Post on 02-Oct-2020
Ecuador Trade Outlook 2009
U.S. Commercial Service Ecuador
U.S. Commercial Service Ecuador
Slide 1
Eric Olson, Senior Commercial OfficerU.S. Embassy Quito, Ecuador
U.S. Commercial Service Ecuador
Slide 2
AGENDA
Economy Overview U.S. Trade with Ecuador Best Prospects SWOT for Ecuador Doing Business in Ecuador Business Etiquette
U.S. Commercial Service Ecuador
Slide 3
Economy
Agricultural and oil economy: Oil is the largest Ecuadorian export, followed by cut flowers, bananas,and shrimp.
World’s 67th-largest economy (2008)
Ecuador’s global trade surpassed $35.9 billion in 2008
Economy
U.S. Commercial Service Ecuador
Slide 4
GDP 2008: 52.5 billionGDP growth (2008): 5.3%Expected GDP growth (2009): 3.2%GDP per capita (2008): 3,808
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
GDP PER CAPITA 1997-2008
0.0
10.0
20.0
30.0
40.0
50.0
60.0
19951996199719981999200020012002200320042005200620072008
GDP ECUADOR ($billions)
Economy - TradeU.S. Commercial Service Ecuador
Slide 5
IMPORTS$17.42 bill.
EXPORTS TRADE VOLUME$18.51 bill. $35.93 bill.
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2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
Ecuador Trade ($billions)
Exports
Imports
U.S. Trade with Ecuador
Ecuador is the United States’ 46th-largest export market
$3.45 billion (2008) in exports to Ecuador(45.14% of Ecuador’s total imports)
$9.04 billon (2008) in imports from Ecuador(0.27% of the U.S.’s total imports)
The U.S. is Ecuador’s largest trading partner
Ecuador is an ATPDEA beneficiary
U.S. Commercial Service Ecuador
Slide 6
U.S. Trade with EcuadorU.S. Commercial Service Ecuador
Slide 7
566,731,297 21%
565,606,519 21%
537,741,043 20%
436,716,404 17%
230,900,701 9%
183,096,708 7%
136,562,218 5%
333--MACHINERY; EXCEPT ELECTRICAL 325--CHEMICALS
334--COMPUTER AND ELECTRONIC PRODUCTS 324--PETROLEUM & COAL PRODUCTS
336--TRANSPORTATION EQUIPMENT 322--PAPER
11--AGRICULTURE AND LIVESTOCK PRODUCTS
U.S. Commercial Service Ecuador
Slide 8
California Trade with Ecuador
(total: $142,825,473)
30%
17%
12%
9%
7%
5%
20%
Transportation Equipment
Computers & Electronic Prod.
Machinery Manufactures
Crop Production
Chemical Manufactures
Processed Foods
All Others
U.S. Commercial Service Ecuador
Slide 9
Best Prospects
Best prospects for U.S. exports to Ecuador include:
Printing and Graphics Arts
Plastics Machinery, Materials, and Resins
Decontamination Equipment
Automotive Parts and Accessories
Cosmetics
Defense Industry Equipment
Education and Training Services
Medical Equipment and Devices
For our Country Commercial Guide, please visit our website at:
http://www.buyusa.gov/ecuador/en/
SWOT on Ecuador
U.S. Commercial Service Ecuador
Slide 10
Affinity for U.S. products & services
Government promoting
development of local industry
Good entry point for all
Andean markets
Growth of foreign investment
in local industries
Good niche opportunities –
vitamins, infrastructure, franchises,
cosmetics
Political uncertainty
IPR enforcement
Relatively small and under-
developed market
Difficulties in obtaining credit
Slow down in world economy
Drift towards protectionism
Politicization of judicial system
Strengths Weakness
Opportunities Threats
Doing Business in Ecuador
1. Always have a formal introduction; don’t forget business cards.
2. Do your best to speak Spanish in meetings.
3. Invest in building relationships.
4. Appreciate the value of long-term loyalty.
5. Entertain and be entertained.
6. Perform adequate market research.
7. Be open to a different cultural perspective.
U.S. Commercial Service Ecuador
Slide 11
Doing Business in Ecuador
8. Be mindful of public opinion.
9. Protect your Intellectual Property Rights.
10. Appoint a qualified distributor. Do not appoint an exclusive distributor.
11. Have a local lawyer review your contracts.
12. Include an arbitration clause in your contracts.
U.S. Commercial Service Ecuador
Slide 12
Get Off on the Right Foot: Business Etiquette
Have your information available in the Spanish language.
Make a good first impression.
Shake hands at meetings.
Wear coat and tie.
Cultivate a network of Ecuadorian contacts.
U.S. Commercial Service Ecuador
Slide 13
U.S. Commercial Service Ecuador
Slide 14
Gold Key Business
Match Making
Finding
Partners
Market Research
Comprehensive
Solutions
International
Buyers
Program
Counseling/
Advocacy
U.S.
Commercial
Service
U.S. Commercial ServiceEcuador
Slide 15
Thank you & visit us at http://www.buyusa.gov/ecuador/en
Thank you!Gracias!