Ecuador-U.S. Reciprocal Trade Agreement Signed March 13 — ~53% Non-Oil Exports Tariff-Free
The Agreement
Ecuador and the United States signed the Agreement on Reciprocal Trade (ART) on March 13, 2026, at the Office of the U.S. Trade Representative (USTR) in Washington, D.C. The agreement eliminates tariffs on approximately 53% of Ecuador's non-oil exports to the United States, covering an estimated $2.8 billion in annual trade value.
The ART is structured as a reciprocal preferential trade agreement — not a full free trade agreement — meaning it covers a defined set of product categories rather than comprehensive market access. Ecuador reciprocates with tariff reductions on select U.S. exports.
Coverage
| Product Category | Est. Annual Value | Tariff Reduction |
|---|---|---|
| Shrimp | ~$1.2B | Eliminated |
| Cut flowers | ~$450M | Eliminated |
| Canned tuna | ~$350M | Eliminated |
| Bananas | ~$300M | Reduced |
| Cacao & derivatives | ~$250M | Eliminated |
| Other agricultural | ~$250M | Varies |
The U.S. is Ecuador's largest single-country trading partner, receiving approximately 28% of total exports. The ART restores and expands on preferences previously available under the Generalized System of Preferences (GSP), which expired for Ecuador in 2020.
Strategic Context
The ART arrives during an aggressive period of trade architecture expansion by the Noboa administration:
| Agreement | Partner | Status |
|---|---|---|
| China FTA | China | Operational (May 2024) |
| Canada FTA | Canada | Effective (2025) |
| U.S. ART | United States | Signed March 2026 |
| UAE CEPA | UAE | Signed March 2026 |
| EU Trade Agreement | European Union | Operational (2017) |
| EFTA FTA | Switzerland, Norway, Iceland, Liechtenstein | Operational (2020) |
Ecuador now has preferential access to markets representing over 60% of global GDP — an unprecedented position for the country.
Labor Provisions
The ART includes labor provisions that bar either party from weakening worker protections to gain a trade advantage. Ecuador must maintain compliance with ILO core labor standards, including freedom of association, collective bargaining rights, and elimination of forced labor. Non-compliance could trigger dispute resolution procedures and potential suspension of preferences.
What to Watch
- Congressional notification period — the U.S. side requires a notification period before tariff changes take effect; implementation timeline is estimated at 60-90 days
- Shrimp sector impact — Ecuador's shrimp industry, which exported $7.47 billion globally in 2025, stands to gain the most from eliminated U.S. tariffs
- Countervailing duty interaction — the ongoing U.S. CVD review on Ecuadorian shrimp (preliminary results March 10) could partially offset ART benefits
- Expansion negotiations — both sides have indicated the ART could be expanded to cover additional product categories in future rounds
Sources: USTR
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