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A Special International Report Prepared by
The Washington Times Advertising Department - Published on April 21, 1999
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Advertisers
(1) Bell South
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Promoting Ecuador's traditional and nontraditional products to the world
The history of Corpei The Exports and Promotion Corporation (Corpei) was created under the new Foreign Trade and Investment Law (Lexi) in June, 1997. For the last two years, the organization has been creating a strategic plan for the promotion of exports and direct investments, aggressively marketing the name of Ecuador and working with exporters helping them become more efficient and create better commercial strategies. Ricardo Estrado, Executive President of Corpei, has been at the helm of Corpei since its inception. He often bears the weight of most agroindustrial sectors on his shoulders, as it is his job to coordinate government and private sector actions. He is a tireless supporter and promoter of Ecuadorian products, travelling around the world in an attempt to open new markets and attract new investors. "Corpei is working on a strategic, national plan that will promote agroexports, Ecuador's main renewable source of income," he begins at his office 29 floors above the Guayas River in Guayaquil. From here he can see the port, shrimp farms and many other productive sectors in which Corpei is involved. "First we want to know what each sector is about - its productivity, potential, etc. Then we create a strategic plan for that specific product. Finally, we put together a five to 10 year national plan that highlights on which products we should be focusing." His goal is to have this sector information completed by the summer of 1999.
Corpei's is a non-profit organization that has developed an interesting means of self-funding; $1.50 of every $1,000 of private exports' FOB price, $0.50 of $1,000 of exports of crude oil, and $0.25 of $1,000 of all imports are designated to Corpei. This is a redeemable quota, which means that each time a company pays, it receives a coupon. For every $500 paid, a dollar certificate is received at face value, which can then be cashed in 10 years later at face value. Companies can then look at the funding as an asset, not as a tax, explains Estrada. Services provided While the Board guides Corpei's policy, the corporation has developed four key competitive advantages. The Foreign Trade Network coordinates external demand with internal supply. The network has its own offices in key markets and also relies on local trade organizations and its Embassies across the world. The Commercial Information Center provides value-added information to give users the most accurate analysis of particular situations as well as the basic data so proper commercial strategies can be designed.
Lastly, Corpei promotes direct investments in order to encourage investors' participation in projects developed by the private sector. Corpei attends numerous international events to promote the comparative advantages of Ecuador, including its geographic location, the quality of soil, the skilled and qualified workers, the luminosity and other exclusive attributes the country offers to potential investors. Promotion of nontraditional products Ecuador is already renowned around the world for its tasty bananas, delicious shrimp, beautiful roses and aromatic cocoa. The country is the world's largest exporter of bananas and the largest source of farmed shrimp and prawns in the Western Hemisphere. Ecuador's roses win prizes around the world, while its aromatic cocoa is used in the finest Swiss chocolate and in Americas' favorites. However, as Ecuador's overdependence on oil decreases, the country is looking towards new products. "Over the next 10 years we want to create 10 new products with a value of $100 million each," Estrada says. Already, some interesting nontraditional products are being developed. Cigars, tagua or vegetable ivory, Panama Hats, chocolate, hearts of palm, mango and broccoli are only some of the new sectors that are being explored. The fishing industry is trying to develop a wide range of nontraditional products. Oysters, bay scallops, tilapia and even the Australian red claw are all examples of areas they are studing. Victor Osorio, an advisor with Cristobal Verduga a major shrimp producing company, has been trying to promote red claw to American family restaurants, such as Outback Steakhouse. Other interesting nontraditional products include cigars. Ecuador is known around the world as a leaf tobacco producer of extraordinary quality, as well as a manufacturer of full-bodied cigars. Are you a fan of Bahia Gold, recently given the highest ranking by The Cigar Aficionado? How about Punch, Joya de Monterrey, or Gloria Cubana? They all use Ecuadorian wrapper, as do 100 other cigar makers, including the Dominican Republic, Honduras, Nicaragua and Costa Rica. Ecuapuros, the only 100 percent Ecuadorian company, is the newest player in Ecuador. It produces one and half million cigars a year. Their Quevedo, which received a three plus (very good plus) rating from the European Cigar Journal, sells in the United States for about $4.00. Available in five sizes, the Quevedo is positioning itself to be a best seller in the United States. "We are a new producer making a new cigar. This gives us some mystique," says Ronald Sonne, the Executive President and himself a cigar aficionado. Sonne explains that Ecuapuros uses new, Cuban seeds, but grows its own filler and wrapper. "Our cigars have a great taste, very similar to a real Cuban. This gives us a big advantage over other companies whose seeds came from Cuba many generations ago." The wrapper is divided by grade, size and tonality, then combined with one of three different types of filler to create Quevedos, Solemnes or Sonnes. Some cigars are manufactured using long filler, lots of big pieces of leaves, which is the preferred cigar for those who appreciate the art of smoking a fine cigar, while others are created with short filler, which have a similar taste, but are easier and faster to make. From cigars to tagua nuts to chocolate to Panama Hats, there is a big future for Ecuador in the international market. And, the support behind this development will be Corpei. For more information on how to purchase Ecuadorian products or how to invest in an up and coming sector, contact Corpei at corpei@impsat.net.ec. |
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Table of Contents (1) President Mahuad announces new economic plan |
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Ecuador is an intrinsically rich country whose long hours of sunlight, rich soil and proximity to the Pacific Ocean allow the growth of a wide variety of products. The country's traditional and nontraditional products are well respected and are in high demand in international markets. At the same time, not all sectors have been exploited. Many opportunities still exist for international entrepreneurs who are interested in investing in a wide variety of sectors.
Part of Corpei's mission is to be both a professional and technical institution that promotes exports and attracts investment, explains Estrada. To achieve these goals, Corpei lobbies government and Congress to change laws. However, "we are not a partisan group," he insists. Actually, the Board of Corpei consists of both the private and public sector, including the Ministers of Commerce, Foreign Affairs and Agriculture, The National Financial Corporation, Fedexport, and the Chambers of Industry, Commerce, Agriculture, Small Industries and Aquaculture, as well as delegates from the productive sectors.
In order to meet the differing needs of exporters, Corpei has created a group of Coordinators whose main function is to foster a team spirit within the different sectors in order to create competitive advantages of each sector.