Ecuador European Union Trade Agreement

The objective of Chapter 4 is to improve the legal environment for investors in EFTA and Ecuador countries investing in the other country`s markets. This objective is achieved by granting non-discriminatory establishment and operating rights („commercial presence“) in economic sectors that are not covered by the trade in services chapter. In some economic zones, the contracting parties have enshrined national deposits in their national legislation on the basis of restrictions (Annex XV). The chapter is subject to periodic review in order to develop the obligations of the parties. The agreement removes high tariffs and removes technical barriers to trade. In addition, services markets will be liberalised, EU geographical indicators will be protected and markets will be open to public procurement. It includes obligations to meet labour and environmental standards, as well as timely and effective dispute resolution procedures. „Today`s signing is very good news and proves that the EU, in its central political field, provides free and fair trade.“ After Bolivia and Ecuador refused to sign a free trade agreement, the EU continued bilateral negotiations with Peru and Colombia. In April 2011, Colombia signed a text with the EU and the agreement with Peru is provisionally in force, although they are both awaiting ratification by the European Parliament. Meanwhile, Ecuador, which is defending an anti-FTA stance, continues to discuss a possible agreement with the EU. As a large-scale free trade agreement, it covers trade in goods, trade in services, settlement (investment), intellectual property rights, public procurement, competition, trade, sustainable development and cooperation.

In the area of trade, EFTA states lift all tariffs on imports of industrial products, including fish and other seafood originating in Ecuador. Ecuador will phase out or reduce tariffs on industrial products, including fish and other seafood, originating in an EFTA state. The European Union and the Andean Community (Comunidad Andina de Naciones or CAN) have been working towards a bilateral trade and investment pact since 1993, when they first signed a framework cooperation agreement. In 2003, they signed a joint commitment in Rome to formally conclude an association agreement, „including a free trade agreement.“ This was confirmed at the highest political level in Guadalajara in 2004. In May 2006, both sides agreed to begin the negotiation process as soon as possible. The Andean Community is made up of Bolivia, Colombia, Ecuador and Peru. (Venezuela withdrew in 2006. Chapter 3 closely follows the approach of the WTO`s General Agreement on Trade in Services (GATS). It covers trade in all service sectors under the four types of supply. Separate annexes to financial services (Annex XI), telecommunications services (Annex XII), the free movement of individuals providing services (Annex XIII) and maritime transport services (Annex XIV) complete the chapter with additional disciplines specific to these sectors.

Lists of contracting parties with specific obligations and derogations from the treatment of the Most Preferred Nation (MPF) are listed in Appendix IX and X, respectively.