Analysis of the Incoterms 2020 Innovations and the Current Situation of Ecuador`s Foreign Trade

Abstract

In order to facilitate international trade transactions that are carried out day by day the International Chamber of Commerce, since 1980 it has been performing innovative updates every ten years; of the International Trade Terms (International Commercial Terms INCOTERMS), which regulate the international sale of merchandise, the delivery of merchandise, the transition of risk between the parties and the costs on account of each of them; being fundamental aspects that are related to the commercial operations of purchase and sale of merchandise at an international level. Consequently, the trade of the economies worldwide is going through a strong contraction, due to the restrictions of the coronavirus pandemic, however Ecuador, according to statistical information from the Central Bank, until October 2020; the total trade balance registers a surplus of USD 2.688 million FOB, as a result of the increase in its exports and the decrease in its imports.