Policy & Regulation

Ecuador-UAE BIT: Constitutional Court Blocks Fast-Track, Mandates Legislative Approval

Chip MorenoChip Moreno||Source: Columbia CCSI / Kluwer Arbitration Blog

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:

ProvisionContentApplication
Article 419(7)Treaties establishing international arbitration require legislative approvalBIT Articles 18-26 establish ISDS mechanisms
Article 422Prohibits treaties ceding sovereign jurisdiction to international arbitration in commercial disputesISDS provisions directly implicated
April 2024 referendumVoters rejected Noboa's proposal to repeal the ISDS prohibitionDemocratic 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!

Source

Columbia CCSI / Kluwer Arbitration Blog

View original
UAEBITConstitutional CourtISDSinvestmentlegislation
Companies: DP World
Regions: National
Share
Research Support

Support daily Ecuador business intelligence.

Research support funds source monitoring, data checks, editing, publishing, and sector coverage for professionals tracking Ecuador.

Daily Briefing

Ecuador business intelligence, delivered at 6 AM ECT.

Related Coverage

Policy & Regulation

Ecuador Prepares for Intensified El Niño Rains as Government Mobilizes Resources and Guayaquil Records Historic Rainfall

Ecuador's Inamhi anticipates El Niño rains will intensify between November and December 2026, continuing into early 2027, following the official declaration on August 29. The government has activated a national red alert and secured over $15 million from the World Bank to acquire 73 units of heavy machinery for emergency response, with 64 units already delivered.

eluniverso.com; eluniverso.com; primicias.ec|
Policy & Regulation

Guayaquil Motorcycle Registration Compliance at 25% for 2026

As of September 2026, 75% of Guayaquil's motorcycle fleet, totaling an estimated 231,799 units, remains unregistered. The Authority of Transit and Mobility (ATM) reports a current compliance level of 25% for motorcycle registration.

eluniverso.com|
Policy & Regulation

Ecuador Implements Temporary Curfew in Four Provinces

A temporary curfew will be in effect in Guayas, Manabí, Los Ríos, and El Oro from September 17 to September 30, 2026, restricting circulation daily between 00:00 and 05:00. The measure aims to intensify operations against organized crime.

eluniverso.com; eluniverso.com; eluniverso.com|
Commodities

Ecuador Banana Exports Rise 10% in Q1 2026 to 111.57 Million Boxes Despite Shipping Disruptions

Ecuador shipped 111.57 million boxes of bananas in Q1 2026, up 9.8% year-over-year. The EU led demand with 34.2% market share and 19% growth, while Turkey posted a 40.5% surge. Shipping disruptions from the Strait of Hormuz closure added $300-600 per container in freight costs.

Primicias|
Trade

Ecuador Has Ratified 41 International Treaties Since November 2023 — 36 Now in Force

Ecuador's Constitutional Court has reviewed 41 international treaties since Daniel Noboa took office in November 2023. Of these, 36 are currently in force covering trade, police cooperation, air services, migration, and cybercrime. The portfolio includes strategic economic agreements with South Korea, the EU, and China.

El Universo|
Opens WhatsApp with a pre-filled message