1. Ecuadorian IIA policy: a complex and dynamic process Dr. Gustavo Guerra B. This presentation does not reflect the official position of Ecuadorian government. It is a part of an interinstitutional work in progress.

2. Background and facts ….international trends Presidential Commission for Analysis of International Treaties on Investment and Double Taxation (2003): 7 public entities + private representative. New BIT model (2004 – 2009) Presidential decision: suspend any negotiation and evaluate to denounce all or some treaties. (2007) Ecuador submitted a reservation to ICSID: investment controversies on non renewable resources. (2008) Ecuador denounced 9 BITS and announced renegotiations with the rest of treaty partners. (2008)

3. Regulatory reform BITS do not works as substitute for institutional quality or economic conditions. New constitutional frame: Priority of national investment over foreign investment New rules on sovereignty over strategic resources (mineral, oil) and special sectors (water, telecommunications) International dispute resolution limitation: only regional forums.

4. Guidelines Systemic re approach to international policy: investment is a economic policy issue. Development dimension of investment (both national and FDI). To foster Productive investment Priority to linkages between economic integration and commercial relationship (first trade later investment flows) Pragmatic decision: economic evaluation of role of BITs (econometric mechanisms). Conclusion: A new strategic scheme.

5. Alternative approach Previous measure: national legal framework will offer protection and other guarantees to investment. Depending on each selected partner: Economic Promotion Agreements Trade Promotion Agreements: investment chapter Bilateral Investment PROMOTION Treaties …a BIT

6. Themes of the proposal Components: Market access (WTO rules), national treatment to investors Administrative facilitation Transparency rules Promotion of national investment incentives and other programs. Institutional cooperation framework: bilateral investment commission.