Public Aid in Ecuador: analysis of the market for agricultural commodities

Abstract

The purpose of this paper is to determine if the regulatory measures implemented de facto by the Ecuadorian State for the commercialization of primary agricultural products, correctly, in products such as corn, raw milk and whey, and rice, comply with the objectives determined by the Organic Law for the Regulation and Control of Market Power and its Regulations. Furthermore, it can be determined as public aid. As analyzed, public aids can be conferred for reasons of social or public interest, or the benefit of consumers; and, in the Ecuadorian agricultural market in order to promote the production and transformation of food, aimed at guaranteeing food sovereignty and that are granted to small and mediumsized units of community production and of the famous and solidarity economy. It is concluded that the Superintendency of Control of Market Power is the public organism called to analyze the efficiency of the regulatory measures, taking into account that, since there is no clear competition policy, it cannot be determined whether these measures are indeed economically efficient; or on the contrary, the regulations harm the national economy.

Keywords

• public aids
• agricultural sector
• ecuadorian primary products market
• price-fixing.