This information is derived from the State Department's Office of Investment Affairs’ Investment Climate Statement. Any questions on the ICS can be directed to EB-ICS-DL@state.gov

Ecuador’s National Assembly voted on May 3 to terminate 12 of its bilateral investment treaties, including its agreement with the United States. The Government of Ecuador notified the U.S. government of its withdrawal from the BIT on May 18. Article 12 of the U.S.-Ecuador BIT specifies that the treaty is terminated 12 months after either side gives the other written notification of its intent to withdraw. The treaty further specifies that all U.S. investments in place at the date of termination enjoy the protections of the treaty for the subsequent ten years. In justifying the decision, then-president Rafael Correa said that the BIT was inconsistent with Article 422 of Ecuador’s constitution, which prohibits Ecuador from entering into treaties that cede sovereign jurisdiction to international arbitration in contractual or commercial disputes between Ecuador and individuals or private companies.

The accession of Ecuador to the European Union’s Multiparty Trade Agreement with Colombia and Peru became effective January 1, 2017. Ecuador is currently negotiating trade agreements with South Korea and the European Free Trade Association, which includes Switzerland, Norway, Liechtenstein, and Iceland. Ecuador is negotiating limited trade agreements with Nicaragua and El Salvador.

Ecuador does not have a bilateral taxation treaty with the United States.
 

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