WT/TPR/S/383/Rev.1 5 April 2019 (19-2169) Page: 1/174 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT ECUADOR Revision This report, prepared for the third Trade Policy Review of Ecuador, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Ecuador on its trade policies and practices. Any technical questions arising from this report may be addressed to Mr Angelo Silvy (tel.: 022 739 5249) and Ms Eugenia Lizano (tel.: 022 739 6578) and Ms Ana Cristina Molina (tel.: 022 739 6060). Document WT/TPR/G/383 contains the policy statement submitted by Ecuador. Note: This report was drafted in Spanish. WT/TPR/S/383/Rev.1 • Ecuador - 2 - CONTENTS SUMMARY ........................................................................................................................ 8 1 ECONOMIC ENVIRONMENT ......................................................................................... 14 1.1 Main features of the economy ...................................................................................... 14 1.2 Recent economic developments .................................................................................... 18 1.2.1 Production and employment ...................................................................................... 18 1.3 Fiscal policy ............................................................................................................... 20 1.4 Monetary and exchange rate policy ............................................................................... 23 1.5 Balance of payments ................................................................................................... 24 1.6 Developments in trade and investment ......................................................................... 27 1.6.1 Trends and patterns in merchandise and services trade ................................................ 27 1.6.1.1 Composition of merchandise trade .......................................................................... 27 1.6.1.2 Direction of trade .................................................................................................. 29 1.6.1.3 Trade in services ................................................................................................... 30 1.6.2 Trends and patterns in FDI ....................................................................................... 32 2 TRADE AND INVESTMENT REGIMES ........................................................................... 35 2.1 General framework ..................................................................................................... 35 2.2 Trade policy formulation and objectives ......................................................................... 38 2.3 Trade agreements and arrangements ............................................................................ 40 2.3.1 WTO ...................................................................................................................... 40 2.3.2 Regional and preferential agreements ........................................................................ 41 2.3.2.1 Andean Community ............................................................................................... 41 2.3.2.2 LAIA .................................................................................................................... 41 2.3.3 Trade agreement with the European Union ................................................................. 42 2.3.4 Other trade agreements and arrangements ................................................................. 42 2.4 Investment regime ..................................................................................................... 42 3 TRADE POLICIES AND PRACTICES BY MEASURE ......................................................... 47 3.1 Measures directly affecting imports ............................................................................... 47 3.1.1 Customs procedures and requirements, and customs valuation ..................................... 47 3.1.2 Rules of origin ......................................................................................................... 49 3.1.3 Tariffs .................................................................................................................... 49 3.1.3.1 Tariff structure ..................................................................................................... 49 3.1.3.2 Tariff bindings ...................................................................................................... 52 3.1.3.3 Tariff quotas ......................................................................................................... 53 3.1.3.4 Tariff preferences .................................................................................................. 54 3.1.3.5 Tariff concessions ................................................................................................. 55 3.1.4 Other charges affecting imports ................................................................................. 57 3.1.5 Import prohibitions, restrictions and licensing ............................................................. 60 3.1.6 Anti-dumping, countervailing and safeguard measures ................................................. 63 3.1.6.1 Anti-dumping and countervailing measures .............................................................. 63 WT/TPR/S/383/Rev.1 • Ecuador - 3 - 3.1.6.2 Safeguard measures ............................................................................................. 63 3.1.6.3 Balance-of-payments safeguards ............................................................................ 65 3.1.7 Other measures affecting imports .............................................................................. 68 3.2 Measures directly affecting exports ............................................................................... 68 3.2.1 Customs procedures and requirements ....................................................................... 68 3.2.2 Taxes, charges and levies ......................................................................................... 69 3.2.3 Minimum export prices ............................................................................................. 70 3.2.4 Export prohibitions, restrictions and licensing .............................................................. 70 3.2.5 Export support and promotion ................................................................................... 73 3.2.5.1 Export support ...................................................................................................... 73 3.2.5.2 Drawback regimes and other incentives ................................................................... 73 3.2.5.3 Free Zones and Special Economic Development Zones (ZEDEs) .................................. 74 3.2.5.4 Export promotion .................................................................................................. 75 3.2.6 Export finance, insurance and guarantees ................................................................... 75 3.3 Measures affecting production and trade ....................................................................... 76 3.3.1 Incentives ............................................................................................................... 76 3.3.2 Standards and other technical requirements ............................................................... 78 3.3.3 Sanitary and phytosanitary requirements .................................................................... 82 3.3.4 Competition policy and price controls ......................................................................... 86 3.3.4.1 Competition policy ................................................................................................ 86 3.3.4.2 Price controls ....................................................................................................... 88 3.3.5 State trading, state-owned enterprises and privatization .............................................. 89 3.3.6 Government procurement ......................................................................................... 91 3.3.7 Intellectual property rights ........................................................................................ 95 3.3.7.1 General features ................................................................................................... 95 3.3.7.2 Industrial property ................................................................................................ 96 3.3.7.3 Trademarks .......................................................................................................... 98 3.3.7.4 Geographical indications ........................................................................................ 99 3.3.7.5 Plant varieties ...................................................................................................... 99 3.3.7.6 Copyright and related rights .................................................................................. 100 3.3.7.7 Enforcement of IPRs ............................................................................................. 100 4 TRADE POLICIES BY SECTOR ...................................................................................