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!