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(1) Bell South

(2)Banco del Pacifico

(3)PricewaterhouseCoopers del Ecuador Cia. Ltda.

(4)Corporación Financiera Nacional

(5)Ecuador's Free Trade Zones

(6)Andinatel

(7)Pacifictel

(8)La Universal

(9)CORPEI

(10)Hotel Oro Verde

(11)NABISCO

(12)Ecuador Ministry of Tourism

(13)Guayaquil

(14)Crowne Plaza Hotel • Casino, Quito, Ecuador

(15)JW Marriott Hotel, Quito, Ecuador

(16)Camara de Comercio, Ecuatoriano - Americana

Free Trade Zone Incentives

The new Free Trade Zone law was passed in March, 1998. There are currently five zones either open or under development. Following are the benefits granted under the Free Zone legislation.

• 100% exemption on import duties on raw materials, equipment, parts, components, samples and capital goods necessary for the production of the final product.

• 100% exemption of taxes on remittances abroad

• 100% exemption on export taxes

• 100% exemption on sales tax of local purchases of goods and services

• 100% of municipal and capital taxes

• Exemption from import duties on vehicles necessary for operation

• No restrictions on capital repatriation

• No restrictions on sales to local exporters

• Companies may sell production in local market

• Management of foreign currency with complete independence from the local banking system

• Underdeveloped areas get additional benefits

Table of Contents

(1) President Mahuad announces new economic plan

(2) Ambassador addresses economic and political concerns

(3) US Ambassador prepares to say "Good-bye" to Ecuador

(4) Foreign Ministry promotes Ecuador to the international community

(5) Banks working to promote investment and development

(6) Who's Who in the Ecuadorian Government

(7) On the road to peace

(8) Doing business in Ecuador

(9) Why Invest in Ecuador

(10) Preparing the country for peace and promoting education

(11) Education key to economic and social development

(12) Useful Contacts in Ecuador

(13) Investors will have the option of five Free Trade Zones

(14) Free Trade Zone Incentives

(15) Telecommunications industry prepares for privatization

(16) Conam in charge of privatizing, modernizing and decentralizing

(17) Promoting Ecuador's traditional and nontraditional products to the world

(18) Ecuador's rich cultural patrimony - From Indigenous music to internationally recognized artists

(19) Traditional products

(20) Dining in Ecuador

(21) Local governments balance diversity, history and growth

(22) Protecting the environment through education and eco-tourism

(23) Geography

(24) Tourism is a vehicle for sustainable development

(25) Congress plans to work with government to conquer economic crisis

(26) Quito - A Capital City

(27) Guayaquil - The Pearl of the Pacific

(28) Galagapos - The Enchanted Islands

(29) Cuenca - The Athens of Ecuador

(30) Preparing infrastructure for international trade