Articles
Business intelligence and analysis on Ecuador
Two Free Trade Zones Now Operational in Guayas Province: ZOFRAPORT and Pascuales Offer 0% Income Tax for Five Years Under Economic Efficiency Law
Ecuador's two newest free trade zones in Guayas province — ZOFRAPORT at Posorja and Paseo Tablado at Pascuales — are now operational under the 2023 Economic Efficiency Law. Companies establishing operations within the zones pay 0% income tax for five years and a fixed 15% rate thereafter, as the government projects 180,000 direct and 500,000 indirect jobs from the national free zone program.
Ecuador-Colombia Trade War Escalates: 30% Mutual Tariffs, 900% Pipeline Fee Hike to $30/Barrel, and Electricity Suspension Disrupt $2.3 Billion Bilateral Trade
Ecuador and Colombia remain locked in the most severe bilateral trade dispute in decades. President Daniel Noboa's January 21 announcement of a 30% 'security tariff' on all Colombian imports — paired with a 900% increase in pipeline transit fees from $3 to $30 per barrel — triggered Colombian retaliation including 30% tariffs on 23 Ecuadorian products and an indefinite suspension of electricity exports. Bilateral trade worth approximately $2.3 billion annually has been severely disrupted.
US and Ecuador Substantially Conclude Agreement on Reciprocal Trade, Eliminating 15% Tariff Surcharge on ~$3.2 Billion Non-Petroleum Export Basket
The United States and Ecuador substantially concluded negotiations for an Agreement on Reciprocal Trade (ART), with a formal signing expected in the coming weeks. The deal eliminates the 15% tariff surcharge on approximately 50% of Ecuador's non-petroleum exports — a basket worth roughly $3.2 billion — covering flowers, bananas, cacao, tuna, blueberries, avocados, pineapples, dragon fruit, and minerals including gold and copper.
Ecuador-Colombia Trade War Escalates: Cross-Border Transit Drops 99%, Pipeline Tariff Surges 900%, and Electricity Exports Suspended
The trade war between Ecuador and Colombia has escalated into the most severe bilateral commercial crisis in decades. Ecuador's 30% 'security tariff' on Colombian imports — effective February 1 — triggered matching 30% retaliatory tariffs from Bogotá on 23 Ecuadorian products, a suspension of Colombian electricity exports, and Ecuador's counter-escalation of a 900% pipeline tariff increase on Colombian crude oil transport. Cross-border goods transit at the Rumichaca international crossing has plunged by up to 99%.
CAF Signs $450,000 Technical Cooperation for Ecuador's National Competitiveness Strategy as II International Economic Forum Launches
CAF (Development Bank of Latin America and the Caribbean) has signed a $450,000 non-reimbursable technical cooperation agreement with Ecuador to support the design of a comprehensive national competitiveness strategy. The agreement was formalized during the launch of the II International Economic Forum 2026 and the Latin America and Caribbean Business Roundtable in Quito, with Economy Minister Sariha Moya and Production Minister Luis Alberto Jaramillo present.
US-Ecuador Reciprocal Trade Deal 'Substantially Concluded' With Full Tariff Elimination — Shrimp Sector Demands Inclusion in Final Product List
The United States and Ecuador have 'substantially concluded' negotiations on a reciprocal trade agreement that would fully eliminate the 15% surcharge on Ecuadorian goods. However, the shrimp sector — representing $2 billion annually in US-bound exports — has not been confirmed in the final product list, prompting CNA president José Antonio Camposano to warn that 'every agreement the country negotiates must include shrimp.'
DP World Advances $190 Million Posorja Port Expansion: Berth to Reach 800 Meters by Late 2026, Capacity Jumps 40% to 1.4 Million TEU
DP World announced the advancement of a $190 million expansion of its Posorja deep-water terminal, extending the main berth from 467.5 meters to 800 meters and increasing annual capacity by 40% to 1.4 million TEU. The World Bank-ranked most efficient port in Latin America will deploy all-electric quay cranes and 900+ refrigerated container plugs to support Ecuador's surging commodity exports.
Ecuador's Non-Petroleum Exports Hit All-Time Record $25.2 Billion in 2025, Up 16% as Shrimp, Cacao, and Bananas Drive Structural Diversification
Ecuador's non-petroleum, non-mining exports reached a record $25.202 billion in 2025, a 16% year-on-year increase representing $4.553 billion in additional export revenue. The performance generated a positive non-petroleum trade balance of $5.032 billion and confirmed a structural shift in the country's export profile, led by shrimp ($8.4B, +20%), cacao ($4.7B, +29%), and bananas ($4.3B, +11%).
US and Ecuador Sign Reciprocal Trade Framework: Tariff Exemptions for Non-Competing Goods, Market Access for US Machinery and Digital Services
The United States and Ecuador signed a Framework for an Agreement on Reciprocal Trade in November 2025, establishing mutual commitments on tariff relief, agricultural market access, and digital trade. Under the framework, Ecuadorian goods that 'cannot be grown, mined, or naturally produced in the United States in sufficient quantities' -- likely including shrimp, cacao, and bananas -- will be exempt from the 15% reciprocal tariff. Ecuador committed to reducing duties on US machinery, chemicals, motor vehicles, and eliminating discriminatory digital services taxes.
UAE and Ecuador Conclude CEPA Negotiations: 98% of Products Covered, 75% at Zero Tariff, March Signing Planned
Ecuador and the United Arab Emirates concluded technical negotiations on a Comprehensive Economic Partnership Agreement (CEPA) at the World Government Summit in Dubai, with a formal signing planned for March 2026. The deal grants preferential access for 98% of negotiated Ecuadorian products, with 75% entering the UAE at zero tariff immediately -- covering over 4,000 agricultural and industrial goods. Quito projects annual exports to the UAE could reach $1 billion by 2030, up from $261 million in non-oil trade in 2024.
Chevrolet Launches 2026 Captiva PHEV in Ecuador as National EV Sales Surge 159% Year-on-Year to 2,234 Units
GM Ecuador launched the 2026 Captiva PHEV at $32,999 -- its third electrified model in four months -- as Ecuador's electric vehicle market posts extraordinary growth: 2,234 fully electric units sold January-August 2025 (up 159% YoY), with hybrids adding 11,210 units (up 27.4%). BYD leads market share, but Chevrolet's aggressive pricing strategy signals intensifying competition in Latin America's fastest-growing EV market.
Canada and Ecuador Conclude Free Trade Agreement Negotiations After Six Rounds; Ratification Pending
Canada and Ecuador concluded free trade agreement negotiations in January 2025 after six rounds of talks launched in April 2024. Under the agreement, Ecuador will remove duties on 97.2% of tariff lines. The deal reflects parallel diversification strategies as both nations seek to reduce dependence on the US market amid escalating Trump-era tariffs.
