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Background Notes For Ecuador

U.S. Department of State

Background Notes: Ecuador, March 1998

Released by the Bureau of Inter-American Affairs.

OFFICIAL NAME: Republic of Ecuador

PROFILE

Geography

Area: 283,560 sq. km.; about the size of Colorado.
Cities: Capital--Quito (pop. 1.5 million). Other cities--Guayaquil (2.0 million).
Terrain: Jungle east of the Andes, a rich agricultural coastal plain west of the Andes, and high-elevation valleys through the mountainous center of the country.
Climate: Varied, mild year-round in the mountain valleys; hot and humid in coastal and Amazonian jungle lowlands.

People

Nationality: Noun and adjective--Ecuadoran(s).
Population (July 1997 est.): 12.1 million.
Annual growth rate: 1.93%.
Ethnic groups: Indigenous 25%, mestizo (mixed indigenous--Caucasian) 65%, Caucasian and others 7%, African 3%.
Religion: Predominantly Roman Catholic, but religious freedom recognized.
Languages: Spanish (official), indigenous languages, especially Quichua, the Ecuadoran dialect of Quechua.
Education: Years compulsory--ages 6-14, but enforcement varies. Attendance (through 6th grade)--76% urban, 33% rural. Literacy--90%.
Health: Infant mortality rate--33.4/1,000. Life expectancy--71.4 yrs.
Work force (4.8 million): Agriculture--42%. Commerce--20%. Services--19%. Manufacturing--11%. Other--8%.

Government

Type: Republic.
Constitution: 1979.
Independence: May 24, 1822 (from Spain).
Branches: Executive--president and 14 cabinet ministers. Legislative--82-member unicameral Congress. Judicial--Supreme Court, Provincial Courts, and ordinary civil and criminal judges.
Administrative subdivisions: 22 provinces.
Political parties: 13 legal political parties; none predominates.
Suffrage: Obligatory for literate citizens 18-65 yrs. of age; optional for other eligible voters; active duty military personnel may not vote.

Economy (1996)

GDP: $18.0 billion.
Real annual growth rate: 1994, 4.3%; 1995, 2.3%; 1996, 2.0%.
Per capita GDP: $1,534.
Natural resources: petroleum, fish, shrimp, timber, gold, limestone.
Agriculture (13% of GDP): bananas, seafood, coffee, cacao, sugar, rice, corn, and livestock.
Industry (38% of GDP): petroleum extraction, food processing, wood products, textiles, chemicals and pharmaceuticals.
Trade: Exports--$4.9 billion: petroleum and petroleum products, bananas, shrimp, coffee, flowers, cocoa. Major markets--U.S. 39%, Latin America 25%, European Union (EU) 22%, and Asia 12%. Imports--$3.5 billion: agricultural and industrial machinery, industrial raw materials, agricultural commodities, chemical products, transportation and communication equipment, petroleum products. Major suppliers--Latin America 35%, U.S. 32%, EU 19%, and Asia 11%.

PEOPLE

Ecuador's population is ethnically mixed. The largest ethnic groups are indigenous and mestizo (mixed Indian-Caucasian). Although Ecuadorans were heavily concentrated in the mountainous central highland region a few decades ago, today's population is divided about equally between that area and the coastal lowlands. Migration toward cities--particularly larger cities--in all regions has increased the urban population to about 55%. The tropical forest region to the east of the mountains remains sparsely populated and contains only about 3% of the population.

The public education system is tuition-free, and attendance is mandatory from ages 6 to 14. In practice, however, many children drop out before age 15, and, in rural areas only about one-third complete sixth grade. The government is striving to create better programs for the rural and urban poor, especially in technical and occupational training. In recent years, it has also been successful in reducing illiteracy. Enrollment in primary schools has been increasing at an annual rate of 4.4%--faster than the population growth rate--and, during the 1980s, the number of university students increased about 18% per year. According to the 1979 constitution, the central government must allocate at least 30% of its revenue to education; in practice, however, it allots a much smaller percentage.

Public universities have an open admissions policy. In recent years, however, large increases in the student population, budget difficulties, and extreme politicization of the university system have led to a decline in academic standards.

HISTORY

Advanced indigenous cultures flourished in Ecuador long before the area was conquered by the Inca empire in the 15th century. In 1534, the Spanish arrived and defeated the Inca armies, and Spanish colonists became the new elite. The indigenous population was decimated by disease in the first decades of Spanish rule--a time when the natives were also forced into the "encomienda" labor system for Spanish landlords. In 1563, Quito became the seat of a royal audiencia (administrative district) of Spain.

After independence forces defeated the royalist army in 1822, Ecuador joined Simon Bolivar's Republic of Gran Colombia, only to become a separate republic in 1830. The 19th century was marked by instability, with a rapid succession of rulers. The conservative Gabriel Garcia Moreno unified the country in the 1860s with the support of the Catholic Church. In the late 1800s, world demand for cocoa tied the economy to commodity exports and led to migrations from the highlands to the agricultural frontier on the coast. A coastal-based liberal revolution in 1895 under Eloy Alfaro reduced the power of the clergy and opened the way for capitalist development.

The end of the cocoa boom produced renewed political instability and a military coup in 1925. The 1930s and 1940s were marked by populist politicians such as five-time president Jose Velasco Ibarra. In January 1942, Ecuador signed the Rio Protocol to end a brief war with Peru the year before; Ecuador agreed to a border that conceded to Peru much territory Ecuador previously had claimed in the Amazon. After World War II, a recovery in the market for agricultural commodities and the growth of the banana industry helped restore prosperity and political peace. From 1948-60, three presidents--beginning with Galo Plaza--were freely elected and completed their terms.

Recession and popular unrest led to a return to populist politics and domestic military interventions in the 1960s, while foreign companies developed oil resources in the Ecuadoran Amazon. In 1972, a nationalist military regime seized power and used the new oil wealth and foreign borrowing to pay for a program of industrialization, land reform, and subsidies for urban consumers. With the oil boom fading, Ecuador returned to democracy in 1979, but by 1982 the government faced a chronic economic crisis, including inflation, budget deficits, a falling currency, mounting debt service, and uncompetitive industries.

The 1984 presidential elections were narrowly won by Leon Febres-Cordero of the Social Christian Party (PSC). During the first years of his administration, Febres-Cordero introduced free-market economic policies, took strong stands against drug trafficking and terrorism, and pursued close relations with the United States. His tenure was marred by bitter wrangling with other branches of government and his own brief kidnaping by elements of the military. A devastating earthquake in March 1987 interrupted oil exports and worsened the country's economic problems.

Rodrigo Borja of the Democratic Left (ID) party won the presidency in 1988. His government was committed to improving human rights and carried out some reforms, notably an opening of Ecuador to foreign trade. The Borja government concluded an accord leading to the disbanding of the small terrorist group, "Alfaro Lives." However, continuing economic problems undermined the popularity of the ID, and opposition parties gained control of Congress in 1990.

In 1992, Sixto Duran-Ballen won in his third run for the presidency. His government's popularity suffered from tough macroeconomic adjustment measures, but it succeeded in pushing a limited number of modernization initiatives through Congress. Duran-Ballen's vice president, Alberto Dahik, was the architect of the administration's economic policies, but in 1995 Dahik fled the country to avoid prosecution on corruption charges following a heated political battle with the opposition. A war with Peru erupted in January-February 1995 in a small, remote region where the boundary prescribed by the 1942 Rio Protocol is in dispute.

Abdala Bucaram, from the Guayaquil-based Ecuadorian Roldosista Party (PRE), won the presidency in 1996 on a platform that promised populist economic and social reforms and the breaking of what Bucaram termed as the power of the nation's oligarchy. During his short term of office, Bucaram's administration drew criticism for corruption. Bucaram was deposed by the Congress in February 1997 on grounds of alleged mental incompetence. In his place, Congress named Interim President Fabian Alarcon, who was President of Congress and head of the small Radical Alfarist Front party. Alarcon's interim presidency was endorsed by a May 1997 popular referendum. New presidential elections are scheduled for May 31, 1998. The elected president is to take office August 10, 1998.

GOVERNMENT

The 1979 constitution provides for concurrent four-year terms of office for the president, vice president, and the 12 members of congress (of a total of 82) who are elected as "national" (at large) legislators. The remaining 70 legislators, representing the country's 22 provinces, serve for 2 years. Presidents may be reelected after an intervening term, while legislators may be re-elected immediately.

Each year legislators elect from among themselves a president and vice president of Congress. Congress meets for two months a year. For the remainder of the year--unless an extraordinary plenary session is called--all legislative business is transacted by the 35 members of the Congress who serve on five permanent committees.

Ecuador has a three-tiered court system. Justices of the Supreme Court are appointed by the Congress for six-year terms. The Supreme Court names the members of the superior (provincial) courts, who, in turn, choose ordinary civil and penal judges.

The executive branch includes 17 ministries and several cabinet-level secretariats headed by presidential appointees. The president also appoints Ecuador's 21 provincial governors, who represent the central government at the local level. Provincial prefects and councilors, like municipal mayors and aldermen, are directly elected.

Principal Government Officials

Executive Branch

Chief of State
President Fabian Alarcon Rivera (since 11 February 1997)

Head of Government
President Fabian Alarcon Rivera (since 11 February 1997)

Elections
In February 1997, Congress removed President Abdala Bucaram Ortiz and replaced him with Fabian Alarcon Rivera. New elections are scheduled for May 1998.

Legislative Branch
Unicameral National Congress or Congreso Nacional (82 seats; 12 members popularly elected at large nationally for four-year terms, 70 members popularly elected by province for two-year terms.)

Vice President--Rosalia Arteaga
Minister of Foreign Affairs--Jose AYALA Lasso
Ambassador to the U.S.--Alberto Maspons
Ambassador to the UN--Luis Valencia
Ambassador to the OAS--Julio Prado

Ecuador maintains an embassy in the United States at 2535 - 15th Street, NW, Washington, DC 20009 (tel. 202-234-7200) and consulates in Chicago, Dallas, Houston, Los Angeles, Miami, New Orleans, New York, and San Francisco.

POLITICAL CONDITIONS

Ecuador's political parties have historically been small, loose organizations that depended more on populist, often charismatic, leaders to retain support than on programs or ideology. Frequent internal splits have produced extreme factionalism. However, a pattern has emerged in which administrations from the center-left alternate with those from the center-right as the electorate searches for leaders who will bring about necessary economic reforms at minimal social cost. Although Ecuador's political elite is highly factionalized along regional, ideological, and personal lines, a strong desire for consensus on major issues often leads to compromise. Structural reforms are difficult to legislate and implement, but widespread recognition of the need for change has enabled Ecuador to enjoy a relatively high degree of social stability.

The center-left of the political spectrum represents a large segment of the body politic, but it is divided among several parties and this often has prevented it from winning the presidency. In the 1996 elections, Abdala Bucaram was able to capitalize on these divisions to emerge from the first round as the alternative to the right-of-center PSC candidate, and he then went on to consolidate the support of the center-left to win handily in the runoff. Bucaram's PRE only won 19 of 82 seats in Congress, however, with the remaining deputies spread among nearly a dozen parties as well as independents. Alarcon's FRA controls only three seats, so his administration depends on the legislative cooperation of larger parties. Opposition forces in Congress are loosely organized, but historically they often unite to block the administration's initiatives and to remove cabinet ministers. Party discipline is weak, and routinely many deputies switch allegiance during each Congress.

In the 1996 election, the indigenous population abandoned its traditional policy of shunning the official political system and participated actively in support of the Pachakutik/New Country movement. This coalition obtained eight deputies, and although some disaffiliated themselves early in the new Congressional session, the indigenous population established itself as a significant force in Ecuadoran politics.

Mid-term Congressional elections are currently scheduled for 1998.

ECONOMY

Ecuador's gross domestic product (GDP) reached $18.0 billion in 1996. This represents growth of 2% over 1995. The economy is based on petroleum production, along with exports of agricultural commodities and seafood. The state oil industry makes up 10% of GDP, generates 37% of total exports, and provides about 30% of government revenue. Agriculture and fishing contribute 13% of GDP. Ecuador is a major world producer of bananas and shrimp. Cocoa, coffee, and tuna are also exported. Non-traditional agricultural products, such as flowers and winter vegetables, are becoming more important. Industry accounts for 38% of GDP, and is becoming increasingly oriented to the export market.

Ecuador's merchandise exports for 1996 were $4.9 billion for 1996 and its imports $3.5 billion. Lower trade barriers in the region, including free-trade agreements with Colombia, Venezuela, and Bolivia are helping manufacturers of vehicles and other products become more export oriented. Ecuador has reduced most tariffs to 5-20% and in January 1995 instituted a common external tariff with Colombia and Venezuela. Ecuador acceded to the World Trade Organization (WTO) in 1995. The government has committed to address remaining obstacles to trade, including agricultural price bands, minimum import prices, and sanitary registrations. Ecuador signed an intellectual property rights agreement with the United States in 1993 but has not yet implemented it. Ecuador has a unified, free market in foreign exchange.

During the oil boom of the 1970s, the government borrowed heavily from abroad, increased subsidies, and expanded the state's economic role. Such policies became unsustainable, leading to chronic macroeconomic instability in the 1980s. President Duran-Ballen took office in 1992 promising to stabilize the economy, modernize the state, and expand the free market. A sizable devaluation of the sucre in 1992, large public-sector price hikes, market pricing of fuel, and spending reductions--together with monetary, budget, and tax reforms--reduced the public deficit. Inflation also fell from 60% to about 25%, but increased again to 30% in 1997.

The structural reforms required to improve prospects for investment and growth have proven more difficult to achieve. Government staffing has been cut and many unnecessary regulations have been eliminated. Banks and capital markets are modernizing under new financial laws. Shares held by the state in private companies are being sold. The government has suggested plans to partially privatize some of the major state enterprises, and has obtained legal authority to privatize 35% of the telephone service. However, an auction of the telephone company scheduled for November 1997 had to be canceled when only one bidder participated. The government also hopes to reform the social security system. However, there is substantial political opposition to privatization proposals.

Liberalized investment regulations afford foreign investors national treatment--including equal tax rates--and do not require prior authorization for investment in most industries. A bilateral investment treaty with the United States approved in 1994 and ratified in May 1997 provides for transfers of capital and profits and a binding arbitration dispute settlement procedure. The 1994 agrarian development law has improved the security of agricultural land tenure. The 1993 hydrocarbons law made investment in petroleum exploration more attractive, and U.S. firms initiated and expanded projects. However, U.S. firms doing business in Ecuador have complained of being pressured into contract renegotiations by the government. Several U.S. firms have had large judgments entered against them in Ecuadoran courts under a law which permitted the firms' local partners to disregard the terms of their contracts. This law, the Dealer's Act, was repealed in 1997 but remains in effect with regard to contracts entered into prior to the repeal.

FOREIGN RELATIONS

A small country, Ecuador always has placed great emphasis on multilateral approaches to international problems. Ecuador is a member of the United Nations (and most of its specialized agencies) and the Organization of American States. Ecuador is also a member of many regional groups, including the Rio Group, the Latin American Economic System, the Latin American Energy Organization, the Latin American Integration Association, and the Andean Pact.

Ecuador's border dispute with Peru, festering since the independence era, is the nation's principal foreign policy issue. Ecuador maintains that the 1942 Rio Protocol of Peace, Friendship and Boundaries left several issues unresolved. For example, it asserts that geographic features in the area of the Cenepa River Valley do not match the topographical descriptions in the Protocol, thus making demarcation of the boundary there "inexecutable."

This long-running border dispute has occasionally erupted into armed hostility along the undemarcated sections. The most serious conflict since the 1941 war occurred in January-February 1995, when thousands of soldiers from both sides fought an intense but localized war in the disputed territory in the upper Cenepa valley. A peace agreement brokered by the four Guarantors of the Rio Protocol (Argentina, Brazil, Chile, and the United States) in February 1995 led to the cessation of hostilities and the establishment of the Military

Observers Mission to Ecuador-Peru (MOMEP) to monitor the zone. In 1996, Ecuador and Peru began a series of meetings intended to set the stage for substantive negotiations to resolve the dispute.

Those talks have shown significant progress. In January 1998, Ecuador and Peru initialed an historic agreement in Rio de Janeiro, Brazil, which provided a framework to resolve the major outstanding issues between the two countries through four commissions. Specifically, the commissions are to prepare a Treaty of Commerce and Navigation and a Comprehensive Agreement on Border Integration; to fix on the ground the common land boundary; and to establish a Binational Commission on Mutual Confidence Measures and Security. The four commissions began work in February, with the intention of reaching a definitive agreement by May 30, 1998.

U.S.-ECUADORAN RELATIONS

The United States and Ecuador have maintained close ties based on mutual interests in maintaining democratic institutions; combating narcotrafficking; building trade, investment and financial ties; cooperating in fostering Ecuador's economic development; and participating in inter-American organizations. Ties are further strengthened by the presence of an estimated 150,000-200,000 Ecuadorans living in the United States and by 24,000 U.S. citizens visiting Ecuador annually and by approximately 15,000 U.S. citizens residing in Ecuador. The United States assists Ecuador's economic development directly through the Agency for International Development (USAID) program in Ecuador and through multilateral organizations such as the Inter-American Development Bank and the World Bank. In addition, the U.S. Peace Corps operates a sizable program in Ecuador. Over 100 U.S. companies are doing business in Ecuador.

Both nations are signatories of the Rio Treaty of 1947, the Western Hemisphere's regional mutual security treaty. Ecuador shares U.S. concern over increasing narcotrafficking and international terrorism and has energetically condemned terrorist actions, whether directed against government officials or private citizens. The government has maintained Ecuador virtually free of coca production since the mid-1980s and is working to combat money laundering and the transshipment of drugs and chemicals essential to the processing of cocaine.

The United States claims jurisdiction for the management of coastal fisheries up to 320 kilometers (200 mi.) from its coast, but excludes highly migratory species. Ecuador, on the other hand, claims a 320-kilometer-wide (200-mi.) territorial sea, and imposes license fees and fines on foreign fishing vessels in the area, making no exceptions for catches of migratory species. In the early 1970s, Ecuador seized about 100 foreign-flag vessels (many of them U.S.) and collected fees and fines of more than $6 million. After a drop-off in such seizures for some years, several U.S. tuna boats were again detained and seized in 1980 and 1981. The U.S. Magnuson Fishery Conservation and Management Act then triggered an automatic prohibition of U.S. imports of tuna products from Ecuador. The prohibition was lifted in 1983, and although fundamental differences between U.S. and Ecuadoran legislation still exist, there is no current conflict. During the period that has elapsed since seizures which triggered the tuna import ban, successive Ecuadoran governments have declared their willingness to explore possible solutions to this problem with mutual respect for long-standing positions and principles of both sides.

Principal U.S. Embassy Officials

Ambassador--Leslie Alexander
Deputy Chief of Mission--James Curtis Struble
Political and Labor--David Lindwall
Economic--Michael Glover
Commercial--Janice Corbett
Consular--Joyce De Shazo
Administrative--Charles B. Angulo
Public Affairs Advisor--Mark Krischick
Regional Security Officer--Dennis Ravenscroft
USAID--Thomas Geiger
Defense Attache--Col. Ovidio E. Perez, USA
MilGroup--Col. Michael Merz, USA
Defense Mapping Agency--James P. Hutching
Peace Corps--Jean Seigle
Agriculture--Daryl Brehm (resident in Lima)
FAA--Victor H. Echevarria (resident in Miami)
Narcotics Assistance Staff--James F. Greene
IRS--Frederick Dulas (resident in Santiago)

Guayaquil

Consul General--Timothy Dunn
Chief, Consular Section--Norman Alexander

The U.S. Embassy in Ecuador is located at Avenida Patria 120, Quito (tel. (593)(2) 562-890/561-634).
Embassy Internet Home Page: <http://www.usis.org.ec>.
The Consulate General is at 9 de Octubre and Garcia Moreno, Guayaquil (tel. (593)(4) 323-570).

Other Contact Information:

U.S. Department of Commerce
International Trade Administration
Trade Information Center
14th and Constitution Avenue, N.W.
Washington, D.C. 20230
Tel: 1-800-USA-TRADE
Internet: http://www.ita.doc.gov

Ecuadorian-American Chamber of Commerce - Quito
Edificio Multicentro, 4 Piso
La Nina y Avenida 6 de Diciembre
Quito, Ecuador
Tel: (5932) 507-450
Fax: (5932) 504-571
E-Mail: CCEA1@ACCEA.ORG.EC
or CCEA2@ACCEA.ORG.EC
(Branches: Ambato, Cuenca & Manta)

Ecuadorian-American Chamber of Commerce - Guayaquil
G. Cordova 812, Piso 3, Oficina 1
Edificio Torres de la Merced
Guayaquil, Ecuador
Tel: (5934) 566-481 or 565-761
Fax: (5934) 563-259
E-Mail: caecam1@caecam.org.ec
(Branch: Manchala)

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the country.

Public Announcements are issued as a means to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas which pose significant risks to the security of American travelers. Free copies of this information are available by calling the Bureau of Consular Affairs at 202-647-5225 or via the fax-on-demand system: 202-647-3000. Travel Warnings and Consular Information Sheets also are available on the Consular Affairs Internet home page: http://travel.state.gov and the Consular Affairs Bulletin Board (CABB). To access CABB, dial the modem number: (301-946-4400 (it will accommodate up to 33,600 bps), set terminal communications program to N-8-1 (no parity, 8 bits, 1 stop bit); and terminal emulation to VT100. The login is travel and the password is info (Note: Lower case is required). The CABB also carries international security information from the Overseas Security Advisory Council and Department's Bureau of Diplomatic Security. Consular Affairs Trips for Travelers publication series, which contain information on obtaining passports and planning a safe trip abroad, can be purchased from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954; telephone: 202-512-1800; fax 202-512-2250.

Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at (202) 647-5225. For after-hours emergencies, Sundays and holidays, call 202-647-4000.

Passport Services information can be obtained by calling the 24-hour, 7-day a week automated system ($.35 per minute) or live operators 8 a.m. to 8 p.m. (EST) Monday-Friday ($1.05 per minute). The number is 1-900-225-5674 (TDD: 1-900-225-7778). Major credit card users (for a flat rate of $4.95) may call 1-888-362-8668 (TDD: 1-888-498-3648).

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at (404) 332-4559 gives the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).

U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register at the U.S. embassy upon arrival in a country (see "Principal U.S. Embassy Officials" listing in this publication). Registering with the embassy may help you to replace lost identity documents or help family members contact you in case of an emergency.

Further Electronic Information:

Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official magazine of U.S. foreign policy; daily press briefings; Country Commercial Guides; directories of key officers of foreign service posts; etc. DOSFAN's World Wide Web site is at http://www.state.gov.

U.S. Foreign Affairs on CD-ROM (USFAC). Published on an annual basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Contact the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. To order, call (202) 512-1800 or fax (202) 512-2250.

National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (www.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at (202) 482-1986 for more information.

[end of document]


Ecuador History

Pre-Columbian and Colonial period

Advanced indigenous cultures such as the Chorrera, Jama Coaque, Bahia, Tolita, Machalilla and Valdivia (the oldest known culture in the Americas), flourished between 10,000 BC to 1,500 AD in the territory that today is Ecuador. 

By 1450, most of these cultures had developed into organized ethnic populations. The Incas, the largest culture, originally from the central regions of what today is Peru, assimilated the rest in the north. The Incan Empire, consolidated by Huayna Capac, dominated most of western South America between the later half of the 15th century and 1520. He died in 1526, after dividing the empire between his two sons. Cuzco was assigned to Huáscar and Quito to Atahualpa. Shortly thereafter, a fratricidal struggle took place weakening imperial power and inadvertently facilitating the Spanish conquest. 

By 1600, Spain had conquered most of Central and South America. The Spanish colonial rule lasted about 300 years. During the Colonial Period, Ecuador became the seat of a Royal Audiencia. The arts flourished and scientists such as La Condamine and von Humbolt were attracted to Ecuador. 

 

Independence

On the 10th of August 1809, a governing assembly was peacefully constituted in Quito and presided over by Ruiz de Castilla. He was deposed shortly thereafter.

Guayaquil declared its independence on October 9, 1820, and in the ensuing war for independence General Antonio José de Sucre used the city of Guayaquil as his headquarters. From there he conducted his campaign and independence forces defeated the Spanish royalist army on May 24, 1822, in a decisive battle fought in the foothills of the Pichincha volcano. Ecuador achieved independence and joined New Granada and Venezuela to form the federation of Gran Colombia

 

Republic

In 1830 the Republic of Ecuador became an independent entity, seceding from Gran Colombia. The first years of the Republic were marked by instability and power struggles. The first President was General Juan José Flores (born in what is now Venezuela) and the second was Vicente Rocafuerte (born in Guayaquil). 

Slavery was abolished in 1852, under the presidency of José María Urbina.

By 1861, Gabriel Garcia Moreno consolidated the country and an era of conservatism began, which lasted until 1895. During his term, he carried out many useful public works projects and fostered artistic endeavors while leading the country with authoritarism.

In the last part of the 19th Century, the country flourished economically, mainly due to cocoa exports. In the late 1800s, Eloy Alfaro led a liberal revolution that reduced the power of the clergy and sparked an era of capitalist development. Alfaro also ruled with an iron hand, but his Administration completed important public projects such as the Quito-Guayaquil Railway and built various secondary schools.

In 1925, a military coup brought Isidro Ayora to office. He immediately sought to establish a series of economic reforms and institutions of control of the national economy. The Central Bank was created. But the world economic crisis that broke out in 1929 undermined the efficacy of these measures, and led to Ayora´s downfall in 1931.

Political instability predominated during the 1930s, a politically chaotic decade for Ecuador with short-lived mandates and instability. José María Velasco Ibarra, who would ultimately be elected President on five different occasions, came to power for the first time in this period. 

In 1941, war broke out between Ecuador and Peru over a long existing territorial dispute. In 1942, during Peru's occupation of Ecuadorian territory, Ecuador was compelled to sign the Protocol of Rio de Janeiro. However, the dispute was not settled and there have been skirmishes along the border. 

After World War II, Ecuador’s economy received a boost due to banana exports. A period of peace and prosperity from 1948 to 1960 followed with three freely elected Presidents completing their terms in Office: Galo Plaza Lasso, who would later become General Secretary of the Organization of American States; Velasco Ibarra (third term), and Camilo Ponce Enriquez.

Velasco Ibarra was again elected President for the 1960-1964 term. A new economic depression coincided with his coming to office and soon a new political crisis started. Velasco Ibarra lost all support and was forced into exile in 1961. 

The 1960’s were a decade of political instability. Foreign companies began to develop oil resources in the Ecuadorian Amazon region. 

A military Junta led the country from 1963 to 1966. Although presidential elections were held in 1968, democratic stability lasted only until 1972. The winning candidate was, once again, Velasco Ibarra. That year, the Commander-in Chief of the Army, General Guillermo Rodríguez Lara, removed Velasco Ibarra from office. 

The 1970´s again brought economic prosperity, as Ecuador became a major exporter of oil. However, this did not in turn bring political stability. General Rodríguez Lara resigned in 1976 and a new military Junta was formed with the objective of bringing Ecuador back to democracy. 

In the 1970’s the oil boom revenues and heavy indebtedness allowed for a growth of public spending and the public sector. The country favored industrialization through import substitution.

In a 1978 referendum, the people of Ecuador opted for a new Constitution and elections were held in July 1979 to elect a new President.

 

Contemporary 

In 1979, Ecuador returned to a democratic Government. Jaime Roldós (Concentración de Fuerzas Populares, a populist party) was elected in that year. He died in 1981 in an airplane accident in the southern province of Loja. His constitutional successor, Oswaldo Hurtado (Democracia Popular, social democrat) held the Presidency until 1984. Ecuador faced a severe crisis due to the international crisis of external debt and the financial shocks that ensued, and to floods caused by "El Niño" in 82/83. 

In August 1984 León Febres Cordero, (Partido Social Cristiano, a Social Christian –right-) assumed the Presidency. During his presidency, Febres Cordero introduced some free-market policies. The collapse of world oil prices in 1986 reduced Ecuador’s oil export revenues by half, and an earthquake in March 1987 destroyed a large stretch of Ecuador’s sole oil pipeline.

In 1988 Rodrigo Borja, (Izquierda Democrática, socialist) was elected President and his party held control of Congress. The period from 1988 to 1992 was characterized by increasing oil export prices and reductions in Government spending in real terms. Throughout this period, the Government pursued a gradual stabilization policy. Despite the Government’s policies, inflation rose sharply, averaging 59.7% annually, notwithstanding intervals of relatively robust economic growth. There were cyclical shortages of energy as the site of the main hydroelectric plant had seasonal droughts.

President Sixto Durán Ballén, a former Social-Christian and founder of a new party formed prior to elections (Unidad Republicana), was inaugurated in 1992. During the Durán Ballén administration, modernization initiatives were introduced and stabilizing macroeconomic policies were implemented. In January 1995 the Cenepa incident (military confrontation with Peru) affected the performance of the economy. So did the political crisis (resignation of the Vice-President) and energy crisis (recurrence of seasonal shortages). The Durán-Ballén Administration began the negotiations toward a final settlement of the territorial dispute.

In 1996 Abdalá Bucaram (Partido Roldosista Ecuatoriano, populist party) was inaugurated. Its Government announced a "Convertibility plan" with orthodox measures to curb inflation and correct macroeconomic imbalances. His unorthodox style gained him much publicity, but was also a cause for embarrassment and alienation for many sectors.

Allegations of widespread corruption, conflict with Congress and other institutions and the adoption of unpopular measures brought erosion of his support. 

A general strike turned to a national protest on Feb. 5-6, 1997, which won the support of organized labor, business, professional organizations, representatives of the civil society, NGO’s, and the great majority of Ecuadorian people. The virtual unanimity of the Ecuadorian people demanded the ousting of his Government. 

Congress acted accordingly and appointed Fabián Alarcón (until then, President of the unicameral Congress –equivalent to Speaker of the House) as interim President of Ecuador. The people of Ecuador confirmed these drastic measures in a national referendum held in May, 1997. It also called for a National Assembly to reform the Constitution and political structure. 

The National Assembly, chaired by former President Osvaldo Hurtado, advanced on the reforms to the Constitution (President Osvaldo Hurtado resigned and Luis Mejía chaired the Assembly for the last days). The new Constitution will enter into force in August 1998.

President Alarcón and Minister of Foreign Affairs José Ayala Lasso continued the negotiations for a final settlement of the territorial dispute with Peru, making significant progress. 

In the 1998 election, Jamil Mahuad defeated contender Alvaro Noboa and was elected President of Ecuador. He was inaugurated on August 10, 1998 for a term ending January 2003.

ECUADOR-PERU PEACE PROCESS 

History of the dispute

Background 

The territorial dispute between Ecuador and Peru dates back to Colonial times and the legal claims to the territory of the Amazon region. According to "utti posidettis iuris", Latin American countries came into independence with the territory held by the Colonial predecessor entity. 

Upon independence, Ecuador joined what is now known as "Great Colombia", comprised of the territories of Venezuela, Ecuador, Colombia and Panama –then a part of Colombia, and signed the Treaty of Peace and Limits of Guayaquil in 1829, and the subsequent Pedemonte-Mosquera Protocol of 1830. They established the Marañon-Amazon River as the border between Peru and Ecuador.  

Peru contested the Agreements. The Herrera-Garcia Treaty of 1890 recognized Ecuador's sovereignty over the Marañon River (Amazon). The Peruvian Congress, however, failed to ratify the agreement.  

During the 19th century and the beginning of the 20th century, a succession of negotiations between Ecuador and Peru failed, including the arbitration process by the King of Spain. Between 1936 and 1938, representatives from Ecuador and Peru attempted to negotiate a peace in Washington, D.C. The negotiations failed when Peru extricated itself from the process prematurely.  

In February 1941, Peru gave assurances to the United States that the dispute with Ecuador would be solved peacefully. In July, Peruvian forces invaded parts of Ecuador.  

On September 1, 1941, Time Magazine reported:  

"Last month Good Neighborliness supposedly prevailed all over the Western Hemisphere. Peru and Ecuador had theoretically declared a truce, [and] were waiting for mediation of their ancient border dispute by Argentina, Brazil, and the U.S. No newsmen were around to keep tabs on the truce. Not until last week did word get through that Peru had been improving the "truce" by going after Ecuador like a next-door bully all the time . . . Last week it seemed unlikely that Ecuador could stop the advance. Unless theoretical Good Neighbors of both did something about it fast, the bigger of these Bad Neighbors might solve the boundary dispute by swallowing the smaller fellow next door. And that might start grabbing all over South America to the detriment of hemisphere solidarity".  
 
 

The Protocol of Rio de Janeiro.- 

On January 29, 1942, while part of Ecuador was occupied by Peruvian troops, both countries signed the Protocol of Rio de Janeiro. Argentina, Brazil, Chile and the United States signed the Protocol as guarantors. The U.S. had recently entered World War II and was mainly concerned with presenting a united front of the Americas, so peace was dictated more by the outcome of the 1941 war than by negotiations. 

The failure of the Rio Protocol to establish a precise boundary has made the assistance of the Guarantor Countries imperative through the years. While the Brazilian arbiter, Captain Braz Dias De Aguiar, subsequently resolved some differences in 1945, many features of the original agreement remained unresolved.  

  

The Cenepa confrontation (1995) 

On January 9 and 11, 1995, Peruvian military patrols entered Ecuadorian territory and harassed the positions of Ecuadorian outposts. On January 24, Peru made air incursions into Ecuadorian territory, and ground troops were repelled. Military raids by Peru ensued and Ecuador defended, and held, its positions.  

Ecuador called for a cease-fire and diplomatic negotiations. Finally, on February 17, 1995, the "Declaración de Itamaraty" was signed. 

In several zones, the boundary description in the Protocol of Rio did not reflect the geographic reality.  

 
The peace process.  

Ecuador and Peru held negotiations on February, 1995, to achieve a cease-fire on the Cenepa. The negotiations took place in Brazil, with the assistance of the Guarantor countries: Argentina, Brazil, Chile and the United States of America. 

In February 17, 1995, the "Declaración de Itamaraty" was signed. It included, apart from a cease-fire, a separation of the armed forces, the demilitarization of the conflict zone under the supervision of military observers from the Guarantor countries, and the determination to solve all pending "impasses" between Ecuador and Peru. Thus, the peace process aim is to reach a final settlement of one of the most intractable disputes. 

In March 28, 1995 it was necessary to reaffirm the commitments of "Itamaraty" and both countries, along with the Guarantors, signed the "Declaración de Montevideo". 

The Mission of Military Observers Ecuador-Peru, MOMEP, was implemented and has overseen the separation of forces and the demilitarization of the zone. Initially formed by Officers of the Guarantor countries, it has been gradually extended to incorporate Officers from Ecuador and Peru. 

Diplomatic negotiations have been carried out throughout the process, to agree on the procedural and substantive issues. Both countries presented a list of what they considered the "pending impasses" (no country could veto the other’s list) and agreed to look into them. On February 1997 Ecuador and Peru negotiators initiated the formal review of the "pending impasses" and approaches to solve them. 

By the end of 1997, Ecuador and Peru had agreed on a schedule and framework to reach a final, comprehensive, just and honorable settlement. Four Commissions were established, and they have met on the Guarantor countries’ capitals: 

Commission I Commerce and Navigation (Buenos Aires, Argentina) 

Commission II Border Integration (Washington, DC) 

Commission III Setting of Land Border (Brasilia, Brazil) 

Commission IV Confidence Building Measures (Santiago, Chile) 

The first round of sessions of the Commissions started on February 17, 1998. The second round took place on March 30, 1998 to April 2, and significant progress was made. The final round of the Commissions, May 18-19, 1998, reviewed the progress.  

Commissions II and IV concluded their mandates and drafted agreements on their subjects, pending a global solution. Commission II also produced a document that is a "blueprint" for cooperation, trade and development in the border region and would set up a "Binational Fund for Peace and Development", to be financed by friendly Governments, international organizations and donors.  

A meeting of High Representatives was convened for May 22-23 in Buenos Aires to propose alternatives to Commissions I and III. Presidents Alarcón and Fujimori attended a meeting with President Cardoso in Brasilia. 

The Ministers of Foreign Affairs of Ecuador and Peru had an informal meeting with the Senior Representatives from the Guarantor countries on June 15-16, in Washington, DC to address the pending issues. Although progress was made, it was agreed not to set a deadline but to strive for an acceptable and prompt solution. 

Argentina, Brazil, Chile and the United States have been fully supportive of the peace process. The settlement is a comprehensive agreement covering all pertaining issues.




  • Historical Setting
    
    


  • Ecuador Government

    Ecuador is a Presidential (as opposed to Parliamentary), Unitary (as opposed to Federal) Republic. Its Government is democratic, freely elected, representative and accountable.

    The Government is divided in Executive, Legislative and Judicial Branches. There is also an autonomous Electoral Agency (Tribunal Supremo Electoral).

    There are Provincial and City Administrations elected by local voters.

    A National Assembly, erected by popular mandate, produced substantial constitutional reforms and the new Constitution enters in force in August 1998.

     

    Executive.- 

    The President of the Republic, who is the Head of State and Head of Government, presides over the Executive and represents the State. He is elected for a 4-year term by popular vote -one ballot for President and Vice-President-.

    The President determines the number and functions of the Ministries and appoints the Ministers of his Cabinet. He is also the Commander-in-Chief of the Armed Forces.

    The President renders every year a "State of the Nation" address to the people and Congress of Ecuador.

     

    Legislative.- 

    The Ecuadorian Congress legislates. It passes laws, approves International Treaties, the Fiscal Budget (proposed by the Government) and levies taxes. 

    Ecuador’s Congress has one Chamber (121 Congressmen will take office in August, 1998). Congressmen are elected on multi-party elections and may represent the entire Nation (12/ 20 from August 1998) or a Province.

    The President of the new Congress, which had previously been elected by the Chamber, will be elected from the Party that received the highest national vote. The President of Congress ranks after the President and Vice-President of the Republic.

    The President of Congress is roughly equivalent to Speaker of the House and Leader of the Senate majority in the U.S.

    Congress will hold sessions for 10 months on a year. The reforms approved by the National Assembly stipulate that there will be a Legislation and Codification Commission, comprised of Congressmen who are lawyers or law Professors, that will study, review and propose drafts of Bills before Congress.

     

    Judiciary.- 

    Justice is free and trials are public, except when otherwise specifically mandated by law. The Judiciary is independent and no authority may interfere, according to the Constitution.

    The processes will gradually turn to oral proceedings, to expedite them.

    The judicial system is comprised of administrative courts, trial courts, appellate or Provincial Superior Courts and a Supreme Court. The supreme judicial power is vested in the Supreme Court, which has 30 Justices divided among ten chambers of three Justices each. Supreme Justices are elected for life terms and the remaining Supreme Justices will fill vacancies, from Appellate Judges.

     

    Elections.

    Ecuador’s Government is elected by free, secret, direct vote. Voting is a constitutional right for all Ecuadorian citizens and is compulsory for literate Ecuadorians under 65 years old residing in Ecuador. Active members of the military do not cast their vote. Voting age is 18 years old. Voting is optional for illiterate and senior citizens (over 65) and the mechanism to cast votes overseas has not been implemented.

    Elections are organized and supervised by an independent agency, "Tribunal Supremo Electoral" that is not a part of the Executive. It has special enforcement laws and is the final arbiter on electoral matters.

    Private citizens are called to "electoral duty" and serve during elections. Observers of political parties and international organizations may be present during vote counting.

    The people of Ecuador elect:

    President and Vice-President (the same ballot, 4-year term);

    Congressmen;

    Provincial and City councilmen, Mayors and Provincial "Prefectos".

    There is a two round-election for President to assure a majority of the vote. If no candidate achieves a majority established by the Constitution (50% up to 1998, or 50% or 40% in the following elections with a 10% lead over the next candidate) , the two top contenders face off in a second round. 

      Ecuadorian Authorities

     

    President of the Republic: FABIAN ALARCON RIVERA

    (Feb. 96-August 98) 

    Vice-president of the Republic: Pedro AGUAYO

    (April 98-August 98)

    President of Congress: Heinz MOELLER

    (Aug. 96-Aug.98)

    President of the Supreme Court: Homero ROMERO P.

    Minister of Foreign Affairs: José AYALA LASSO

    Minister of Government: Edgar RIVADENEYRA

    Minister of External Trade, Industries and Fisheries: Benigno SOTOMAYOR

    Minister of Finance: Marco FLORES

    Ambassador of Ecuador to the United States: Alberto MASPONS

     

    PRESIDENT’S OFFICE / PRESIDENCIA DE LA REPUBLICA 
    Presidencia de la República
    Palacio de Gobierno 
    García Moreno 1043 
    Quito, Ecuador 
    Tel: (593 2) 210-300 
    Fax: (5932) 580-735 

    VICE-PRESIDENT OF THE REPUBLIC 
    Vicepresidencia de la República
    Benalcazar entre Chile y Espejo 
    Quito, Ecuador 
    Tel: (593 2) 584-242 Fax: (593 2) 584-639 

    CONGRESS
    Congreso Nacional
    Palacio Legislativo,
    Av. 6 de Diciembre y Piedrahita,
    Quito-Ecuador
    Tel: (593 2) 526251

    SUPREME COURT
    Corte Suprema de Justicia
    Av. 6 de Diciembre y Piedrahita,
    Quito--Ecuador
    Tel: (593 2) 543803

     

    MINISTRY OF FOREIGN AFFAIRS
    Ministerio de Relaciones Exteriores
    Carrión y 10 de Agosto 
    Quito, Ecuador 
    Tel: (593 2) 561-215 or (593 2) 503-159 
    Fax: (593 2) 507-077 

    MINISTRY OF THE INTERIOR AND POLICE 
    Ministerio de Gobierno y Policía
    Espejo y Benalcázar 
    Quito, Ecuador 
    Tel: (593 2) 517-481 Fax: (593 2) 580-067 

    MINISTRY OF DEFENSE
    Ministerio de Defensa
    Exposición 208 
    Quito, Ecuador 
    Tel: (593 2) 572-580 Fax: (593 2) 580-431 

    MINISTRY OF FINANCE 
    Ministerio de Finanzas y Crédito Público
    Avenida 10 de Agosto 1661 y Jorge Washington 
    Quito, Ecuador 
    Tel: (593 2) 503-328 Fax: (593 2) 500-702 

    Internal Revenue Service of Ecuador

    MINISTRY OF FOREIGN TRADE, INDUSTRIALIZATION AND FISHERIES Ministerio de Comercio Exterior, Industrialización y Pesca
    Avs. Eloy Alfaro y Amazonas, Edif. MAG-MICIP
    Quito, Ecuador 
    Tel: (593 2) 529-076 Fax: (593 2) 507-549 

    MINISTRY OF EDUCATION AND CULTURE 
    Ministerio de Educación y Cultura
    Mejía 321 
    Quito, Ecuador 
    Tel: (593 2) 216-224 Fax: (593 2) 580-174 

    MINISTRY OF PUBLIC WORKS AND COMMUNICATIONS 
    Ministerio de Obras Públicas y Comunicaciones
    Avenida 6 de Diciembre 1184 
    Quito, Ecuador 
    Tel: (593 2) 222-749 Fax: (593 2) 223-077 

    MINISTRY OF LABOR & HUMAN RESOURCES 
    Ministerio de Trabajo y Recursos Humanos
    Luis Felipe Borja y C. Ponce 
    Quito, Ecuador 
    Tel: (593 2) 526-666 Fax: (593 2) 503-122 

    MINISTRY OF AGRICULTURE & LIVESTOCK
    Ministerio de Agricultura y Ganadería 
    Avenida Amazonas y Eloy Alfaro, Edif. MAG-MICIP 
    Quito, Ecuador 
    Tel: (593 2) 548-708 Fax: (593 2) 564-531 

    MINISTRY OF ENERGY AND MINING 
    Ministerio de Energía y Minas
    Santa Prisca 223 
    Quito, Ecuador 
    Tel: (593 2) 570-141 
    Fax: (593 2) 580-724 

    MINISTRY OF PUBLIC HEALTH
    Ministerio de Salud Pública
    Juan Larrea 445 
    Quito, Ecuador 
    Tel: (593 2) 521-733 Fax: (593 2) 569-786 

    MINISTRY OF SOCIAL WELFARE 
    Ministerio de Bienestar Social 
    Robles 850 Y Amazonas 
    Quito, Ecuador 
    Tel: (593 2) 540-750 Fax: (593 2) 563-497 

    MINISTRY OF URBAN DEVELOPMENT & HOUSING
    Ministerio de Desarrollo Urbano y Vivienda 
    Avenida 10 de Agosto 2270 y Cordero 
    Tel: (593 2) 502-785 Fax: (593 2) 566-785 

    MINISTRY OF TOURISM 
    Ministerio de Turismo 
    Reina Victoria 514 y Roca 
    Edificio CETUR 
    Quito, Ecuador 
    Tel: (593 2) 522-387 Fax: (593 2) 228-301 

    MINISTRY OF ENVIRONMENT 
    Ministerio del Medio Ambiente
    Tel: (593 2) 540-920 Fax: (593 2) 255-172 

    SECRETARY GENERAL OF THE ADMINISTRATION (Chief of Staff) 
    Secretaría General de la Administración Pública
    Palacio de Gobierno 
    García Moreno 1043 
    Quito, Ecuador 
    Tel: (593 2) 580-750 Fax: (593 2) 580-751

    CENTRAL BANK OF ECUADOR
    Banco Central del Ecuador 
    Avenida 10 de Agosto y Briceño 
    Quito, Ecuador 
    Tel: (593 2) 583-083 Fax: (593 2) 571-807 

    NATIONAL COUNCIL FOR DEVELOPMENT 
    CONADE
    Arenas y Manuel Larrea 
    Edificio CONADE 
    Quito, Ecuador 
    Tel: (593 2) 563-666 Fax: (593 2) 563-002 

    NATIONAL COUNCIL ON MODERNIZATION 
    CONAM
    Juan León Mera 130 y Avenida Patria 
    Edificio Corporación Financiera 
    Quito, Ecuador 
    Tel: (593 2) 509-432 / 509-433 
    Fax: (593 2) 509-437 

    FOUNDATION FOR SOCIAL INVESTMENT FOR EMERGENCIES
    FISE 
    Avenida Gaspar de Villaroel y El Sol 
    Quito, Ecuador 
    Tel: (593 2) 250-831 

    BANK SUPERVISING AGENCY
    Superintendencia de Bancos / Instituciones Financieras

    ENVIRONMENTAL ADVISORY COMMISSION
    CAAM

    ELECTORAL AGENCY
    Tribunal Supremo Electoral
    Av. 6 de Diciembre y Bosmediano,
    Quito-Ecuador

    ATTORNEY GENERAL
    Procurador General del Estado
    Robles 731 y Av. Amazonas,
    Quito-Ecuador
    Tel: (593 2) 562029 Fax: (593 2) 562060

    TOURISM CORPORATION 
    CETUR
    NATIONAL FINANCIAL CORPORATION
    Juan León Mera 130 y Av. Patria,
    Quito-ECUADOR
    Tel. (593 2) 562522

    SOCIAL SECURITY INSTITUTE
    IESS

    NORMS AND STANDARDS INSTITUTE OF ECUADOR
    INEN

    INSTITUTE ON METEOROLOGY AND HIDROLOGY
    INAMHI
     
     


    Ecuador Business Law


    Commercial Guide of Ecuador

    Ecuador Commercial Guide


    Treaties to which Ecuador is a Member

    The Andean Group

    Ecuador - Argentina Investment Treaty

    Ecuador - Bolivia Investment Treaty

    Ecuador - Chile Investment Treaty

    Ecuador - El Salvador Investment Treaty

    Ecuador - Paraguay Investment Treaty

    Ecuador - Venezuela Investment Treaty

    GATT General Agreement on Tarrifs and Trade, 1947

    The Organization of American States

    Summary of the WTO

    WTOThe official site

    SELA - The Latin American Economic System

    Economic Commission for Latin America and the Caribbean (a commission of the United Nations)

    The United Nations


    Ecuador Labor Law


    Ecuador Environmental Law

    Environment 

    The protection of the environment is a main concern for Ecuador. Ecuador shares the concept of sustainable development through the respect of its sovereignty on natural resources in accordance with its national law and international treaties related to this matter.

    The Ecuadorian Government supports all efforts and initiatives to protect the environment worldwide and especially all the projects in which the international community recognizes the principle of common but differentiated responsibilities in accordance with the financial and technological fields. Ecuador also supports the adoption of a global strategy, independent of the national programs in each country, and a policy of special consideration for the developing countries. Any shift in this trend depends on the technological assistance of the international community.

    After a process of consultations and national analysis, the seventeen basic environmental policies and principles of Ecuador were established by Executive Decree 1802 of June 1, 1994. Those policies refer to subjects such as: ethic rules, obligations regarding the environmental management of each person and entity at all times, relationships among the Ecuadorian society and with other countries, strategies of common interests, efforts to apply laws and regulations already existing using the real national capabilities, the obligation to obtain approvals for the implementation of programs, application of studies with environmental impact assessments and mitigation of pollution effects, the establishment of eleven top environmental problems of special attention in the country, the establishment of nine geographic regions that necessarily require productive actions in order to avoid environmental degradation and pollution, among others.

     

    MAIN INSTITUTIONAL FRAMEWORK AND LEGISLATION

    In 1996, the Government of Ecuador created the Ministry of Environment (Executive Decree No. 195-A, October 4,1996) to systematize and support the enforcement of adequate environmental management, to reinforce the funds for conservation programs, to concentrate the institutional framework and legislation, and to exercise the leadership in the political level for the adoption of actions toward the protection of Ecuadorian natural resources. 

    The main national environmental entities were incorporated within the framework of the Ministry of Environment to promote a coordinated work in different areas, like the Advisory Environmental Commission –CAAM- the Ecuadorian Institute of Natural Resources and Wildlife –INEFAN-, the Amazon Eco-Development Fund, and the Ecuadorian Committee of Atomic Energy –CEEA- (Executive Decree No. 290, November 8, 1996).

    The Constitution states, among other principles, that all Ecuadorian citizens have the right to live in a pure environment, namely, without pollution, for the wellbeing of present and future generations.

    Among the Ecuadorian legislation, the main legal bodies that regulate the environment are the following:

    The Law for the Prevention and Control of Environmental Pollution, of 1976, that has regulations to prevent and mitigate the air, water and soil pollution. This law created the Inter-institutional Committee for the Environmental Protection –CIPA-in charge of implementing its provisions; the Law for the Conservation of Protected Areas and Wildlife, of 1981, that states the main principles for sustainable development and conservation of the bio-diversity through the establishment of the protected areas national system. This law created the Ecuadorian Institute for Natural Resources and Wildlife –INEFAN-. Several regulations are included in the Mines Law concerning the petroleum exploration and exploitation; the Health Law, regarding the protection of human health and the environment; the Law for Agrarian Development, that allows the conservation of endangered species, etc.

    Ecuador has ratified numerous international treaties and has an active participation in the main environmental fora, like the Conference of Sustainable Development, held in Brazil in 1992. Ecuador has ratified the Bio-diversity Convention, the Climatic Changes Treaty, the Forest Declaration, and abides by the principles of the Rio Declaration and the programs of Agenda 21, which contain an environmental plan of action to be implemented until the year 2000. 

    Aside the treaties mentioned above, Ecuador is part of the following Conventions: 

    Antartic Treaty of 1959; Convention on the International Trade in Endangered Species of Wild Flora and Fauna –CITES- of 1973; Convention on Wetlands of International Importance Especially as Waterfowl Habitat –RAMSAR, of 1971; International Convention for the Prevention of Pollution from Ships –MARPOL- of 1973/78; International Tropical Timber Agreement of 1983; Montreal Protocol on Substances that Deplete the Ozone Layer of 1987; Treaty Banning Nuclear Weapon Tests in the Atmosphere, in Outer Space, and Under Water of 1963; Desertification Treaty of 1994; the Vienna Convention for the Ozone Protection of 1985; London and Copenhague Amendments to the Montreal Protocol, of 1990 and 1992, respectively; Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal of 1989; Convention for the Establishment of an Inter-American Tuna Commission –IATCC- of 1996; the Amazon Cooperation Treaty, among others. 

    Ecuador participates in several international organizations, like the Global Environment Facility –GEF; the Commission on Sustainable Development; the International Organization of Atomic Energy; Intergovernmental Forum on Chemical Security –FISC-, Inter-American Institution of Global Assistance; International Union for Nature Conservancy –IUCN-; United Nations Program for the Environment; United Nations Program for Development; etc.

     

    PROTECTED AREAS IN ECUADOR

    Due to the extraordinary variety of biological diversity, the conservation of natural resources is of the foremost importance for the Ecuadorian Government. The Law of Forestry and for Conservation of Natural Areas and Wildlife of 1981, established the National Patrimony of Natural Areas subject to the coordination and management of the INEFAN. The Ecuadorian territory embraces seventeen protected areas. 

     

    The Protected Areas are the following:

    • Podocarpus National Park (area of 146.280 ha., located in the provinces of Loja and Zamora Chinchipe, created in 1982); 
    • Sangay National Park (area : 517.765 ha.., located in the provinces of Chimborazo, Tungurahua and Morona Santiago, created in 1979);
    • Machalilla National Park (area: 55.000 ha. , located in the province of Manabi, created in 1979); 
    • Galapagos National Park (area: 27.800 ha., located in the Pacific Ocean, 1000 km. offshore the Ecuadorian mailand, created in 1978); 
    • Cotopaxi National Park (area: 33.393 ha., located in the provinces of Cotopaxi, Pichincha and Napo, created in 1979 ); 
    • Yasuni National Park (area: 982.000 ha., located in the province of Napo, created in 1979); 
    • Sumaco-Napo Galeras National Park (area: 205.249 ha., located in the province of Napo, created in 1994);
    • Cayambe-Coca Ecological Reserve (area: 403.103 ha., located in the provinces of Imbabura, Pichincha, Napo and Sucumbios, created in 1970); 
    • Cotacachi-Cayapas Ecological Reserve (area: 204.000 ha., located in the provinces of Imbabura and Esmeraldas, created in 1979);
    • Manglares Churute Ecological Reserve (area: 35.042 ha., located in the provinces of Guayas, created in 1979); 
    • Antisana Ecological Reserve (area: 15.715 ha., located in the province of Carchi, created in 1992);
    • Fauna Reserve of Cuyabeno (area: 254.000 ha., located in the province of Sucumbios, created in 1979);
    • Chimborazo Fauna Reserve (area: 58.560 ha. , located in the provinces of Chimborazo, Bolivar and Tungurahua, created in 1987); 
    • Limoncocha Biological Reserve (area: 4.600 ha., located in the province of Sucumbios, created in 1985); 
    • El Boliche National Reacreation Area El Boliche (area: 1.077 ha., located in the province of Chimborazo, created in 1979);
    • Cajas National Recreation Area (area: 28.808 ha., located in the province of Azuay, created in 1979);
    • Pululahua Geo-botany Reserve (area: 3.300 ha., located in the province of Pichincha, created in 1978).

     

    Source: Fundación NATURA 

    http://weber.u.washington.edu/~ahalpern/

     

    THE GALAPAGOS ISLANDS 

    The conservation of the Galapagos Islands is of the foremost importance for the Ecuadorian Government. Due to its unique fauna and flora species and educational and scientific history, the Galapagos National Park was established in July 4, 1959; declared by UNESCO Natural Patrimony of Mankind in 1978 and included in the list of Biosphere Reserve in 1983.

    After a long process of national consultation, the Ecuadorian Government enacted a Law for the "Special Regime for the Conservation and Sustainable Development of the Galapagos Province" on March 5, 1998, published in the Official Register 278, on March 18, 1998. Among its main provision, this Law states that the protection and conservation of the terrestrial and marine ecosystems of the Galapagos Province is a State responsibility, as well as the control of the human settlements and its interrelation with the environment.

    According to the above mentioned Law, the Galapagos National Park and the Galapagos Marine Reserve are part of the National Patrimony of Protected Areas. The Marine Reserve of the Galapagos Province is under the specific regulations of the Marine Reserve category, namely, one of multiple use and comprehensive management. The Marine Reserve encompasses the whole marine area within the 40 miles measured from the straight base lines of the Galapagos Archipelago and its interior waters. An Inter-institutional authority, headed by the Ministry of Environment, was created for the establishment of policies and principles for the conservation of the Marine Reserve. Furthermore, a Marine Area of Special Protection of 60 miles was created for monitoring the transportation of hazardous wastes of high risk for human health an environment of the Galapagos Islands.

    The Galapagos’ law contains regulations regarding the institutional framework with a description of its management and obligations, budget allocation, tourism activities, among others.


    Ecuador's Banking and Finance System

    Central Bank of Ecuador


    Ecuador Visas and Immigration

    Visit and Non Resident Visas (NON-IMMIGRANT)

    Visas up to 90 days (Vistor Visa 12-X)

    Ecuador welcomes tourists and travelers from every country. United States citizens traveling to Ecuador for tourism, business, studies do not require a visa unless they expect to stay in Ecuador for more than 90 days in one calendar year (that is, 90 days adding every entry in one year). The only travel requirements are:

    • Valid passport for more than 6 months.
    • Return ticket (for air, land or sea travel).
    • Proof of economic means to support yourself during your stay in Ecuador (may be asked by Immigration authorities)

    Nationals of the following countries require a visa and should approach the Consulate of Ecuador of their residence (list may change without notice): Cuba, Costa Rica, Guatemala, Honduras, India, Libya, North Korea, Pakistan, People’s Republic of China, Russia, South Korea, Vietnam. If applying in the U.S., nationals of these countries will have to produce their valid U.S. visa or residence permit and fill out an application form (requirements listed above, plus 2 photographs).

    Foreigners traveling in these conditions may not take employment in Ecuador. VISA 12-X status cannot be changed in Ecuador.

    Visas for more than 90 days stay:

    Foreign nationals planning to stay in Ecuador for more than 90 days need to apply for a visa and must present the following documents:

    • Valid passport for more than 6 months.
    • Police certificate with criminal record of the State where s/he resides.
    • Medical certificate.
    • Return ticket (for air, land or sea travel).
    • Two photographs
    • Application form
    • Nationals of other countries applying for this type of visa in the United States must also present a valid US visa/green card.

    Additionally, depending on the type of visa needed, the following requirements apply:

    Student visas:

    • Certificate of course registration in an educational institution in Ecuador.
    • Certificate of financial solvency (either a bank deposit of a reasonable amount to cover expenses –please inquire at the Consulate of your jurisdiction- with a letter stating the intention of the bank of forwarding to the student 10% of that amount per month OR a document signed by a relative stating that the student is supported by his/her family; OR a legal and duly notarized document indicating the student receives some other type of pension).

    Validity: Up to one year, renewable.

    Fee: US$ 50,oo. Citizens from the US, Germany, Spain, Colombia, and Paraguay are exempted (FREE).

     

    Professional, technician, consultant, legal representative, or government official visas:

    • Documents showing s/he is required to stay in Ecuador for work related purposes and that her/his stay will be supported by the company/agency.
    • Labor contract legalized by an Ecuadorian Labor Court.
    • Technical or specialized professionals or industrial training personnel need a working permit from the Ministry of Labor.
    • Managers, legal representatives, or executive officers, with also require a certificate from the Superintendency of Companies.

    Validity: According to the appointment.

    Fee: US$ 50,00.

     

    Clergy, volunteer workers, and other members of religious organizations:

    • Certificate of the religious organization where the applicant will work in Ecuador, explaining why a foreign person is required, and a brief description of the tasks s/he will be assigned in Ecuador.
    • A copy of the Decree in which the Government of Ecuador authorizes the organization to work in the country.
    • A copy of the rules of the organization.
    • A copy of the document stating the appointment of the legal representative of the organization in Ecuador.

    Validity: Two years.

    Fee: Gratis.

    Cultural exchange visas:

    Teachers appointed to, or students participating in, exchange programs require:

    • Application from the Ecuadorian authority sponsoring the student/teachers visit.
    • A copy of the Agreement under which the program is carried out.
    • Teachers must sign a document stating that s/he will not receive any Ecuadorian funds for his/her work.

     

    Validity: One year.

    Fee: Gratis.

    Tourism, business, and other activities, for more than 90 days and up to 180 days:

    Foreigners who need to stay in Ecuador for over 90 days, for activities such as tourism, sports, studies, science and research, art, or business, will require:

    • Certificate of financial solvency to the satisfaction of the Consular Officer (either a bank letter stating the applicant’s monthly balance OR a personal guaranty of an Ecuadorian citizen or a foreigner residing in Ecuador in a duly notarized document OR a certificate stating the applicant’s income OR any other document that proves the applicant has enough funds for his stay in Ecuador).

     

    Validity: 90 up to 180 days.

    Fee: US$ 50,oo. Citizens from the US, Germany, Spain, Colombia, Denmark, and Paraguay are exempted.

     

    Resident Visas (IMMIGRANT)

    Foreign nationals may apply to settle in Ecuador and obtain the residence. Resident visas need to be approved by the Immigration Board in Ecuador, so upon correct presentation of all the documentation the process may take 4-8 weeks.

    There are different categories, please inquire at the Consulate.

    10­I Retired persons who receive pensions from their native countries (pension from a stable source, at least US$ 8,000 a year). 

    10­II Real estate and securities investors who are willing to invest in Ecuador the equivalent of at least 350 minimum monthly general salaries (S.M.V.G.), plus 100 SMVG per dependant, or amount specified by Consular Officer (in the U.S. at least US$ 15,000). 

    10­III Investors in industry who wish to export agricultural products, livestock, or minerals, provided they bring capital the equivalent of at least 600 minimum monthly general salaries to Ecuador, or amount specified by Consular Officer (in the U.S. at least US$ 25,000). 

    10­IV Companies with foreign local agents who possess unlimited power of attorney to represent the company in Ecuador, provided that 80% of the company's local personnel are Ecuadorian. 

    10­IV Technicians or technical experts under contract with a company established in Ecuador. 

    10­V Professionals with university degrees recognized by a national university, who wish to practice their profession in Ecuador. Should the applicant's profession not exist in Ecuador, the degree must be locally certified. The applicant must also fulfill the requirements for such practice (e.g. bar).

    10­VI Individuals economically dependent on spouses or on a blood­related family member (family). 


    Ecuador's Foreign Investment Law

    The Ecuadorean government has recently adopted a liberal policy toward foreign investment. Foreign and domestic investors now have similar status under the law with some exceptions (see fiscal barriers below). The implementing regulations allow for unrestricted remittance of profits overseas, subject to a 36 percent tax. Profits not remitted are subject to a 25 percent tax, the normal corporate rate for both domestic and foreign companies (except for petroleum companies which are subject to a higher rate).

    Prior government approval is not required for foreign investment, except for the following sectors: defense, media, mining, financial institutions (where foreign investment is limited to 49 percent), telecommunications, other public services, and mergers and acquisitions.

    Foreigners cannot account for more than 20 percent of a firm's total employment. Various industrial development laws specify performance requirements including using a certain percentage of local materials, providing training for Ecuadoreans, and exporting a certain percentage of production.

    Fiscal barriers to investment include: the taxation of profits and other remittances of foreign firms at a rate higher than that charged domestic firms, two operable exchange rates that sometimes force investors seeking to repatriate funds to do so at the less favorable free market rates, and a lack of market determined lending patterns and interest rates.


    Intellectual Property Rights In Ecuador

    As a member of the Andean Pact, Ecuador has strengthened protection of intellectual property rights. While a marked improvement over prior legislation governing intellectual property rights, the decision falls short in some areas. Inadequate protection affects mainly the pharma- ceuticals, computer, audio and video tapes and film sectors.


    Ecuador Taxes

    Corporate Taxes: The 1990 tax reform lowered dividend and other corporate taxes to bring the tax burden into line with that of the industrialized world. Withholding tax on dividends declined from 40 percent to 36 percent. Capital gains are taxed as normal income. Royalties and technical fees are subject to a 36 percent withholding tax.

    Personal Income Taxes: Personal income is taxed on a sliding scale ranging from 10 to 25 percent. Employees of foreign companies who reside part-time in Ecuador are subject to Ecuadorean income tax. Foreigners who do not reside in Ecuador are subject to a flat tax of 25 percent on income generated from within the country.

    Other Taxes:

    • A 10 percent value-added tax (VAT) which applies to wholesalers, manufacturers, importers, and retailers is levied on almost all sales and commercial transactions.
    • There is a real estate tax of four to eight percent.
    • Transfers of real estate, ships and airplanes are assessed a one to four percent tax.
    • There is a registration tax of one percent on all documents.
    • Special tax provisions apply to companies involved in petroleum exploration and exploitation.

    Tax Treaties: Ecuador currently has no tax treaty with the United States to avoid double taxation but it has ratified agreements with the other members of the Andean Pact.


    General Economic Information of Ecuador

    Ecuador Socio-Economic Data from the Inter-American Development Bank. This is the source for all the hard economic data you need. The particular country page is slow loading, but well worth the wait for you economic gurus.


    Ecuador Tourism

    MINISTRY OF TOURISM 
    Ministerio de Turismo 
    Reina Victoria 514 y Roca 
    Edificio CETUR 
    Quito, Ecuador 
    Tel: (593 2) 522-387 Fax: (593 2) 228-301 

    TOURISM CORPORATION 
    CETUR
    NATIONAL FINANCIAL CORPORATION
    Juan León Mera 130 y Av. Patria,
    Quito-ECUADOR
    Tel. (593 2) 562522


    Ecuador's Legal System

    The U.S. House of Representatives Internet Law Library Laws of other nations Ecuador


    General Information

    Ecuador - Consular Info Sheet

    Ecuador Country Study Page from Library of Congress. A great source of information.

    Living languages of Ecuador So, you think that Spanish is the only language spoken in Ecuador? Well, check this out!


    Importing and Exporting

       
      Source:Central Bank of Ecuador 
      

     

     

    Exports
     

    Main Export commodities

    1996 FOB value 

    1997 FOB Value 

    Crude oil

    1,520,815 

    1,404,261 

    Banana

    973,035 

    1,326,941 

    Shrimp

    631,469 

    872,827 

    Prepared fish and seafood products

    152,163 

    179,580 

    Oil products

    255,268 

    145,689 

    Metal manufactures –including automobiles-

    109,002 

    141,561 

    Cut flowers and roses

    104,806 

    119,031 

    Coffee

    129,471 

    86,298 

    Cacao products –cocoa paste and products-

    72,545 

    71,902 

    Tuna

    58,605 

    67,715 

    Textile manufactures

    51,841 

    60,100 

    Cacao –cocoa beans-

    91,036 

    59,185 

    Medicines and chemical products

    46,136 

    50,909 

    Wood

    29,391 

    37,611 

    TOTAL

    4,900,059 

    5,214,143 

    Source: Central Bank of Ecuador, value FOB in US$ thousands 

    
    

    Exports FOB value increased in 1994 (25.3%) and 1995 (14.8%) at outstanding rates. In 1996, the growth slowed down but remained at a strong 10.8%. Crude oil and oil-derivative export revenues increased due to higher international prices, despite a decline in export volumes. Banana and plantain exports rose 13.6% and cacao /cocoa product exports rose 22.9%. Non-traditional exports again increased by 29.2%.   

    In 1997, exports increased by 6.4% despite a 12.6% decrease in value of crude oil and oil products (petroleum), which is a testament to the strength and dynamism of the private export sector. Banana exports rose by 36%, shrimp exports by 38%, and non-traditional products remained stable.  

    In 1998, the low international oil prices and the devastating effects of the phenomenon of "El Niño" on the economy have hindered the growth of exports. Figures for the first quarter support this forecast. 

      

    Information about commodities 

    Ecuador exports are known for their quality and value. You may obtain additional information from the Ministry of Foreign Affairs  

    Hydrocarbons  

    A petroleum producing country, with a production volume of nearly 400 thousand barrels per day, Ecuador has opened its doors to foreign capital in the hydrocarbon sector. A series of successful rounds of bidding for petroleum concessions has broadened the presence of international companies in Ecuador and a new pipeline will be built to transport additional volumes of oil.  

    Hydrocarbons are Ecuador’s main source of revenue and only in 1997 did bananas surpass them as main export.   

    In Ecuador-U.S. trade, oil has been Ecuador’s main export, but in 1997 shrimp exports surged as the oil price dropped.  

    However, Ecuador remains a marginal oil supplier to the U.S. (its main market) with a share of less than 1.5% of the import market. Petroleum is not covered by trade preferences and pay tariffs on the General column of the HS.  

    Shrimp  

    Ecuador is the largest producer of shrimp grown in ponds in the Western Hemisphere, and ranks fourth in the world. Shrimp from these farms are internationally famous for their top quality, exquisite flavor, firmness and color.  

    1997 Ecuador exports of shrimp reached a record high over 800 million US dollars, partly due to the phenomenon of "El Niño" that caused the migration of natural predators. Shrimp exports from Ecuador in 1995 totaled US$ 674 million and in 1996 US$ 629 (FOB value).   

    The United States has been the main destination of the export, accounting for over 58% of all exports of shrimps from Ecuador. Ecuador has been the second supplier to the U.S. market, with 17% of the share of imports of shrimp (HTS 03061300 Shrimps and prawns, cooked or not…), behind Thailand.  

    Shrimp has represented the second commodity, in value, imported by the U.S. from Ecuador in 1995, 1996 and the first one in 1997.  

    Bananas  

    Ecuador leads the world in banana exports. World markets appreciate Ecuadorian grown bananas for their unequaled flavor, top quality and resistance to diseases. The main export varieties currently shipped are Cavendish, Baby banana and Red.   

    Our country enjoys the great advantage of a year-round production and thereby can guarantee availability during the periods when other producing countries are unable to supply their product.   

    Ecuador has been the second supplier to the U.S. of fresh bananas (HS 0803002020), with about one fifth of the import market, behind Costa Rica.   

    Fresh cut flowers  

    Flowers in Ecuador have been grown for export for only the past few years. In this short period, fresh cut flowers from Ecuador have obtained a privileged position in international markets due to their color, scent and length of stem (roses). Ecuador’s geographical position and daylight hours give it a natural advantage to produce quality flowers.  

    At present the principal export varieties are Roses, Carnations, Ghipsophylias, Chrysanthemums, Statices, Asthromelias and varieties of Daisies.  

    Ecuador is the third supplier to the U.S. of fresh cut flowers, behind Colombia and the Netherlands.   

    All flower exports are air freighted. The US is the main market, followed by Canada, Germany, Holland, Russia and the Czech Republic. Smaller amounts are exported to Austria, Chile, France, Hong Kong, Italy, Spain, Sweden, and Switzerland.  

    Sea food, fresh & frozen fish  

    Fresh and Frozen fish, including Flatish or Sole, Sea Bass, Corvina, Dolphin Fish, Swordfish and many others, are of top quality noted for the color, firmness and flavor of the meat. Normal shipping is in one of the following forms: whole fish with skin on, whole fish with skin removed, without head and tail, and finally, filleted.   

    The principal buyers of these products are Unites States, Spain, Japan and Colombia.  

    Tuna is also a major export from Ecuador, which has become the main supplier to the U.S. of tuna "prepared or preserved, not in airtight containers, not in oil, in bulk or immediate containers with their contents over 6.8 kg". Tuna is also exported, in lesser quantities, in other presentations (canned, in oil, etc.).  

    Special packing in tomato sauce, or similar liquids is also available from certain canneries. Sardines (Pilchards) are canned in tomato sauce or in vegetable oil. Mackerel is usually packed in brine. All of these products conform to the demanding quality of international markets.  

    Over 30 countries, principally the United States, Spain, Japan, Colombia and France, import sea products from Ecuador.  

    Canned Vegetables  

    Ecuador has comparative advantages in the agricultural and agro-industrial production. It exports:  

    Pigeon peas in cans  

    Tomato paste in 23 onz. can, 24 cans per case.   

    Red beans in brine, 16 oz. can, 24 cans per case.   

    White beans in brine, 16 oz. can, 24 cans per case.   

    Andean white hominy in brine, 16 oz., 28 oz. and 3 kilo (A10) cans.   

    Lentils in sauce, 15 oz. can 24 cans per case.   

    Red beans in sauce, 15 oz. can, 24 cans per case.  

       

    Handicrafts  

    There are more than 300.000 workshops producing handicrafts in Ecuador today. Among the huge variety of articles being manufactured in this country, clothing, woodcraft, native women articles, carpets and mats, figures and figurines made from tagua, toquilla straw, marzipan, balsa wood, furniture, decorative ceramics, and leather goods are worthy of mention.  

       

    Toquilla Straw Hats  

    Ecuador has been famous for over a century for the quality of hats made from Toquilla Straw commonly called "Panama Hats". These hats were not, and to this day have never been made in Panama, but since the entire Ecuadorian production of these elegant hand made hats were bought and imported into Panama by the large Panamanian commercial houses at the turn of the century, travelers buying them there referred to them as "Panama Hats" a misnomer which has survived throughout the years until present times.  

    This famous hat is very useful and comfortable, especially during summer and warm weather. Its traditional elegance has always been in great demand, and now is the inspiration of hat designers for the high fashion market in Europe.  

       

    Tagua   

    The firs known shipment of Tagua to a foreign country was to Germany in 1865, where after various experiments it was used to manufacture top quality buttons for high fashion clothing.  

    Over the following years, other uses were developed including toy manufacture, pendants, brooches, trinkets, miniature carved figures, chess pieces, handles for walking sticks and umbrellas as well as many other articles in daily use.  

       

    Ecuador exporters  

    The Embassy of Ecuador in the United States will gladly provide contact information of Ecuadorian exporters of any commodity. Please contact the Commercial Section with HS and product description (HS not necessary).   

    Outside the US, you may contact the nearest Embassy or Consulate of Ecuador.  

    You may also contact the following entities:  

    Ministry of Foreign Affairs,  

    Economic Promotion,  

    Fax (593 2) 569806, e-mail: dgproeco@mmrree.gov.ec  

      

       

    Ministry of Foreign Trade, Industries and Fisheries,  

    Export Promotion,  

    Fax: (593 2) 228973  

       

    ECUADORIAN FEDERATION OF EXPORTERS  

    FEDEXPOR  

    Japón 844 y Gaspar de Villaroel, Edif. La Nacional Compañía de Seguros, pisos 6 y 7,  

    Quito, Ecuador  

    Tel. (593 2) 251860 / 254485 / 432353 / 439258  

    Fax: (593 2) 255811 / 440574  

    E-mail: fedexpor@accessinter.net  

    TradePort's online tutorial on importing and exporting.

    Reducing the Risk of Trade Disputes for Exporters

    U.S. Harmonized Tarrif Schedule


    Marketing

    ECUADORIAN FEDERATION OF EXPORTERS
    FEDEXPOR
    Japón 844 y Gaspar de Villaroel, Edif. La Nacional Compañía de Seguros, pisos 6 y 7,
    Quito, Ecuador
    Tel. (593 2) 251860 / 254485 / 432353 / 439258
    Fax: (593 2) 255811 / 440574
    E-mail:
    fedexpor@accessinter.net

    CHAMBER OF COMMERCE OF GUAYAQUIL
    Camara de Comercio de Guayaquil
    Av. Olmedo 414,
    Guayaquil, Ecuador
    Tel. (593 4) 323130 / 534411 Fax: (593 4) 323478
    E-mail: camcomg@g.camcom.org.ec

    CHAMBER OF COMMERCE OF QUITO 
    Camara de Comercio de Quito
    Avs. Amazonas y República, Edif. Las Cámaras, piso 6
    Quito, Ecuador
    Tel. (593 2) 443787 Fax: (593 2) 435862
    E-mail: ccq@uio.satnet.net

    CHAMBER OF INDUSTRIES OF GUAYAQUIL
    Cámara de Industriales de Guayaquil
    Av. 9 de Octubre 910 y Rumichaca,
    Guayaquil, Ecuador
    Tel. (593 4) 561556 / 300255 Fax: (593 4) 56173

    CHAMBER OF INDUSTRIES OF PICHINCHA (QUITO)
    Cámara de industriales de Pichincha
    Avs. Amazonas y República, Edif. Las Cámaras, 
    Quito, Ecuador
    Tel. (593 2) 452730 / 452995 Fax: (593 2) 448118

    NATIONAL CHAMBER OF FISHERIES
    Cámara Nacional de Pesquería
    Av. 9 de Octubre 424 y Chile, Edif. Gran Pasaje, Of. 802,
    Guayaquil, Ecuador
    Tel. (593 4) 308448 / 566346
    Fax: (593 4) 308448

    NATIONAL CHAMBER OF AQUACULTURE
    Cámara Nacional de Acuacultura

    ASSOCIATION OF FLOWER EXPORTERS AND PRODUCERS
    EXPOFLORES
    Avs. Amazonas y República, Edif. Las Cámaras, piso 12
    Quito, Ecuador
    Tel. (593 9) 452690 / 452691 / 92 / 93
    E-mail: expoflo1@expoflores.com.ec

    International Trade Association (U.S. Dept. of Commerce dedicated to helping U.S. businesses compete in the global marketplace.

    Yellow Files Business Directory


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    Doing Business in Latin America
    No claims to original works.
    Web Page written, created, and designed by Douglas Smurr, smurfer@guate.net
    Last Update: September 28, 1998.
    © 1998, all rights reserved.