UAE and Ecuador Conclude CEPA Negotiations: 98% of Products Covered, 75% at Zero Tariff, March Signing Planned

UAE-Ecuador CEPA: 98% of Products Covered, March Signing

Ecuador and the United Arab Emirates concluded technical negotiations on a Comprehensive Economic Partnership Agreement (CEPA) on the sidelines of the World Government Summit in Dubai on February 4, 2026. Presidents Daniel Noboa and Sheikh Mohamed bin Zayed Al Nahyan met at Qasr Al Bahr in Abu Dhabi to formalise the breakthrough, with a full signing ceremony planned for March 2026.

The agreement represents Ecuador's first trade deal with a Gulf Cooperation Council (GCC) member state and opens a strategically important corridor to Middle Eastern and South Asian markets.

Agreement structure

Parameter	Detail
Products covered	98% of negotiated tariff lines
Immediate zero tariff	75% of Ecuadorian products (4,000+ goods)
Signing timeline	March 2026
Current bilateral non-oil trade	$261 million (2024)
Export target	$1 billion annually by 2030

The tariff structure is notably favourable for Ecuador. Immediate duty-free access for 75% of products -- covering more than 4,000 agricultural and industrial goods -- eliminates the price disadvantage that has limited Ecuadorian exporters' competitiveness in Gulf markets relative to suppliers from countries with existing GCC preferential agreements.

Sector opportunities

The CEPA opens specific opportunities across Ecuador's export portfolio:

Agricultural commodities:

• Cacao and chocolate -- UAE is a growing re-export hub for premium chocolate to Gulf and South Asian markets; Ecuador's fine-aroma cacao (63% of global supply) commands premium positioning
• Shrimp -- Gulf states import approximately $3.5 billion in shrimp annually; Ecuador currently holds negligible market share
• Bananas -- UAE imports approximately 200,000 tonnes of bananas annually, predominantly from the Philippines and India
• Rice and tuna -- Identified as priority products in bilateral discussions

Strategic resources:

• Mining -- UAE interest in Ecuador's copper, gold, and silver reserves for clean energy manufacturing and technology supply chains
• Energy -- ADNOC-Petroecuador cooperation MOU signed at the February 4 meeting (see below)

ADNOC-Petroecuador energy MOU

Alongside the CEPA conclusion, ADNOC (Abu Dhabi National Oil Company) and Petroecuador signed a Memorandum of Understanding covering energy cooperation. The MOU was executed by UAE Energy Minister Dr. Sultan Al Jaber (who also serves as ADNOC CEO) and Ecuador's Energy Minister Inés María Manzano Díaz.

While specific terms were not disclosed, the MOU framework typically covers:

• Technical cooperation in upstream oil and gas operations
• Knowledge transfer in refining and petrochemical processes
• Joint exploration of renewable energy opportunities
• Potential investment in Ecuador's oil infrastructure modernisation

ADNOC's interest in Ecuador aligns with the UAE's broader strategy of diversifying its energy investment portfolio across Latin America, where it has also pursued partnerships in Brazil, Colombia, and Guyana.

Trade growth trajectory

The CEPA builds on rapidly growing bilateral economic engagement:

Year	Non-oil bilateral trade	Key developments
2022	~$180 million	Initial trade discussions
2023	~$210 million	Economic forum in Dubai
2024	$261 million	CEPA negotiations launched
2025	~$320 million (est.)	Technical negotiations advance
2030 (target)	$1 billion	Full CEPA implementation

Ecuador's export diversification strategy under the CEPA is particularly significant given current trade disruptions: the Colombia trade war (reciprocal 30% tariffs), US tariff headwinds on shrimp (18.78% combined duty), and the ongoing Canada FTA ratification process. The UAE deal provides an alternative high-value market at a moment when Ecuador's traditional trade relationships face unusual pressure.

Geopolitical context

Emirati officials have reportedly described Ecuador as "the Switzerland of Latin America" -- a characterisation that reflects both its dollarised economy (attractive for Gulf investors accustomed to currency-pegged regimes) and its compact geography relative to agricultural productivity.

The partnership also carries strategic dimensions: the UAE is positioning itself as a "connector economy" between Latin American commodity producers and Asian-Middle Eastern demand centres, a role that competes with Singapore's traditional intermediary function.

What to watch

The March 2026 signing ceremony will confirm final terms and any sector-specific safeguards. Monitor the ratification timeline and whether Ecuador's National Assembly raises objections, as it did with earlier trade agreements. Track early-mover exporters in cacao and shrimp who position for Gulf market entry. The ADNOC-Petroecuador MOU could evolve into concrete investment commitments -- particularly relevant as Ecuador seeks to modernise its ageing oil infrastructure while diversifying toward renewables.

Sources: Emirates24/7, LatamFDI, El Universo