WORLD TRADE WT/GC/W/76
9February 1998
ORGANIZATION(98-0465)
Original: English General Council
19February 1998
ECUADOR -COMMITMENTS UNDER THE PROTOCOL OFACCESSION
Communication from theUnited States
Thefollowing communication, dated 6February 1998, hasbeenreceived fromthePermanent
Mission oftheUnited States.
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Ecuador became aWTO Member on21January 1996. Theprovisions ofitsprotocol of
accession (WT/L/77 of14July1995) require Ecuador tobring itstradepractices intoconformity with
theWTO Agreement bythedateofaccession or,insome cases, within specific periods oftime. The
protocol alsoprovides thatEcuador willnotify theSecretariat annually atthebeginning oftheyear
oftheimplementation ofcertain commitments withdefinitive dates forcompliance andwillidentify
anydelays inimplementation together withthereasons therefor.
AttheGeneral Council ’smeeting of7February 1997, theUnited States Delegation brought
totheattention ofWTO Members thefactthatEcuador hadnotmetanumber oftheobligations it
undertook upon accession (WT/L/202). Oneyearlaterwefindthatanumber ofdeficiencies remain.
Ecuador hadcommitted interalia:
- toapply theprovisions oftheWTO TRIPS Agreement nolaterthan31July1996.
Legislation implementing thatcommitment stillhasnotbeenenacted.
- toeliminate by31July1996thediscriminatory application ofthespecial Consumption
Taxonsimilar domestic andimported products. However, discrimination iscontinuing
withrespect tosoftdrinks, beer, alcoholic beverages, andcigarettes, andwasadded
on30December 1996 toautomobiles.
- toimplement tariff ratequotas oncertain agricultural products in1996. Ecuador still
hasnotdoneso.
- toeliminate import bansonusedtires, clothes andautomobiles by1July1996. The
bansarestillinplace.
USexporters havealsoidentified other practices which, notwithstanding theGovernment of
Ecuador ’sassurances totheWorking Party onEcuador ’sAccession, appear tobeWTO-inconsistent,
including:
- astandards regime thathasacted asanarbitrary tradebarrier foravariety ofproducts;
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- a“priorauthorization ”system forunprocessed agricultural imports which oftenrelies
onnon-scientific criteria andwhich hasbeenusedtoblock avariety ofimports toprotect
localproduction.
- pre-shipment inspection practices which arenon-transparent andcontrary toanumber
oftheprovisions ofthePreshipment Inspection Agreement.
Inaddition, Ecuador continues toapply adiscriminatory "Dealers ’Act"tocertain foreign
companies seeking toterminate exclusive dealership arrangements withEcuadoreans.
TheUnited States hasrequested thatthisissue beplaced ontheagenda ofthe19February
meeting oftheGeneral Council inlightoftheCouncil 'sadoption ofEcuador 'sprotocol ofaccession
andtheinterest ofallMembers incompliance withthecommitments inprotocols ofaccession.
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