Export Promotion of Selected Products to the EU and EFTA

Assessment of Trade Restrictive Measures, Market Access and Export Strategy

Clinic: Graduate Institute, Fall 2019

Beneficiary: Government of Ecuador

Executive Summary

(Full report can be read here)

Watch video here

The Project identifies trade-restrictive measures, provides negotiating strategies related to them and introduces a specific export strategy for the associations, specified by the Beneficiary.

The first chapter, set out in the present document, constitutes the introduction to the project. It analyses the socioeconomic conditions of Ecuador that generated the beneficiary’s interest in the project. Afterward, it introduces some fundamental issues related to the export promotion of Small and Medium-sized Enterprises. Moving on, the chapter introduces the products at issue, quinoa, cocoa and handicraft, and the relevant associations that produce them. Lastly, it provides some basic information on the target market, as set by the Beneficiary.

The second chapter deals with the identification of trade-restrictive measures by using online databases. After identifying them, the second chapter introduces a handbook on examining the measures that were identified. The goal is to provide a database to the Beneficiary of trade-restrictive measures and the Beneficiary will be able to conduct a legal analysis based on the handbook included in chapter 2.

The third chapter deals with market access and negotiation strategies related to the conclusions of chapter 3. In specific, chapter 3 introduces the different negotiating fora and the processes that Ecuador must comply with in order to gain better market access for its products.

The fourth chapter, divided into 4 separate documents, provides specific export strategies, tailored to the associations and the products at hand. The goal was to identify the issues faced by the associations and provide concrete guidelines regarding exportation to the target markets.

The results draw attention to the finding that the products were mostly affected by technical regulations, which are sanitary and phytosanitary measures, as well as technical regulations, which compliance is mandatory.

Regarding quinoa, the measures relate mainly to pesticide residue limit and in some cases, to the acceptable levels of humidity, or packaging regulations. As for cocoa, cadmium or to maximum pesticide residue levels, to labelling requirements. The handicrafts are potentially affected by a few measures.

The present report examines the available market access strategies that Ecuador has in order to deal with the trade-restrictive measures that were identified to affect Ecuadorian products. Following our analysis in the trade-restrictive measures report, we will focus on measures affecting quinoa grain and cocoa beans paste and examine possible negotiating strategies.

The report provides information on the available fora for negotiations in the World Trade Organization and in the Free Trade Agreements signed by Ecuador. In specific, the Free Trade Agreements examined are the EFTA-Ecuador Free Trade Agreement and the EU-Andean Community Free Trade Agreement.

For quinoa seeds, the report examines the introduction of the new standard on quinoa seeds by Codex Alimentarius. It seeks to lay down the procedures that Ecuador can follow to negotiate the harmonization of national regulations to the Codex standard. In addition, the report introduces the relevant procedures for achieving equivalence status of Ecuadorian sanitary and technical procedures with regards to EU and EFTA.

Lastly, the Report examines the basic considerations regarding the regulations of the cadmium level found in cocoa paste and cocoa beans.

The full report can be read here.

Video available here

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