Discusses key economic indicators and trade statistics, which countries are dominant in the market, the U.S. market share, the political situation if relevant, the top reasons why U.S. companies should consider exporting to this country, and other issues that affect trade, e.g., terrorism, currency devaluations, trade agreements.Last Published:8/8/2016
The U.S. and Ecuador share a long history of partnership and cooperation. The U.S. and Ecuador have mutual interests in reducing poverty and fostering Ecuador’s economic development through trade.
In 2015, Ecuador had a nominal GDP of $100.87 billion. After several years of robust economic growth, in 2015 GDP growth fell to 0.3 percent. This slowdown was largely driven by the decline in oil prices during late-2014 and 2015 and the appreciation of the U.S. dollar, Ecuador’s currency since 2000.
The U.S.-Ecuador commercial relationship is significant with $13 billion in total trade during 2015. In 2015, U.S. exports to Ecuador exceeded $5.7 billion and included mineral fuel, machinery, electrical machinery, plastic, and vehicles. Top U.S. exports of agricultural goods include soybean meal, wheat, and cotton.
The existing U.S.-Ecuador Bilateral Investment Treaty (BIT) provides guarantees for national treatment; unrestricted remittances and transfers; prompt, adequate, and effective compensation for expropriation; and the resolution of investment disputes through international arbitration.
In 2015, total FDI inflows into Ecuador were USD $1.06 billion with $186 million coming from the United States.
In order to promote economic growth and encourage the inflow of dollars into the economy, the Ecuadorian government actively encourages foreign investment in certain sectors of the economy.
Top reasons why U.S. companies should consider exporting to Ecuador:
U.S. companies can take advantage of the fact that Ecuador allows 100 percent foreign equity ownership without the need for authorization or prior screening.
Ecuador has no limits on royalties that may be remitted when it comes to license and franchise transactions. Remittances are subject to a capital exit tax, currently set at five-percent.
There are no foreign exchange issues. In 2000, Ecuador adopted the U.S. dollar as the country’s official currency.
Since 1986, Ecuador has had an Investment Guarantee Agreement with the Overseas Private Investment Corporation. Ecuador is also a signatory to the Multilateral Investment Guarantee Agreement.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.