Articles
Business intelligence and analysis on Ecuador
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.
CNEL Corruption Probe: $300M+ in Losses, 46 Officials Implicated, 400,000 Accounts Manipulated
Ecuador's Energy Minister Inés Manzano disclosed that CNEL officials manipulated billing data for over 400,000 customer accounts over more than a decade, generating invoices 80% below actual consumption. Estimated total damage exceeds $300 million. Prosecutors raided offices in three provinces on April 28.
Ecuador Banana Exports Rise 10% in Q1 2026 to 111.57 Million Boxes Despite Shipping Disruptions
Ecuador shipped 111.57 million boxes of bananas in Q1 2026, up 9.8% year-over-year. The EU led demand with 34.2% market share and 19% growth, while Turkey posted a 40.5% surge. Shipping disruptions from the Strait of Hormuz closure added $300-600 per container in freight costs.
BIESS Portfolio Reaches $28.3 Billion With Record 9.08% Return in Q1 2026
Ecuador's BIESS reported a portfolio value of $28.284 billion at end-2025, up 8% year-over-year with an 8.89% return — exceeding the actuarial benchmark by 2.64 percentage points. Q1 2026 return reached 9.08%, the highest ever recorded by the institution.
Ecuador Has Ratified 41 International Treaties Since November 2023 — 36 Now in Force
Ecuador's Constitutional Court has reviewed 41 international treaties since Daniel Noboa took office in November 2023. Of these, 36 are currently in force covering trade, police cooperation, air services, migration, and cybercrime. The portfolio includes strategic economic agreements with South Korea, the EU, and China.