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BASELINE PAINT MARKET STUDY in ECUADOR SAICM GEF Project Lead in Paint Component

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BASELINE PAINT MARKET STUDY in ECUADOR SAICM GEF Project Lead in Paint Component BASELINE PAINT MARKET STUDY IN ECUADOR SAICM GEF Project Lead in Paint Component Prepared for Prepared by | i INDEX 1 INTRODUCTION ..................................................................................................................... 1 2 NATIONAL CONTEXT .............................................................................................................. 2 2.1 Physical and demographic context ............................................................................... 2 2.1.1 Geographical aspects ............................................................................................ 2 2.1.2 Demographic aspects ............................................................................................ 2 2.1.3 Social aspects ........................................................................................................ 3 2.1.3.1 Health ................................................................................................................ 3 2.1.3.2. Education .............................................................................................................. 3 2.1.4 Economic aspects. ................................................................................................. 4 2.1.4.1. Labor and employment. ....................................................................................... 4 2.2 Political structure .......................................................................................................... 6 2.2.1 Administrative divisions ........................................................................................ 6 2.2.2 State Structure ...................................................................................................... 7 2.3 Economic and productive activity in Ecuador. .............................................................. 8 3 LEGAL MECHANISM AND NON-REGULATORY INSTRUMENTS IN THE MANAGEMENT OF PAINTINGS ................................................................................................................................... 10 3.1 Introduction. ............................................................................................................... 10 3.2 Constitution of the Republic of Ecuador. .................................................................... 13 3.3 International treaties and agreements ....................................................................... 14 3.4 Laws ............................................................................................................................. 15 3.4.1 Foreign Trade Law. .............................................................................................. 15 3.4.2 Law of the Ecuadorian Quality System. ............................................................... 15 3.4.3 Organic Health Law. ............................................................................................ 16 3.5 Organic laws ................................................................................................................ 16 3.5.1 The Organic law of Production, Commerce and Investments, COPCI. ................ 16 3.5.2 Organic Integral Criminal Law. ............................................................................ 17 3.5.3 Organic Environmental Law. ............................................................................... 17 3.6 Regulations .................................................................................................................. 18 3.6.1 Safety and health regulation for workers. Executive Decree 2393. .................... 18 3.6.2 General regulation to the Law of the Ecuadorian Quality System. ..................... 18 3.6.3 Regulation of the Organic Environmental law .................................................... 19 3.6.4 Ecuadorian Technical Regulations RTE INEN 061 Paintings (in the approval process) ............................................................................................................................. 19 | ii 3.7 Ministerial Agreements ............................................................................................... 20 3.8 INEN standards ............................................................................................................ 21 3.9 Scope of the Model Law on Lead in Paint in Ecuadorian Legislation. ......................... 27 4 INSTITUTIONAL FRAMEWORK AND OTHER ACTORS RELATED TO PAINT MANAGEMENT . 31 4.1 Introduction ................................................................................................................ 31 4.2 Functions of government institutions. ........................................................................ 31 4.2.1 Ministry of Production, Foreign Trade, Investments, and Fisheries - MPCEIP. .. 31 4.2.2 Ministry of Public Health- MSP. .......................................................................... 31 4.2.3 Ministry of Environment - MAE ........................................................................... 31 4.2.4 Ecuadorian Standardization Service- INEN .......................................................... 32 4.2.5 Ecuadorian Accreditation Service- SAE. .............................................................. 32 4.3 Responsibilities of Ecuadorian government institutions in lead paint management . 32 4.3.1 Ministry of Production, Foreign Trade, Investments, and Fisheries. .................. 32 4.3.2 Ministry of Environment- MAE............................................................................ 32 4.3.3 Ecuadorian Standardization Service- INEN.......................................................... 33 4.3.4 Ecuadorian Accreditation Service - SAE. ............................................................. 33 4.4 Functions related to national non-governmental organizations or associations. ...... 33 4.4.1 Association of Chemical Producers of Ecuador- APROQUE ................................ 33 4.4.2 Ecuadorian Chamber of Industries and Production- CIP. .................................... 33 4.5 Projects, agreements or other mechanisms related to lead paint management. ...... 34 5 THE PAINT AND COATINGS MARKET ................................................................................... 35 5.1 Introduction ................................................................................................................ 35 5.1.1 Types of paints in Ecuador .................................................................................. 36 5.1.2 Demand and marketing channels for paints in the country ............................... 37 5.2 Paints and coatings imports ........................................................................................ 38 5.2.1 Paints and varnishes based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in a non-aqueous medium (tariff heading 3208) .......... 39 5.2.1.1 Country of origin of the import of non-aqueous based paints ....................... 43 5.2.1.2 Main importers of non-aqueous based paints ................................................ 45 5.2.2 Paints and varnishes based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in an aqueous medium (tariff heading 3209) ................ 48 5.2.2.1 Country of origin of imports of water-based paints. ...................................... 50 5.2.2.2 Main importers of water-based paints. .......................................................... 52 5.2.3 Prepared driers (Tariff heading 3211) ................................................................. 54 | iii 5.2.3.1 Countries of origin of prepared driers imports ............................................... 55 5.2.3.2 Main importers of prepared drier agents ....................................................... 56 5.2.4 Results of the analysis of imports of paints ........................................................ 57 5.3 Exports of paints and coatings .................................................................................... 59 5.3.1 Paints and varnishes based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in a non-aqueous medium (Chapter 3208) ................... 60 5.3.1.1 Country of destination for exports of heading 3208 ....................................... 60 5.3.2 Paints and varnishes based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in an aqueous medium (tariff heading 3209) ................ 63 5.3.2.1 Country of destination for exports of heading 3209 ....................................... 64 5.3.3 Prepared driers. (Tariff heading 3211) ................................................................ 65 5.3.4 Analysis of exports of paints and coatings .......................................................... 65 5.4 National paint production ........................................................................................... 68 5.4.1 Commercial activities related to the paint market according to CIIU. ................ 68 5.4.2 National paint production ................................................................................... 72 5.4.2.1 Export Market ................................................................................................. 73 5.4.2.2 Reference prices of coatings until October 2019 ............................................ 74 5.4.2.3 The volume of paint production in the country. ............................................. 74 6 THE MARKET FOR LEAD COMPOUNDS AND
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