WORLD TRADE  
ORGANIZATION  G/C/W/645 
7 March 2011 
 (11-1107) 
Council for Trade in Goods Original:   Spanish 
  
 
ECUADOR MIXED TARIFFS - QUESTI ONS FROM THE UNITED STATES, 
EUROPEAN UNION, CANADA, JA PAN AND PANAMA (G/C/W/639) 
 
Replies from Ecuador
 
 
 
The following communication, dated 3 March 2011, is being circulated at the request of the 
delegation of Ecuador.  
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REPLY 1: 
 
1. Ecuador reformed its national tariff struct ure pursuant to Executiv e Decrees No. 367 of 
21 May 2010 and No. 372 of 28 May 2010, in effect as of  1 June 2010.  This refo rm is consistent with 
the rights and obligations established in the Gene ral Agreement on Tariffs and Trade (GATT) 1994.  
Indeed, nothing in this Agreement or in any of the Agreements under the mu ltilateral trading system 
restricts or reduces, either expressly or tacitly, Members' ability to review, restructure, modify or re-implement their tariff structures, through either ad valorem , mixed or compound tariffs or other 
mechanisms. 
2. It follows that there are no limitations on Members'  ability to formulate their tariff policies, as 
is evidenced by the practices and measures in for ce between Members, provided that these measures 
form part of their binding commitments and th at implementation of such regulations ensures 
compliance with that obligation, as is the case of Ecuador. 
3. Ecuador published and promulga ted the above-mentioned decrees in accordance with the 
obligations contained in Article X of the GATT 1994.   In this respect, please be advised that the 
relevant information is availa ble on the website of Ecuador's Foreign Trade and Investment 
Council (COMEXI) at http://www.comexi.gob.ec/resoluci ones.shtml.  Ecuador hereby reiterates its 
willingness to continue meeting its commitments and obligations and to exercise all of its rights under 
the multilateral trading system. 
4. The measure at issue has not affected imports of footwear, textiles or apparel.  Evidence of 
this is provided by the pattern of trade flows recorded in 2009 and 2010 between Ecuador and the 
Members whose concerns are reflected in docum ent G/C/W/639.  Statistical data shows the 
continuing growth of imports to Ecuador of footw ear, textiles and apparel.  Foreign trade statistics 
reveal that trade, particularly with the United States, European Union, Canada, Japan and Panama, 
continues to develop in favour of those countries, for example: 
(i) Total exports of footwear and tex tiles from the United States to Ecuador 
increased by 46.0 per cent from 2009 to  2010 (US$5,408,839 in 2009 and 
2010 US$7,897,730 in 2010); G/C/W/645 
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  (ii) total exports of footwear and textil es from Italy to Ecuador increased by 
18.0 per cent from 2009 to 2010 (US$784,864 in 2009 and US$923,400 in 2010); 
(iii) total exports of footwear and textiles from Spain to Ecuador increased by 
4.0 per cent from 2009 to 2010 (US$660,110 in 2009 and US$684,300 in 
2010); 
(iv) total exports of footwear and textil es from the United Kingdom to Ecuador 
increased by 2.0 per cent from 2009 to 2010 (US$1,086,800 in 2009 and 
US$1,106,676 in 2010); 
(v) total exports of footwear and textil es from China to Ecuador increased by 
50.5 per cent from 2009 to 2010 (US$62,567,486 in 2009 and 
US$94,135,272 in 2010); 
(vi) total exports of footwear and tex tiles from Japan to Ecuador increased by 
90.0 per cent from 2009 to 2010 (US$81,916 in 2009 and US$155,663 in 2010); 
(vii) total exports of footwear and textiles from Canada to Ecuador increased by 
47.0 per cent from 2009 to 2010 (US$114,992 in 2009 and US$169,536 in 2010);  and, 
(viii) total exports of footwear and textiles from Panama to Ecuador increased by 
85.0 per cent from 2009 to 2010 (US$339,489 in 2009 and US$626,727 in 2010). 
5. In conclusion, overall imports to Ecuador of footwear, textiles and apparel corresponding to 
the 349 tariff lines subject to the tariff restru cturing increased by 45 per cent from 2009 to 2010.  
There was an increase in terms of weight of  12,895 tonnes from 2009 (13,676,936 tonnes) to 2010 
(13,884,989 tonnes).  Furthermore, the total valu e in United States dollars of global imports to 
Ecuador grew by US$68,601,912 from 2009 to 201 0 (US$153,509,029 in 2009 and US$222,110,941 
in 2010). 
6. From the above - on the one hand compliance with the obligations and rights under the 
multilateral trading system and, on the other, statis tical verification of the continuous growth of 
imports to Ecuador of footwear, textiles and apparel - it can be inferred that no actual or potential 
problems have arisen between Ecuador and its trading partners in respect of trade in such goods as a 
result of the implementation of the mixed tariff measures introduced in 2010. 
REPLY 2: 
 
7. The ad valorem  equivalent for each of the 349 tari ff lines covered by the above-mentioned 
decrees correspond to the binding undertaken by Ecuador in its Schedule of Concessions. 
8. In view of the foregoing, Ecuador considers that it has fulfilled its obligations under the 
World Trade Organization agreements by notifying the new tariff structure for the products in 
question.  Furthermore, it considers that there is no binding obligation to notify the methodology used to develop a specific tariff application method.  Ec uador is also of the opinion that there is no 
obligation to provide the ad valorem  equivalent for each and every one of the tariff lines at issue.  G/C/W/645 
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  9. Ecuador hereby invites the Members that ask ed the questions to indicate the product in 
respect of which they are experiencing actual and speci fic trade problems, if this is the case, so that 
consultations that would enable these co ncerns to be resolved can be held. 
 
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