• Ecuador

    Ecuador

    Ecuador's development plans aim at consolidating economic growth to achieve inclusive development and reduce poverty. The National Development Plan 2009-2013 (Plan for Good Living- PNBV) declares several development policies, among others, (1) democratization of the means of production and diversification of ownership in order to redistribute wealth, (2) specialization of the economy through selective substitution of imports, productivity gains, and diversification of exports and markets, (3) transformation of higher education and increased knowledge in science, technology and innovation, and (4) pursuit of a fundamental change in the country's energy matrix. 

     

    Since the passage of a new constitution in 2008, a comprehensive social and economic reform has taken place in order to achieve these goals. Despite many successes, Ecuador's growth relies heavily on exports of commodities and on public investment. Furthermore, with a 2010 per capita GDP of US$ 7,800, over a third of Ecuatorians live under the poverty line and about half of the labour force is either unemployed or underemployed. 

     

    Several developmental challenges remain:
     

    • Reduce poverty and target social programs effectively
    • Create jobs, particularly for the youth
    • Reduce high economic dependency on the oil sector
    • Attain good governance and eliminate corruption
    • Control vulnerability to natural disasters, mainly volcanic eruptions, earthquakes and flooding

    Key trade issues 

     

    In line with the objectives set forth by the National Development Plan, Ecuador's trade policy aims at strengthening domestic markets and to promote an "intelligent integration" into the global economy. The country also looks to boost its domestic production and contribute to ensuring food and energy sovereignty through he development of economies of scale. Finally, Ecuador will promote environmentally responsive exports, in particular from small and medium-size producers and the handicrafts sector.

     

    Key trade-related objectives are to:

    • Advance in negotiations with the European Union and continue to pursue trade agreements based on economic complementarity and development considerations.
    • Explore opportunities to launch trade negotiations with other trading partners, including China, the Republic of Korea, Gulf Cooperation Council countries, EFTA countries and Central America countries.
    • Intensify trade and integration relationships with members of UNASUR and ALBA.
    • Underpin a strategy for reduction of dependence on imports through tariff measures on imported components and domestic support for the development of activities involving value added (preferably by SMEs)
    • Promote exports focusing on diversification of products, services and markets

    Government priorities 

    • Encourage foreign direct investment (FDI) through fiscal incentives and as a complement to national investment
    • Develop relationships with new partners, particularly in Asia, and strengthen regional ties
    • Support local producers, particularly SMEs, with the goal to reduce dependency on traditional exports such as oil and agricultural commodities
    • Maintain high levels of public investment as well as government control over strategic sectors, namely oil & gas, electricity, and telecommunications.
    • Target the informal sector through new financing schemes (such as microfinance) and gain export competitiveness through socially and environmentally responsible trade practices.
    • Ecuador's priority TRTA needs include contingency measures, technical barriers to trade, sanitary and phytosanitary measures and customs valuation.

    Trade and Tariff Graphs

    Graphs of the country’s export markets, its export performance in a key sector and tariffs exporters of a sample product face.
    Trademap sample Trademap sample: The map uses color codes to illustrate the relative size of different markets in the overall exports of the country shown in pink.
    Trademap sample Trademap sample: The vertical axis shows import values by key importing countries, while the horizontal axis shows export values by the country for the same sector. I.e. the country has gained market share in the case of an importing country at the bottom right of chart and lost market share for countries top left. The size of circles is proportional to market size.
    Market access map sample Market access map sample: The world map shows trade values and tariff levels for a key export product by importing countries. Color codes indicate protection levels. Red circles denote trade volumes.

    Trade and Investment Data

    Detailed data on the country’s export performance, key imports and foreign investment, grouped by product and service categories (HS and BOP).

    Trade Information Sources

    A listing of country specific print and online publications on trade related topics. Includes information from both ITC and external sources.

    Trade Contacts

    The most important trade contacts, including importers’ and exporters’ associations, trade support institutions, trade promotion organizations and institutions providing business development assistance.