Teacher: MSc Max Galarza
• Ecuador as a country initiated some meetings in
Brussels with the E.U. to achieve an agreement
that will beneficiate them mutually. These
meetings have been considered very important
because the results could affect positively or
negatively to the local producers that export and
the local retailers that import many sorts of
Currently the local market still
The Ecuadorian pharmaceutical
industry maintains a development of controlled 85% by imported medicines,
14% annually over the past three years. while domestic products are 14%. In
Ecuador 1,784 drug submissions are
Population's access to medicines and
made of 902 marks.
health services increases gradually.
The drug market in Ecuador, covered
in selling price to pharmacies totaling
$ 1,200'000,000, of which $300'000,000
are public market and $900’000,000 to
the private market.
National laboratories have sold to the
government $ 145 million, generating a
mutual gain saved to the country and
injected money to the sector for 2
• According to the measures, the national production of medicines is
too low in comparison with the quantity of imports in the same
issue. Due to this reality, the national market is looking forward to
acquire new investments in the industry that will generate a better
percentage in the national production of medicines.
• In a communication of the BCE about the highest percentage of
import commodities in Ecuador, the results show that the Medicines
with the tariff code 3004.90.29 are third. In other words the
medicines are considered one of the biggest expenses of Ecuador in
the international trade.
• The Ecuadorian pharmacist growth increased from the
nationalization of the production of drugs that began in 2009. Since
then the corporation has expanded enormously. Sales volume has
been generated by our procurement has risen to small and medium
industry, because big business has increased four times
There are a lot of expectations in the
possible agreement that will be
established between Ecuador and the
European Union. Consider as a
possible solution to get better the
international trade that Ecuador has.
According to Felipe Rivadeneira, the
Chief executive of the Ecuadorian
Federation of exporters (FEDEXPOR),
reiterate about the expectations that
the country have after the first
meetings in from January 13 to 17 in
One of the possible benefits could be
the increase of the exportations to
Europe in $ 300 million of dollars in
the next 3 years.
Also, this negotiation with the
European Union will generate a model
for future negotiations as an
opportunity to open our markets and
extend them to other regions and
countries over the world.
Treatments & deadlines
• According to the President Rafael
Correa, there are no disagreements
between the country and the European
Union on this negotiation. But first it is
necessary to establish some points and
commercial agreement that Ecuador
wants to achieve.
• This points and measures are related with the deadlines that were
presented by the country in the negotiations. The principles are the
public purchases, intellectual property and outflow of foreign
exchange which are considered issues that could be affected with the
agreement if there are not taken possible measures to protect them.
Currently in an interview the Minister Rene Ramirez said:
• The subject named "test data" you know that pharmaceutical
companies are granted an additional period of exclusive use of a
certain drug, to ensure profitability. We proposed financial
compensation so that there is no such privilege to the detriment of
what they represent profits for companies. A study of the Pan
American Health Organization (PAHO) states that the exclusive
"test data" (similar to the clause that exists in the trade agreement
Colombia and Peru) imply an additional expense in the drug
market 500 million dollars, equivalent to health costs of about 1
million 180 thousand people, resulting in a 18% increase in the price
of medicines. In the public sector, this legislation would increase
spending by nearly $ 60 million or, seen another way, a reduction of
16 % of their purchases. These data are from 2010... So can imagine
that these dates have increased, right?
At the same time he said:
• Remember that at this time a strategic company for Ecuador is
“Enfarma” (drug public company) that produce generic drugs.
Exclusive rights to "test data" complicate the production of generic
Enfarma but not only in the pharmaceutical industry in general
• Enfarma EP is a public corporation of the Ecuadorian State, created
by Executive Order No. 181, dated December 21, 2009, with the aim
of having an important tool to define policies and actions in the
field of the provision and supply of medicines the country,
considering their health needs and respecting the principles of
equity, identity and culture.
• The National Drug Company (Enfarma EP), plans to invest USD
156.7 million to install a Pharmaceutical Complex in 2017 and
achieve production of 82 human medicines.
• As we said before the local pharmaceuticals are stronger suppliers
for the government in medicines, as an incentives for the
development of this industry locally. This is a win-win commercial
transaction because this allows to the government to generates an
income on the national economy and at the same time obtain the
• So, if we analyze the intentions of European Union, they would try
to export more of this issue to our country that has a poor local
industry on this commodity. This could be a treatment for the local
industry that depends on the government to sell their productions.
• This is the other topic that it will be necessary to analyze in order to
get the correct measures to avoid problems in the agreement.
• The national norms of the Intellectual property recognize the
ancestral knowledge about the manipulation of plants and the
protection of the patents. That must be analyzed to get in a positive
agreement according to the Trade Chamber of Quito.
• On this way, Marco Alban, director of the CCQ, explain that the
national constitution proved on 2008, forbid the appropriation of
ancestral knowledge on biodiversity. That is an issue important for
the local pharmaceutical and agricultural industry.
• This agreement would cause a real impact inside the country
economy because of all the things that could happen between
Ecuador and The E.U., although the project has no a solution
yet, but what the government should do is a deal between the
U.E. and this country in order that provide us the facilities to
have the patent for the pharmaceutical sector and they could
collect the money that we should pay for the patent but with a
The government is looking for the answer that they need to
complete this agreement, it means that the government have
established some time in this to do a good conclusion of the
agreement with the intention of both parties stay benefited.