Ecuador-UAE BIT: Constitutional Court Blocks Fast-Track, Mandates Legislative Approval
Ruling Details
The Plenary of the Constitutional Court of Ecuador ruled on March 9, 2026 (source) through Ruling 19-25-TI/26 that the Ecuador-UAE Bilateral Investment Treaty cannot be implemented via executive decree and must receive National Assembly approval.
The vote was unanimous: 9-0.
Constitutional Basis
The Court's reasoning centers on three constitutional provisions:
| Provision | Content | Application |
|---|---|---|
| Article 419(7) | Treaties establishing international arbitration require legislative approval | BIT Articles 18-26 establish ISDS mechanisms |
| Article 422 | Prohibits treaties ceding sovereign jurisdiction to international arbitration in commercial disputes | ISDS provisions directly implicated |
| April 2024 referendum | Voters rejected Noboa's proposal to repeal the ISDS prohibition | Democratic mandate reinforces constitutional constraint |
Executive Action Rejected
President Noboa issued Executive Decree No. 294 on January 28, 2026 while traveling internationally, authorizing Ecuador's ambassador to sign an "errata sheet" purportedly correcting "formal and translation errors" in the treaty text (source).
Critics — including an amicus submission to the Court — argued that the corrections were substantive modifications, including:
- The UAE was referred to as "United Arab States" (not a recognized state name)
- Article 25(1) references a non-existent paragraph 3
- The "corrections" may have altered dispute resolution mechanisms
Investment Corridor Impact
The UAE-Ecuador investment corridor has been growing:
- DP World (UAE) operates concessions in Ecuador's port infrastructure
- Abu Dhabi Investment Authority has expressed interest in Ecuadorian sovereign debt
- UAE-based funds have participated in mining and energy project financing
The BIT would have provided these investors with treaty-level protections against expropriation, discrimination, and regulatory changes. Without ratification, investments proceed under domestic law protections only.
Legislative Outlook
The National Assembly is divided, with Noboa's party lacking a majority. Passing the BIT requires:
- Committee review (International Relations committee)
- Floor debate and vote (simple majority)
- Potential constitutional challenges from opposition parties
Timeline: 6-12 months minimum from referral to Assembly, assuming political prioritization. More likely: the BIT joins the queue of pending legislation with uncertain scheduling.
What to Watch
- Assembly referral timing — when the executive formally submits the treaty for legislative consideration
- Opposition strategy — whether anti-ISDS legislators use procedural tools to delay or block
- UAE diplomatic response — any signals from Abu Dhabi regarding the delay's impact on investment plans
- Broader BIT strategy — Ecuador has been negotiating BITs with multiple countries; this ruling establishes precedent for all of them
- Mining sector implications — several UAE-linked entities have expressed interest in Ecuadorian mining concessions; treaty protections matter for large-scale capital commitments
Sources: Columbia CCSI, Kluwer Arbitration Blog, EJIL: Talk!