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Ecuador signs multiparty trade agreement with the European Union


At least 2,565 tariff items are part of the whole negotiated Multi-Party Agreement between the European Union (EU) and Ecuador. From these, the 69.6% would enter with a tariff cero from January 1, 2017 and 3.6% would be excluded, this means they would not be taxed.


This reduction is gradual and goes from cero years (those that are immediately depreciated) going through periods of 3, 5, 7, 10 and up to 17 years.


This, if the administrative processes are fulfilled as expected by the government authorities, after signing the agreement on last November 11, this is in the Constitutional Court, in Ecuador, and then in the European Parliament.


At the time of the in force of the Agreement, the EU will liberalize almost 95% of tariff items and Ecuador around 60%. Thus, the trade balance inclines in favor of the country, since EU exporters will save at least 106 million euros in tariffs each year, and Ecuadorians 248 million euros.


According to the EU, the benefits for them will also be important. Thus, for example, the agricultural field  will have greater market access for their products. Immediately liquors, apples, grapes; artichokes, live animals and for reproduction would enter, among others. An important subject of this protection are some 100 EU geographical indications in the Ecuadorian market.


However, as the EU ambassador in Ecuador, Marianne Van Steen said, some of the European products must wait with patience, before entering without tariffs. The ambassador gave an example the vehicles, which can be imported without tariffs in seven years at least.


Also the Ecuadorian consumers should also wait at least seven years for cleaning products: deodorants, perfumes, shampoos or toothpaste, among others with lower prices.


The agreement will strengthen the regional integration, since Ecuador is the third member of the Andean Community (along with Colombia and Peru) included in the trade agreement and the possibility of Bolivia's entry is still open. (I)





This committee unanimously approved the agreement and the signing will take place in Brussels next month. According to Mr. Cassinelli, the Vice President Jorge Glas would assist as a leading authority and also with a delegation of exporters.

The president of the Exporters Federation of Ecuador (Fedexpor), Daniel Legarda said the news is received with "great optimism".

The agreement is the culmination of the procedure in the European Council and now begins the process of ratification in parliament, necessary for the effective entry into force, said Legarda. On this issue, he also said they are optimistic that such ratification can be reached this year.

The urgency is because this December 31st. the preferential tariff regime with the European bloc will finish, and the Ecuadorian products without such scheme would become more expensive and lose competitiveness.
However last June Mr. Peter Schwaiger, head of EU mission, had mentioned that the European Parliament could take two months for ratification, so the agreement could not enter into force in December.

On this, Legarda explained that the delay in Parliament had been due to the correction that Ecuador should do about the irritating issues denominated. However, he added, they have already been solved, so he believes it would not take so long.
Among these issues, the European Union had noted safeguards, auto quota, intellectual property, how to calculate the ICE import, labeling of certain products and various points of Ingenios Code. Legarda said that each subject was already solved through various instruments.

Antonio Camposano, President of the Aquaculture National Chamber, said the agreement will mean not to pay tariffs and only by shrimp trade $ 800 million would enter the country. In other hand, Bruno Leone, president of the Fisheries National Chamber, said that if the agreement is achieved tuna will continue entering with 0% tariff and if it is not the case the 24% must be paid and thus we could not compete. (I)

The Ministry of Foreign Trade indicates that the country's supply will increase by 1.6% up to 2020.

It also explains that 41,000 jobs will be generated by increasing non-oil exports.




  Oct 14, 2016

The Social Economy, of Knowledge Creativity and Innovation Organic Code, in Spanish called INGENIOS, has been approved by the National Assembly on October 11, 2016.

This Code mainly derogates the Intellectual Property Law and it is developed from dogmatists principles related to the knowledge as a good of public interest and to the intellectual property rights as tools for knowledge management, honoring the commitments acquired in international treaties and agreements.               

This law will come into force when published in the Official Gazette.

Jose Mourinho is one of the best-known technicians in football world; his name is synonymous of triumphs and polemics.

In his contract as Manchester United FC coach, he was also synonymous of obstacle because Chelsea FC registered as a trademark the name "Jose Mourinho" and his signature.

Now, what is this and which are the consequences.  All right, trademarks are words, drawings or any other items used to distinguish a product; for example a jewel or a cup with trademark "Jose Mourinho".

These trademarks are registered before the Intellectual Property Authority in order to avoid that anyone different from the person who registered it can use it.  This means that only Chelsea FC can use trademark "Jose Mourinho" not Manchester United FC and not even Mourinho himself.

In this regard we must know that:

1. The trademark registration provides Chelsea FC the right of disposing as they decide, a "Jose Mourinho" trademark using at the time it considers appropriate, prohibiting its use to others and even selling licenses for others to produce or market trademark.
2. Trademark must be registered for specific categories.  For this, the Nice Classification establishes 45 classes. However, Chelsea FC only registered the trademark "Jose Mourinho" into 7 categories, including personal care items, porcelain items, jewelry and others.
3. "Jose Mourinho" trademark was registered before the European Union Intellectual Property Office which operates in all countries of the Union.
4. Registers are temporary and in the case of the European Union it is extended for 10 years, which are renewables for the same time
"Jose Mourinho" trademark registrations in five classes will expire in 2025, because they were renewed.

The other two classes were registered in 2013 and expire in 2023. With this background what were the options of Manchester United FC:

1) Sign a license agreement with Chelsea FC that would allow the United to use "Jose Mourinho" trademark in the registered classes that probably will be very expensive, but Mourinho can generate more profits from the investment.
2) That United or Mourinho by himself buys Chelsea FC trademark registration rights.
3) That Manchester United FC marketed products under the name of Jose Mourinho, but in the classes that were not registered by Chelsea FC, it means, to refrain from producing or selling cups or jewelry with the name of Jose Mourinho.
4) Marketing products by the nickname Mourinho "The Special One", since it is not registered by Chelsea FC.
5) File a judicial action in which it is proved that Chelsea FC does not use "Jose Mourinho" trademark, difficult issue because items with this trademark are still sold on the outside of Stamford Bridge. 

Jose Mourinho is now the coach of Manchester United FC and probably the club reached a solution adjusted to its interests because definitely when coaches and players are hired, the team does not only care about talent, but also consider issues such as the name and image that will generate profits.

By Cristina Villamadrid (Carrero & Quintero)