Trading Partner Portal: Ecuador
Ecuador is located in northwestern South America and, per it’s namesake, is dissected by the equator. Ecuador is one of 17 ‘megadiverse’ countries in the world, as it is home to many endemic plants and animals, including those of the Galapagos Islands. Ecuador’s economy is highly dependent on commodities, including petroleum and agricultural products; most notably bananas and cut flowers. The population of Ecuador in 2020 was 17.64 million and GDP totaled $98.8 billion in the same year.
The U.S. exported $5 billion to Ecuador in 2021. Petroleum and coal products made up $1.379 billion of the total. This was followed by chemicals, computer and electronic products, and oil and gas. The U.S. imported $8.16 billion worth of products in 202`. Over $3.6 billion of which was made up of oil and gas. This was followed by agricultural products, fish and marine products, and livestock.
In 2021, California exported $293 million to Ecuador. Waste and scrap made up $74 million of the total. This was followed by petroleum and coal products, computer and electronic products, chemicals, and machinery except electrical. California was one of the top 5 exporting states to Ecuador in 2021.
Ecuadorian FDI into the U.S. totaled $24 million in 2020, and U.S. FDI into Ecuador totaled $29 million the same year.
Ecuador is the only country in Latin America along the Pacific that does not currently have a free trade agreement with the U.S. The “mini” trade deal brings the two countries a step closer to achieving an FTA.
>According to Politico, the new pact contains three chapters on trade facilitation, good regulatory practices and anti-corruption. It’s similar to the “mini deal” the U.S. concluded recently with Brazil. It also includes a fourth chapter on small and medium sized enterprises, which make up the bulk of Ecuador’s business community. Separately, the United States recently added roses to the list of imported goods eligible for duty-free treatment under its Generalized System of Preferences program. That has provided a major boost for one of Ecuador’s top export industries.
USTR Agrees to Explore New Trade Talks with Ecuador
Politico, November 1, 2022
United States and Ecuador update Trade and Investment Council Agreement with New Protocol on Trade Rules and Transparency
U.S. Trade Representative, December 8, 2020
U.S. Chamber Welcomes Signing of Trade Protocol between the U.S. and Ecuador
U.S. Chamber, December 8, 2020