CAF Signs Technical Cooperation for Ecuador's National Competitiveness Policy

The Agreement

CAF — Development Bank of Latin America and the Caribbean — launched the II International Economic Forum alongside the Latin America & Caribbean 2026 Business Roundtable in Quito, signing a non-reimbursable technical cooperation agreement with Ecuador's Ministry of Production, Foreign Trade, Investment and Fisheries to develop a comprehensive national competitiveness policy.

The agreement provides CAF-funded technical assistance to design a policy framework aimed at improving Ecuador's productivity metrics, regulatory environment, and business climate — areas where the country has historically underperformed relative to regional peers.

CAF's Role in Ecuador

CAF is one of Ecuador's most significant multilateral partners, providing development financing, technical assistance, and policy advisory services across infrastructure, energy, trade facilitation, and institutional capacity.

Metric	Value
CAF lending to Ecuador (cumulative)	$12.5B+
Active portfolio	~$3.2B
Sectors covered	Infrastructure, energy, trade, social development
Headquarters	Caracas (operational hub in Panama City)
Ecuador's shareholding	Member country since 1970

The technical cooperation agreement is non-reimbursable — meaning Ecuador receives the advisory services and policy design support as a grant, not a loan. This is distinct from CAF's larger credit operations and reflects the bank's role as a knowledge institution, not solely a lender.

Competitiveness Context

Ecuador's competitiveness rankings have been a persistent concern for policymakers and investors:

Index	Ecuador's Rank	Regional Comparison
World Bank Doing Business (legacy)	129th of 190	Below Colombia (67th), Peru (76th)
WEF Global Competitiveness	90th of 141	Below Chile (33rd), Colombia (57th)
Heritage Economic Freedom	150th of 176	Among lowest in South America
Transparency International CPI	121st of 180	Below regional average

The national competitiveness policy is expected to address:

• Regulatory simplification — reducing the number of procedures and days required to start a business, obtain permits, and register property
• Trade facilitation — improving customs processing times, digital single-window implementation, and port efficiency
• Innovation and technology — frameworks for digital economy development, R&D incentives, and intellectual property protection
• Human capital — workforce development aligned with priority sectors (mining, energy, technology, agro-industry)

Strategic Alignment

The CAF cooperation agreement arrives at a moment when Ecuador is constructing an unusually ambitious trade and investment architecture:

Agreement	Status	Partner
China FTA	Operational (May 2024)	China
Canada FTA	Effective (2025)	Canada
U.S. ART	Signed March 13, 2026	United States
UAE CEPA	Signed March 2026	United Arab Emirates
EU Trade Agreement	Operational (2017)	European Union
EFTA FTA	Operational (2020)	Switzerland, Norway, Iceland, Liechtenstein

The competitiveness policy is designed to ensure Ecuador can absorb and capitalize on the market access these agreements provide. Trade agreements open doors; competitiveness determines whether domestic firms can walk through them.

CAF's Business Roundtable component of the Quito event brought together private sector leaders from across Latin America to discuss investment opportunities, supply chain integration, and regional economic coordination — providing a networking platform that complements the institutional policy work.

What to Watch

• Policy design timeline — the technical cooperation typically produces a draft framework within 6-12 months; implementation timelines will determine practical impact
• Coordination with trade agreements — whether the competitiveness policy explicitly integrates obligations and opportunities from the U.S. ART, China FTA, and UAE CEPA
• CAF credit pipeline — technical cooperation often precedes larger lending operations; a follow-on credit facility for competitiveness-related investments is possible
• Institutional capacity — whether the Ministry of Production can absorb and implement CAF's recommendations given competing priorities (ART implementation, mining reform, security crisis)

Sources: CAF