2004

News Bolletin

IN THIS ISSUE N°. 006 - March 2004

TRADE PROMOTION

VI MEETING OF ADMINISTRATIVE COMMISSION OF ECA 32 WITH CHILE

The VI Meeting of the Ecuador-Chile Administrative Commission of the Economic Complementation Agreement took place in Quito on March 23.

The Head of the Ecuadorian delegation, Ambassador Patricio Palacios, who was in charge of the General Office of Integration; and the Head of the Chilean delegation, Mr. Andrés Rebolledo, highlighted the importance of this meeting, which allowed to resume the follow-up of Economic Complementation Agreement ECA 32 in effect between both countries, and also to seek alternatives to enforce this Agreement and identify actions to lower current imbalances in the Trade Balance, which is now unfavorable to Ecuador in approximately 300 million dollars.

The topics discussed included:

1. Assessment of bilateral trade.

2. Improvement of ECA 32:

2.1 Chilean suggestion concerning reforms to exception list.

2.2 Suggestion to include new Chapter about conflict settlement.

2.3 Suggestion to establish additional agreement to ECA 32 about Import Licenses.

2.4 Suggestion to create chapter about services.

3. Follow-up of topics addressed in business meeting.

3.1 Plastic packages for grapes for export.

3.2 Exports of apples and pork meat to Ecuador

3.3 Results of public survey made by SAG on imports of papaya from Ecuador.

3.4 Chilean health restrictions on access of Ecuadorian fresh fish to the market.

3.5 Safe-conduct measures for MDF wood planks.

3.6 Steel rods.

4. Supporting regimes for Chilean exports: household appliances.

5. Other topics

FRANCE – ECUADOR

The General Exports and Investments Promotion Office organized on March 29 the first inter-institutional meeting between delegates from the Exports and Investments Promotion Corporation (CORPEI), the Embassy of France, the French - Ecuadorian Chamber of Trade, the Ministry of Foreign Trade and the Ecuadorian Federation of Exporters.

The goal of this meeting was to analyze the current status of trade relations and investments with France, and to propose measures to optimize reciprocal flows between both countries.

The topics analyzed in this meeting include:
· Analysis of the status of trade relations and investments between France and Ecuador.

· Seminar on "Legal Security"

· Ecuadorian participation in International Food Trade Show (SIAL).

· Interest of Ecuadorian Government on receiving visit from commercial mission of "Mouvement des Enterprises de France".

· Participation in the event "Chocolate trade show"

BUSINESS MEETING ABOUT ESTABLISHMENT OF COLOMBIA-ECUADOR CHAMBER OF PRODUCTION AND TRADE AND BORDER TRADE FAIR COMMITTEE
( Tulcan, March 31- April 1, 2004)

In the context of the commitments assumed during the XIV Colombia-Ecuador Plenary Meeting of the Commission of Neighborly Relations and Integration, held in Bogotá on February 11-12 of this year, it was agreed to support the establishment of the Colombia-Ecuador Chamber of Production and Trade, and to promote the establishment of a Committee on Border Trade Fairs.

In this sense, the Chamber of Trade of Tulcan organized a meeting on March 31-April 1 to analyze the project of the Bylaws of this Chamber and draft regulations related to the Committee on Trade Shows

The participation of public and private institutions from both countries is worth highlighting. Ecuador was represented by the Office of Border Affairs, the Exports Promotion and Bilateral Investments Office of the Ministry of Foreign Affairs, representatives from the Foreign Trade Ministry in Tulcan, Representatives from the Ecuadorian Customs Corporation of Quito and Tulcan, from the Internal Revenue Service in Tulcan, and from the Chambers of Trade of Ibarra, Tulcan, and Esmeraldas.

Colombia was represented by the Colombia-Ecuador Chamber of Trade of Quito, the Chambers of Trade of Ipiales and Pasto and by representatives of the Customs and Tax Office of Colombia (DIAN).

During this two-day meeting, three important documents were analyzed: the draft Bylaws for the Colombia-Ecuador Border Chamber of Production and Trade; the Project to regulate the Regime of Fairs and Border Events; and the Offer to regulate the Committee of Border Fairs.

The following results and commitments were defined:

· A final draft of the Bylaws for the Border Chamber, which will be analyzed by the Boards of Directors of one of the Chambers present, including the Chambers of Lago Agrio of Ecuador and the Chambers of Tumaco and Putumayo of Colombia, which were not present at the meeting.

· The Ipiales’ Chamber of Trade was chosen as Provisional President, and it will call for a second meeting on April, in order to establish the Final Bylaws.

· A final draft for the Regulation of border fairs was defined, which will be also analyzed by the Boards of Directors of the Chambers of Trade of Ecuador and Colombia, by the Ecuador-Colombia Chamber of Trade, the Ecuadorian Customs Corporation, the Internal Revenue Service of Ecuador and the Customs and Tax Office of Colombia. As the Chamber of Trade of Ipiales is the Provisional President of the Border Chamber, it will be in charge of issuing the summons, and also of making the final analysis at the end of April.

A Second Business Meeting will take place in Ipiales on April 29-30, to approve the bylaws and to present them to the Subcommittee of Neighborly Relations that will meet in mid May.

PARTICIPATION IN REGIONAL SEMINAR ON EXPORT PROMOTION

The Seminar “Promotion of exports in the new globalization scenario” was held in the city of San Salvador, El Salvador, on March 29-30. This seminar was supported by the International Cooperation Agency of Chile (AGCI), the Japanese International Cooperation Agency (JICA) and the Ministry of Economy of El Salvador.

The main goal of this Seminar was to present the Chilean experience in the promotion of exports, and how they have adapted to the new challenges that come with globalization; for instance, the role of the state and the private sector, economic diplomacy, the performance of Free Trade Agreements, the agricultural sector and their FTAs, information and communication technologies, the internationalization process of Small and Medium-sized businesses, and market intelligence.

The Ecuadorian delegation that took part in this event consisted in one official from the Export Promotion and Investments Office and one official from the Ecuadorian Embassy in El Salvador. This delegation presented the economic outlook of Ecuador, the effects of dollarization and the efforts made by the Government to stabilize the main macroeconomic variables.

The delegation also discussed export promotion activities taking place in Ecuador under the National Plan for the Promotion of Exports 2001-2010, and the activities developed by this Ministry in that field in coordination with the Ministry of Foreign Trade, the Exports and Investments Promotion Corporation (CORPEI), the Ecuadorian Federation of Exporters (FEDEXPOR) and the Chambers of Commerce of Quito and Guayaquil.

Finally, the delegation highlighted the advances made in exports of products from the traditional and non-traditional sectors of Ecuador in recent years and the difficulties related to competitiveness which the country has to face nowadays in foreign trade issues.

“ECUADORIAN NIGHT” IN THE DOMINICAN REPUBLIC

The Ministry of Foreign Affairs and our Embassy in the Dominican Republic informed that this Diplomatic Mission organized the event: “Ecuadorian Night”, which took place in the Auditorium of the Chamber of Commerce and Production of Santo Domingo on March 26, 2004. The event was organized in coordination with the International Junior Chamber of the Dominican Republic on the occasion of the visit by 30 of its members to Guayaquil to participate in the Conference of Area “C” of the Chamber, and also to have contacts with the Junior Chamber of Ecuador, especially with its business sector.

The Ambassador of Ecuador in the Dominican Republic, Fernando Borja Gallegos, highlighted the importance of the Junior Chamber as a worldwide nonprofit organization, whose objective is to contribute to the development of the global community by improving leadership skills, social accountability, business attitude and solidarity among its young members. He also emphasized the purpose of the Ecuadorian government to develop commercial exchanges and investments between our country and the Dominican Republic, as well as to promote the flow of tourists to our country.

Ambassador Borja also stressed the activities developed by his Diplomatic Mission in coordination with the Foreign Ministry with a view of promoting the country on the occasion of the Miss Universe Pageant that will take place in June in Quito. This event is seen as an opportunity to encourage Dominican businessmen to make business rounds with their counterparts in Ecuador, especially in tourist and commercial areas.

PROJECT OF THE HUNGARIAN RADIO “DANUBIUS” TO VISIT AND PROMOTE ECUADOR

The Hungarian Radio Danubius, which has the largest audience in Hungary, will produce with the support of our Embassy in Hungary a contest show about Ecuador in which the most representative aspects of the country, such as tourist attractions, culture and gastronomy, will be highlighted.

This program will be broadcast daily for one month.

CONFERENCE GIVEN BY MINISTER POZO TO A GROUP OF BUSINESSMEN
(Caracas, March 18)

On March 18, the Minister of Economy and Finance, Economist Mauricio Pozo, gave a conference named: “Economic Perspectives and Business Opportunities in Ecuador”. The Minister was invited by the Embassy of Ecuador in Venezuela and the Andean Development Corporation.

SEMINAR: “BUSINESS CULTURE IN ECUADOR AND COLOMBIA” IN CALI – COLOMBIA

On March 23 a Seminar on Business Culture in Ecuador and Colombia took place in Cali.
This event had the support of our Consulate in Cali, the Chamber of Commerce of Cali, the Ecuadorian Exports and Investments Corporation (CORPEI), and the Colombia-Ecuador Chamber of Commerce.

The goal of the seminar was to bring business people from the Cauca Valley up to date on the business culture in Ecuador and Colombia and the commercial opportunities existing in both nations.

TELECONFERENCE ABOUT US BIOTERRORISM LAW:

The Exports and Investments Promotion Office of this Ministry, as part of the National Commission for follow-up on the Bioterrorism Law, is coordinating a teleconference in order to present to the business sector the advances made by the legislation of the Bioterrorism law and drug trafficking in exports to the US.

This event will rely on the assistance of the Food and Drug Administration (FDA) and the United States Agency for International Development (USAID).

During the teleconference, which is planned for mid April, some topics of interest for national businessmen will be addressed, especially maintenance of registration, prior notice, appointment of agent, practical cases in the application of the law and new regulations.

The teleconference will be broadcast from Washington and the signal will be received simultaneously in Quito, Guayaquil, Cuenca, Machala, Manta, and Quevedo.