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Analysis of Change in Ecuador's Banana Exports To

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Analysis of Change in Ecuador's Banana Exports To Universidad del Azuay Faculty of Law School of International Studies “Analysis of Change in Ecuador’s Banana Exports to the Major Trading Partners during the period 2008-2013” Graduate thesis prior to obtaining a Bilingual Bachelor in International Studies minor in Foreign Trade Author: Deborah Claire Palomeque Jaramillo Director: Eng. Antonio Torres Cuenca-Ecuador 2016 DEDICATORY Your smile, your eyes, your love and affection encouraged me to seek the best for you and even though you're only a child, you taught me to be a better person and a better mother, my beloved daughter Gemma. To my mother Elvira, who supported me all the time and who took care of my little daughter in my absence. To my father Juan, who, despite being away during the writing of my thesis, was always emotionally there to give me strength to finish this graduate dissertation. To my sister Nicole who always believed in me no matter the circumstances. To my brothers Jean and Kevin, with love. ii ACKNOWLEDGEMENTS I thank God for listening to me and guiding me all the time, for helping me to overcome obstacles and get where I am now, for blessing me with the most beautiful human being in the world, my little daughter Gemma. To my parents, Juan and Elvira, I thank you for giving me the opportunity to study, for always supporting me in difficult moments and for sharing with me all my triumphs. To my co-workers, for their support to complete this thesis, especially my boss, Eng. Diego Loyola. In the same way, I want to thank the University of Azuay and to all the personnel who comprise it, especially to my thesis director, engineer Antonio Torres, for sharing his knowledge with me and encouraging me with his charisma to conclude this thesis. iii TABLE OF CONTENTS DEDICATORY ......................................................................................................... i ACKNOWLEDGEMENTS ....................................................................................... iii ABSTRACT ............................................................................................................ vi INTRODUCTION ................................................................................................... 1 CHAPTER 1 ........................................................................................................... 2 HISTORY OF BANANA PRODUCTION IN ECUADOR AND THE EVOLUTION OF ITS EXPORTS .............................................................................................................. 2 Introduction ............................................................................................................... 2 1.1 Origin of bananas ................................................................................................. 3 1.2 Production of bananas .......................................................................................... 3 1.2.1 Variety of bananas in Ecuador ............................................................................................. 4 1.3 Banana Boom ....................................................................................................... 5 1.3.1 Year 1948 ............................................................................................................................. 6 1.3.2 Year 1950 ............................................................................................................................. 6 1.3.3 Year 1957 ............................................................................................................................. 6 1.3.4 Year 1965 ............................................................................................................................. 6 1.3.5 Year 1967 ............................................................................................................................. 7 1.4 First banana exports ............................................................................................. 7 1.4.1 Year 1910 ............................................................................................................................. 7 1.4.2 Year 1927 ............................................................................................................................. 8 1.4.3 Year 1951 ............................................................................................................................. 8 1.5 Exports of bananas today: Identifying major banana exporters in the world........... 8 1.5.1 Banana marketing chain ...................................................................................................... 8 1.5.2 Current Status of banana exports: Ecuador ......................................................................... 9 1.5.3 Leading exporters of bananas: Competition...................................................................... 13 Conclusion ......................................................................................................... 18 CHAPTER 2 ......................................................................................................... 19 MAIN ECUADORIAN BANANA CONSUMERS IN THE GLOBAL CONTEXT ................ 19 Introduction....................................................................................................... 19 2.1 World imports of bananas .................................................................................. 20 2.1.1 Leading importers of bananas in the world ....................................................................... 22 2.1.2 Analysis of the main importers of Ecuadorian bananas .................................................... 30 2.2 Measurement of price variations of a box of bananas in Ecuador ......................... 44 Conclusions ........................................................................................................ 49 CHAPTER 3 ......................................................................................................... 50 HISTORICAL AND CURRENT TRADE RELATIONSHIPS BETWEEN MAIN CONSUMERS AND ECUADOR .................................................................................................. 50 Introduction....................................................................................................... 50 3.1 Historical and current trade relationship: major consumers of Ecuadorian bananas ................................................................................................................................ 51 iv 3.1.1 Russia ................................................................................................................................. 51 3.1.2 The United States .............................................................................................................. 53 3.1.3 Italy .................................................................................................................................... 55 3.2 Analysis of the strategies that have been used in the banana sector .................... 56 3.2.1 Alternative markets ........................................................................................................... 57 3.2.2 Organic Bananas ................................................................................................................ 57 3.2.3 Bananas fair price .............................................................................................................. 58 3.3 Trade Agreements in force internationally .......................................................... 59 Conclusion ......................................................................................................... 61 CHAPTER 4 ......................................................................................................... 63 POTENTIAL EXPORT MARKETS OF THIS PRODUCT IN THE FUTURE ....................... 63 Introduction....................................................................................................... 63 4.1 Business opportunities: analysis of potential markets .......................................... 64 4.1.1 China .................................................................................................................................. 64 4.1.2 Banana imports from China ............................................................................................... 67 4.1.3 Strategies: Banana’s position in the Chinese market ........................................................ 70 4.2. The United Arab Emirates (UAE) ......................................................................... 71 4.2.1 Important Facts UAE .......................................................................................................... 72 4.2.2 Market size ........................................................................................................................ 73 4.3 Consumption per capita ...................................................................................... 73 4.3.1 Consumer Product Forms .................................................................................................. 73 4.4 Foreign Trade ..................................................................................................... 74 4.4.1 Banana imports to the UAE ............................................................................................... 74 4.5 Tax regime: Tariffs .............................................................................................. 74 4.5.1 General Tariff contingent product ....................................................................................
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