The Latin American country of Ecuador on the north west corner of South America is basking in a prosperity brought on by an oil boom which started a few years ago.
The Latin American country of Ecuador on the north west corner of South America is basking in a prosperity brought on by an oil boom which started a few years ago. But even now they're looking ahead to the day when the oil wells run dry. They're looking for new oil wells because known stocks are expected to be exhausted in about 16 years times. So, Ecuador is attempting to diversify the economy and has launched in industrialisation drive. To achieve its aims Ecuador can count on the help of fellow members of the Andean Pact who signed a special vehicle manufacturing agreement in the Ecuadorean capital of Quito on Tuesday (13 September).
SYNOPSIS: The signing of the Agreement took place at the Presidential Palace in Quito. Called the Cartagena Agreement, it covers the manufacture of cars and trucks and spare parts as well related tariffs. Under the agreement, member countries will share car and truck production.
The Ecuadorean head of state, Vice Admiral Alfredo Poveda, together with General Guillermo Duran and General Luis Leoro, who are members of the ruling military junta, signed for Ecuador, as representatives of the remaining four members of the Andean Pact watched.
The Cartagena Agreement took three years to negotiate in the face of pressure from entrenched business concerns representing South American and overseas interests.
The aim of the agreement is to reduce the cost of vehicles in Andean Pact member states. The cost of petrol in oil rich Ecuador and Venezuela is low. The high cost of motor vehicles-all of which are imported, offsets any fuel price advantages. The agreement to share vehicle production was made in order that Andean Pact members could more easily integrate the industry into their economies.