VZCZCXYZ0008
RR RUEHWEB

DE RUEHQT #0037 0212118
ZNR UUUUU ZZH
R 212118Z JAN 09
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC 9889
INFO RUEHBO/AMEMBASSY BOGOTA 7934
RUEHCV/AMEMBASSY CARACAS 3357
RUEHLP/AMEMBASSY LA PAZ JAN LIMA 2999
RUEHGL/AMCONSUL GUAYAQUIL 4044
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS QUITO 000037 
 
SENSITIVE 
SIPDIS 
 
USTR FOR BENNETT HARMAN 
 
E.O. 12958: N/A 
TAGS: ETRD ECON EC
SUBJECT:  ECUADOR DEMARCHE RESPONSE - IMPORT RESTRICTIONS 
 
REFTEL: STATE 4902 
 
¶1.  (SBU) On January 16, the DCM delivered reftel demarche to Susana 
Cabeza de Vaca, Coordinating Minister for Production and head of 
COMEXI, Ecuador's trade policy council, and to Ministry of Foreign 
Affairs Under Secretary for Bilateral Relations Carlos Jativa. 
Cabeza de Vaca said that she had been working on the balance of 
payments safeguard measure all day, as well as meeting with importers 
regarding their concerns.  She asserted that Ecuador would abide by 
WTO rules and that the measure would be WTO consistent.  She noted 
that COMEXI would still be making adjustments to the measure for 
several more days. 
 
¶2.  (SBU) While details of the measure are not yet available, we 
understand from the press and from talking with COMEXI that it will 
affect consumer goods in 627 tariff lines, and will be applied to all 
countries for one year. Importers will restrict imports to a reduced 
percentage (likely 70%) of the 2008 import levels for certain goods, 
and tariffs will be increased on other products.  In contrast to 
initial GOE plans, there will be no import prohibitions and tariffs 
will not be increased to 500%.  A COMEXI representative explained 
that the measure was expected to cut imports by $1.5 billion 
(President Correa had sought a $2.2 billion cut, but the 
representative explained that the GOE would seek a loan for the 
balance). 
 
¶3.  (U) Vice Minister for Trade Miguel Egas has requested a meeting 
with the Ambassador on January 22 to explain the measure.  We will 
report additional details when available. 
 
HODGES