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Establishment restrictions

ECUADOR


Chapter Competition policy  |  Sub-chapter Competition
Local Loop Unbundling (LLU)
Ecuador is in an advanced process of liberalization of its telecommunications market, in which competition rules already apply. However, the access to the last mile is owned by the state owned incumbent, CNT.
Coverage Telecommunication sector
Establishment restrictions

ECUADOR

Since December 2013

Chapter Intellectual Property Rights  |  Sub-chapter Copyright
Amendments to the Criminal Code
Amendments to the Criminal Code in 2013 decriminalized some intellectual property violations. Ecuador’s lack of controls and criminal penalties has led to increased copyright piracy and counterfeiting.
Coverage Horizontal
Establishment restrictions

ECUADOR

Since 1998

Chapter Intellectual Property Rights  |  Sub-chapter Copyright
Law on Intellectual Property (Consolidation No. 2006-13)
The Law on Intellectual Property does not provide for the notion of fair use/fair dealing. It only lists a small number of acts which do not require authorization by the copyright owner.
Coverage Horizontal
Establishment restrictions

ECUADOR

Since October 2010

Chapter Intellectual Property Rights  |  Sub-chapter Patents
Discrimination in patent applications
The government's current policy is to favor those companies which invest in Ecuador by assigning their patents to local national companies or companies domiciled and producing in Ecuador.

Patent fees have increased by about 3600%, going from USD 260 to USD 43,692 in the case of patentability examination fee and from USD 570 to over USD 20,500 in the case of final year fee.

There is also a potential discount of up to 90% to SMEs, universities legally recognized in the country, independent inventors and public institutions.
Coverage Horizontal
Establishment restrictions

ECUADOR

Reported in 2014

Chapter Investment  |  Sub-chapter Other restrictive practices related to foreign investment
Lack of enforcement of court rulings
It is reported that Ecuador’s government failed to respect the outcome of two court decisions in 2011 and 2012 that ruled in favor of a U.S. provider of telecom services.
Coverage Telecommunication sector
Establishment restrictions

ECUADOR

Reported in 2014

Chapter Investment  |  Sub-chapter Restrictions on ownership
Ecuadorian Constitution, Art. 313-315
Articles 313-315 of the 2008 Constitution establish that the state is responsible for management of “strategic sectors” through state-owned or controlled companies. These strategic sectors include: telecommunications and media. According to the authorities, this implies that the State reserves the right of planning, decision making and investment modalities for these sectors.
Coverage Telecommunication sector
Sources
Fiscal Restrictions

ECUADOR

Since May 2008

Chapter Public Procurement  |  Sub-chapter Technology mandate
Executive Decree 1014
Executive Decree 1014 made Free and Open Source Software (FOSS) mandatory for public administration.
Coverage Software products
Fiscal Restrictions

ECUADOR

Reported in 2015

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
WTO Agreement on Government Procurement
Ecuador is not a signatory to the WTO Agreement on Government Procurement.
Coverage Horizontal
Source
  • USTR, 2015 National Trade Estimate Report on Foreign Trade Barriers: https://ustr.gov/sites/default/files/2015%20NTE%20Combined.pdf
Fiscal Restrictions

ECUADOR

Reported in 2015

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
Public Procurement Law, Article 34
Ecuador's Public Procurement Law establishes several exceptions from its general application. Article 34 of the Public Procurement Law allows public enterprises to follow special procurement rules, provided that the National Public Procurement Service (SERCOP) issues an open-ended authorization for purchases considered within “the nature of the enterprise". This enables public enterprises broad flexibility to make procurements with reduced oversight.
Coverage Horizontal
Sources
  • USTR, 2015 National Trade Estimate Report on Foreign Trade Barriers: https://ustr.gov/sites/default/files/2015%20NTE%20Combined.pdf
  • European Commission, DG Trade, 11th Report on Potentially Trade-Restrictive Measures Identified in the Context of the Financial and Economic Crisis, 1 June 2013 – 30 June 2014: http://trade.ec.europa.eu/doclib/docs/2014/november/tradoc_152872.pdf
Fiscal Restrictions

ECUADOR

Reported in 2015

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
Non-transparent bidding procedure
Bidding on government procurement can be cumbersome and non-transparent. The lack of transparency creates opportunities for manipulation by procuring entities. For example,enables public enterprises broad flexibility to make procurements with reduced oversight. Moreover, foreign bidders must register and have a local legal representative in order to participate in government tenders.
Coverage Horizontal
Sources
  • USTR, 2015 National Trade Estimate Report on Foreign Trade Barriers: https://ustr.gov/sites/default/files/2015%20NTE%20Combined.pdf
  • European Commission, DG Trade, 11th Report on Potentially Trade-Restrictive Measures Identified in the Context of the Financial and Economic Crisis, 1 June 2013 – 30 June 2014: http://trade.ec.europa.eu/doclib/docs/2014/november/tradoc_152872.pdf
Fiscal Restrictions

ECUADOR

Reported in 2015

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
Preferential treatment
Various provisions in Ecuador's Public Procurement Laws stipulate preferences for domestic suppliers and discriminate against foreign firms. Foreign suppliers can compete for public procurements, but Ecuador requires that preferential treatment be given to locally produced goods, especially those produced by the constitutionally created “social and solidarity economy” (i.e. an alternative economic model based on principles of solidarity, participation, cooperation, reciprocity), as well as micro and small enterprises.
The Ecuadorian Constitution stipulates in Article 288 the "prioritization of domestic products and services in public procurement". Moreover, the National Procurement System Organic Law establishes as one of its aims to be a "dynamic element of production" (Article 9) and it also states that "specifications of a public procurement will contain evaluation points that encourage national or local participation, by a preferential margin, for suppliers' works, goods and services, including consultancy, according to the parameters set by the Ministry of Industry and Competitiveness" (Article 25).
Coverage Horizontal
Sources
  • USTR, 2015 National Trade Estimate Report on Foreign Trade Barriers: https://ustr.gov/sites/default/files/2015%20NTE%20Combined.pdf
  • European Commission, DG Trade, 11th Report on Potentially Trade-Restrictive Measures Identified in the Context of the Financial and Economic Crisis, 1 June 2013 – 30 June 2014: http://trade.ec.europa.eu/doclib/docs/2014/november/tradoc_152872.pdf
Fiscal Restrictions

ECUADOR

Since June 2014

Chapter Taxation & Subsidies  |  Sub-chapter Discriminatory tax regime on online services
Art. 4 Category B of customs regulation (4x4 cuatro por cuatro) regulated by La Resolución 023 del Consejo de Comercio Exterior (Comex)
Ecuador's Comex Resolution 023 establishes a fixed USD 42 tax on imported internet purchases (for private and not commercial purposes) in the the "4×4 category", which allows the import of a maximum of 4kg with a value of 400 USD per person. Purchases that exceed the limited amount will be taxed for all the products.
Coverage Foreign online purchases
Fiscal Restrictions

ECUADOR

ITA signatory? I II

Chapter Tariffs and Trade Defence  |  Sub-chapter Applied tariffs on digital goods
Average MFN rate
7.34%
Weighted average MFN rate
9.77%
Maximum tariff rate
30%
Coverage rate of zero-tariffs
28.82%

Coverage: Digital goods
Sources

Fiscal Restrictions

ECUADOR

ITA signatory? I II

Chapter Tariffs and Trade Defence  |  Sub-chapter Applied tariffs on digital goods
Average MFN rate
7.34%
Weighted average MFN rate
9.77%
Maximum tariff rate
30%
Coverage rate of zero-tariffs
28.82%

Coverage: Digital goods
Sources

Trading restrictions

COSTA RICA

n/a

Chapter Online sales and transactions  |  Sub-chapter Domain name (DNS) registration requirements
Regulations for domain name registration
Physical presence is not needed for .cr or .co.cr domains. However, for all other levels such as ( .ed.cr, .fi.cr, .go.cr, .or.cr, .sa.cr) physical presence in Costa Rica is required.
Coverage Horizontal