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.

-

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!