Ecuador

Joined the WTO in 1996 and began trade liberalization.
Foreign trade accounts for over 50% of GDP.
U.S. is their largest supplier of imported products.
One of the most open economies in the region.
Currency stable since Ecuador officially adopted the US dollar as their legal currency in March, 2000.
Risks to Ecuador’s economy include political and external factors such as the El Nino, which depressed the market in 1997-98.
Revised its constitution in 1998 to stabilize government.
- Under new constitution, Ecuador is a a republic with an executive, legislative and judicial branch

Market is highly sensitive to price, now more than ever.
- Interested U.S. companies should focus on price competitiveness.
Ecuadorians are price conscious but willing to pay more for quality and brand, especially U.S. goods.
Heavy advertising is recommended to gain name recognition for a new product's market introduction
Promote products through television in urban centers, such as Quito, Guayaquil and Cuenca.
A local representative or agent is necessary to sell any product in Ecuador.
Typical consumer of American products is urban and middle/upper class.
Spanish labeling is an asset to reach all Ecuadorian consumers.
Look out for additional surcharges on imports.
- Ecuadorian government frequently inacts tariffs to raise more revenue for budget deficit reduction.
- However, the average applied tariff rate is about 10-15%.
Be environmentally aware; environmental concerns continue to grow as Ecuador continues to develop.

Ecuadorians are formal when engaged in business relations; suits and ties are the norm.
Firm handshake is expected.
Small talk usually takes place before the discussion of business.
Ecuadorians are group-oriented and appreciate authoritative managers in group settings.

Do's

Use titles (e.g., Mr., Dr.) before the name.
Expect to get better acquainted with a potential business partner aside from business meetings
Carry your passports at all times--visitors are required to
Be prepared for long negotiations when dealing with the government or official bodies
Make an effort to speak in Spanish, it's appreciated

Don'ts