October 12 th of 2015 ECUADOR REPUBLIC OF OPPORTUNITIES

Name: Republic of Ecuador Government type: Democracy Capital: Quito Business Languages: Spanish (official) & English Area: 257,217 Sq Km Time zone: GMT -5 hours and GMT – 6 hours Currency: US Dollar Population: 15.8MM approx.(14.5MM census 2010) Nominal GDP: USD 100,917.4 MM (current 2014) Ecuador Country Profile Naturally-formed regions comprising two time-zones The country’s name symbolizes its location A largely diverse country: multi-ethnical and multi-cultural: 14 languages among 8 ethnic groups

Economic and Social Indicators

ECONOMIC SOCIAL-POLITIC COMPETITIVE Annual average 4,6% from 2007 to 2014, among the highest in the region GDP GROWTH High level of investment with low public debt INVESTMENT Re-elected President with the public approval of 72% Improvement in HDI and wealth concentration POLITICAL STABILITY SOCIAL DEVELOPMENT Development of communication, energy and road infrastructure Roads, airports and ports development, ideal location for commerce INFRASTRUCTURELOGISTICS *Source: ECLAC Ecuador has achieved STRONG GROWTH in the last decade, preparing for its future development

Macroeconomic benchmark of Ecuador *Source: BCE 3.7% 3.9%4.2%5.1%5.2%8.3%68.5% Rate of Inflation 2014

Ecuador: significant advances in poverty reduction *Source: INEC REDUCTION OF EXTREME POVERTY 16.45%7.36% 2007June 2015

Source: Ecuadorian central Bank, ECLAC * Projected 2014 Average Growth Latin America: 3.2 % Ecuador: 4.3 % Average Growth Latin America: 3.2 % Ecuador: 4.3 % GDP Growth Rate (by percentage) 1.3 Ecuador: one of the most dynamic economies in an ever- growing Latin America

Ecuador reduced income inequality *Source: INEC REDUCTION OF INCOME INEQUALITY st place in Latin America June 2015 Gini coefficient

Ecuador invests in education and human talent *Sources: SENECYT and Coordinating Ministry of Knowledge and Human Talent EVOLUTION OF PUBLIC EXPENDITURE ON HIGHER EDUCATION AS % OF GDP 2.12% of GDP in public spending for higher education, the highest in the region Public Expenditure % GDP Scholarships granted for Ecuadorians to study in world renowned universities between ,482

Ecuador: A Latin American leader in competitiveness Source: World Economic Forum 32 positions in the last 7 years 103 While Latin America itself has made significant advances in its competitiveness, Ecuador has experienced the highest improvement in the region Global Competitiveness Index *Source: World Economic Forum

National indicators *Source: MCPEC 17 airports renewed and operated at the national level 86% 9,000 km of new highways With a public investment of more than USD 8 billion 8 new hydroelectric plants by 2016 With a public-private investment of more than USD 4.5 billion 6 multi-purpose projects of irrigation control and floods With a public investment of more than USD 800 millions

Costs of essential services for industries *Source: World Bank – Year ₡8₡ One of the lowest energy costs in the region 29 ₡ One of the lowest cost in the region 1.5$ One of the lowest costs of water in the region kilowatt per hour Per liter of diesel Per cubic meter *Source: OLADE- Year 2014 *Source: Metropolitan Water and Sanitation Company of Quito – Year 2014

The state has invested in infrastructure: Ports, airports, telecommunications, highways and power generation projects * Source : MICSE Annual growth rate is 32.8% More than USD millions investedBy 2016 Ecuador will have 8,300 MW installed 37,418 km of fiber optic cable 9,200 km of roads and highways Power generation projects *Source: MINTEL * Source : MICSE

Vision for 2025 STRENGHTENING THE PRODUCTIVE CHAIN INTERMEDIATE INDUSTRIES BASICS INDUSTRIES AGRO INDUSTRIES PRODUCTIVE SERVICES TOURISTIC INDUSTRY

Signed investment contracts 44 investment contracts signed, for a total of USD millions

Main sectors from Turkey with potential to invest in Ecuador FRESH AND FROZEN FOODS METALWORKING LOGISTIC TOURISM PETROCHEMISTRY AGROINDUSTRIAL

Public - Private Partnership LAW PROJECT

Scope of application Extends the possibility for the private sector to finance public projects. Private initiatives can refer to any project: projects in strategic sectors (energy, telecommunications, transport, etc.), public services (hospitals, schools, etc.) or any other services.

Objectives Attract domestic and foreign investment for the implementation of priority public projects. Promote external competitive financing companies, banks and other financial instituions, without discriminating tax havens Facilitate internal financing through the stock market

Incentives to investors Stability on tax regime. Project to be exempt from income tax for 10 years. Payments of dividends exempt from currency outflow tax VAT compensation for cost reduction. Exemption from customs tariff and other taxes, such as the transfer of ownership.

ECUADORIAN GOVERNMENT Guarantees legal framework stability Develops adequate policies and infrastructure Invests when necessary LOCAL PRIVATE COMPANY Possible joint venture Facilitate relations with the local market Invest when necessary FOREIGN PRIVATE COMPANY Provides know how, technology and best practices Brings experience for new commercial agreements Attraction of foreign investment Foreign partners/investors will benefit from the involvement of the Ecuadorian Government and other local players TRIPARTITE MODEL FOR PARTNERSHIP Ecuador is currently searching for foreign partners to actively participate in the development of its basic industries The management model is negotiable and may vary depending stakeholders participation.

Bilateral Trade Turkey - Ecuador

TOTAL TRADE BALANCE ECUADOR – TURKEY (USD Thousands FOB)

NON-OIL TRADE BALANCE ECUADOR – TURKEY (USD Thousands FOB)

ECUADOR’S EXPORT PORTFOLIO Coffee Banana Cocoa and Chocolate Sea Food Flowers Textiles Vehicles and Autoparts Plastic Tourism Handicraft Farmaceutical Metalworking Logistics Services Mango Tropical fruits Fresh and Processed food WoodSoftware

MAIN PRODUCTS IMPORTED FROM TURKEY TO ECUADOR (USD Thousands FOB) Jan – Jul 2015

MAIL PRODUCTS EXPORTED FROM ECUADOR TO TURKEY (USD Thousands FOB) Jan – Jul 2015

THANK YOU Diego Aulestia Minister of International Trade of Ecuador Juan Francisco Navas International Trade Officer Turkey