

Currently released so far... 12478 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
AU
ASEC
AE
AF
AORC
AEMR
AMGT
ABUD
AFFAIRS
APER
AS
AMED
AY
AG
AR
AJ
AL
AID
AM
AODE
ABLD
AMG
AFIN
ATRN
AGAO
AFU
AN
AA
ALOW
APECO
ADM
ARF
ASEAN
APEC
AMBASSADOR
AO
ASUP
AZ
AADP
ACOA
ANET
AMCHAMS
ACABQ
ASECKFRDCVISKIRFPHUMSMIGEG
APCS
AGMT
AINF
AIT
AORL
ACS
AFSI
AFSN
ACBAQ
AFGHANISTAN
ADANA
ADPM
AX
ADCO
AECL
AMEX
ACAO
ASCH
AORG
AGR
AROC
ASIG
AND
ARM
AQ
ATFN
AC
AUC
ASEX
AER
AVERY
AGRICULTURE
BL
BR
BO
BA
BD
BM
BK
BG
BU
BB
BH
BTIO
BY
BEXP
BP
BE
BRUSSELS
BF
BIDEN
BT
BX
BC
BILAT
BN
BBSR
BTIU
BWC
BMGT
CA
CASC
CVIS
CM
CH
CO
CU
CD
CWC
CI
CS
CY
CMGT
CF
CG
CR
CB
CV
CW
CE
CBW
CT
CPAS
COUNTERTERRORISM
CJAN
CODEL
CIDA
CDG
CDC
CIA
CTR
CNARC
CSW
CN
CONS
CLINTON
COE
CROS
CARICOM
CONDOLEEZZA
COUNTER
CL
COM
CICTE
CIS
CFED
COUNTRY
CJUS
CBSA
CEUDA
CLMT
CAC
COPUOS
CIC
CBE
CHR
CTM
CVR
CITEL
CLEARANCE
CACS
CAN
CITT
CARSON
CACM
CDB
CAPC
CKGR
CBC
EC
EG
EPET
ECON
ETRD
EFIN
EIND
EMIN
ENRG
EAID
EAGR
EUN
ETTC
EAIR
ENIV
ES
EU
EINV
ELAB
ECIN
EFIS
ELTN
EWWT
ECPS
ECONOMIC
ENGR
EN
EINT
EPA
ELN
ESA
EZ
ER
ET
EFTA
EINVECONSENVCSJA
EUMEM
ETRA
EXTERNAL
EI
EUR
EK
ERNG
ENGY
ETRDEINVECINPGOVCS
ENERG
EINVEFIN
ENVR
ECA
ELECTIONS
ETC
EUREM
ENNP
EFINECONCS
EURN
ECINECONCS
EEPET
EXIM
ERD
ENVI
ETRC
ETRDEINVTINTCS
ETRO
EDU
ETRN
EAIG
ECONCS
ECONOMICS
EAP
ECONOMY
EINN
EIAR
EXBS
ECUN
EINDETRD
EREL
EUC
ESENV
ECONEFIN
ECIP
EFIM
EAIDS
ETRDECONWTOCS
EUNCH
EINVETC
IZ
IT
IR
IS
IN
IC
IAEA
IO
ICAO
IWC
ID
IV
ISRAEL
IAHRC
IQ
ICTR
IMF
IRS
IDP
IGAD
ICRC
ICTY
IMO
IL
INRA
INRO
ICJ
ITU
IBRD
INMARSAT
IIP
ITALY
IEFIN
IACI
ILO
INTELSAT
ILC
ITRA
IDA
INRB
IRC
INTERPOL
IA
IPR
IRAQI
ISRAELI
INTERNAL
ISLAMISTS
INDO
ITPHUM
ITPGOV
ITALIAN
IBET
INR
IEA
IZPREL
IRAJ
ITF
IF
KDEM
KU
KPAL
KNNP
KCRM
KZ
KN
KS
KJUS
KTFN
KSCA
KV
KISL
KPAO
KPKO
KIRF
KTIA
KIPR
KFLO
KFRD
KTIP
KAWC
KSUM
KCOM
KAID
KE
KTDB
KMDR
KOMC
KWBG
KDRG
KVPR
KTEX
KGIC
KWMN
KSCI
KCOR
KACT
KDDG
KHLS
KSAF
KFLU
KSEO
KMRS
KSPR
KOLY
KSEP
KVIR
KGHG
KIRC
KUNR
KIFR
KCIP
KMCA
KMPI
KBCT
KHSA
KICC
KIDE
KCRS
KMFO
KRVC
KRGY
KR
KAWK
KG
KFIN
KHIV
KBIO
KOCI
KBTR
KNEI
KPOA
KCFE
KPLS
KSTC
KHDP
KPRP
KCRCM
KLIG
KCFC
KTER
KREC
KTBT
KPRV
KSTH
KRIM
KRAD
KWAC
KWMM
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KOMS
KX
KMIG
KRCM
KVRP
KBTS
KPAONZ
KNUC
KNAR
KPWR
KNPP
KDEMAF
KNUP
KNNPMNUC
KERG
KGIT
KPAI
KTLA
KFSC
KCSY
KSAC
KTRD
KID
KOM
KMOC
KJUST
KGCC
KREL
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KFTFN
KO
KNSD
KHUM
KSEC
KCMR
KCHG
KICA
KPIN
KESS
KDEV
KCGC
KWWMN
KPAK
KWNM
KWMNCS
KRFD
MOPS
MCAP
MPOS
MARR
MO
MNUC
MX
MASS
MG
MY
MU
ML
MR
MILITARY
MTCRE
MT
MEPP
MA
MDC
MP
MAR
MASSMNUC
MARAD
MAPP
MZ
MD
MI
MEETINGS
MK
MCC
MEPN
MRCRE
MAS
MIL
MASC
MC
MV
MTCR
MIK
MUCN
MEDIA
MERCOSUR
MW
MOPPS
MTS
MLS
MILI
MTRE
MEPI
MQADHAFI
MAPS
NO
NATO
NL
NP
NZ
NSF
NI
NH
NG
NAFTA
NU
NASA
NR
NATOPREL
NSSP
NSG
NA
NT
NW
NK
NPT
NPA
NATIONAL
NPG
NSFO
NS
NSC
NE
NGO
NDP
NIPP
NRR
NEW
NZUS
NC
NAR
NV
NORAD
OTRA
OPCW
OVIP
OAS
OREP
OPIC
OIIP
OPRC
ODIP
OEXC
OPDC
OSCE
OIC
OSCI
OECD
OFDP
OFDA
OMIG
OPAD
OFFICIALS
OVP
OIE
OHUM
OCS
OBSP
OTR
OSAC
ON
OCII
OES
PGOV
PREL
PHUM
PTER
PINS
PINR
PREF
PK
PROP
PA
PARM
PBTS
PMAR
PM
PGIV
PE
PRAM
PHUH
PHSA
PL
PNAT
PO
PLN
PAO
PSA
PHUMPGOV
PF
PEL
PBIO
POLITICS
PHUMBA
PAS
POL
PREO
PAHO
PMIL
POGOV
POV
PAK
PNR
PRL
PG
PREFA
PSI
PINL
PU
PARMS
PRGOV
PALESTINIAN
PAIGH
POLITICAL
PARTIES
POSTS
PROG
PORG
PTBS
PUNE
POLICY
PDOV
PCI
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PBT
PP
PS
PY
PTERE
PGOF
PKFK
PSOE
PEPR
PPA
PINT
PRELP
PSEPC
PGOVE
PINF
PNG
PGOC
PFOR
PCUL
POLINT
PGGV
PHALANAGE
PARTY
PGOVLO
PHUS
PDEM
PECON
PROV
PHUMPREL
RS
RU
RELATIONS
RW
RO
RM
RP
ROOD
RICE
RUPREL
RSO
RCMP
REACTION
REPORT
REGION
RIGHTS
RF
RFE
RSP
RIGHTSPOLMIL
ROBERT
SU
SCUL
SNAR
SOCI
SF
SA
SHUM
SENV
SP
SR
SY
SANC
SC
SMIG
SZ
SARS
SW
SEVN
SO
SEN
SL
SNARCS
SNARN
SI
SG
SN
SH
SYR
SAARC
SPCE
SHI
SCRS
SENVKGHG
SYRIA
SWE
STEINBERG
SIPRS
ST
SNARIZ
SSA
SK
SPCVIS
SOFA
SIPDIS
SAN
TC
TI
TBIO
TH
TSPL
TRGY
TSPA
TPHY
TU
TW
TS
TAGS
TK
TX
TNGD
TZ
TF
TL
TV
TN
TD
TIP
TR
TP
TO
TT
TFIN
THPY
TERRORISM
TINT
TRSY
TURKEY
TBID
US
UK
UNGA
UP
UZ
UNMIK
USTR
UNO
UNSC
UN
UNESCO
UNAUS
UNHRC
UY
UG
UNHCR
UNCND
USOAS
USEU
UNICEF
UNEP
UV
UNPUOS
UNCSD
USUN
UNCHR
UNDC
USNC
UE
UNDP
UNC
USPS
USAID
UNVIE
UAE
UNFICYP
UNODC
UNCHS
UNIDROIT
UNDESCO
UNCHC
Browse by classification
Community resources
courage is contagious
Viewing cable 09QUITO121, A Somber U.S. Business Forum Briefs the Ambassador
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09QUITO121.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
09QUITO121 | 2009-02-18 20:41 | 2011-04-29 17:30 | CONFIDENTIAL | Embassy Quito |
Appears in these articles: http://www.eluniverso.com/2011/04/27/1/1355/cable-192675.html |
VZCZCXYZ0008
RR RUEHWEB
DE RUEHQT #0121/01 0492041
ZNY CCCCC ZZH
R 182041Z FEB 09
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC 0039
INFO RUEHBO/AMEMBASSY BOGOTA 7969
RUEHCV/AMEMBASSY CARACAS 3392
RUEHLP/AMEMBASSY LA PAZ FEB LIMA 3035
RUEHGL/AMCONSUL GUAYAQUIL 4104
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
C O N F I D E N T I A L QUITO 000121
SIPDIS
USTR FOR BENNETT HARMAN
E.O. 12958: DECL:02/17/2019
TAGS: ETRD EINV EFIN EPET ECON EC
SUBJECT: A Somber U.S. Business Forum Briefs the Ambassador
Ref. A) Quito 98, B) Quito 60, C) Quit...
id: 192675
date: 2/18/2009 20:41
refid: 09QUITO121
origin: Embassy Quito
classification: CONFIDENTIAL
destination: 08QUITO1178|09QUITO22|09QUITO60|09QUITO98
header:
VZCZCXYZ0008
RR RUEHWEB
DE RUEHQT #0121/01 0492041
ZNY CCCCC ZZH
R 182041Z FEB 09
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC 0039
INFO RUEHBO/AMEMBASSY BOGOTA 7969
RUEHCV/AMEMBASSY CARACAS 3392
RUEHLP/AMEMBASSY LA PAZ FEB LIMA 3035
RUEHGL/AMCONSUL GUAYAQUIL 4104
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
----------------- header ends ----------------
C O N F I D E N T I A L QUITO 000121
SIPDIS
USTR FOR BENNETT HARMAN
E.O. 12958: DECL:02/17/2019
TAGS: ETRD EINV EFIN EPET ECON EC
SUBJECT: A Somber U.S. Business Forum Briefs the Ambassador
Ref. A) Quito 98, B) Quito 60, C) Quito 22, D) 08 Quito 1178
Classified by Ambassador Heather Hodges. Reason: 1.4 b and d.
¶1. (C) Summary. On February 13, U.S. companies briefed the
Ambassador on the business climate in Ecuador. The tone was somber,
as the representative outlined challenges and risks, but also
opportunities for their companies, which are representative of many
business sectors in Ecuador. Most were concerned about weakening
demand in Ecuador and abroad, the risk of dedollarization, declining
export competitiveness, problems raised by restrictive Ecuadorian
trade measures, the need to take defensive positions by saving cash
and reducing workforces and, for the petroleum and banking sectors,
continued regulatory uncertainty. Not all was negative, however, as
the business representatives noted that the government heard their
concerns and gave them some relief on the trade restrictions, and
several noted that the trade restrictions will also provide
opportunities that some industries will be able to exploit. End
summary.
¶2. (U) The Ambassador met with the U.S. Business Forum on February
¶13. The U.S. Business Forum operates in parallel with the AmCham and
is focused on U.S.-owned or operated businesses, and provides the
participants an opportunity to exchange information on the current
business climate.
Autos
-----
¶3. (C) The General Motors manager (GM) led off by discussing the
trade restrictions that Government of Ecuador imposed in January
(reftel b). He said that GM participated in the discussions the GOE
had with the private sector, and obtained some flexibility in GM's
quota by excluding imported kits that are used to assemble vehicles
for export, taxis or the government. However, GM declined to sign
the agreement that most large importers signed. The GM
representative noted that the trade restrictions complicate GM's
production management in the region, since GM coordinates production
between its facilities in Ecuador, Colombia and Venezuela, and now
the Colombian and Venezuelan plants face high tariffs in exporting to
Ecuador.
¶4. (C) The GM manager said that his factory had to shut down for
five days because the sudden imposition of new certification
requirements (reftel d) blocked the importation of a range of parts
used for auto assembly. He said that for one product the Ecuadorian
standard was 20 years old and no laboratory tests to that standard
anymore. He said his factory was on the verge of shutting down again
when the GOE temporarily lifted the certification requirement for six
months (reftel a).
¶5. (C) Turning to the current business climate, the GM manager said
that his sales were up 20% in January 2009 compared to January 2008,
the only GM unit worldwide to experience a sales increase. He
assumed the jump was because customers were anticipating a price
increase and/or because they were converting financial savings into
real goods out of a concern about pending financial sector
difficulties. He said that most sales were for cash, as financing
for auto purchases has sharply contracted.
Banking
-------
¶6. (C) The Citibank representative stated that deposits in the
banking sector have declined, reflecting an overall decrease in
liquidity in Ecuador due to balance of payments and fiscal
constraints, plus withdrawals by clients who are concerned about
Ecuador's ability to maintain dollarization. She said that the
banking sector is protecting its liquidity by reducing lending, and
seemed to believe that overall the sector was sound. She was
concerned that several smaller banks were in a difficult position
and, if closed, might promote panic about the state of the overall
banking sector.
¶7. (C) Regarding the balance of payments pressure that Ecuador is
facing, the Citibank manager said that she is concerned that Ecuador
may go beyond the current 1% tax on transfers abroad and may impose
capital controls as some point.
Energy Sector
-------------
¶8. (C) The head of a local oil services company owned by a U.S.
citizen said that there was little investment in the petroleum
sector. Foreign oil companies had dramatically cut back on
investment in recent years with the imposition of windfall oil income
taxes, and more recently state-owned Petroecuador suffered a dramatic
cut in its investment budget because of falling oil income.
¶9. (C) The manager of Machala Power/EDC, electricity and natural gas
companies owned by Noble Energy, said that his company had reached an
agreement with the GOE whereby the GOE would pay Machala Power $70
million in arrears, and in turn Machala Power would withdraw its
international arbitration case (refel c). However, he has been
informed that that GOE no longer has sufficient cash and therefore
will not be making the payment.
¶10. (C) After the meeting, the Machala Power/EDC representative told
EconCouns that he is concerned about the GOE's approach to the EDC
gas company. In a recent meeting with Carlos Pareja, Under Secretary
for Petroleum, Pareja told him that President Correa has decided that
EDC's production contract should be converted to a service contract,
and EDC would be paid a fee of $2 for every thousand cubic feet (Mcf)
of gas produced. If not, Machala Power/EDC should "begin to pack its
bags." The representative said that currently EDC charges its sister
company approximately $3.75/Mcf, which is low in order to generate
profits on the electricity side of the business, and that the fee
proposed by Pareja was unreasonable.
Flower Sector
-------------
¶11. (C) A representative of a U.S. flower company said that
Ecuadorian flower exports were down because of weakening demand in
major markets, which is accentuated in new markets in Eastern Europe
which have experienced sharp currency devaluations as well. In
addition, Ecuadorian producers are facing increased competition from
African producers where labor costs are much lower, which has been
exacerbated by sharp increases in the minimum wage in Ecuador in 2008
and 2009. He said that given the loss of competitiveness of the
Ecuadorian flower sector, the best outcome for that sector would be
if Ecuador abandoned the dollar, although he acknowledged that could
cause problems for other sectors.
Tourism
-------
¶12. (C) The manager of the Marriott hotel said that business at his
hotel was down 16% from the prior year. He said that his hotel had
let a limited number of staff go.
Industrial Imports
------------------
¶13. (C) The manager of an Ecuadorian company that imports valves and
other types of industrial piping from the U.S. said that overall
business has weakened. He added that some sectors, such as the food
processing industry, continue to invest, in part to take advantage of
new market opportunities created by higher tariffs on consumer goods.
He said that in the current uncertain business environment,
companies had to hoard cash, be lean (his company has reduced staff
by 15%), and look for new opportunities.
Consumer Goods
--------------
¶14. (C) The representative for Energizer said that his company
imports batteries and a range of toiletry goods. He said that like
GM, his company realized a jump in sales in December and January as
Ecuadorian distributors stocked up in anticipation of price
increases; he expects limited sales in the upcoming months. The
exception was batteries, where imports were also blocked for almost
two months by the new Ecuadorian certification requirements, which
were then lifted.
¶15. (C) He said that in addition to selling to large Ecuadorian
chains, his company sells to small shops. He said that he has seen
growing arrears with the small stores. The small stores have had to
increase the credit they extend to their customers, largely because
of falling income due to declining remittances. This in turn leads
the small stores to fall behind on payments to suppliers such as
Energizer.
Textiles
--------
¶16. (C) The U.S. owner of a local textile company said that the
textile sector was doing well and benefited from the trade
restrictions on imported clothing, although he stressed that his
industry did not ask for the restrictions. His company will increase
investment to take advantage of the opportunities. He added that his
sector did ask for tighter labeling requirements, which the GOE has
begun to implement, as a measure to crack down on contraband.
Information Technology
----------------------
¶17. (C) The U.S. owner of an Ecuadorian information technology (IT)
company said that the business outlook for his sector was uncertain.
Overall investment was down, but some business were increasing IT
investment to improve efficiency. He said that some of the
investment was in labor-saving technology as companies looked to
reduce their payrolls.
Comment
-------
¶18. (C) This was the most somber meeting the Embassy has had with
the U.S. Business Forum in recent years, as U.S. companies grapple
with the challenges of a global economic downturn that appears likely
to create a difficult business environment in Ecuador in 2009. This
is further complicated by Ecuadorian trade barriers as well as
regulatory uncertainty for key sectors such as petroleum and banking.
Even so, most companies still see business opportunities in Ecuador
and will manage their companies to minimize the upcoming risks and to
take advantage of the opportunities that present themselves.
Hodges
=======================CABLE ENDS============================