OPENING up to new markets

FEDEXPOR focuses on defending the interests of the export sector as well as improving the conditions of competitiveness for the internationalization of Ecuadorian companies.

Private nonprofit institution

What is your view on the tariff reform of the government from the perspective of FEDEXPOR?

It is always important to reduce the tax burden of the export sector. There is an international principle of not exporting taxes. Tariffs are charged on raw materials or intermediate inputs, and these should not be paid by the exporter, because it inflates the cost structure. Exporters cannot pass on these expenses to international buyers. It is necessary to have a relatively transparent policy to make the exporting sector more competitive on an international level. To improve competitiveness, Ecuador needs to open up new markets. Our primary focus is an international agenda in which the opening of markets for exporting is essential. The second one is a domestic agenda in which we work on the competitiveness issues, such as the development of human talent, which is required to provide a competitive exportable offer.

Are free trade zones the way to increase competitiveness?

It is a way to attract new exporting investments and take advantage of infrastructure projects. All exporting companies that cannot benefit from the free trade zone scheme are working on their entire work structure, since Ecuador has become an expensive country. Trying to once again stabilize the cost structure to meet international levels implies working with companies that are already competing with that greatly increased cost structure.

What are some of FEDEXPOR’s initiatives to help its affiliates with competitiveness?

We have worked with over 130 companies and associative groups that are looking to open a worldclass market for the first time. This is a big job in terms of qualifications, quality, modernizing the production processes in order to adapt them to the necessities of the international market, and understanding consumer trends in the main consumption centers. At the same time, we are working on an agenda that will allow exporting centers with the greatest potential to open up new markets via a more business-orientated approach. FEDEXPOR is working on a medium- and shortterm strategy. The short-term one could consist of working on all those elements needed by exporters to reach new markets under the same conditions as competitors in the same region for similar products. In the medium term, we must work hard on productivity. The intention there is to link all the new innovative technologies. Additionally, we have a created national exporting plan to train our affiliates to stay resilient. FEDEXPOR has consolidated the main needs of the export sector in simple terms, with a commercial agenda, strengthening of foreign trade and promotion, financing, trade facilitation, reduction of the tax and regulatory burden, and a long-term component of sustainability and the development of exporting capacities. Finally, we have created a recognition for exporting talent, known as the PremioeXpor. It consists of recognizing the best practices among exporting companies and rewarding them.

Leader in representation and provision of quality services for Ecuadorian businesses

What opportunities will Ecuador becoming a member of the Pacific Alliance offer to exporters?

The Pacific Alliance is an interesting platform to focus on the markets that are more representative for us. For example, Japan, Korea, and China are markets where we have a wide potential for expansion, especially in terms of food supply. If we endorse these three markets, this constitutes around 20-25% of the global food consumption. Those markets demand high quality, and the Pacific Alliance can provide us momentum to reach these markets easier, since they are the most dynamic in this context of global recovery.

How does the Trade and Investment Council Agreement between the US and Ecuador help international trade be more responsible?

It is about transparency. Usually, small and medium exporters pay an additional cost to gain access to information and reach international markets. This promotes transparency along with the internationalization of the process. The other aspect consists of a reduction in terms of costs and time. The Trade and Investment Council Agreement with the US gives clear signs of trade facilitation for these companies, excellent regulatory practices, and more.