ecuador 
enjoy preferential rights over the assets held in the country by the branch in the event of the 
liquidation of its parent office or  business affairs in Ecuador. Moreover, financial entities willing to 
provide insurance, reinsurance and banking services are subject to authorization and 
establishment requirements .  
4.4.2.3.8  Health related and social  services  
4.54.   Like under the GATS, Ecuador's commitments in health related and social services are 
limited to hospital services . However, commitments under the Agreement seem to be more 
stringent than under the GATS,  since under the Ag reement Ecuador lists a legal entity requirement WT/REG3 80/1 
 
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  for health and prepaid medical care companies . To supply their services in Ecuador, these 
companies must be organized as foreign or domestic joint stock companies.  
4.4.2.3.9  Tourism and travel related services  
4.55.   Ecuado r expanded its commitments in tourism and travel related services under the 
Agreement, by making full commitments in tourist guide services, which are excluded from the 
GATS.  For the other sub -sectors, its commitments are the same as under the GATS.   
4.4.2.3.10  Recre ational, cultural  and sporting services 
4.56.   In recreational, cultural and sporting services , Ecuador expanded its commitments by  
adding news agency services  to its list of committed activities. In the other sub -sectors, the level 
of commitments under the Agreement is the same as under the GATS, except for entertain ment 
services which are subject to some reservations under the Agreement. For example , Ecuador 
requires that  national artists make up at least 60%  of an artistic performance, and limits the wage 
gap between national and foreign artists to 50% of the wage paid to foreign artists.      
4.4.2.3.11  Transport services  
4.57.   In transport services, Ecuador made partial commitments in maritime, internal waterways , 
and rail t ransport services, all of which are excluded under the GATS. It also expanded its 
commitments in  air and  road transport  services as well as  services auxiliary to all modes of 
transport, which are limited to certain activities and modes under the GATS. In air transport 
services, Ecuador made  some commitments in rental services of aircraft with crew, ground 
handling services and airport operation services, excluded from the GATS,  and in aircraft repair 
and maintenance services, computer reservation system ser vices, and sale and marketing of air 
transport services, which are covered by its GATS commitments . In road transport services, 
Ecuador  expanded sector al coverage and made commitments in modes 2 and 3 in all sub -sectors, 
except for maintenance and repair of road transport equipment, but maintain ed some reservations 
in mode 3. In particular, Ecuador reserves the right to apply any measure in relation to 
international land passenger and freight transport operations in border areas. Also loading, 
unloading and storage services for hydrocarbons can be provided only by national  or state-owned 
shipping companies , or mixed shipping companies where the State holds at least 51% of the 
capital.  To provide services, companies and natural persons must have a concession  and other 
permits and be established in Ecuador.  None of these reservations are listed in  Ecuador's GATS 
schedule.  In services auxiliary to all modes of transport, limited to maritime activities and modes 
2-3 under the GATS, Ecuador expanded sectoral coverage  by making partial commitments in 
auxiliary services for internal waterway, rail, road, and air transport. It applies establishment, 
authorisation and nationality requirements for providers of auxiliary services fo r maritime, internal 
waterway and air.   
4.58.   Like in the GATS, no commitments were made in space, pipeline and other transport 
services.   
4.5  Regulatory provisions  
4.59.   The regulatory provisions described below were not amended under the Accession Protocol.    
4.5.1  Domestic regulation  
4.60.   Article 131 of the Agreement on domestic regulation mirrors to a large extent Article VI of 
the GATS , while adding some new provisions. For instance, the Parties commit to maintain or 
establish judicial, arbitral or administrative tribunal procedures to review, upon r equest, any 
administrative decisions affecting trade in services (modes 1 -4) and if necessary provide remedies. 
They also agree to jointly review this article following the conclusion of negotiations  in this area in 
the WTO with the view to introduc ing the changes into the Agreement .  WT/REG3 80/1 
 
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  4.5.2  Recognition  
4.61.   Nothing in the Agreement shall prevent a Party  from apply ing any qualification and/or 
professional requirement to natural persons willing to supply a service in their territories.  The 
Parties shall encourage th eir relevant professional bodies to jointly develop and provide 
recommendations to the Trade Committee  (see Section 5.6 below)  on the recognition of criteria 
applied for the authorisation, licensing, operation and certification of investors and service 
suppliers, in particular, for the provision of professional services. The Trade Committee will review 
the recommendation and if it is consistent with the Agreement and there is a sufficient level of 
correspondence between the relevant regulations of the Parti es, the Parties shall negotiate an 
agreement on  mutual recognition of requirements, qualifications, licences and other regulations in 
accordance with Article VII of the GATS  (Article 129).  
4.5.3  Subsidies  
4.62.   Title IV  on trade in services , establishment, and electro nic commerce does not apply to 
subsidies.  The Agreement does not include any other provisions on subsidies affecting trade in 
services.   
4.5.4  Safeguards  
4.63.   The Parties may maintain safeguards for balance of payments reasons (See Section 5.3).  
4.6  Sector specific provi sions on trade in services 
4.6.1  Electronic commerce  
4.64.   The provisions on electronic commerce were not subject to any change following the 
Accession of Ecuador. The Parties agree to promote the development of electronic commerce 
between them and to not impose cust oms duties on electronic transmissions, which are covered by 
the definition of cross -border supply of services under the Agreement (Article 162).  
4.65.    They also agree to maintain a dialogue on regulatory issues regarding electronic commerce, 
including consumer  protection  and the recognition of certificates of electronic signatures  
(Articles  163 and 166).  They shall also endeavour to develop or maintain regulations for the 
protection of personal data (Article 165) , and accept trade documents submitted electronic ally 
(Article 165).   
4.6.2  Other sector -specific provisions 
4.66.   The Agreement also includes regulatory provisions on computer services (Article 132 ), 
postal an d courier services (Articles 133 -138), telecommunication services (Articles 139-150), 
financial services (A rticles 151- 159), and maritime transport services (Articles 160 -161). Of these 
provisions, certain provisions in telecommunications and financial services were slightly modified 
under the Accession Protocol.  
5  GENERAL PROVISIONS O F THE AGREEMENT  
5.1  Transparency  
Title X  of the Agreement  covers transparency  matters and administrative proceedings, and  
include s provisions on cooperation, the publication of any measure of general application; the 
protection of confidential information, and the  exchange of information  (Articles 287 -290). Under 
this Title, the Parties shall also conduct all administrative procedures regarding the applica tion of a 
measure in a consistent, impartial and reasonable manner (Article 291). The y must establish or 
maintain  judicial, quasi -judicial or administrative tribunals or procedures to review and correct final 
administrative actions for matters covered by the Agreement (Article 292 ). Finally, the Parties 
commit to en sure transparency regarding trade subsidies by among  others submit ting a biennial  
report on subsidies (and all related information) granted by their government or any public body 
(Article  293). The Parties' commitments on transparency for trade subsidies  are not subject to the 
Agreement's dispute settlement  mechanism.  WT/REG3 80/1 
 
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Title X was not subject to any amendment under the Accession Protocol.   
5.2  Current payments and capital movements  
5.3.  The Agreement  has a dedicated title (Title V) on c urrent payments and movement of capital,  
which  provides for the free movement and currency convertibility of any bilateral payment  and 
transfer  affecting the current account of the ir balance of payments in accordance with IMF 
regulations  (Article 168).  The P arties shall also ensure the free movement  of capital relating to 
direct investments as well as of investments and other transactions covered by Title IV (Trade in 
services, Establishment, and Electronic commerce), including their profits, liquidation and  
repatriation  (Article 169).  However, under  certain circumstances the Parties may  apply safeguards 
measures. Ecuador can adopt safeguard measures with regard to capital movements for a period 
not exceeding one year  where payments and capital movements cause, or threaten to cause, 
serious difficulties to the liquidity of its economy. If necessary, the period of application of a 
safeguard can be extended provided that Ecuador justifies their maintenance (Article 2 and 
Annex  I of the Accession Protocol).  The EU may  also adopt safeguard measures with regard to 
capital movements for a period not exceeding one year  if payments and capital movements cause, 
or threaten to cause, serious difficulties for the operation of its exchange rate or monetary policy . 
The safeguard measures may be extended through thei r formal reintroduction in case of extremely 
exceptional circumstances and after having coordinated in advance between the Parties regarding 
an implementation of the proposed formal reintroduction.  For Ecuador, the Accession Protocol does 
not prescribe the way the existing measure may be extended.  These safeguards measures cannot  
be used to protect a particular industry.  
5.4.  The Parties shall hold consultations to facilitate the movement of capital between them, 
including on the progressive liberalisation of capital and financial accounts (Articles 171) .  
5.3  Safeguards   
5.5.  In the event of serious difficulties (or threat) related to the balance -of-payments or external 
financial environment, the Parties can maintain or adopt any restrictive measure affecting 
establish ment, or trade in goods or services ( including on payments or transfers related to such 
transactions)  in accordance with WTO Agreements and IMF regulations (Article 297 ). These 
provisions remained unchanged following the Accession of Ecuador to the Agreeme nt.  
5.4  Exceptions  
5.6.  The Parties include a provision on security exceptions under which they have no obligation to 
furnish any information they consider contrary to their security interests and can apply any 
measure necessary to keep peace, and security, and pr otect their essential security interests  
(Article 295) .  
5.7.  The Agreement applies to taxation measures to the extent that such application is necessary 
to implement the provisions of the Agreement (Article 296) .  
5.8.  None of these provisions were modified following the Accession of Ecuador to the Agreement.  
5.5  Accession and Withdrawal  
The provisions on accession and withdrawal under the Agreement were not subject to any 
change following the Accession of Ecuador. Any Party can withdraw from the Agreement . The 
termination will take effect six months after the notification . If a signatory Andean country 
withdraws from this Agreement, the Agreement will continue to be in force between the EU and 
the remaining signatory Andean countries. If the EU withdraws, the Ag reement will be terminated 
(Article 331 ). 
Any member country of the Andean Community which is not a Party to the Agreement may 
accede to the Agreement subject to the subject to the terms and conditions agreed between the 
Parties.  In the event of an enlargement, the EU shall notify to the signatory Andean countries any 
request for accession by a third country to the EU, and take into account any concern s expressed WT/REG3 80/1 
 
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  by them. Upon request, t he Trade Committee  will examine  the effects  of such accession on the 
Agreement, and decide on any necessary  adjustment or transition measures  (Article 329).   
5.6  Institutional framework  
5.11.   The Accession Protocol did not make any change to the institutional framework as such set 
out in the Agreement, only introduce provisions specific to Ecuador necessary to its good 
functioning. The Agreement foresees the creation of a Trade Committee  that comprises 
representatives from each Party. The Trade Committee  is the main institutional body of the 
Agreement, and is responsible, among others, for supervising its implementation, evaluating its 
outcomes , monitoring the work of the specialised S ub-committees established under the 
Agreement, and considering any matter that may affect the operation of the Agreement. It  shall 
take all its decisions b y consensus and meet at least once a year (Articles 12 -14). The decisions 
adopted by the Trade Committee are binding and the Parties shall take all necessary measures to 
implement them  Each Party will also designate a coordinator who will, inter alia , act as a focal 
point between the Parties on any matter covered by the Agreement, coordinate the preparation of 
the Trade Committee meetings, and follow up on the decisions tak en by the Trade Committee 
(Article 16 ). 
5.12.   In addition, the Agreement establishes the following eight specialised S ub-committees on  
Market Access;  Agriculture; Technical Barriers to Trade ; Customs, Trade Facilitation,  and Rules of 
Origin;  Government  Procurement ; Trade and S ustainable Development; Sanitary and 
Phytosanitary Measures, and  Intellectual Property  (Article 15 ). Ecuador participated for the first 
time in the Trade Committee and its eight specialised Sub -committees in Lima in November 2017.  
5.7  Dispute settlement  
Title XII of the Agreement  provides for a mechanism for the settlement of disputes between 
the Parties. It applies to any dispute concerning the interpretation and application of the  
Agreement , except for disputes between Colombia, Peru and Ecuador, and as  otherwise specified 
in the Agreement .  
For disputes covered by both the Agreement and the WTO Agreement the complaining Party 
may select the forum for the settlement of the dispute.  Once the forum has been selected and the 
proceedings initiated, it cannot initiate another proceeding on the same matter in the other forum , 
unless the forum selected fails for procedural or jurisdictional reasons . The Parties define disputes 
on the same matter as disputes that involve the same parties , refer to the same measure and deal 
with the same s ubstantive violation (Article 319 ). 
5.15.   In case of a dispute, the Parties will endeavour to resolve it th rough consultations 
(Article  301). If consultations fail, the complaining Party can request the establishment of a n 
arbitration panel (Article 302 ). The ar bitration panel must notify its ruling to the Parties and to the 
Trade Committee within 120 days from the date the arbitration panel was established 
(Article  307). The Parties to the disputes may request clarifications of the ruling (Article 312). If 
the Party fails to comply with the panel's ruling, the complaining may request compensation from 
the Party complained against; or, upon prior notification, suspend concessions to a level equivalent 
to the nullification or impairment caused by the violat ion. If no agreement on compensation is 
reached  or implemented, the complaining Party may notify the Party complained against and the 
Trade Committee of its intention to suspend the benefits granted under  the Agreement . The 
compensation or suspension of be nefits shall be temporary and shall not waive the obligation of 
the Party complained against to comply with the ruling. Such remedies shall apply until the Party 
complained against has complied or until the dispute has been resolved (Article 310). Chapter 14 
provides also for accelerated DS procedures for perishable goods , and goods and services that 
rapidly lose their commercial value . 
5.16.   Title XII also provides for a mediation mechanism which applies to any non-tariff measure 
falling under the scope of Title III ( Trade in goods ), that a Party considers is negatively affecting 
trade (Article 322). This mechanism is described separately in Annex XIV and is not intended to 
serve as a basis for dispute settlement procedures under th e Agreement or any other a greement 
but as an alternative. Information exchange during the mediation process  cannot be used during a 
dispute proceeding.  WT/REG3 80/1 
 
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Except for the provisions on the selection of arbitrators,  Title XII was not subject to any 
amendment under the Accession Protocol.  
5.8  Relationship with other agreements concluded by the Parties 
5.18.   The Parties affirm their existing rights and obligations with respect to each other under the 
WTO Agreement , and indicate that the Agreement shall not affect the rights and obligations 
between s ignatory Andean c ountries under the Andean Community (Articles 5 and 7).  
5.19.   Table 5.1 lists the notified and non -notified (if any) trade agreements that have the EU or 
Ecuador  as members (excluding the current Agreement).  
Table 5.1 The EU and Ecuador: Participation in other RTAs (notified and non -notified in 
force), as of 13 December 2018  
RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
EUROPEAN UNION  
EU - Canada  21-Sept-17 Goods & Services  2017 GATT Art. XXIV & GATS Art. V  
EU – Ghana  15-Dec-16 Goods  2017 GATT Art. XXIV  
EU – SADC  10-Oct-16a Goods  2017 GATT Art. XXIV  
EU - Côte d'Ivoire  03-Sept-16 Goods  2008 GATT Art. XXIV  
EU - Georgia  01-Sep-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Republic of Moldova  01-Sep-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Cameroon  04-Aug-14 Goods  2009 GATT Art. XXIV  
EU - Ukraine  23-Apr-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Central America  01-Aug-13b Goods & Services  2013 GATT Art. XXIV & GATS Art. V  
EU - Eastern and Southern 
Africa States Interim EPA  14-May-12 Goods  2012 GATT Art. XXIV  
EU - Republic of Korea  01-Jul-11 Goods & Services  2011 GATT Art. XXIV & GATS Art.  V 
EU - Serbia  01-Feb-10 
01-Sep-13 Goods  
Services  2010 
2013 GATT Art. XXIV  
GATS Art. V  
EU - Papua New Guinea / Fiji  20-Dec-09 Goods  2011 GATT Art. XXIV  
EU - CARIFORUM States EPA  29-Dec-08 Goods & Services  2008 GATT Art. XXIV & GATS Art. V  
EU - Bosnia and Herzegovina  01-Jul-08 
01-Jun-15 Goods  
Services  2008 
2016 GATT Art. XXIV  
GATS Art. V  
EU - Montenegro  01-Jan-08 
01-May-10 Goods  
Services  2008 
2010 GATT Art. XXIV  
GATS Art. V  
EU - Albania  01-Dec-06 
01-Apr-09 Goods  
Services  2007 
2009 GATT Art. XXIV  
GATS Art. V  
EU - Algeria  01-Sep-05 Goods  2006 GATT Art. XXIV  
EU - Egypt  01-Jun-04 Goods  2004 GATT Art. XXIV  
EU - Lebanon  01-Mar-03 Goods  2003 GATT Art. XXIV  
EU - Chile 01-Feb-03 
01-Mar-05 Goods  
Services  2004 
2005 GATT Art. XXIV  
GATS Art. V  
EU - Jordan  01-May-02 Goods  2002 GATT Art. XXIV  
EU - San Marino  01-Apr-02 Goods  2010 GATT Art. XXIV  
EU - The former Yugoslav 
Republic of Macedonia  01-Jun-01 
01-Apr-04 Goods  
Services  2001 
2009 GATT Art. XXIV  
GATS Art. V  
EU - Mexico  01-Jul-00 
01-Oct-00 Goods  
Services  2000 
2002 GATT Art. XXIV  
GATS Art. V  
EU - Israel  01-Jun-00 Goods  2000 GATT Art. XXIV  
EU - Morocco  01-Mar-00 Goods  2000 GATT Art. XXIV  
EU - South Africa  01-Jan-00 Goods  2000 GATT Art. XXIV  
EU - Tunisia  01-Mar-98 Goods  1999 GATT Art. XXIV  
EU - Palestinian Authority  01-Jul-97 Goods  1997 GATT Art. XXIV  
EU - Faroe Islands  01-Jan-97 Goods  1997 GATT Art. XXIV  
EU - Turkey  01-Jan-96 Goods  1995 GATT Art. XXIV  
European Economic Area 
(EEA)  01-Jan-94 Services  1996 GATS Art. V  
EU - Andorra  01-Jul-91 Goods  1998 GATT Art. XXIV  WT/REG3 80/1 
 
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  RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
EU - Syria 01-Jul-77 Goods  1977 GATT Art. XXIV  
EU - Norway  01-Jul-73 Goods  1973 GATT Art. XXIV  
EU - Iceland  01-Apr-73 Goods  1972 GATT Art. XXIV  
EU - Switzerland - 
Liechtenstein  01-Jan-73 Goods  1972 GATT Art. XXIV  
EU - Overseas Countries and 
Territories (OCT)  01-Jan-71 Goods  1970 GATT Art. XXIV  
EU – Armenia  01-Jun-18 Goods  Not notified  
EU - Kosovo  01-Apr-16 Goods  Not notified  
ECUADOR  
El Salvador – Ecuador  16-Nov-17 Goods  2018 Enabling Clause  
LAIA - Accession of Cuba  26-Aug-99 Goods  1999 Enabling Clause  
Global System of Trade 
Preferences among 
Developing Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
Andean Community (CAN)  25-May-88 Goods  1990 Enabling Clause  
Latin American Integration 
Association (LAIA)  18-Mar-81 Goods  1982 Enabling Clause  
Ecuador – Guatemala [LAIA, 
AAP.A25 TM N°42]c 19-Feb-13 Goods  Not notified  
LAIA - Accession of Panama c 03-May-12 Goods  Not notified  
Chile - Ecuador [LAIA, AAP.CE 
N°65] c 25-Jan-10 Goods  Not notified  
Andean Community (CAN) c 14-Dec-06 Services  Not notified  
MERCOSUR - Andean 
Community (except Peru) 
[LAIA,AAP.CE N°59] c 05-Jan-05 Goods & Services  Not notified  
Cuba - Ecuador [LAIA, AAP.CE 
N°46] c 13-Mar-01 Goods  Not notified  
LAIA - Seeds [AAP.AG N°2] c 18-Jun-93 Goods  Not notified  
LAIA - Cultural Goods  
[LAIA AR.CEYC N°7] c 01-Jan-89 Goods  Not notified  
LAIA- Preferences in favour of 
Paraguay [LAIA, AR.AM N°3] c 01-Jul-84 Goods  Not notified  
LAIA - Preferences in favour 
of Bolivia [LAIA, AR.AM N°1] c 1-May-83 Goods  Not notified  
Mexico - Ecuador [LAIA, 
AAP.R N°29] c 01-May-83 Goods  Not notified  
LAIA - Preferences in favour 
of Ecuador [LAIA, AR.AM N°2] 
c 01-May-83 Goods  Not notified  
a  The Agreement has been provisionally applied between Botswana, Eswatini, Lesotho, Namibia, 
South Africa and the EU as from 10 October 2016; and between Mozambique and the EU as from 
4 February 2018. The Agreement will enter into force after it has been ratified by all the Parties. 
b  The notifications made in February  2013 (see WT/REG332/N/1 and S/C/N/680) stated that: 
"Provisional application of the Agreement by all signatory parties is expected in the course of the 
second quarter 2013"; Further notifications to confirm the dates of entry into force between the EU 
and Central American countries are awaited. 
c For those agreements negotiated under the LAIA framework, the LAIA reference is included in 
brackets. Details of these agreements can be found at: http://www.aladi.org   
The position of Ecuador is that the agreements signed by LAIA members under the Montevideo 
Treaty, which had been notified to the WTO in July 1982, should not be on the list of non- notified 
RTAs since they had been notified through the reports submitted by LAIA. The position of the EU is 
that these agreements should be kept on the list of non- notified RTAs. 
Source:  WTO Secretariat. Further information may be found in the WTO Database on RTAs: 
http://rtais.wto.org .  
 
5.9  Government procurement  
5.20.   Title VI of the Agreement and Section VIII to the Accession Protocol contains the Parties' 
commitments and procedures in government procurement. The main principles governing the WT/REG3 80/1 
 
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  procedures o n government procurement are national trea tment, non -discrimination and 
transparency. As a general principle applicable with respect to any measure related to the covered 
procurements, national treatment is granted by each Party and its procuring entities to the goods, 
services and services suppli ers of the other Parties (Article 175). Their commitments  apply  to 
procurement contracts of goods, service s and c onstruction services by central and sub-central 
government entities  and other government entities, whose value equal s or exceeds  a given 
threshold. The Parties' lists of covered governmental entities, as well as the related thresholds are 
described in Annex XVIII to the Accession Protocol. Exceptions in the coverage apply for both 
Parties  (article 174 of the Agreement and specific exceptions as l isted in the respective schedules 
of commitments) .  
5.21.   Ecuador's thresholds will be higher than the EU's  during the first five years following the 
Agreement's entry into force. After this period, the thresholds will be the same for both Parties.  
The thresholds exchange rate is adjusted every two  years.25 Tables 5.2 and 5.3 show  the Parties'  
thresholds under the Agreement . For the EU the thresholds under the Agreement and the WTO 
Government Procurement Agreement  (GPA)  are the same. Ecuador is not party (or observer) to 
the GPA.  
Table 5.2 Procurement thresholds agre ed by the EU  under the Agreement  
The EU  Procurement thresholds in SDR  (euros  in parenthese s*) 
  Central Entities  Sub-Central entities Utilities sector  
Goods  130,000  
(144,000  euros)  200,000 
(221,000  euros)  400,000  
(443,000  euros)  
Services  130,000  200,000 400,000  
Constructions services  5,000,000 
(5,548,000  euros ) 5,000,000  5,000,000 
* Commission Delegated Regulations (EU) 2017/2364, 2017/2365 of 18 December 2017 .  
Table 5.3 Procurement thresholds agreed by Ecuador  under the Agreement  
Ecuador  Procurement thresholds (in SDR)  
During the 5 years after the Agreement's 
entry into  force  Afterwards  
  Central 
Entities  Sub-Central 
entities  Other cover 
entities  Central 
entities  Sub-
Central 
entities  Other 
cover 
entities  
Goods  260,000  350,000 400,000  130,000 200,000 400,000  
Services  260,000  350,000 400,000  130,000 200,000 400,000  
Constructions 
services  6,000, 000 6,000,000  6,000,000 5,000,000 5,000,000 5,000,000 
 
5.22.   The Parties shall use open tendering, except for certain cases  where selective and limited 
tendering is allowed (Articles 179 and 185) . Title VI contains disciplines on the publication of 
procurement  information and notice s26 (Articles 176 and 177); the conditions for participation in 
procurement (Article 178); the use of selective tendering (Article 179); the establishment of multi -
se list  of suppliers27 (Article 180);technical specifications (Article 181); tender documentation 
(Article 182); time periods for suppliers to prepare and submit requests for participation in a 
procurement28 (Article 183); negotiations conducted by procuring entities (Article 184); limited 
tendering (Article 185); electronic auctions (Article 186); treatment of tenders and award of 
contracts (Article 187); transparency of procurement information and disclosure of information 
(Article 188 and 189); domestic review pr ocedures (Article 190); modifications and rectifications of 
                                                
25 The thresholds currency exchange rate is adjusted at two -year intervals according to the formula 
agreed by the Parties (subsection 7 of Annex XII). 
26 Appendixes 2 and 3 to Annex XII contain a list of media for publication of procurement information 
and for publication of notices. Appendix 4 to Annex XII identifies the type of information that shall be included 
in each notice of intended procurement.  
27 Appen dix 5 to Annex XII specifies the information that shall be included in multi -use list of suppliers. 
28 Appendix 6 specifies the applicable time periods that shall be provided by procuring entities, 
described in Article 183.  WT/REG3 80/1 
 
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  coverage (Article 191); micro, small and medium enterprises participation (Article 192); and 
cooperation between the Parties to achieving a better unders tanding of their respective 
government proc urement systems (Article 193).   
5.23.   The Parties shall establish a Sub-committee on Government Procurement, which will be 
responsible for evaluating the implementation of this Title (Article 194).  
5.10  Intellectual property rights  
5.24.   Issues related to intellectual prop erty rights (IPRs) are covered in Title VII 
(Articles  195-257). This Title  is very detailed, and goes in some cases beyond the TRIPS 
Agreement and other international treaties on IPRs by complementing and further clarifying some 
of the Parties' existing rights and obligations (Article 1 96). The Parties reaffirm their rights and 
obligations under the TRIPS Agreement and grant national and MFN treatment to nationals of the 
other Party with respect to the protection of intellectual property. Any exception to these 
obligations shall be in accordance with Articles 3, 4 and 5 of the TRIPS Agreement. In addition, the 
Parties include provisions on the protection of trademarks, geographical indicators, and copyright 
and related rights, designs, patents, data protec tion for certain regulate d products, and plant 
varieties, technological transfer, unfair competition and cooperation. They also add provisions on 
the exhaustion of IPRs, on biodiversity, and traditional knowledge, not specifically covered by the 
TRIPS Agre ement.   
5.25.   Regarding enforcement, the Parties shall  develop measures, procedures and remedies in to 
enforce IPRs, including border measures . They also include a number of provisions to determine 
the liability of intermediary service provider s when a third par ty that uses their  services of 
information transmission /storage  infringes IP rights ( Chapter IV of Title VII ).  
5.26.   The Parties shall also establish a sub -committee on intellectual property rights that will 
follow up on the implementation of this Title and meet once a year unless , agreed otherwise 
(Article 257 ).  
5.27.   The Accession Protocol modified  certain articles of Title VII (i.e. Articles 202, 231 and 232)  
and Annex XIII by adding inter alia  some provisions specific to Ecuador on  geographical 
indications, an d trademarks and well now marks.  
5.10.1  Copyrights  
5.28.   The Parties shall protect the rights of authors in their literary and artistic works, as well as 
of performers, producers of phonograms and broadcasting organisations, with respect to their 
respective activities.  They commit to apply the Berne Convention, the Rome Convention, the WIPO 
Copyright Treaty, and the WIPO Performances and Phonograms Treaty. The term of protection for 
the rights of authors and related rights is in general longer under the Agreement than u nder the 
TRIPS Agreement, except for performers, and produ cers of phonograms (see Table 5 .4).  
Table 5.4 Terms of prot ection for copyrights and related rights  under the Agreement  
Duration of protection under the agreement 
(Articles 218 and 219)  Duration of protection under the TRIPS 
Agreement  
Authors' rights of a literary or artistic work, including 
photographic works (within the meaning of the Berne 
Convention)  Authors' rights of a literary or artistic work (including 
computer programs and databases)  
are protected for the life of the authors and for in 
general 70 years after his/her death. The protection 
of photographic works is stipulated within Ecuador’s 
national legislation.  are protected for be the life  of the author and in 
general 50 years after his /her death (Articles 2, 9 and 
12). As for photographic works, they are protected for 
be the life of the author and in general 50 years after 
his/her death (Articles 2, 9 and 12).  
Cinematography or audio -visual works  Cinematography or audio -visual works   
are protected in general for at least 70 years after 
the work has been made publicly available with the 
consent of the author. A Party may establish that the 
term of protection of  cinematographic or audiovisual 
works shall expire 70 years after the death of the 
last person designated as author under domestic law.  are protected for the life of the author and in general 
50 years after his /her death (Articles 2, 9 and 12).  
 
 
 
 WT/REG3 80/1 
 
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  Duration of protection under the agreement 
(Articles 218 and 219)  Duration of protection under the TRIPS 
Agreement  
Broadcasting organizations' rights  Broadcasting organizations' rights  
are protected for at least 50 years from the date of 
the broadcast took place.  are protected for 20 years from the end of the year in 
which the broadcast took place (Article  14.5) . 
Performers, and p roducers of phonograms  Performers, producers of phonograms, and producers 
of the first fixation of a film  
are protected in general for at least 50  years after 
the date of the fixation/publication are protected for at least 50  years from the  end of the 
year in which the fixation/performance took place 
(Article  14.5).  
Source:  WTO Secretariat based on Title VII of the Agreement and the TRIPS Agreement. 
 
5.29.   The Parties also include provisions on moral rights , which mirror those under Article  6bis of 
the Berne Convention, except that they extend the application of some of these provisions to 
performers. Under these provision s, authors or performers, regardless of their economic rights, 
and even after the transfer of the said rights, shall have the r ight to claim authorship of the work , 
to be identified as the performer of his/her  performances (live or fixed) and to object to any 
modification or related action that would be prejudicial to their honour or reput ation (Article 216 ). 
5.30.   Other provisions refe r to the protection of technological measures, and the resale right of 
artists in works of art, among others.  
5.10.2  Trademarks and well -known marks  
5.31.   The Parties commit to protect trademarks in accordance with the Paris Convention and the 
TRIPS Agreement . The E U has accede d to the Protocol Relating to the Madrid Agreement 
Concerning the International Registration of Marks as of 1 October 2004. The EU shall make all 
reasonable efforts to comply with the Trademark Law Treaty , while Ecuador shall make all 
reasonable efforts to adhere to it (Article 202 of the Agreement and Annex I of the Accession 
Protocol) . For well- known marks, the Parties shall cooperate to make Article 6bis of the Paris 
Convention and Articles 16.2 and 16.3 of the TRIPS Agreement effective, which grant, under 
certain conditions, protection to registered well-known marks for similar or identical goods  and 
services, and for dissimilar goods  and services (Article  205). Under certain conditions, the Parties 
can allow for limited exceptions  to the rights confer red by trademark s (Article 206).  
5.32.   The Parties shall establish a system of registration of trademarks by  which any refusal by 
the relevant administration must be  communicated; the applicant can contest and appeal such 
decision (Article 204).  A Party may require, as a condition of registration, that signs distinguishing 
the good or service be visually perceptible (Article 203).  
5.10.3  Geographical indications 
5.33.   The Parties commit to protect the geographical indications (GI) listed by each Par ty in the 
Agreement (Article 208 and Appendix  1 of Annex XI II). The EU 's listed GIs include agricultural and 
foodstuff products , wines , spirit drinks and aromatised wines. Ecuador  listed "Cacao Arriba"  as a 
Geographical Indication for agricultural and foodstuff products, wines, spirits and aromatised wines 
according to Article 207(c) of the Agreement (Article 24 of the Accession Protocol). Ecuador also 
added "Montecristi" hat to the list of Geographical Indications for products other than agricultural 
and foodstuff products, wines, spirit drinks and aromatised wines according to the provisions of 
Article 207(d) of the Agreement (Article 2 5 of the Accession Protocol) . The Parties agree on the 
possibility to add new GIs for protection after being subject to the ir respective approval procedures  
(Article 209 ).  
5.34.   The Parties shall provide for invalidation of a trademark or refuse its registration if it w ere to  
affect the protection of a GI listed in the A greement (Article 2 10), provided that the application to 
register the trademark takes  place after the application for protection of the GI in its territory 
(Article 211) . WT/REG3 80/1 
 
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  5.10.4  Designs  
5.35.   The Parties shall protect any new industrial designs  for at least 10 years pr ovided they are 
registered. The  duration of protection under the Agreement is the same than under the TRIPS 
Agreement ( i.e. at least 10 years ). The EU also protects unregistered designs  provided certain 
conditions are met. In accordance with the TRIPS Agreement, registration of a design grants its  
owner at least the exclusive right to prevent third parties from  using  it without the owner's 
consent . In addition, the IP holder shall have the right to take legal action agains t any person who 
produces or markets a product whose design does not differs much from the protected design 
(Articles 225, 226 and 227 ).  
5.10.5  Patents  
5.36.   The Agreement maintains  the period of protection provided by the TRIPS Agreement 
(20 years) but contains inter  alia provisions on the  protection of undisclosed test or other data 
submitted for  authorization procedures for the marketing of pharmaceutical or agricultural 
chemical products, and the compensation mechanism  when the period of protection of a patent 
covering a pharmaceutical product has been shortened.  
5.10.6  Plant varieties  
5.37.   Under the Agreement, the Parties shall cooperate to promote and ensure the protection of 
plant variety  rights in accordance with the UPOV29 Convention (Article 232 ). The TRIPS Agreement 
does not mention  the UPOV Convention explicitly but indicates the regulatory instruments that 
must be used to protect plant varieties (Article 27(b) of the TRIPS Agreement).  
5.10.7  Provisions on biodiversity  and traditional knowledge  
5.38.   The Parties  reaffirm their sover eign rights over their natural resources and  recognize  their 
rights and obligations under the C onvention on Biological Diversity (C BD) with respect to access to 
genetic resources  and the fair and equitable sharing of any resulting benefits of their utilisation . 
They may review the provisions in this area subject to the results and conclusion s of multilateral  
discussions.  
5.39.   The Parties recognise the importance of knowledge of indigenous and local communities and 
their contribution to the cultur e and eco nomic and social development of countries. Subject to 
their domestic legislation, they commit to respect, preserve and maintain such knowledge,  
innovations and practices  and promote their wider application subject to the prior informed 
consent of the holde rs of such knowledge, and encourage the fair and equitable sharing of any 
resulting benefits.  The Parties acknowledge the usefulness of requiring the disclosure of the origin 
or source of genetic resources and associated traditional knowledge in patent applications.  
5.40.   The Parties also include provisions on the exchange of information  and cooperation.   
5.11  Competition policy  
5.41.   In Title VIII on Competition, the Parties recognize the importance of free competition and 
the distorting effects of anti- competitive practices on a country's economic and social 
development. They agree on a list of activities they considered anti- competitive, and commit to 
maintain laws dealing w ith these issues and establish  or maintain a competition  authority 
responsible for their  enforcement . The Parties further recognize the importance of cooperation and 
coordination between their authorities  on issues of law enforcement, and commit to such 
cooperation  through for example, exchange of information , notifications , consultations , technical 
assistance and the promotion of competition (Articles 259 -265). Moreover, t he Agreement does 
not prevent the Parties fro m establishing or maintaining State monopolies  and enterprises but they 
must ensure that State monopolies and enterprises are subject to their competition laws and 
                                                
29 "The International Union for the Protection of New Varieties of Plants" / "Union I nterna tionale pour la 
protection des Obtentions V égétales" (UPOV), as revised in Geneva on 10 November 1972, 23 October 1978 
and 19 March 1991. Ecuador reported that, at the time of signi ng the Protocol, the 1961 UPOV was  in force in 
Ecuador.  WT/REG3 80/1 
 
- 48 - 
 
  conduct their activities in accordance with the Agreement (Article 263) . The Parties cannot invoke 
the Agreement's dispute settlemen t mechanism for issue s covered under Title VIII (Article 266).  
5.42.   While the content of Title VIII  remained unchanged following the Accession of Ecuador to 
the Agreement , the wording of Article 258(1), which defines the meaning of "competition law" and 
"compet ition authority" had to be adapted to cater for the accession of Ecuador.  
5.12  Environment and labour  
5.43.   The Agreement includes a Title on Trade and Sustainable Development (Title IX ), under 
which the Parties reaffirm that trade should promote sustainable developm ent and agree to 
promote trade accordingly  (Article s 267 and 271) . They recognize the importance of core labour 
standards and the value of international environmental governance  (Articles 269 and 270) . They 
reaffirm their commitment to implement multilateral labour and environmental agreements to 
which they are party. Moreover, the Parties shall not reduce the environmental or labour 
protection afforded by their laws to encourage trade or investment (Article 277 ). 
5.44.   The Parties also include provisions on forest and fish products promoting the sustainable 
management of forest resour ces and fish stocks (Article 273 and 274 ). Other provision s refer to 
the conservation and sustainable use of biological diversity (Article 272), climate change 
(Article  275), migration (Article 276) , and scientific evidence ( Article 278) . The Parties must 
designate a contact point for their communications and establish the Sub -committee on Trade a nd 
Sustainable Development which will follow up on the implementation of this T itle (Article 280 ).  
5.45.   The content of Title IX was not subject to any change following the a ccession of Ecuador to 
the Agreement .  WT/REG3 80/1 
 
- 49 - 
 
  ANNEX 1  
Table A1 .1 Lines subject to tariff -rate quotas by the EU under the Agreement  
Product  Tariff lines  MFN 2017  Out of Quota  Aggregate annual 
quantity  (metric 
tonnes)  
Mushroom  07115100a 
20031020a 
20031030a 9,6% + 191 €/100 kg/net  
18,4%  + 191 €/100 kg/net 
18,4% + 222 €/100 kg/net  191 €/100 kg/net  
191 €/100 kg/net  
222 €/100 kg/net  100 
Sweetcorn 
excluding frozen  07119030  
20019030  
20089985  5,1% + 9,4 €/100 kg/net  9,4 €/100 kg/net  400 
Frozen sweet corn  07104000  
20049010  
20058000  5,1% + 9,4 €/100 kg/net  9,4 €/100 kg/net  300 
Refined sugar  
 17049099ex  10% + EA MAX 18,7 + ADS Z EA MAX 18,7 % + ADS Z 10,000 with a 
yearly increase of 
150 20092991  12% + 20,6 €/100 kg/net  20,6 €/100 kg/net  
20093951  
20093991  14,4% + 20,6 €/100 kg/net  
14,4% + 20,6 €/100 kg/net  20,6 €/100 kg/net  
20,6 €/100 kg/net  
20091191  
20091991  
20094991  
20099071  15,2% + 20,6 €/100 kg/net  20,6 €/100 kg/net  
17025000a 16% + 50,7 €/100 kg/net  50,7 €/100 kg/net  
20098086  
20099094  16,8% + 20,6 €/100 kg/net  20,6 €/100 kg/net  
20098061  19,2% + 20,6 €/100 kg/net  20,6 €/100 kg/net  
20099031  20% + 20,6 €/100 kg/net  20,6 €/100 kg/net  
20079110ex  20% + 23 €/100 kg/net  23 €/100 kg/net  
20060031  
20060038  20% + 23,9 €/100 kg/net  23,9 €/100 kg/net  
20079920ex  24% + 19,7 €/100 kg/net  19,7 €/100  kg/net  
20079931ex  
20079933ex  
20079935ex  
20079939ex  24% + 23 €/100 kg/net  23 €/100 kg/net  
20091111exa 
20091911exa 
20092911exa 
20093911ex  
20094911exa 
20098011ex  
20098035ex  
20099011exa 
20099021exa 33,6% + 20,6 €/100 kg/net  20,6 €/100 kg/net  
21012098ex  6,5%+EA EA 
19019099exa 7,6%+EA EA 
18061030a 8% + 31,4 €/100 kg/net  31,4 €/100 kg/net  
18061090a 8% + 41,9 €/100 kg/net  41,9 €/100 kg/net  
18062095exa 8,3% + EA MAX 1 8,7 + ADS Z EA MAX 18,7 % + ADS Z 
21011298ex  
21069098exa 
33021092ex  9% + EA EA 
17029060  
17029071  
17029080  
17029099  0,4 €/100 kg/1% of sucrose by 
weight including other sugars 
expressed as sucrose  0,4 €/100 kg/1% of 
sucrose by weight 
including other sugars 
expressed as sucrose  
17029079  19,2 €/100 kg/net  19,2 €/100 kg/net  
17023059  
17023099  
17024090  
17029050  20 €/100 kg/net  20 €/100 kg/net  
17023051  
17023091  26,8 €/100 kg/net  26,8 €/100 kg/net  
17029075  27,7 €/100 kg/net  27,7 €/100 kg/net  
17019100  
17019910  
17019990  41,9 €/100 kg/net  41,9 €/100 kg/net  
17023010  
17029030  50,7 €/100 kg/net  50,7 €/100 kg/net  
Maize  10059000a 
11022010  
11022090  94 €/t  
173 €/t  
98 €/t  94 €/t  
173 €/t  
98 €/t  37,000 with a 
yearly increase of 
1,110  WT/REG3 80/1 
 
- 50 - 
 
  Product  Tariff lines  MFN 2017  Out of Quota  Aggregate annual 
quantity  (metric 
tonnes)  
Garlic  07032000  9,6 + 120 €/100 kg/net  9,6 + 120 €/100 kg/net  500 
Rice 
(HS heading 1006 
except tariff line 
10061010)  100610 a 
100630 a 
100620 a 
100640 a 211 €/t  
416 €/t  
264 €/t  
128 €/t  211 €/t  
416 €/t  
264 €/t  
128 €/t  5,000  
Manioc starch  11081400 a 166 €/t  166 €/t  3,000  
Rum 22084051  
22084099  0,6 €/% vol/hl  0,6 €/% vol/hl  250 hl of pure 
alcohol equivalent, 
with a yearly 
increase of 10 hl.  
Raw sugar  17011110  
17011190  33,9 €/100 kg/net  
41,9 €/100 kg/net  33,9 €/100 kg/net  
41,9 €/100 kg/net  15,000 with a 
yearly increase of 
150 
a:  tariff lines subject to TRQ at the MFN level.  
EA: Agricultural component.  
MAX:  Limited to a maximum of.  
ADSZ  Additional duty on sugar contents. 
Source:  EU authorities and WTO document G/AG/N/EU/41, 5 February  2018 (reporting period, 2017). 
Table A1 .2 Lines subject to tariff -rate quotas by Ecuador under the Agreement  
Product  
(staging category )  Tariff lines  MFN 
2017  
(%) Quota  Aggregate Annual 
Quantity  (metric 
tonnes)  In 
(%) Out 
(%) 
Preparations of a kind used 
in animal feeding  
(category B) 2309909011  
2309909012  
2309909019  
2309909091  
2309909099  PBS 0+VC under PBS PBS 500 subject to annual 
increases of 15  
(category B1) 2309109000  
2309901000  PBS 0 PBS 800 subject to annual 
increases of 24  
Guts, bladders and 
stomachs of animals (other 
than fish), whole and pieces 
thereof, fresh, chilled, 
frozen, salted, in brine, 
dried or smoked.  
(category D) 0504001000  
0504002000  
0504003000  20 
10 
10 0 
0 
0 20 
10 
10 500 subject to annual 
increases of 15  
Dairy produce, birds' eggs, 
natural honey, edible 
products of animal origin.  
(category L1) 0402101000a 
0402109000a 
0402211100a 
0402211900a 
0402219100a 
0402219900a 
0402911000  
0402919000  
0402299100a 
0402299900a 
0402919000  
0404109000  
0404900000  
0403901000  
0403909000  PBS 
PBS 
PBS 
PBS 
PBS 
PBS 
PBS 
PBS 
PBS 
PBS 
PBS 
PBS 
30 
30 
30 0 
 
 
 
 
 
 
 
 
 
 
 
 
 PBS 
PBS 
PBS 
PBS 
PBS 
PBS 
PBS 
PBS 
PBS 
PBS 
PBS 
PBS 
PBS 
30 
30 400 subject  to annual 
increases of 24   
(category L2) 0402911000  
0402999000  
0402991000  54 
54 
30 0 
 
 PBS 
PBS 
30 600 subject to annual 
increases of 30  
(category L3) 0403100000  
0405200000  
0406200000  
0406300000  
0406909000  
0406906000ex  30 
30 
20 
25 
25 
25 0 30 
PBS 
20 
PBS 
PBS 
25 500 subject to annual 
increases of 25  
 
(category L4) 0406400000  
0406904000  
0406905000  
0406906000ex  20 
25 
25 
25 0 
 
 0b 1000 subject to 
annual increases of 
50 
 
Other vegetables, fresh or 
chilled  
(category M) 0709991000  25 0 15 300  
Sweet corn  
(category MC) 0710400000  
2005800000  25 
30 0 15 
20 400  WT/REG3 80/1 
 
- 51 - 
 
  Product  
(staging category )  Tariff lines  MFN 
2017  
(%) Quota  Aggregate Annual 
Quantity  (metric 
tonnes)  In 
(%) Out 
(%) 
Potatoes  
(category PA) 0710100000  25 0 25 250 subject to annual 
increases of 7,5  
Meat of bovine animals, 
sausages and similar 
products of meat, hams and 
cuts thereof  
(category P) 0210120000  
0210190000  
1601000000  
1602410000  
1602420000  45 
45 
30 
30 
30 0 0+VC under PBS 
0c 
PBS 
0c 
0c 800 subject to annual 
increases of 24  
 
Products with sugar content 
>70%  
(category SP) 1806100000  
1806209000  
2009110000  
2009190000  
2009290000  
2009399000  
2009490000  
2009690000  
2009790000  
2009810000  
2009891000  
2009892000  
2009893000  
2009894000  
2009896000  
2009899000  
2009900000  
2101120000  
2101200000  
2106901000  
2106902100  
2106902900  
2106903000  
2106904000  
2106905000  
2106906000  
2106907100  
2106907200  
2106907300  
2106907400  
2106907900  
2106908000  
2106909100  
2106909900  30 
30 
30 
30 
30 
30 
30 
10 
20 
30 
30 
30 
30 
30 
30 
30 
20 
30 
30 
15 
10 
10 
0 
0 
0 
20 
20 
20 
20 
20 
20 
20 
20 
20 0 20 
20 
30 
30 
30 
30 
30 
10 
20 
30 
30 
20 
20 
20 
30 
30 
20 
30 
5 
15 
10 
10 
0 
0 
0 
20 
20 
20 
20 
20 
20 
20 
20 
20 750  
a:  tariff lines subject to TRQ at the MFN level.  
b:  the out of quota tariff rate is eliminated in 2034. 
c:  the out of quota tariff rate is eliminated in 2032. 
PBS:  Price-band system applies .  
VC: Variable component under the PBS applies . 
B:  For the in- quota, the fixed component (15%) o f the MEP is eliminated upon the Agreement's entry 
into force  within the aggregate quota, the out- quota tariffs are exempt from tariff elimination.  
 B1/D/L1/L2/L3//M/MC/PA: for the in- quota, tariffs are eliminated within the aggregate quota upon 
Agreement's entry into force ; out- quota tariffs are exempt from tariff elimination.  
L4:  For the in- quota, tariffs are eliminated within the aggregate quota upon Agreement's entry into 
force; out- quota tariffs will be eliminated in eighteen equal stages from the date of the Agreement's 
entry into force.  
P:  For the in- quota, tariffs are eliminated within the aggregate  quota upon Agreement's entry into 
force; out quota ta riffs treatment are as follows: 02101200 the fixed component (20%) of the PBS  
will be eliminated in eight equal stages; 02101900, 16024100 and 16024200 shall b e eliminated in 
sixteen equal stages from the date of the Agreement's entry into force. Line 16010000 is exempt 
from tariff elimination. 
Source:  Ecuador authorities and WTO document G/AG/N/ECU/41, 5 February 2016 (reporting period, 2013).  WT/REG3 80/1 
 
- 52 - 
 
  ANNEX 2  
1. Tables A2.1 -A2.2 present the Parties' tariff elimination schedule by total, agricultural and 
non-agricultural products. In the case of the EU , the overall share of duty -free tariff lines rose 
from 2 4.8% in 2016 to 94.8% upon the Agreement's entry into force an d the average applied tariff 
faced by Ecuadorian exporters went from 4.9% to 0.1% (Table A2.1), giving them a relative 
margin of preference of almost 100% . For agricultural products the share of duty -free tariff lines 
increased from 18.1% to 75.6% and t he average tariff rate fell to 0.7% from 9.3%. For 
non-agricultural goods, the share of duty -free tariff lines went from 2 6.7% to 99.9% and the 
average tariff fell from 5.6% to 5.1% upon the Agreement's entry into force. In both cases, 
Ecuadorian  exporters benefited from a relative margin of preference of about 92% and 8%, 
respectively. At the end of the implementation period the share of duty free lines is expected to 
increase to 96.5% overall, 83.3% for  agricultural products and to 100 % for non -agricultural 
products.  
Table A2 .1 EU: Indicators of MFN tariff rates and preferential rates for imports from 
Ecuador  
Origin 
of 
goods  Year ALL PRODUCTS  Agricultural productsa Non-agricultural products  
Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average  applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2017 4.9 6.7 24.8 9.3 12.7 18.1 4.1 5.6 26.7 
Ecuador  2017 0.1 10.7 94.8 0.7 11.0 75.6 0.0 5.1 99.9 
2018 0.1 10.0 94.8 0.6 10.3 75.6 0.0 3.9 99.9 
2019 0.1 9.3 94.8 0.6 9.6 75.6 0.0 2.8 99.9 
2020 0.1 8.8 94.9 0.5 9.1 75.8 0.0 2.0 99.9 
2021 0.1 8.1 94.9 0.5 8.4 75.8 0.0 1.0 99.9 
2022 0.1 9.0 95.1 0.4 9.0 76.6 0.0 0.0 100.0  
2023 0.1 8.6 95.1 0.4 8.6 76.6 0.0 0.0 100.0  
2024 0.1 9.6 96.3 0.4 9.6 82.3 0.0 0.0 100.0  
2025 0.1 9.3 96.3 0.3 9.3 82.3 0.0 0.0 100.0  
2026 0.1 9.1 96.3 0.3 9.1 82.3 0.0 0.0 100.0  
2027 0.1 11.6 96.5 0.3 11.6 83.3 0.0 0.0 100.0  
a WTO Definition.  
Note: Tariff lines subject to in- quota rates are excluded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem parts of alternate rates are included.  
 Based on the HS 2007 nomenclature. 
Source:  WTO estimates based on data provided by EU authorities. 
 
2. For Ecuador , the overall share of duty -free tariff lines rose from 3 7% to 60% upon the 
Agreement's entry into force, and the average appli ed tariff fell from 10. 7% to 6 .2% (Table A2 .2), 
giving E U exporters a relative margin of preference of 42%. For agricultural goods, the aver age 
tariff rat e fell to 8.3 % from 17. 5%; and to 5. 9% from 9. 7% for non -agricultural products, 
resulting in a relative margin of preference for E U exporters to Ecuador  of 53% and 39 %, 
respectively. As for the share of duty -free lines, it went from 23% to 46% for agricultural products 
and from 39.8% to 62.7 % for non -agricultural products. Following ten years of implementation, 
the share of duty free lines  is expected to increase to almost 80 % overall, and to 6 4% and 82% 
for agricultural and non -agricultural products respectively. At the end of the implementation period 
this share is expected to increase to 77% for agricultural products, 100 % for non -agricultural 
products, and to 9 7% overall.  WT/REG3 80/1 
 
- 53 - 
 
  Table A2 .2 Ecuador: Indicators of MFN tariff rates and preferential rates for imports 
from EU  
Origin 
of 
goods  Year ALL PRODUCTS  Agricultural productsa Non-agricultural products  
Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2017 10.7 17.2 37.4 17.5 22.8 23.1 9.7 16.0 39.8 
EU 2017 6.2 16.0 60.4 8.3 17.2 46.0 5.9 15.8 62.7 
2018 5.3 13.7 60.4 7.3 15.1 46.0 5.0 13.5 62.7 
2019 4.4 11.5 60.4 6.4 13.1 46.0 4.2 11.1 62.7 
2020 3.5 9.2 60.6 5.4 11.5 47.5 3.3 8.8 62.7 
2021 2.7 6.9 60.6 4.5 9.5 47.5 2.4 6.5 62.7 
2022 1.8 8.5 77.9 3.5 12.1 63.2 1.5 7.8 80.3 
2023 1.4 6.9 77.9 3.1 10.7 63.2 1.2 6.1 80.3 
2024 1.1 5.9 79.7 2.7 9.7 63.9 0.9 5.0 82.3 
2025 0.8 4.3 79.7 2.4 8.4 63.9 0.6 3.4 82.3 
2026 0.5 2.8 79.7 2.0 7.0 63.9 0.3 1.8 82.3 
2027 0.2 17.1 96.7 1.7 17.1 76.4 0.0 0.0 100.0  
2028 0.2 16.9 96.7 1.7 16.9 76.4 0.0 0.0 100.0  
2029 0.2 16.8 96.7 1.6 16.8 76.4 0.0 0.0 100.0  
2030 0.2 16.7 96.7 1.6 16.7 76.4 0.0 0.0 100.0  
2031 0.2 16.5 96.7 1.6 16.5 76.4 0.0 0.0 100.0  
2032 0.2 17.2 96.7 1.6 17.2 76.8 0.0 0.0 100.0  
2033 0.2 17.2 96.7 1.6 17.2 76.8 0.0 0.0 100.0  
2034 0.2 17.8 96.8 1.6 17.8 77.0 0.0 0.0 100.0  
a WTO Definition.  
Note: Tariff lines subject to in- quota rates are excluded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  part of the alternate rates are included . 
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data  provided by the Ecuadorian authorities . 
 
3. Table A2.3 shows market a ccess opportunities for Ecuador 's top 25 expo rts in the EU  
market.  These products accounted for 87.7% of its global  exports during 2014 -2016 and covered 
117 tariff lines at the HS 6 -digit level. Of these lines, nine were already duty free on a M FN basis 
in 2017, and another 98  became duty free upon the Agreement's entry into force. Ten lines will 
continue to be subject to duties whose average applied MFN rates in 2017 ranged between 16% 
and 23%,  once the Agreement is fully implemented; the products concerned are bananas, fruit 
and vegetable juices , and jams and jellies.   
Table A2 .3 EU: Market access opportunities under the A greement for Ecuador's top 25 
export s to the world  
Ecuador's top export products  
in 2014 -2016  Access Conditions to EU's import markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 2017  
No. of duty free 
lines under the 
Agreement  
2017  
Remain dutiable  Average 
MFN 
applied rate 
(%) 
No. of duty 
free lines  
No. of 
dutiable 
lines  
270900  Petroleum oils and oils obtained from 
bituminous minerals, crude  39.4 0.0 2    WT/REG3 80/1 
 
- 54 - 
 
  Ecuador's top export products  
in 2014 -2016  Access Conditions to EU's import markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 2017  
No. of duty free 
lines under the 
Agreement  
2017  
Remain dutiable  Average 
MFN 
applied rate 
(%) 
No. of duty 
free lines  
No. of 
dutiable 
lines  
080300  Bananas, incl. plantains, fresh or 
dried 13.6 16.0  3 2 1 
160520  Shrimps and prawns, prepared or 
preserved  6.3 20.0  3 3  
030613  Frozen shrimps and prawns, whether 
in shell or not, incl. shrimps and 
prawns in shell, cooked by steaming 
or by boiling in water  6.1 13.2  5 5  
160414  Prepared or preserved tunas, 
skipjack and atlantic bonito, whole or 
in pieces (excl. minced)  4.0 24.3  4 4  
180100  Cocoa beans, whole or broken, raw 
or roasted  3.2 0.0 1    
060311  Fresh cut roses and buds, of a kind 
suitable for bouquets or for 
ornamental purposes  3.2 12.0  1 1  
710812  Gold, incl. gold plated with platinum, 
unwrought, for non- monetary 
purposes (excl. gold in powder form)  2.7 0.0 1    
271019  Medium oils and preparations, of 
petroleum or bituminous minerals, 
n.e.s.  1.5 3.8  25 25  
060319  Fresh cut flowers and buds, of a kind 
suitable for bouquets or for 
ornamental purposes  0.9 12.0  2 2  
151110  Crude palm oil  0.9 1.9 1 1 1  
210111  Extracts, essences and concentrates, 
of coffee  0.7 9.0  2 2  
230120  Flours, meals and pellets of fish or 
crustaceans, molluscs or other 
aquatic invertebrates, unfit for 
human consumption  0.7 0.0 1    
440722  Virola, imbuia and balsa, sawn or 
chipped lengthwise, sliced or peeled, 
of a thickness of > 6 mm, sanded, or 
end-jointed, whether or not planed  0.6 1.5 1 2 2  
160420  Prepared or preserved fish  0.5 17.2  7 7  
441019  Waferboard and similar board, of 
wood, whether or not agglomerated 
with resins or other organic binding 
substances  0.4 7.0  1 1  
710813  Gold, incl. gold plated with platinum, 
in semi-manufactured forms, for 
non-monetary purposes  0.4 0.0 2    
732111  Appliances for baking, frying, grilling 
and cooking and plate warmers, for 
domestic use, of iron or steel, for gas 
fuel or for both gas and other fuels  0.4 2.7  2 2  
160413  Prepared or preserved sardines, 
sardinella and brisling or sprats, 
whole or in pieces (excl. minced)  0.4 12.5  3 3  
071080  Vegetables, uncooked or cooked by 
steaming or by boiling in water, 
frozen  0.4 13.6  9 9  
200891  Palm hearts, prepared or preserved, 
whether or not containing added 
sugar or other sweetening matter or 
spirit  0.4 10.0  1 1  WT/REG3 80/1 
 
- 55 - 
 
  Ecuador's top export products  
in 2014 -2016  Access Conditions to EU's import markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 2017  
No. of duty free 
lines under the 
Agreement  
2017  
Remain dutiable  Average 
MFN 
applied rate 
(%) 
No. of duty 
free lines  
No. of 
dutiable 
lines  
200980  Juice of fruit or vegetables, 
unfermented, whether or not 
containing added sugar or other 
sweetening matter  0.4 19.7  21 17 4 
151190  Palm oil and its fractions, whether or 
not refined  0.3 9.5  4 4  
880330  Parts of aeroplanes or helicopters, 
n.e.s. (excl. those for gliders)  0.3 2.7  1 1  
200799  Jams, jellies, marmalades, purées or 
pastes of fruit, obtained by cooking, 
whether or not containing added 
sugar or other sweetening matter  0.2 23.0  11 6 5 
  Total  87.7  9 108 98 10 
Note:  For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included.  
 Based on the HS 20 07 nomenclature . 
Source:  WTO estimates based on data provided by EU authorities  and UNSD, Comtrade database.  
4. Table  A2.4 shows market access opportunities for EU's top 25 exports in the Ecuadorian  
market. These exports, which covered 129 lines at the HS  6-digit level, accounted for 28.2% of 
the EU's global exports during 2014- 2016. Of these lines, 71 were already duty free on an MFN 
basis and eleven  were liberalized upon the Agreement's entry into force. Another 21 and 16 will be 
liberalized in 2022 and 2024. T en lines will remain dutiable . The products concerned include 
petroleum products, articles of jewellery, motor vehicle parts, and electrical and mechanical 
products; the MFN applied average tariffs in 2017 on these products ranged from 1.2% to 30%.   
Table A2 .4 Ecuador: Market access opportunities under the A greement for EU's top 25 
exports to the world  
EU's top export products  
in 2014 - 2016  Access Conditions to Ecuador's import 
markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 2017  No. of duty free 
lines under the 
Agreement  Average MFN 
applied rate 
(%) No. of 
lines  
2017  
2022  
2024  
2027  Duty 
free 
Dutiable  
300490  Medicaments consisting of mixed or 
unmixed products for therapeutic or 
prophylactic purposes, put up in 
measured doses "incl. those in the form 
of transdermal administration" or in 
forms or packings for retail sale  3.8 5.7  7  7   
870323  Motor cars and other motor vehicles 
principally designed for the transport of 
persons, incl. station wagons and racing 
cars, with spark -ignition internal 
combustion reciprocating piston engine 
of a cylinder capacity > 1.500 cm³ but 
<= 3.000 cm³  3.7 37.5  4   4  WT/REG3 80/1 
 
- 56 - 
 
  EU's top export products  
in 2014 - 2016  Access Conditions to Ecuador's import 
markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 2017  No. of duty free 
lines under the 
Agreement  Average MFN 
applied rate 
(%) No. of 
lines  
2017  
2022  
2024  
2027  Duty 
free 
Dutiable  
880240  Aeroplanes and other powered aircraft of 
an of an unladen weight > 15.000 kg  2.6 5.0  1 1    
271019  Medium oils and preparations, of 
petroleum or bituminous minerals, not 
containing biodiesel, n.e.s.  2.2 3.0 19 9 3 6   
271012  Light oils and preparations, of petroleum 
or bituminous minerals which >= 90% 
by volume "incl. losses" distil at 210°c 
"astm d 86 method" (excl. containing 
biodiesel)  1.9 1.2 15 2 1   1 
710813  Gold, incl. gold plated with platinum, in 
semi-manufactured forms, for non-
monetary purposes  1.5 0.0 1      
870324  Motor cars and other motor vehicles 
principally designed for the transport of 
persons, incl. station wagons and racing 
cars, with spark -ignition internal 
combustion reciprocating piston engine 
of a cylinder capacity > 3.000 cm³  1.4 35.0  4   4  
300210  Antisera and other blood fractions and 
immunological products, whether or not 
modified or obtained by means of 
biotechnological processes  1.1 0.6 7 1  1   
870332  Motor cars and other motor vehicles 
principally designed for the transport of 
persons, incl. station wagons and racing 
cars, with compression -ignition internal 
combustion piston engine "diesel or 
semi-diesel engine" of a cylinder 
capacity > 1.500 cm³ but < = 2.500 cm³  1.0 40.0  4   4  
841112  Turbojets of a thrust > 25 kn  0.8 0.0 1      
880330  Parts of aeroplanes or helicopters, n.e.s. 
(excl. those for gliders)  0.7 0.0 1      
841191  Parts of turbojets or turbopropellers, 
n.e.s.  0.7 0.0 1      
710231  Non-industrial diamonds unworked or 
simply sawn, cleaved or bruted  0.6 0.0 1      
711319  Articles of jewellery and parts thereof, of 
precious metal other than silver, 
whether or not plated or clad with 
precious metal  0.6 30.0  1    1 
870899  Parts and accessories, for tractors, 
motor vehicles for the transport of ten or 
more persons, motor cars and other 
motor vehicles principally designed for 
the transport of persons, motor vehicles 
for the transport of goods and special 
purpose motor vehicles, n.e.s.  0.6 4.2 7 6 1 1  4 
848180  Appliances for pipes, boiler shells, tanks, 
vats or the like  0.6 10.5 4 7 1 5  1 WT/REG3 80/1 
 
- 57 - 
 
  EU's top export products  
in 2014 - 2016  Access Conditions to Ecuador's import 
markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 2017  No. of duty free 
lines under the 
Agreement  Average MFN 
applied rate 
(%) No. of 
lines  
2017  
2022  
2024  
2027  Duty 
free 
Dutiable  
870840  Gear boxes and parts thereof, for 
tractors, motor vehicles for the transport 
of ten or more persons, motor cars and 
other motor vehicles principally designed 
for the transport of persons, motor 
vehicles for the transport of goods and 
special purpose motor vehicles, n.e.s.  0.5 0.0 2      
851762  Machines for the reception, conversion 
and transmission or regeneration of 
voice, images or other data, incl. 
switching and routing apparatus  0.5 8.3  3 3    
300220  Vaccines for human medicine  0.5 0.0 4      
870322  Motor cars and other motor vehicles 
principally designed for the transport of 
persons, incl. station wagons and racing 
cars, with spark -ignition internal 
combustion reciprocating piston engine 
of a cylinder capacity > 1.000 cm³ but 
<= 1.500 cm³  0.5 40.0  4   4  
853710  Boards, cabinets and similar 
combinations of apparatus for electric 
control or the distribution of electricity, 
for a voltage <= 1.000 v  0.5 15.0  2  1  1 
854231  Electronic integrated circuits as 
processors and controllers, whether or 
not combined with memories, 
converters, logic circuits, amplifiers, 
clock and timing circuits, or other 
circuits  0.5 0.0 1      
901890  Instruments and appliances used in 
medical, surgical or veterinary sciences, 
n.e.s.  0.5 0.0 2      
847989  Machines and mechanical appliances, 
n.e.s.  0.4 5.0 4 3 1   2 
710812  Gold, incl. gold plated with platinum, 
unwrought, for non -monetary purposes  0.4 0.0 1      
Total  28.2  71 58 11 21 16 10 
Note:  For the calculation of averages, specific rates are excluded and the ad valorem  part of alternate 
rates are included.  
  Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on data provided by the Ecuadorian authorities  and Eurostat . 
 
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