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ECUADOR: A Staunch U.S. Ally in the War Against Drugs
Because of its geographic location between two major drug producing countries in the
Andean region, Ecuador has been an invaluable partner to the United States in the fight
against drug trafficking. Bilateral cooperation fostered by the extension of commercial trade
preferences, such as the Andean Trade Promotion and Drug Eradication Act (ATPDEA), has
resulted in several counter-narcotics victories.
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Successful joint eradication efforts. The United States and Ecuador have
conducted several drug interdictions together and successfully dismantled many
international drug trafficking organizations. In fact, bilateral cooperation has
produced increasing numbers of drug seizures in Ecuador each year, as exhibited in
the accompanying chart. In addition, during 2006, Ecuadorian authorities arrested
3,327 people for drug trafficking and have seized over 38.16 metric tons (mt) of
cocaine, 410 kilograms (kg) of heroin and 1.10 mt of cannabis. By comparison, in
2005 the GOE seized 44.68 mt of cocaine, 230 kg of heroin, and 640 kg of cannabis.
A total of 2.74 million gallons of drug precursor chemicals were seized in 2006.
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ATPDEA provides Ecuadorian farmers a viable alternative. By promoting trade
in agriculture and legal crops, ATPDEA has helped maintain Ecuador as the only
country that does not produce drugs in the Andes. Under ATPDEA provisions,
Ecuadorian exports of flowers and other agricultural goods have generated
thousands of local jobs that provide an alternative to the production of drugs.
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Ecuador has a proven and long-standing record in the war against drugs.
Ecuador was one of the first Latin American countries to ratify the 1988 U.N.
Convention Against Illicit Traffic in Narcotics and Psychotropic Substances,
positioning itself as an international leader in the fight against drugs. As such,
Ecuador has implemented comprehensive anti-drug legislation based on the U.N.
Convention and Organization of American States (OAS) model.
Increased Cocaine Seizures in Ecuador
“The Government of Ecuador has made considerable progress
in combating narcotics trafficking destined for the United
States.”
~ Presidential Determination on Major Drug Transit or
Major Illicit Drug Producing Countries for Fiscal Year 2007
Information prepared for Chlopak, Leonard, Schechter&Associates, on behalf of the Government of Ecuador and actualized by the
Embassy of Ecuador, March 2007
Enacted in 2002, the Andean Trade Promotion and Drug Eradication Act (ATPDEA) is
a key policy tool designed to foster greater economic growth in the Andean countries
and to support regional efforts in the war against drugs. Since its inception, ATPDEA
has produced important benefits for broad segments of the U.S. and Ecuadorian
economies and has contributed to the strengthening of democratic institutions in the
Andean region.
As a testament to the strong bilateral relations between the United States and
Ecuador, and in recognition of Ecuador’s vital role as a force of political and economic
stability in the Andean region, the U.S. government has consistently assisted
Ecuador's economic development. Most recently, the Bush Administration requested
$55.2 million in assistance to Ecuador for FY06.
Since ATPDEA was enacted, U.S. exports to Ecuador have grown 30% and over
100% since the implementation of the Andean Trade Preference Act in 1991. In
2004, the United States exported $1.7 billion in goods to Ecuador and, as shown in
the chart below, U.S. exports to Ecuador continue to increase. Main exports include
machinery, plastics and paper products.
Ecuador is also the primary exporter to the U.S. under ATDPEA. According to the
International Trade Commission, the 2 leading imports under the program, heavy
crude and pouched tuna, were supplied principally by Ecuador. U.S. imports from
Ecuador under ATPA amounted to $5.8 billion in 2006.
U.S. investments in Ecuador have also increased 30% since ATPDEA was
implemented. In 2005 alone, these investments totaled $760 million. Over one
hundred U.S. companies operating in Ecuador depend on the access to cheaper
goods and on the duty-free exportation made possible only by the ATPDEA. As a
result, American businesses have made substantial financial profits in Ecuador.
These companies will experience extreme losses without ATPDEA trade provisions.
Ecuador - U.S. Facts
 Third largest exporter of
oil to U.S. in the Western
Hemisphere.
 Over 100 U.S. companies
operate in Ecuador.
 20,000 U.S. citizens
reside in Ecuador.
 Two million Ecuadorians
live in the United States.
 150,000 U.S. tourists
visit
US companies in Ecuador
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Abbott
Bechtel
Bristol – Myers Squibb
Citibank
Colgate – Palmolive
Del Monte Foods
Dole/Standard Fruit
Eveready
Exxon-Mobil
Fuller
General Motors
Janssen
Pharmaceuticals
installed in Ecuador
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Merck Sharp & Dohme
Nabisco
Pfizer
Philip Morris
Schering Plough
Wyeth Consumer
Healthcare
Information prepared for Chlopak, Leonard, Schechter&Associates, on behalf of the Government of Ecuador and actualized by the
Embassy of Ecuador, March 2007
TRADE PREFERENCES LEAD TO IMPROVED LABOR CONDITIONS IN
ECUADOR
The Andean Trade Promotion and Drug Eradication Act (ATPDEA) has enabled Ecuador to
grow its economy, employer base and workforce. Trade preferences and Ecuador’s close
cooperation with the United States in the war against drugs has brought about a delicate
economic and political stability in the Andes. Among the many positive developments
resulting from the implementation of ATPDEA is an improved system of protections and
standards for Ecuador’s workers. Inspired by the economic development objectives of
ATPDEA, Ecuador has undertaken a series of upgrades to its labor laws. Ecuador is in
compliance with and seeking to exceed World Trade Organization (WTO) labor standards,
not only to secure its participation in ATPDEA but also to engender a healthy and prosperous
working society in the country.
ERADICATING CHILD LABOR
Ecuador has enacted legislation that bans working children under the age of 15. Although
many challenges remain in the enforcement of such law, Ecuador’s commitment is strong.
The appointment of 32 Child Labor Inspectors charged with monitoring and enforcing this
new law is evidence of Quito’s unwavering compromise. Moreover, the National Committee
for the Progressive Eradication of Child Labor (COMPETI) has been established with the sole
purpose of developing and implementing a wide range of programs to prevent the
exploitation of children.
PREVENTING EMPLOYER DISCRIMINATION
Ecuador has decreed that discrimination in hiring is illegal. The rights of women and workers
with HIV/AIDS, among others, are protected in the anti-discrimination code. The Ministry of
Labor continues to develop and implement programs to monitor and punish discriminatory
practices and provide a trustworthy mechanism for the filing of workers’ complaints. The
new Intermediary Labor Law allowed 500,000 contract workers to secure jobs in companies
with the same legal protections offered to unionized workers.
PROMOTING CONFLICT RESOLUTION
Three major enhancements now make it easier and more efficient for labor-related conflicts
to be resolved. First, the National Job Council was established to ensure coordination
between all pertinent groups toward adherence to labor laws. Second, Reconciliation and
Arbitration Tribunals have been formed to facilitate consensual agreements between
litigants. Third, the process of oral adjudication to decide disputes has significantly improved
the timeframe for the resolution of conflicts -- cases that would take three or four years can
now be resolved in fewer than six months.
MODERNIZING ECUADOR’S MINISTRY OF LABOR
The Ministry of Labor and Employment has undergone a thorough reorganization to become
more streamlined, mechanized and efficient in its operations. Reforms continue under Dr.
José Serrano Salgado in close cooperation with the International Labor Organization.
Information prepared for Chlopak, Leonard, Schechter&Associates, on behalf of the Government of Ecuador and actualized by the
Embassy of Ecuador, March 2007
ATPDEA: Strengthening Ecuador’s Economy and Democracy
The Ecuadorian economy is based on petroleum production and exports of bananas, shrimp,
fish, flowers, cocoa, textiles, coffee and wood. In 2004, oil accounted for over 50% of total
export earnings. Ecuador is the world's largest exporter of bananas and a major exporter of
shrimp and tunafish. Its revenues for flower exports are expected to rise to $398 million in
2006.
Exports to the United States. Most of the bouquets of roses Americans send to their
loved ones on Mother’s Day, Valentine’s Day and other special occasions come from
Ecuador. The United States is Ecuador's principal trading partner and largest market for
Ecuadorian roses, accounting for over 60% of total sales. Moreover, additional economic
activities like the farming of broccoli, asparagus and mango could flourish because the
Andean Preferences.
Since 1999, overall Ecuadorian exports to the United States have grown exponentially,
generating an annual growth of 20%. In 2006, under the provisions of the Andean Trade
Promotion and Drug Eradication Act (ATPDEA), Ecuadorian exports to the United States
totaled $5.8 billion, as reflected in the chart below. According to the International Trade
Commission, the 2 leading imports under the program, heavy crude and pouched tuna,
were supplied principally by Ecuador. Moreover, Ecuadorian exporters saved approximately
$27 million due to lower trade barriers under ATPDEA. It is estimated that without ATPDEA,
Ecuador’s GDP would decrease 2%, which could have a devastating effect on the Andean
country.
Job Creation. ATPDEA has also been an important engine of job creation. ATPDEA is
responsible for generating more than 350,000 direct jobs in Ecuador, including thousands in
the agricultural sector. These jobs provide local farmers a critical alternative to cultivating
illegal crops. By promoting trade in agriculture and legal crops, ATPDEA has helped Ecuador
remain the only country in the Andean region that does not produce drugs.
Information prepared for Chlopak, Leonard, Schechter&Associates, on behalf of the Government of Ecuador and actualized by the
Embassy of Ecuador, March 2007