ECUADOR
Since August 2008, last amended in February 2021
Since June 2022, entry into force in August 2022
Since June 2022, entry into force in August 2022
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Organic Law on National System of Public Procurement (Ley Orgánica Del Sistema Nacional de Contratación Pública)
General Regulations to the Organic Law of the National Public Procurement System (Reglamento General a la Ley Orgánica del Sistema Nacional de Contratación Pública)
General Regulations to the Organic Law of the National Public Procurement System (Reglamento General a la Ley Orgánica del Sistema Nacional de Contratación Pública)
Art. 25.2 of the Organic Law on National System of Public Procurement provides that preference must be given to the bidder of goods, works or services that incorporate a greater component of Ecuadorian origin or to actors of the popular and solidarity economy and Micro, Small and Medium Enterprises (MSMEs), through the application of mechanisms such as: proportional margins of preference over the bids of other suppliers, market reserve, delivery of advances, preferential subcontracting, among others. Art. 38 of the General Regulations to the Organic Law of the National Public Procurement System further clarifies the preference for MSMEs and actors of the popular and solidarity economy.
Coverage Horizontal
Sources
- https://web.archive.org/web/20240924113233/https://portal.compraspublicas.gob.ec/sercop/wp-content/uploads/2021/04/losncp_actualizada1702.pdf
- https://web.archive.org/web/20241203195008/https://portal.compraspublicas.gob.ec/sercop/wp-content/uploads/2022/08/Decreto_Ejecutivo_No._458_20220520094615-1.pdf
- https://web.archive.org/web/20221006230259/https://portal.compraspublicas.gob.ec/sercop/el-nuevo-reglamento-general-a-la-ley-organica-del-sncp-entrara-en-vigencia-a-partir-del-20-de-agosto/
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ECUADOR
Since October 2008, last amended in July 2011
Since June 2013, entry into force in June 2013, last amended in February 2019
Since June 2013, entry into force in June 2013, last amended in February 2019
Pillar Telecom infrastructure & competition |
Indicator Maximum foreign equity share for investment in the telecommunication sector
Constitution of the Republic of Ecuador 2008 (Constitución de la República del Ecuador 2008)
Organic Law on Communication (Ley Orgánica de Comunicación)
Organic Law on Communication (Ley Orgánica de Comunicación)
According to Art. 313 of the Constitution of the Republic of Ecuador 2008, the State reserves the right to administer, regulate, control, and manage strategic sectors, including telecommunications. Furthermore, according to Arts. 316 of the Constitution of the State and 14. of the Organic Law on Communications, public telecommunications services are provided directly by the State, through public telecommunications companies, or indirectly through delegation to mixed economy companies in which it has a majority shareholding.
Coverage Telecommunications sector
Sources
- https://web.archive.org/web/20220325160620/https://www.oas.org/juridico/pdfs/mesicic4_ecu_const.pdf
- https://web.archive.org/web/20220329021715/https://www.telecomunicaciones.gob.ec/wp-content/uploads/downloads/2016/05/Ley-Org%C3%A1nica-de-Telecomunicaciones.pdf
- https://web.archive.org/web/20230304083329/https://portal.compraspublicas.gob.ec/sercop/wp-content/uploads/2021/04/losncp_actualizada1702.pdf
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ECUADOR
Since November 1999, last amended in March 2023
Since August 2008, last amended in February 2021
Since June 2022, entry into force in August 2022
Since August 2008, last amended in February 2021
Since June 2022, entry into force in August 2022
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Companies Law (Ley de las Compañías)
Organic Law on National System of Public Procurement (Ley Orgánica Del Sistema Nacional de Contratación Pública)
Regulation to the Organic National System of Public Procurement Law (Reglamento a la Ley Orgánica Del Sistema Nacional de Contratación Pública)
Organic Law on National System of Public Procurement (Ley Orgánica Del Sistema Nacional de Contratación Pública)
Regulation to the Organic National System of Public Procurement Law (Reglamento a la Ley Orgánica Del Sistema Nacional de Contratación Pública)
According to Art. 6 of the Companies Law, commercial presence is required if the activities that a foreign company is going to be exercising in Ecuador involve the execution of public works and the provision of public services.
In addition, registration in the Unified Registry of Suppliers (R.U.P.) is required to participate in public procurement according to Art. 18 of Organic Law on the National System of Public Procurement and Art. 18 of its Regulation.
In addition, registration in the Unified Registry of Suppliers (R.U.P.) is required to participate in public procurement according to Art. 18 of Organic Law on the National System of Public Procurement and Art. 18 of its Regulation.
Coverage Horizontal
Sources
- https://web.archive.org/web/20240328094619/https://portal.compraspublicas.gob.ec/sercop/wp-content/uploads/2023/04/ECLEX-PRO-MERCANTI-LEY_DE_COMPANIAS.pdf
- https://web.archive.org/web/20240924113233/https://portal.compraspublicas.gob.ec/sercop/wp-content/uploads/2021/04/losncp_actualizada1702.pdf
- https://web.archive.org/web/20241203195008/https://portal.compraspublicas.gob.ec/sercop/wp-content/uploads/2022/08/Decreto_Ejecutivo_No._458_20220520094615-1.pdf
- https://web.archive.org/web/20221006230259/https://portal.compraspublicas.gob.ec/sercop/el-nuevo-reglamento-general-a-la-ley-organica-del-sncp-entrara-en-vigencia-a-partir-del-20-de-agosto/
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ECUADOR
Since January 2010
Pillar Telecom infrastructure & competition |
Indicator Presence of shares owned by the government in telecom companies
Presence of shares owned by the government in telecom companies
The Corporación Nacional de Telecomunicaciones (National Corporation of Telecommunications) is the dominant provider of fixed telecommunication services and is fully owned by the Ecuadorian Government. It was created by Executive Decree No. 218, which specifically establishes that the Ministry of Telecommunications and the Information Society, representing the State, is the sole shareholder.
La Empresa Pública Municipal de Telecomunicaciones, Agua Potable, Alcantarillado y Saneamiento de Cuenca (Etapa EP, Municipal Public Company of Telecommunications, Drinking Water, Sewage and Sanitation of Cuenca), created by a January 2010 ordinance, is another case in which the telecom operator is a state-owned enterprise. Initially created in February 1948 as Empresa Municipal de Electricidad, Agua Potable y Teléfonos (EMLAT), ETAPA EP provides municipal internet and fixed, wireless and public telephone services.
La Empresa Pública Municipal de Telecomunicaciones, Agua Potable, Alcantarillado y Saneamiento de Cuenca (Etapa EP, Municipal Public Company of Telecommunications, Drinking Water, Sewage and Sanitation of Cuenca), created by a January 2010 ordinance, is another case in which the telecom operator is a state-owned enterprise. Initially created in February 1948 as Empresa Municipal de Electricidad, Agua Potable y Teléfonos (EMLAT), ETAPA EP provides municipal internet and fixed, wireless and public telephone services.
Coverage Telecommunications sector
Sources
- https://web.archive.org/web/20240603122916/https://corporativo.cnt.gob.ec/wp-content/uploads/2014/07/crea_empresa_publica_cnt_ep1.pdf
- https://web.archive.org/web/20241004133930/https://www.etapa.net.ec/Portals/0/TRANSPARENCIA/Literal-a2/ORDENANZA%20ETAPA%20EP.pdf?ver=2022-11-08-114530-047
- https://web.archive.org/web/20231106080406/https://ustr.gov/sites/default/files/2020_National_Trade_Estimate_Report.pdf
- https://web.archive.org/web/20220815032742/https://www.etapa.net.ec/informacion/quienes-somos
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ECUADOR
Reported in 2022, last reported in 2024
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Lack of transparency in public procurement
It is reported that bidding on government procurement can be cumbersome and non-transparent. Payments can often be delayed without explanation despite provision of goods and services and proper work orders and receipts. Personnel turnover within government entities sometimes requires restarting bidding processes as the new personnel do not want to continue processes for fear of national comptroller audits. It is reported that the lack of transparency poses a risk that procuring entities will administer a procurement to the advantage of a preferred supplier.
Coverage Horizontal
ECUADOR
N/A
Pillar Public procurement of ICT goods and online services |
Indicator Signatory of the WTO Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
Ecuador is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 2019.
Coverage Horizontal
ECUADOR
Since October 2008, last amended in July 2011
Since June 2013, entry into force in June 2013, last amended in February 2019
Since June 2013, entry into force in June 2013, last amended in February 2019
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Maximum foreign equity share
Constitution of the Republic of Ecuador 2008 (Constitución de la República del Ecuador 2008)
Organic Law on Communication (Ley Orgánica de Comunicación)
Organic Law on Communication (Ley Orgánica de Comunicación)
According to Art. 313 of the Constitution of the Republic of Ecuador 2008, the State reserves the right to administer, regulate, control, and manage strategic sectors, including telecommunications. Furthermore, according to Art. 316 of the Constitution of the State and Art. 14 of the Organic Law on Communications, public telecommunications services are provided directly by the State, through public telecommunications companies, or indirectly through delegation to mixed economy companies in which it has a majority shareholding.
Coverage Telecommunications sector
Sources
- https://web.archive.org/web/20240723111745/https://www.oas.org/juridico/pdfs/mesicic4_ecu_const.pdf
- https://web.archive.org/web/20240505194643/https://www.telecomunicaciones.gob.ec/wp-content/uploads/downloads/2016/05/Ley-Org%C3%A1nica-de-Telecomunicaciones.pdf
- https://web.archive.org/web/20230304083329/https://portal.compraspublicas.gob.ec/sercop/wp-content/uploads/2021/04/losncp_actualizada1702.pdf
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ECUADOR
Since June 2013, entry into force in June 2013, last amended in February 2019
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Maximum foreign equity share
Organic Law on Communication (Ley Orgánica de Comunicación)
According to Art. 98 of the Organic Law on Communications, all the advertising that is disseminated in Ecuadorian territory through the media must be produced in Ecuadorian territory by Ecuadorian natural persons or foreigners residing in Ecuador or produced abroad by Ecuadorian persons residing abroad or foreign legal entities whose ownership of the majority of the share package corresponds to Ecuadorians and whose payroll for its realisation and production is made up of at least 80% of Ecuadorian nationals. In addition, the importation of advertising pieces produced outside the country by foreign companies is prohibited, with the exception of what is established regarding foreign legal entities, with a majority of shares owned by Ecuadorians. According to the same article, advertising production is understood as television and movie commercials, radio spots, photographs for static advertising, or any other audiovisual piece used for advertising purposes.
Coverage Advertising sector
ECUADOR
Since June 2013, entry into force in June 2013, last amended in February 2019
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Maximum foreign equity share
Organic Law on Communication (Ley Orgánica de Comunicación)
According to Art. 6 of the Organic Communication Law, foreign companies or individuals (except foreign citizens who reside regularly in Ecuador) cannot own more than 49% stakes in "national" social media. These are defined as those social media that reach more than 30% of the Ecuadorian population.
Coverage Social media
ECUADOR
Since November 1999, last amended in March 2023
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Commercial presence requirement for digital services providers
Companies Law (Ley de las Compañías)
According to Art. 6 of Company Law, commercial presence is required if the activities that a foreign company is going to be exercising in Ecuador involve the execution of public works and the provision of public services.
Coverage Horizontal
ECUADOR
Since December 2016, last amended in December 2022
Pillar Intellectual Property Rights (IPRs) |
Indicator Practical or legal restrictions related to the application process for patents
Organic Code on the Social Economy of Knowledge, Creativity and Innovation (Código Orgánico de la Economía Social de los Conocimientos, Creatividad e Innovación)
According to Art. 98 of the Organic Code on Social Economy of Knowledge, Creativity, and Innovation, applicants who do not have residency in Ecuador must have an agent domiciled in the country who can help them register industrial property rights and answer petitions of competent national authority.
Coverage Horizontal
ECUADOR
Since May 2001
Pillar Intellectual Property Rights (IPRs) |
Indicator Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty (PCT)
Ecuador is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal
ECUADOR
Since December 2016, last amended in December 2022
Since December 1993
Since December 1993
Pillar Intellectual Property Rights (IPRs) |
Indicator Copyright law with clear exceptions
Organic Code on the Social Economy of Knowledge, Creativity and Innovation (Código Orgánico de la Economía Social de los Conocimientos, Creatividad e Innovación)
Andean Decision No. 351 Common Regime on Copyright and Related Rights (Decisión Andina No. 351. Régimen Común sobre Derecho de Autor y Derechos Conexos)
Andean Decision No. 351 Common Regime on Copyright and Related Rights (Decisión Andina No. 351. Régimen Común sobre Derecho de Autor y Derechos Conexos)
Ecuador has a clear regime of exceptions to copyright that follows fair use, which allows the lawful use of copyrighted works by third parties without the need to obtain permission. Art. 211 of the Organic Code of the Social Economy of Knowledge, Creativity and Innovation follows the fair use model for copyright exceptions and establishes five factors for the determination of fair use:
- The purposes and nature of the use;
- The nature of the work;
- The amount and importance of the part used in relation to the copyrighted work as a whole;
- The impact of the use on the current and potential market value of the work; and
- The possession and effective exercise of other fundamental rights.
In addition, Ecuador is a member of the Andean Community of Nations and is subject to Decision 351, issued in 1993. Art. 22 of the Decision establishes a list of mandatory exceptions in the domestic market but also allows the adoption of additional exceptions in the domestic law of the members, as long as they comply with the international standards of the so-called three-step test.
- The purposes and nature of the use;
- The nature of the work;
- The amount and importance of the part used in relation to the copyrighted work as a whole;
- The impact of the use on the current and potential market value of the work; and
- The possession and effective exercise of other fundamental rights.
In addition, Ecuador is a member of the Andean Community of Nations and is subject to Decision 351, issued in 1993. Art. 22 of the Decision establishes a list of mandatory exceptions in the domestic market but also allows the adoption of additional exceptions in the domestic law of the members, as long as they comply with the international standards of the so-called three-step test.
Coverage Horizontal
Sources
- https://web.archive.org/web/20240517183901/https://lotaip.ikiam.edu.ec/ikiam2019/abril/anexos/Mat%20A2-Base_Legal/codigo_organico_de_la_economia%20social_de_los_conocimientos_creatividad_e_innovacion....
- https://web.archive.org/web/20240413063435/https://sice.oas.org/trade/JUNAC/decisiones/DEC351S.asp
- https://web.archive.org/web/20241203194942/https://iipa.org/files/uploads/2019/02/2019SPEC301ECUADOR.pdf
- https://web.archive.org/web/20231108101527/https://ustr.gov/sites/default/files/IssueAreas/IP/2022%20Special%20301%20Report.pdf
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ECUADOR
ITA signatory?
I
II
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
4.72%
Coverage rate of zero-tariffs on ICT goods (%)
66.88%
Coverage: ICT goods
Sources
- http://wits.worldbank.org/WITS/
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
ECUADOR
N/A
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Participation in the WTO Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Lack of participation in the Information Technology Agreement (ITA) and in ITA Expansion Agreement (ITA II)
Ecuador is not a signatory of the 1996 World Trade Organization (WTO) Information Technology Agreement (ITA) nor the 2015 expansion (ITA II).
Coverage ICT goods
Sources
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
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