UNDER-SECRETARIAT OF BILATERAL RELATIONS

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					UNDER-SECRETARIAT OF BILATERAL RELATIONS GENERAL EXPORT AND INVESTMENT PROMOTION OFFICE

IN THIS ISSUE......
TRADE, COOPERATION AND INVESTMENT Agreement with US for donation of wheat for USD 6 million 4th round of political consultations Ecuador–China in Beijing Meeting of Special Ecuadorian Commission to negotiate banana import regime with European Union Negotiations on bananas and other products with European Union. Submission of declaration of interest of Ecuador concerning extension of EU Competitive Import Replacement Program in Brazil. Commercial Prospecting Mission to Central America Ecuadorian Commercial Mission visits Guatemala Ecuadorian Commercial Mission visits Costa Rica. Commercial Prospecting Mission in El Salvador Andean FTA: Challenges and opportunities Andean business round in Colombia Seminar “Trade Opportunities to export to Ecuador” Ecuador gains access to public bidding contests in Colombia Trade opportunities for Peru 2nd Commercial Mission of Ecuador to Canada COUNTRY IMAGE Ecuador open Embassy in India Ecuadorian Ambassador Emilio Izquierdo elected President of Italian-Latin American Institute, Rome Ecuadorian food tasting in Cuba Meeting of Andean coordinators for participation in Aichi-Japan 2005 World Expo, Quito   

Year 2004 N° 012 September 2004
Presentation of credential Slovenia Ecuadorian Embassy in presents webpage 8th Food Fair in Guatemala letters in

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Argentina

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TOURISM  Presentation of project “Development of avitourism as 15th non-traditional product with high export potential”  Latin flavor liaison in Lima  Training seminar on business techniques, Genoa  Presentation of Ecuador’s International Tourism Show- BITE  Prestigious Venezuelan producer visits Ecuador  Promotion of Ecuador in Andalusia  Ecuador acknowledges work of Swiss Association “Amigos de Galapagos” FAIRS  Participation of Ecuador in Aichi Expo 2005 TRADE, COOPERATION AND INVESTMENT I. AGREEMENT WITH US FOR DONATION OF WHEAT FOR USD 6 MILLION The Minister of Foreign Affairs, Ambassador Patricio Zuquilanda Duque, signed with US Ambassador in Ecuador, Kristie A. Kenney, an agreement for the donation of agricultural products under the “Food for Progress” Act. The US Government, through its Department of Agriculture, will donate USD 6 million in wheat (almost 26,000 metric tons) under program PL-480, “Food for Progress”. This donation includes the cost of transportation to the Ecuadorian port of arrival and will have no

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impact whatsoever on local production and prices, or on commercial imports. The donation will finance animal health programs, nutrition in depressed border areas, biodiversity research and protection, education in agriculture, development of small and medium-sized farmers; and commercial capacity-building. Activities included in the last aspect will be developed by the Ministries of Agriculture, Trade and Foreign Affairs, in collaboration with the private agricultural sector and local export promoting organizations. The Secretariat of PL-480 will be the administrative unit under the Government of Ecuador responsible of receiving, managing and distributing the funds generated by the monetization of the donation, as well as of negotiating the sale of the product and making contracts with the local industry. In turn, the Advisory Council, made up of officials of the Ministries of Agriculture and Foreign Affairs and 2 delegates of the US Government, will oversee the work of the Secretariat and approve the projects nominated by it. II. 4th ROUND OF POLITICAL CONSULTATIONS ECUADOR – CHINA IN BEIJING The 4th Round of Ecuador–China Political Consultations presided by the Vice-ministers of both countries, Ambassadors Edwin Johnson and Zhou Wenzhong, respectively was held on September 6 in Beijing. During the meeting, the main issues of mutual interest of the bilateral and the multilateral agenda were analyzed, including cooperation, trade, cultural and academic exchanges, admission of Ecuador to the APEC integration system1, declaration of Ecuador as tourist destination for Chinese citizens; as well as human rights, candidacies of both countries to international bodies and denuclearization of the South Pacific.

Ambassador Johnson stressed the significant economic and technical cooperation Ecuador receives from China, with donations reaching 90 million Yuan this year, or nearly USD 10,874,000. In turn, Vice-minister Zhou highlighted the notable thrust given in recent years to bilateral relations and expressed his desire to celebrate in 2005 the 25th anniversary of the establishment of diplomatic relations, with activities organized jointly by both countries. Vice-minister Johnson expressed Ecuador’s interest in introducing roses and tropical fruits (such as mango) in the Chinese market, and of having China participate in long-term projects such as the construction, furnishing and operation of two ports in the Amazon river and the off-shore exploitation of gas in the Gulf of Guayaquil. MEETING OF ECUADORIAN SPECIAL COMMISSION TO NEGOTIATE WITH EUROPEAN UNION The first meeting of the Special Commission of Ecuador established in view of negotiating better terms with the EU for the marketing of Ecuadorian bananas in that region was held last September 17. The Commission was created by the President of the Republic via Decree N° 2056 of September 7. The meeting was chaired by Foreign Minister Patricio Zuquilanda-Duque, with the presence of the Ministers of Foreign Trade and Agriculture, two representatives of the export sector appointed by the Banana Exporters Association of Ecuador (AEBE) and two representatives of the producing sector appointed by the Chamber of Agriculture of the coastal region. During this first work meeting it was agreed that the delegates of the Commission would travel to Brussels, Belgium to attend a meeting with the Commissioner for Agriculture of the EC, Mr. Franz Fischler, on September 27, to hold conversations on this issue. III.

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Asia Pacific Economic Cooperation

IV. NEGOTIATIONS ON BANANAS AND OTHER PRODUCTS WITH EU On September 27, Ecuadorian Foreign Minister met in Brussels with EU Commissioner for Agriculture, Franz Fischler, to address the issue of negotiations on bananas and other Ecuadorian export products. On September 29, the EU notified its formal acceptance of the Declaration of Interest filed by Ecuador to participate in trade negotiations arising as a result of the extension of the EU. The admission of the Declaration of Interest marks the formal beginning of substantive negotiations for the extension of bananas and plantains and other key products of the Ecuadorian export offer, including flowers, fresh and frozen vegetables, fruit and vegetable preparations and juices, plant extracts, woods, sorbitol, etc. In the case of bananas and plantains, the key points of the reply that are worth highlighting are that the EU recognizes the negotiation rights of Ecuador as “main supplier” and holder of “initial negotiation rights”. Under WTO regulations, this means that the EU must first negotiate and reach an agreement with Ecuador and then consult with the rest of Latin American exporters. This also allows Ecuador to negotiate trade compensations with the EU due to changes in the trade regimes of the 10 new members, which adopted the EU-15 trade legislation on May 1, 2004. Concerning other agricultural and industrial goods, we have succeeded in having the EU admit an important part of the claims and negotiation rights of Ecuador as major supplier or holder of a substantial interest. V. TRADE PROSPECTING MISSION TO CENTRAL AMERICA In order to promote the Ecuadorian export offer and to identify business opportunities with Central American importers, on September 20-24 CORPEI’s Export Promotion Manager Julio Moscoso and an official of that entity, Daniel Zenck visited

Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica. They were able to carry out this visit thanks to the valuable support of the Ecuadorian Embassies in those countries and the General Bilateral Exports and Investment Promotion Office. VI. COMPETITIVE IMPORT REPLACEMENT PROGRAM, BRAZIL On September 16, 2004 a meeting took place in Manaos-Brazil to address the Competitive Import Replacement Program fostered by Brazil. The meeting was chaired by Amb. Mario Vilalva, Director General of Economic Promotion of the Foreign Ministry of Brazil. The Directors of Trade Promotion of the Foreign Ministries of Argentina, Chile, Peru, Paraguay and Ecuador attended the meeting. Also, on behalf of Colombia, the Director of the Commercial Office of PROEXPORT in Brazil and its Director of Commercial Intelligence were also present, as well as representatives of Fundacion de Estudios de Comercio Exterior, Brazil (FUNCEX); the Customs Administration of Brazil; INMETRO; the Ministry of Agriculture of Brazil and the magazine “Brasil marca de excelencia”. After welcoming remarks and formalities, Amb. Vilalva made a presentation of the PSCI Program and the political intention of the Government of Brazil to revert purchases to third countries towards the South American subregion. However, he also stated that Brazil’s trade with South America shows the following trend:  In 1998: 21.8% of total trade was with S.A.  In 2002: 14%; in 2003, 13%  This means that there is no correlation between figures and political discourses. With respect to trade promotion tools included in the PSCI, Amb. Vilalva urged other countries to participate in fairs, business missions, to disseminate trade opportunities under the Economic Complementation

Agreements Brazil has signed with most countries in the subregion, and he even proposed the participation in a trade magazine that includes information about commercial contacts and about each country participating in the Program. Alter this presentation, a debate was opened on the proposed mechanisms and on the Program itself. Concerning Ecuador, with the same figures presented by Ambassador Vilalva, the Director General of Promotion of Exports and Investments of the Foreign Ministry, Karina Amaluisa, stressed:  Ecuador has the lowest purchases from Brazil, only 0.2% of total imports from the subregion.  Total trade with Ecuador is 2.1%; only higher than Suriname and Guyana, which have common borders with Brazil and limited export culture.  Ecuador’s trade deficit with Brazil is approximately 336 million US$, one of the highest after Chile and Colombia. Economist Amaluisa also stated that the success of the Program with Ecuador will depend on the increased political will of both countries, as there are structural problems that hinder bilateral trade, to name a few:  Logistics: lack of road infrastructure and air frequencies to allow to lower freight costs and days of delivery of goods.  Plant health restrictions, especially on products that interest Ecuador, including bananas, flowers and coffee.  Competition in our main agricultural export products.  The dollarization scheme in effect in Ecuador does not allow competitive prices for our products compared to those in the subregion.  Brazilian customs terms for labeling and packaging are not sufficiently clear and directly affect our products, such us textiles, sardines and tuna. In view of the foregoing, it was suggested that the PSCI is treated initially at bilateral level, as trade problems with each country differ from the rest.

VII. ECUADORIAN COMMERCIAL MISSION VISITS GUATEMALA Under the program of activities organized by the Ecuadorian Embassy in Guatemala, with the support of the Ecuadorian Foreign Ministry, CORPEI, the Ministries of Foreign Affairs and Economy of Guatemala, the Chamber of Commerce and the Coordinating Committee of Agricultural, Trade, Industrial and Financial Associations of Guatemala (CACIF), the Commercial Prospecting Mission of Ecuador to the Republic of Guatemala was held on September 20 at the Marriott Hotel in Guatemala, from 07:30 till 7:00 p.m.. It was presided by CORPEI’s Export Promotion Manager, Julio Moscoso. This first bi-national trade encounter began with a breakfast - conference, presided by the Deputy Minister of Economy of Guatemala, Enrique Lacs, with Juan Carlos Paiz, renowned businessman and Chairman of CACIF (the largest business association in Guatemala), the former Foreign Minister of Guatemala and current Advisor on Trade Issues of the Foreign Ministry, Ambassador Maritza Ruiz de Vielmann, Eleonora Motta, Corporate Banking Manager of Banco Internacional and a select group of 22 Guatemalan businessmen interested in Ecuadorian products included in the list suggested by CORPEI for marketing there. CORPEI’s executives Julio Moscoso and Daniel Zenck held a special meeting with Deputy Minister of Economy Enrique Lacs, who, after welcoming the Trade Mission of Ecuador, stressed the similarities and coincidences between both nations. He also pointed out that he has visited Ecuador in several occasions, that he admires its beauty, that he knows the potentialities of Ecuadorian productive sectors, including the banana, shrimp and flower sectors, and that “Guatemala has a lot to learn from the experience acquired and accumulated by Ecuador". It is worth noting that in 2003 bilateral trade between Ecuador and Guatemala reached US$ 48 million, revealing the existing potential that

can be developed between business sectors of both nations. It is also worth noting that several stands were set up in one of the rooms of the Marriott Hotel to exhibit samples and brochures of Ecuadorian products, which were highly useful for this purpose. VIII. ECUADORIAN COMMERCIAL MISSION VISITS COSTA RICA CORPEI’s Export Promotion Manager Julio Moscoso, and Daniel Zenk, its Market Analyst, arrived at Costa Rica on Friday, September 24. Their first activity took place in the Chamber of Retail Merchants of Costa Rica with 8 Regional Managers representing several hundred small merchants of one of the affiliates of the Chamber. Its Executive Director, Ana Teresa Vasquez, presided the meeting and offered information on wholesale purchasing systems and retail sales. She also stated that they are currently studying how to become direct importers in order to lower costs and increase profits. After outlining the structure and operation of CORPEI, Mr. Moscoso explained that the purpose of their visit to Costa Rica and other Central American countries was to significantly increase trade and business relations between our countries. About the intention of retail marketers to establish an import company, Mr. Moscoso explained the trade and financial advantages they would obtain if they decided to go ahead with the plan. Guests then stepped into the exhibit hall to admire commercial samples. Their interest was focused especially on food items: tuna, sardines, bonbons and chocolates, juices and notebooks, which are the basis of their retail sales operations. They tasted some products and found them to be of excellent quality They also examined samples of clothing, wood, buttons and catalogues of other products, including plastics, floor tiles, aluminum utensils etc. They said that they would make comments about the products

produced and exported by Ecuador to the owners of bazaars, small stores and other businesses in their work areas. In the afternoon, a meeting was held at the Chamber of Commerce of Costa Rica with representatives of companies interested in other products. The program began with the welcoming remarks of Executive Vicepresident Mario Jose Crespo, with a response from Ambassador Juan Leoro. Then there was a lecture on Trade and Economy in Costa Rica by the Chamber’s Economist, Francisco Gamboa. Later on, Mr. Moscoso gave the executives of the Chamber and other businessmen a lecture about CORPEI, the export potential of Ecuador, the significance of increasing mutual trade flows and some of the products that Ecuador can export at an advantage to Costa Rica. Guests examined samples of products, catalogues and brochures sent by CORPEI. Mr. Moscoso, Mr. Zenk, and the officials of the Embassy answered the questions made by the guests. In the evening, Ambassador Leoro offered a dinner at his residence in honor of the officials of the CCCR, PROCOMER (the Costa Rican version of CORPEI) and the Embassy, to comment in a more informal venue the most relevant aspects of the day’s activities. They reached the conclusion that there is a need to organize a Business Meeting in Ecuador in 2005, as local businessmen were keen in visiting Quito, Guayaquil or Cuenca. This business meeting could be promoted by the Ecuadorian Embassy in Costa Rica, the Foreign Ministry, CORPEI, Ecuadorian export companies with potential to do business with Costa Rica, and the Ministry of Tourism of Ecuador. IX. COMMERCIAL PROSPECTING MISSION IN EL SALVADOR As planned, the Commercial Prospecting Mission sent by the Foreign Ministry and

CORPEI arrived in El Salvador on September 22. According to the program prepared by the Ecuadorian Embassy in El Salvador, the members of the delegation, accompanied by Embassy officials, held meetings with the executives of the largest supermarket chains and stores in El Salvador, handing information on the main Ecuadorian export products, current potential and business opportunities in this field. Previously, and thanks to the timely shipment of brochures and products by CORPEI, the Embassy had already delivered this promotional material to these executives, facilitating an exchange of ideas and proposals. The products that interest El Salvador the most include tuna (in its various presentations), nylon stockings, shrimp, bonbons, etc. At noon a luncheon was offered to the executives of the companies visited by CORPEI’s mission and to other guests with whom they were able to talk during the social event. Also present were the president of the Chamber of Commerce and Industries of El Salvador, Mrs. Elena de Alfaro, members of the Chamber and of the Association of Distributors of El Salvador. In addition, the mission held work meetings with the executives of the International Fair of El Salvador, scheduled for November 9-14, and committed the presence of Ecuador in this important event. The mission also met with executives of El Salvador Works (Promoting Investment in El Salvador), who presented the Salvadoran policy on the promotion of investments and positioning of the country in the international market. X. ANDEAN FTA: CHALLENGES AND OPPORTUNITIES A meeting on the issue “FTA US-Colombia, Ecuador, Peru: challenges and opportunities”, was held in Lima on September 23 at the Double Tree Hotel. The meeting was chaired by Ecuadorian Ambassador in Peru Luis Narvaez Rivadeneira, organized by the

Peruvian-Ecuadorian Chamber of Commerce (CAPECUA). Dr. Eduardo Ferreyros, Coordinator of the Peruvian negotiating team and Deputy Undersecretary of Foreign Trade reported on the status of the negotiation, its organization (distribution of work desks) and on the timetable for next meetings. Several business people from the clothing sector of Peru participated in the meeting for the first time. XI. ANDEAN BUSINESS ROUND IN COLOMBIA The Director of the Commercial Office of Ecuador in Colombia, Sebastian Zuquilanda, presided a meeting of commercial attachés of Andean countries in view of beginning the coordination and eventual participation of importers and exporters in the 1st Andean Business Round, to be held in Bogota at the end of November. To this end, conversations were held with Aeropostal to prepare a package of air tickets and hotel fares at low prices to foster the participation of the available quota of Ecuador, which is 60 exporters and 40 importers. In order for the Ecuadorian delegation to be duly welcomed by Andean buyers, the Commercial Office of Ecuador organized a social act funded by the private sector. Guests included all the participants in the Round and the Andean Forum, political, business and social personalities of Colombia. XII. SEMINAR “TRADE OPPORTUNITIES TO EXPORT TO ECUADOR” Ecuadorian Ambassador in Colombia, Engineer Wilson Torres, participated in the inauguration of the seminar “Trade Opportunities with Ecuador” organized by Proexport. In this event, Ambassador Torres stressed the importance of preserving the Ecuadorian market as destination, considering that the trade balance shows a deficit for Ecuador. He also asked to increase Colombian and Ecuadorian investments in order to

strengthen productive complementary chains before the inception of the FTA. The Director of the Commercial Office, Engineer Zuquilanda, participated in the conference and discussions with 250 Colombian businessmen and investors present at the meeting, promoting Ecuadorian export products and speaking of the need to replace Colombian imports with the Ecuadorian offer. The Colombian Minister of Trade, consultants from the Inter-American Development Bank and other trade-related agencies were present. XIII. ECUADOR GAINS ACCESS TO PUBLIC BIDS IN COLOMBIA The Commercial Office of Ecuador in Colombia has gained access to the Colombian Government bidding processes in order to set up a program of support and dissemination of business opportunities for Ecuadorian companies. The goal is to take advantage of the more than 800 million Dollars in procurements made by the central Government and Department governor’s offices and other public agencies through open biddings. Several of these works and raw materials are built and delivered by international companies against whom Ecuador can compete. These activities become an additional service that may be consulted through CORPEI. XIV. TRADE OPPORTUNITIES FOR PERU On August 27, 2004 an informative meeting was held in Lima, at PROMPEX, called “Ecuador: trade opportunities for Peru”, aimed at encouraging Peruvian businessmen to participate in the International Fair of Duran, on October 1-10, 2004. The meeting was presided by Engineer Jose Alejandro Gonzalez, President of the Board of Directors of PROMPEX, with the participation of Ambassador Marcela Lopez Bravo, Director of the Executive Office of Economic Promotion of the Foreign Ministry of Peru; Miguel Arbulu, President of the Peruvian-Ecuadorian Chamber of Commerce; Enrique Prado, Manager of Commercial Intelligence of PROMPEX, and Engineer

Antonio Ruales Garcia, Commercial Attaché of the Embassy of Ecuador. The Ecuadorian representative spoke about Peru’s trade opportunities in Ecuador. More than 120 participants attended. It is expected that Peru will have it own stand in the Fair. XV. 2nd COMMERCIAL MISSION OF ECUADOR TO CANADA The 2nd Commercial Mission of Ecuador to Canada was organized by the EcuadorianCanadian Chamber of Commerce of Ecuador with the support of the Canadian Embassy in Quito and the Ecuadorian Embassy and consulates in Canada. It was held on September 13-17. The mission consisted of representatives of the forestry and communications sectors. The latter also included, in addition to private businessmen, officials of the National Telecommunications Council (CONATEL), the National Tele-communications Secretariat (SENATEL) and the National Telecommunications Fund (FODETEL), as well as executives of PACIFICTEL and ANDINATEL. The 2nd Commercial Mission of Ecuador visited Montreal, Quebec, Ottawa and Toronto. Its members visited several facilities and held interviews with representatives of Canadian leading firms in the communications sector and the timber industry. These contacts allowed to identify possibilities to broaden trade relations, to have Canadian participation in specific development projects in Ecuador and to attract Canadian investments to these two key fields for the Ecuadorian economy. In the communications sector, several possibilities offered by Canadian firms and institutions, which is one of the leading countries in the development of technologies in this sector were analyzed, such as participating in projects that seek to benefit mostly the rural sectors of Ecuador.

COUNTRY IMAGE I. ECUADOR OPENS EMBASSY IN INDIA As part of the policy of integration and positioning of Ecuador in large economies, the Foreign Ministry will open a diplomatic mission in New Delhi, India before long. According to the analysis made by the Foreign Ministry, the economic potential of India in the 21st century shows great prospects. Currently India has 1.06 billion inhabitants, with the possibility of exceeding 1.3 billion in 2020. The economy of India is growing at a 9% annual rate and in the next 15 years it will quadruple the per capita income of its inhabitants, with a projection of movements of goods and services by then 5 times greater than in the year 2000, thus multiplying by 5 the volume of traffic of people and therefore trebling its international oil demand. Under these parameters, the development of an intense economic relation with India will open for Ecuador a window for future oil, food and raw material exports, as well as the prospect for intense political relations with other countries in South Asia and the Indian Ocean. II. ECUADORIAN AMBASSADOR ELECTED PRESIDENT OF ITALIAN-LATIN AMERICAN INSTITUTE The Ecuadorian Embassy in Italia reported that on September 21, during the extraordinary session of the Council of Delegates of the Italian-Latin-American Institute (IILA), the Ambassador of Ecuador in Italy, Emilio Izquierdo, was elected by consensus as President of the institution, for a two-year term. Likewise, the election of the three vicepresidents, ambassadors Vitorio Tancetti of Argentina, Rafael Tovar y Teresa of Mexico, and Dr. Luca Simoni of Italy, was formalized. The Italian-Latin-American Institute was created on June 1, 1966, when the Constitutive Convention was signed by the Foreign Ministers of Argentina, Bolivia, Brazil, Chile,

Colombia, Costa Rica, Cuba, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Paraguay, Dominican Republic, Uruguay, and Venezuela. Italy ratified this international instrument in October of that year. IILA is the perfect instrument for Latin American countries to strengthen and deepen their bilateral and regional relations with Italy, basically in the cultural, socioeconomic, technical, scientific and cooperation fields. It is also a key forum to develop initiatives on interregional issues between Latin America and the European Union. IILA therefore develops activities of exchange, reciprocal assistance, and common actions reached by consensus. This appointment is an acknowledgement to Ecuador and its Foreign Service and a high distinction for our Ambassador in Italy, Emilio Izquierdo. ECUADORIAN FOOD TASTING IN CUBA On September 14, the Embassy of Ecuador in Cuba organized a tasting of traditional Ecuadorian food prepared by the representatives of the Association of Chefs of Ecuador, Roberto Rodriguez, Sonia Guerra, Harold Silva, Cesar Lucio and Cesar Bolaños, who traveled to Cuba to participate in the international event ”Culinaria 2004”, held at the National Hotel in Havana. Our Chargée d’Affaires, a.i., councilor Alba Coello de Barboza, welcomed the guests, including diplomats, representatives of international bodies and Cuban personalities, and made a brief description of Ecuador, highlighting the great variety and wealth of Ecuadorian food. A documentary about Ecuador and the video “Ecuador”, of the program “Iguales y Diferentes”, produced by Cuban TV, was shown. The Ecuadorian Embassy in Cuba thinks this was a great opportunity to display samples of the regional variety of Ecuadorian food. Guests tasted cebiche de pescado, cazuela de III.

mariscos, carne colorada, llapingachos, empanadas de morocho, chorizos, higos con queso, pristiños, accompanied with Ecuadorian fruit juices such as tree tomato, taxo, blackberries and naranjilla, and the Ecuadorian liquor “Espiritu del Ecuador”. At the end of the activity, tourism promotion brochures were distributed. IV. MEETING OF ANDEAN COORDINATORS FOR PARTICIPATION IN WORLD EXPO 2005 AICHI – JAPAN IN QUITO Ecuador hosted the 2nd Conference in the phase of development of the execution plan of the Common Andean Pavilion for Expo Fair AICHI 2005, to be held in Japan. This work meeting is framed within the coordination activities carried out since February of this year, with the participation of representatives of Bolivia, Ecuador, Peru, Venezuela and CAN’s General Secretariat.. The Foreign Ministry is coordinating the participation of Ecuador in the fair, through the General Bilateral Export and Investment Promotion Office. In addition to the delegations of Andean countries, a Japanese representation consisting of 6 members of the Expo Aichi 2005 promoting team also participated. The definitive execution plan of the Andean Common Pavilion was defined, as well as the design, the exhibition materials and the financial contributions of the Japanese Government and each participating country. V. PRESENTATION OF CREDENTIALS IN SLOVENIA The Ecuadorian Embassy in Italy reported that on September 8, in the city of Ljubljana, Ambassador Emilio Izquierdo presented his Credentials as Ambassador of Ecuador to the Government of the Republic of Slovenia, with his seat in Rome, to President Janez Drnovsek. During the interview, they reaffirmed their aspiration of tightening and deepening the relations of friendship, on the basis of negotiating cultural and economic cooperation agreements, as well as their desire to continue

political cooperation in multilateral bodies, particularly in the United Nations, and also the support that Slovenia may give to the proposals of Ecuador to the EU. During his stay in Ljubljana, Ambassador Izquierdo held several work meetings with high officials of the Foreign Ministry, reviewing issues related to bilateral relations and others related to multilateral policy, mainly with respect to the possibility of signing agreements for cultural cooperation, investment protection, prevention of double taxation and to regulate the extension of diplomatic visas; they also discussed the reform of the Security Council, economic development and exchange of support to candidacies in the framework of the United Nations. Ambassador Emilio Izquierdo believes that bilateral relations could be strengthened with an increased presence of Ecuador in this key region of the world, as well as by opening markets for Ecuadorian products and consolidating sales of Ecuadorian bananas in Slovenia. VI. ECUADORIAN EMBASSY IN ARGENTINA PRESENTS WEBPAGE The Ecuadorian Embassy in Argentina announced the launching of its webpage www.embecuador.com.ar. Its goal is to make a broader dissemination of the country and to provide better services to users visiting the Embassy with consultations about the country. The page contains general information about Ecuador, its Political Constitution, Political Division by Provinces, Map, Geography, Culture, Tourism, picture gallery, etc., as well as information on consular services: tariffs, visa formalities, legalizations, household goods, requirements, etc. Also, this site has links to the Presidency of the Republic, State Ministries and Secretariats, public and private institutions, CORPEI, and media agencies of Ecuador. It also displays information on bilateral relations between Ecuador and Argentina, the establishment of

those relations, and a comprehensive list of all agreements signed by both countries. VII. 8TH FOOD FAIR- GUATEMALA The 8th Food Fair of Guatemala was inaugurated on September 6 in Guatemala city, with the presence of the Presidential Commissioner for Tourism Mr. Willy Kaltschmitd, the Executive coordination Secretary of the Presidency of the Republic, Mr. Eduardo Gonzalez, the Director of the Guatemalan Tourism Institute, Mr. Alejandro Sinibaldi, the President of the Chamber of Industries, Mr. Jaime Arimany, members of the Diplomatic and Consular Corps accredited in Guatemala, executives of hotel and restaurant associations of the country, executives and representatives of firms in the sector and special guests. This international event, sponsored by the Government of Guatemala, through INGUAT and the Technical Institute of Training and Productivity (INTECAP), as well as by the Guatemalan Association of Culinary Art (AGUAC) and the Chamber of Industry of Guatemala, has 108 stands, where a similar number of local and foreign companies exhibit products related to the food and hotel industry. In the framework of this event, courses and workshops on culinary art were given, as well as on international gastronomy and quality control, and an international cooking contest was held with the participation of Chefs and students from several Latin American countries, including Ecuador. Ecuador was represented by 15 cuisine and hotel management professionals and students, accredited by Universidad "Tecnologica Equinoccial" and Universidad "San Francisco" de Quito; the Association of Chefs of Ecuador, Escuela de los Chefs, "Culinary Trainer School", "Instituto Tecnologico Cellini", and "Royal House Eventos". TOURISM

I. LAUNCHING OF PROJECT “DEVELOPMENT OF AVITOURISM” The launching ceremony of the Project “Development of avitourism as 15th NoTraditional Product with High Export Potential”, was held on September 14 in Tandayapa, NW of the Province of Pichincha. The event was attended by the main authorities of the Ministry of Tourism, the Ministry of Public Works and CORPEI. Also present were several officials of the Foreign Ministry, as well as representatives of Provincial Tourism Chambers, NGOs, international bodies, etc. The execution of the project is of key significance for the socioeconomic development of the area and the country, as the development of avitourism will become a potential generator of jobs and foreign currency for the residents of the communities of Nono, Tandayapa, San Tadeo, Pueblo Nuevo, Saloya, and Milpe. II. LATIN FLAVOR LIAISON IN LIMA The Foreign Ministry, through the Ecuadorian Embassy in Lima and the General Bilateral Exports and Investment Promotion Office Direction, is supporting the event called “Latin Flavor Liaison”, to be held in Lima on October 5-11. The event is organized by the Culinary Association of Chefs of Ecuador, together with the Association of Hotels, Restaurants and Miscellaneous of Peru (AHORA) and the Commission for the Promotion of Peru (PROMPERU), represented by Peruvian Chef Madeleine Martin Calle. The Ecuadorian delegation will consist of 30 Ecuadorian professionals belonging to several branches of the food industry, seeking to promote the culinary culture of our country. During their stay in Lima, the members of the delegation are scheduled to give lectures in several universities and cooking schools in Peru, including Universidad San Ignacio de Loyola, Universidad Cenfotur, Instituto

Gastrotur, and Escuela Cordon Bleu, Peru Chapter. On the occasion of the visit of the Ecuadorian delegation of chefs to Peru, a “Great Festival of Ecuadorian Food” will be held on October 10 at the Swissotel in Lima, to promote the gastronomic wealth of our country. III. TRAINING SEMINAR ON BUSINESS TECHNIQUES IN GENOA The Foreign Ministry, through the Embassy of Ecuador in Italy and the Consulate in Genoa, is coordinating a Training Seminar on Business Techniques, to be held in Genoa on October 25-30. The event will be aimed at Ecuadorian nationals. The Seminar will place emphasis on the establishment and management of businesses and foreign trade. The seminar will work under the modality of free scholarships given to participants, who will register voluntarily through cards and who will agree to support similar events among Ecuadorians living in Italy. IV. INTERNATIONAL ECUADORIAN TOURISM SHOW - BITE The Foreign Ministry, through the General Bilateral Export and Investment Promotion Office, is supporting the organization of the International Tourism Show –BITE 2004, to be held in Cuenca in April 2005. The goal of BITE is to help establish strategic contacts between buyers and sellers of tourist products of Ecuador. Thus, BITE fosters and promotes new projects, facilities and destinations, creating business linkages that will benefit tourist activities in the country. The inaugural ceremony of BITE 2005 will take place on October 7 in the halls of the Foreign Ministry with representatives of Diplomatic Missions accredited before the Government of Ecuador, authorities of local tourist organisms and associations, national tour operators and the press.

V. PRESTIGIOUS VENEZUELAN PRODUCER VISITS ECUADOR With the support of the Embassy of Ecuador in Venezuela and the company “Metropolitan Touring”, the Foreign Ministry is coordinating the second visit to Ecuador of Hector Soucy, a prestigious Venezuelan producer, who plans to visit us in mid October. During his stay in Ecuador, Mr. Soucy will make reports on several hotels and restaurants in Guayaquil and guided tours along the Sun Route and the Galapagos Islands. PROMOTING ECUADOR IN ANDALUSIA The Ecuadorian Embassy in Madrid reported that the Commercial Office of CORPEI gave a lecture in Seville about the opportunities offered by Ecuador in foreign trade and high potential sectors for productive investment. At the initiative pf the Andalusian Foreign Promotion Agency (EXTENDA), with the support of the consulting firm Competitividad Latina, the commercial councilors of 10 Latin American countries visited the region to present opportunities offered by their respective countries, as well as possible linkages with Andalusian firms. The event had a numerous participation of businessmen from Seville, Cadiz, Cordoba, Malaga. During the debate and the speeches after the lecture given by the Ecuadorian Commercial Attaché and Director of CORPEI in Spain, Santiago Garcia, the following sectors of interest for Ecuador were identified: transfer of agricultural technology, environmental services, consultancy and engineering, free zones, information technologies, innovation and business hatcheries. The Commercial Office of the Ecuadorian Embassy in Madrid is enthusiastic about the possibilities for business cooperation with this important Spanish region. Andalusia, according to the latest official figures, has a population of 7.5 million; it is one of the 17 autonomous communities of VIII.

Spain, and its territory covers 17% of the total land area, with an extension that surpasses European countries such as Belgium, Holland, Denmark, Austria or Switzerland. The infrastructure in this region is very important: it has 6 airports, 3 of them international, located in Malaga, Seville and Almeria, in addition to an extensive road and railway network. Indeed, one of these transportation facilities is the High-Speed Train –AVE, which links Seville and Madrid. Also, there are 36 sea ports that depend on the Andalusian Administration, 18 of which have fishing activities and harbor 66% of the regional fishing fleet. The most representative ports are Algeciras (with 52% of regional Andalusian and 14% of national movements of goods), Almeria, Motril, Malaga, Huelva and Cadiz. ECUADOR ACKNOWLEDGES WORK OF SWISS ASSOCIATION FRIENDS OF GALAPAGOS In Berne, during a special ceremony, our Ambassador in Switzerland, Jaime Marchan, on behalf of the Ecuadorian Government, will bestow the National Merit Order, degree of Commander, to the Swiss Association of Friends of the Galapagos Islands for relevant work in favor of the ecologic balance of the Archipelago and the conservation of its biodiversity. The award will be received by biologist Hendrick Hoeck, president of the Association and former director of the Charles Darwin Station (1978-1980). The Association, which currently has 1,260 members, was founded in June 1994 with the goal of promoting private Swiss cooperation to help preserve the ecologic system of the Islands. To meet this goal, this nonprofit Association collects funds that are used to support the work of the Charles Darwin Research Station in Puerto Ayora. In addition, it carries out several programs, including the protection of the biodiversity of Santiago (James) Island, the study of mangroves and finches of the Galapagos, the breeding of giant turtles, etc. IX.

FAIRS I. PARTICIPATION OF ECUADOR IN EXPO AICHI 2005 The Constitutional President of the Republic approved via Executive Decree Nº 360 of April 29, 2003 the participation of Ecuador in EXPO 2005 AICHI, to be held in Aichi, Prefecture of Nagoya, Japan, on March 25 September 25, 2005. The coordination of the fair is handled by the Foreign Ministry. The central theme of EXPO 2005 AICHI is “The Knowledge of Nature”, joining environmental, tourism, trade and cultural aspects that each country may display as part of its natural wealth and development. Preparatory activities include coordination meetings with key Ecuadorian public and private entities on environmental, tourist, trade and cultural issues, to define the main themes of the Ecuadorian exposition in Aichi. The goal of this fair is to promote the environmental, tourist, trade and cultural wealth of Ecuador.


				
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