Articles
Business intelligence and analysis on Ecuador
Lundin Gold Deploys $100M Exploration Campaign at Fruta del Norte
Canadian miner Lundin Gold will invest $100 million in 2026 to extend the mine life of its Fruta del Norte operation in Zamora Chinchipe province. The program deploys 18 drill rigs (7 underground, 11 surface) targeting 133,000 metres. Current reserves stand at 5.54 million ounces of gold, with expected annual production of 475,000-525,000 ounces through 2028.
EU-Ecuador SIFA: First Sustainable Investment Facilitation Agreement in Latin America
The EU and Ecuador completed negotiations on a Sustainable Investment Facilitation Agreement (SIFA) on January 23, 2026 — the EU's first such deal with a Latin American country. Unlike traditional investment treaties, SIFA focuses on facilitation: streamlining authorizations, improving transparency, and establishing administrative focal points in priority sectors including renewable energy and digitalization.
Oil Production at 466,398 bbl/d — Below 477,000 Target; Yasuní Extraction Continues Despite Court Order
Ecuador produced 466,398 barrels per day in January 2026, falling short of the 477,000+ boepd government target. Meanwhile, Human Rights Watch reported on March 16 that oil extraction in Yasuní National Park's Block 43 continues at 1.24 million barrels per month — defying both a 2023 national referendum and a March 2025 Inter-American Court order to halt operations.
SRI Implements New Withholding Tax Structure Effective March 1
Ecuador's SRI implemented new withholding tax rates effective March 1, 2026. The previous 2.75% rate was eliminated and replaced with a 5% tariff and a new 2% withholding rate applicable to credit card payments, insurance, leasing, and construction. Companies have until March 31 to update systems without penalty.
Ecuador Banking Sector Posts $1.336B Net Income for 2025; 92% of Institutions Profitable
Ecuador's banking system recorded aggregate net income of $1.336 billion for 2025, with 24 of 26 financial institutions (92%) reporting positive earnings. Total sector assets reached $70.7 billion. The system remains well-capitalized with non-performing loans at 3.1%, supported by dollarization and growing digital adoption.
Ecuador Eyes Nuclear Power: 300 MW Reactor Tender Planned for 2026
Ecuador plans to tender construction of a 300 MW small modular reactor in 2026 as part of its post-blackout energy diversification strategy. A larger 1 GW reactor is planned for the long term. Ecuador joined the IAEA in May 2025, but the legal framework for nuclear regulation still needs to be established before procurement can proceed.
US-Ecuador ART Formally Signed March 13 — Tariff Elimination Covers $2.8B in Non-Oil Exports
The United States and Ecuador formally signed the Agreement on Reciprocal Trade (ART) on March 13, 2026, eliminating surcharges on 53% of Ecuador's non-petroleum exports to the US — valued at $2.786 billion annually. The deal shields qualifying Ecuadorian products from the 10% global tariff and opens access to EXIM Bank and DFC financing for energy, critical minerals, and infrastructure.
Ecuador-Colombia Tariffs Hit 50% on Both Sides — Colombia Retaliates on 280 Products Including Pharmaceuticals
Ecuador raised tariffs on Colombian imports from 30% to 50% effective March 1, 2026, prompting Colombia to match the rate on 280 Ecuadorian product categories including pharmaceuticals, plastics, and mineral fuels. Combined with Colombia's 900% increase in SOTE pipeline transit fees and suspension of electricity exports, the bilateral dispute now affects over $500 million in annual trade flows.
Petro Accuses Ecuador of Cross-Border Bombing — Diplomatic Crisis Reaches Breaking Point With Direct Trade Implications
Colombian President Gustavo Petro accused Ecuador of conducting bombing raids inside Colombian territory on March 17, claiming 27 charred bodies were discovered near the shared border. Ecuador's President Noboa flatly denied the accusation. The diplomatic rupture compounds an already severe trade war — 50% bilateral tariffs, suspended electricity exports, and 900% pipeline fee hikes — putting the entire $1.1 billion bilateral trade relationship at risk.
Ecuador Defies IACHR Ruling on Yasuní Block 43 — 44,000 bpd Still Flowing Past Court Deadline
Ecuador continues extracting approximately 44,000 barrels per day from Yasuní National Park's Block 43 despite a March 2026 Inter-American Court of Human Rights deadline to suspend operations. HRW documented 29 oil spills, contaminated water sources, and threats to two uncontacted indigenous groups. Block 43 represents 9.4% of national crude output — roughly $1 billion annually — creating a direct tension between fiscal necessity and sovereign legal compliance.
Ecuador Reopens Mining Cadastre After 7-Year Freeze — $3B Llurimagua Tender Set for 2026
Ecuador's mining ministry announced the reopening of the national mining cadastre after a seven-year freeze, with new concession applications to be processed in phases starting 2026. Separately, state miner Enami is preparing an international tender for the $3 billion Llurimagua copper-molybdenum project in Imbabura province, projected to produce 210,000 tonnes of copper annually. The moves arrive alongside CMOC's C$581 million acquisition of the Cangrejos gold-copper project and Lundin Gold's planned $100 million exploration investment.
National Assembly Fast-Tracks Social Housing Tax Reform — Debated in Special Cuenca Session
Ecuador's National Assembly convened a rare plenary session at the Universidad Católica de Cuenca on March 17-18, passing prison reform legislation with 84 votes and completing the first debate on a tax reform bill designed to incentivize social housing construction. The government classified the housing bill as 'urgent in economic matters,' triggering fast-track legislative procedures.