Articles
Business intelligence and analysis on Ecuador
Ecuador Reduces Colombia Security Tariff From 100% to 75%, Effective June 1
Ecuador will lower its security tariff on Colombian imports from 100% to 75% starting June 1, 2026 — the first reduction since President Noboa initiated trade restrictions in February. Colombia's retaliatory tariffs on 191 Ecuadorian products remain in place.
Ecuador Purchases $8M in Domestic Rice as Colombia Export Channel Closes
The Ecuadorian government is purchasing 20,000 metric tons of domestic rice for $8 million under Executive Decree 307, after Colombia's February import ban eliminated the destination for 90% of Ecuador's rice exports and created a 190,000-ton surplus.
Petroecuador Deploys Hydraulic Fracturing in Block 57 as Production Slides to 2026 Low
Petroecuador has begun hydraulic fracturing operations in the Shushufindi Libertador field (Block 57, Sucumbíos) in partnership with Chinese service provider CCDC, targeting compact limestone formations for the first time. The move comes as the state operator's output fell to 364,876 barrels per day in March 2026 — its lowest level this year.
Agriculture Ministry Activates M Rice Purchase Program Across 4 Collection Centers
The Ministry of Agriculture (MAGP) opened four rice collection centers on May 4 in Guayas and Los Ríos, backed by million in BanEcuador financing. The program purchases paddy rice directly from 7,000 registered producers at (short-grain) to (long-grain) per 205-pound sack.
SENAE Cuts Duty-Free Liquor Allowance to 3 Liters, Citing 694,000-Liter Informal Trade Leak
Ecuador's National Customs Service (SENAE) reduced the per-traveler duty-free alcohol limit from 5 liters to 3 liters effective May 4, 2026. The agency estimates 694,000 liters entered duty-free in 2024 alone, with the majority diverted to informal commercial channels rather than personal consumption.
China-Ecuador FTA at Two Years: Non-Petroleum Trade Deficit Widens 467% as Chinese Imports Surge 30%
Two years after entering force, the China-Ecuador Free Trade Agreement has produced a dramatically lopsided result. Ecuador's non-petroleum trade deficit with China widened from $335 million in 2023 to $1.9 billion in 2025 — a 467% deterioration driven by a 30% surge in Chinese imports while export growth stalled at 4.4%.
Colombia Signs Decree 0455: Retaliatory Tariffs of 35–75% on Ecuadorian Products — Bilateral Trade Projected to Collapse
Colombia has signed Decree 0455 establishing retaliatory tariffs of 35%, 50%, and 75% on Ecuadorian imports, invoking national security provisions under the Cartagena Agreement and GATT Article XXI. Trade projections indicate a 75% decline in Colombian imports from Ecuador ($640M reduction) and a 79% decline in Colombian exports to Ecuador ($1.452B reduction).
SRI Limits Credit Note Use to 60% of Tax Obligations — 40% Cash Requirement Takes Effect May 1
Ecuador's tax authority has imposed a 60% cap on the use of credit notes to satisfy tax obligations, effective May 1. The remaining 40% — including any fines and interest — must be paid in cash through approved channels. Tax specialists argue the restriction exceeds the SRI's administrative authority and conflicts with the Tax Code.
Ecuador Shrimp Sector: 60 Million Pounds Held Up as Middle East War Disrupts Maritime Logistics
Ecuador's largest non-oil export faces a logistics crisis. CNA president José Antonio Camposano reports 60 million pounds of shrimp held up due to maritime route disruptions, port delays, and reefer container shortages caused by the US-Iran conflict. The May 3–18 curfew in coastal production zones adds operational pressure.
Ecuador's 920 MW Thermal Plan: $696 Million Committed, 490 MW in Unfulfilled Prior Commitments
Ecuador announced plans to add 920 MW of thermal generation in 2026 at a combined cost of $696.84 million. The target is the third revision in five months. Meanwhile, 490 MW in prior rental commitments remain unfulfilled, and electricity demand hit an all-time record of 5,374 MW on April 14.
Ecuador's Rice Crisis: Government Launches $8M Direct Purchase as Market Price Collapses to $18–21 per Saca
Ecuador's Agriculture Ministry is launching an $8 million direct rice purchase program on May 4 after market prices collapsed to $18–21 per saca — 42–50% below the government support price of $34–36. The Colombia trade war has closed a key export outlet, compounding domestic oversupply.
Ecuador-Colombia Tariff War: Bilateral Trade Down 44% as Ecuador Prepares 100% Duties in May
Bilateral trade between Ecuador and Colombia fell 44% in the first month of the tariff war. Ecuador plans to raise duties to 100% in May, up from the current 50%. Colombia has responded with retaliatory tariffs up to 75% and threatened to cut electricity exports — a critical supply line after Ecuador's 2024 blackout crisis.