Best practices for market entry strategies encompass the following:

• Secure an agent, representative, or distributor in Ecuador. Sales to the Ecuadorian government require the company to have a local representative in Ecuador. Given the small territory, one distributor nationwide often suffices. Focus on formality, personal relationships, and trust when negotiating agreements and contracts.

• Select a law firm early on to provide legal support in different areas like taxes, political/economic analysis, contracts, labor laws, sanitary registrations, and legislative/regulatory reforms.

• Communicate with the U.S. Embassy’s Commercial Unit regarding specific concerns, such as regulatory issues.

• Consider retaining a firm that specializes in public and corporate affairs, issues and crisis management, and trust and reputation building.

• Conduct thorough due diligence to know the partner and understand the market. The U.S. Embassy’s Commercial Unit offers a host of services to assist companies with the due diligence process.

• Visit the market often and take advantage of Ecuador’s geographic proximity to the United States and connectivity of Ecuador to North America and neighboring markets.

• Recognize challenges in business planning due to changes in Ecuador’s tax, commercial, investment, and economic policies and regulations.

• Attend functions of local business promotion organizations such as the American Chambers of Commerce (AmCham). AmCham has five chapters in Ecuador (Quito, Guayaquil, Cuenca, Ambato, and Manta).

• Recognize the distinctions between the two regions in Ecuador (the mountain and the coastal regions), which can influence consumer behavior, personalities, buying patterns, hobbies, language, and political ideologies.