. /.   WORLD TRADE  
ORGANIZATION  WT/BOP/G/19 
29 March 2010 
 
 (10-1679) 
Committee on Balance-of-Payments Restrictions Original:   Spanish 
  
 
STATEMENT BY ECUADOR 
 
Geneva, 22 March 2010
 
  
 By means of the notifications contained in documents WT/BOP/N/74 and WT/BOP/N/75 of 
23 February 2010, received on 18 February 2010, Ecuador informed the members of the 
WTO Committee on Balance-of-Payments Restrictions  of Resolutions 533 and 549 of the Foreign 
Trade and Investment Council of Ecuador (COMEXI),  published in Official Journals Nos. 109 and 
128 of 15 January 2010 and 11 February 2010, respectively. 
 
 A brief description of the Resolutions is give n below, starting with Resolution 533.  This 
Resolution chiefly concerns the decision take n by COMEXI to reduce by 10 per cent all tariff 
surcharges introduced as balance-of-payments me asures by COMEXI Resolutions 466, 468, 487 and 
524, as of 23 January 2010.  
 Resolution 549 expands on Resolution 533 in that  it establishes a timetable for the removal of 
the measures applied by Ecuador for balance-of-p ayments purposes.  The timetable is as follows: 
  - As of 23 March 2010, the percentage re duction will be increased by an additional 
30 per cent over the figure established in Article 1 of COMEXI Resolution 533; 
 
 - as of 23 May 2010, the percentage reducti on indicated in (a) above will be increased 
by an additional 30 per cent;  and 
  - as of 23 July 2010, the percentage reduction indicated in (b) will be increased by an 
additional 30 per cent. 
 
 My country is complying with its commitmen t to remove these measures.  The tariff 
surcharges are being phased out according to a gradua l timetable, so as to prevent a flood of imports 
that would cause a renewed balance-of-payments problem.  
 As at end 2009, the total trade balance defic it (recorded trade) stood at US$332 million.  In 
year terms, although there was a contraction in total imports (19.9 per cent) compared to 2008, this did not favourably impact the overall trade bala nce because of a sharper decline in total exports 
(25.7 per cent), chiefly due to the marked downturn in oil exports (40.3 per cent).  
 The oil trade balance for the period Ja nuary-December 2009 posts a surplus of 
US$4.631 billion, down by US$3.825 billion for the same period in 2008 (US $8.455 billion).  Even 
though the average price of Ecuadorian crude tre nded upwards as of March 2009, it did not reach 
2008 levels.  The price stood at US$52.6 per ba rrel in the period January-December 2009, having 
risen to US$82.9 per barrel in the same period in 200 8.  In volume terms, crude oil exports shrank by 
6.1 per cent. 
 WT/BOP/G/19 
Page 2  
 
   The non-oil balance deficit was down by US$2.582 billion compared to 2008, as a result of an 
18.2 per cent drop in non-oil imports.   In month terms, the total trade balance again showed a deficit in September, November and 
December 2009, albeit not as marked as that record ed between September 2008 and March 2009.  In 
December, exports totalled US$1.422 billion, which,  considering import levels at US$1.430 billion, 
equals a deficit of US$8 million.  The value of both oil and non-oil imports rose in December - the 
former because of extra purchases of fuel abroad to  address the energy crisis, and the latter because of 
increased imports of transport equipment, constr uction materials and non-durable consumer goods. 
 
 According to estimates based on the indicators and forecasts used to prepare the State budget, 
the trade balance should record a slight surplus in  2010.  This estimated equilibrium in the trade 
balance does not reflect a strong external sector but rather modest recovery following the economic 
crisis suffered by Ecuador since mid-2008, which h as chiefly affected the country's leading exports, 
such as petroleum, shrimp, processed agricultural products, flowers, and metal manufactures. 
 
 It should be emphasized that the restoration of  balance-of-payments equilibrium foreseen for 
2010 includes a slight trade balance surplus.  The estimate is based on a favourable oil price 
assumption.  Heavy dependency on oil exports means that slight variation in the price of crude oil 
entails major changes in the estimates concerning su ch equilibrium.  The high degree of uncertainty 
surrounding the factors for assessing the performance of macroeconomic indicators compels Ecuador 
to show extreme caution when taking trade policy decisions. 
  We all know full well that the Understanding on  the Balance-of-Payments Provisions of the 
GATT 1994 provides for the gradual phasing out of trad e restrictive measures.  However, Ecuador's 
economy continued to suffer the effects of the global financial crisis up until the early months of this 
year.  This is why the Ecuadorian authorities in char ge of economic matters we re unable to obtain the 
data and estimates pointing to the restoration of balance-of-payments equilibrium before the end of 
the scheduled period of application of the measures.   Hence the timetable for prompt removal of the 
measures was submitted by Ecuador as rapidly as possible and it is bei ng implemented without delay. 
  Considering the trade balance indicated in this statement, a gradual lifting of 
balance-of-payments restrictions can be envisaged .  As mentioned earlier, the measures are being 
dismantled on a gradual basis so as to avoid a flo od of formerly restricted trade, because abrupt 
resumption would jeopardize the efforts made by th e Government of Ecuador to achieve a degree of 
equilibrium that provides sufficient liquidity in th e economy to sustain the monetary system, maintain 
the stability required to emerge from the crisis , and pursue its legitim ate development goals. 
 
 Ecuador has been fully transparent in its actions  throughout this process.  Its special situation 
has earned it support from the members of this Comm ittee and we hope that it will continue to enjoy 
such support.  We reiterate our willingness to respond at  this meeting to questions that might arise in 
connection with the adoption of the aforementioned resolutions.  As regards any further information 
that might be required, it should be recalled that we  are in close contact with our authorities in the 
capital and will ask them to supply any informa tion that cannot be provided at this time. 
  Lastly, I would recall that the consultations he ld by Ecuador in this Committee after turning 
to Article XVIII:B of the GATT 1994 have been duly completed and that a report by this Committee 
was put before the General Council in a timely fashion. 
 
 
__________