Ecuador - Market OverviewEcuador – Market Overview
- 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.
- 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.
Ecuador Trade Development and Promotion