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flag Ecuador Ecuador: Trade Profile

Foreign Trade in Figures

Ecuador is open to foreign trade, especially after joining WTO. Ecuador applies a four-tiered tariff system:
- 5% for most raw materials and capital goods;
- 10-20% for intermediate goods;
- 20% for most consumer goods;
- Finally, a small number of products, including planting seeds, agricultural chemicals and veterinary products are duty-free.

Customs duties are relatively low. However, in spite of having become a member of the WTO, Ecuador has not been able to eliminate many of its non-tariff barriers. Importers are required to register with the Central Bank to obtain an import license and must also have authorizations from various government agencies. Ecuador also continues to maintain a pre-shipment inspection (PSI) regime for imports.

In 2010, Ecuador registered a trade deficit. Foreign trade is in fact very vulnerable to the fluctuations in the price of oil on international markets. The production of barrels per day decreased compared to the previous years. Oil exports represent  over 50% of total exports. The global drop of crude oil prices and the recent reinforcement of the USD have certainly harmed the terms of exchange rate in the country and have produced tensions on the balance of payments. The government tries to attenuate the effect on the balance of payments by imposing restrictions in imports and establishing controls preventing capital outflow. The recent approval of the mining law should deliver more transparency to foreign investors. Moreover, Ecuador's legal system and the complex regulations of the country make business management very complicated and expensive. 

However, if the country loses its access to financial markets or if the government cannot increase its income, most likely the USD exchange system will have to be abandoned and the currency will be devaluated, which could provoke an increase in export income and this would really discourage the growth of imports, eliminating in this way certain tensions in the balance of payments and allowing the government to use currency policy as an economic tool. On the other hand, this would mean a weak currency which will have a negative effect on inflation and on the balance of the private sector.

The main trading partners of the country are the United States (33.5% in 2009), Peru, Chili, Colombia and Russia.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 12,11413,89318,68615,09319,961
Exports of Goods (million USD) 12,72814,32118,51113,79917,369
Imports of Services (million USD) 2,2652,4812,8852,5562,913
Exports of Services (million USD) 9591,1121,2231,1301,264
Imports of Goods and Services (Annual % Change) 9710-82
Exports of Goods and Services (Annual % Change) 923-66
Trade Balance (million USD) 1,7681,8231,37178-
Current Account (million USD) 1,6181,5881,087-268-
Foreign Trade (in % of GDP) 6770769465
Imports of Goods and Services (in % of GDP) 3334385334
Exports of Goods and Services (in % of GDP) 3435384131

Source: WTO - World Trade Organization ; World Bank - Last Available Data.

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Main Partner Countries

Main Customers
(% of Exports)
2010
United States 34.7%
Panama 12.2%
Peru 7.6%
Venezuela 5.6%
Chile 4.8%
See More Countries 35.0%
Main Suppliers
(% of Imports)
2010
United States 27.9%
Colombia 9.8%
China 7.8%
Peru 5.0%
Panama 5.0%
See More Countries 44.5%

Source: Comtrade, Last Available Data

Main Products

Main Exports
(% of Exports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 51.2%
Bananas, incl. plantains, fresh or driedBananas, incl. plantains, fresh or dried 11.6%
Crustaceans, fit for human consumption, whether in...Crustaceans, fit for human consumption, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine, incl. crustaceans in shell cooked beforehand by steaming or by boiling in water; flours, meals and pellets of crustaceans, fit for human consumption 4.9%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 3.9%
Cut flowers and flower buds of a kind suitable for...Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared 3.5%
See More Products 25.0%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 12.9%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 5.2%
Oils and other products of the distillation of...Oils and other products of the distillation of high temperature coal tar; similar products in which the weight of the aromatic constituents exceeds that of the non-aromatic constituents 4.7%
Motor vehicles for the transport of goods, incl....Motor vehicles for the transport of goods, incl. chassis with engine and cab 3.4%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 3.1%
See More Products 70.7%

Source: Comtrade, Last Available Data

 

To go further, check out our service Import export flows

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Commercial Policy

Main International Economic Cooperation
Member of World Trade Organisation
Member of Community of Andean Nations

Member of Organisation of American States

Member of Latin American and Caribbean Economic System

Associate Member of Mercosur

Assessment of Commercial Policy
Country’s commercial policy
Barriers to exchanges
Barriers to exchanges
Sanitary and phytosanitary barriers
Average Customs Duty (Excluding Agricultural Products)
10.29%
 

List of tariffs and local taxes that apply to your product on our service Customs duties and local taxes

 
Useful Resources
Corporación Aduanera Ecuatoriana (only in Spanish)



Egyptian Embassy in Ecuador
Tarqui E4- Y6 De Diciembre
17 - 7 - 9355 Quito
Phone: (+5932) 509501 - 543981 - 225240
Fax: (+5932) 563521
Contact the Embassy via Email.

National Organization of Intellectual Property
The Ecuadorian Institute of Intellectual Property.
 

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Learn more about How to Export to Ecuador on Globaltrade.net, the Directory for International Trade Services.
 

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Last Updates: January 2012

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