US–Ecuador Bilateral Relationship

The US-Ecuador bilateral relationship is at a historically high point.

Trade: Between 2021 and 2022 there was a 56% growth in U.S. exports to Ecuador (US$1,929 million (2021) to US$3,009 million (2022)) and a 44% growth in bilateral trade (US$5,118 million (2021) to US$7,366 million (2022)). Ecuador predominantly exports agricultural and agro-industrial products to the U.S. while the U.S. primarily exports capital goods, raw materials, and inputs to Ecuador. The U.S. Government has also demonstrated the strengthening of this partnership through the Senate bipartisan Resolution Reaffirming the US-Ecuador Partnership, as well as the Congressional approval of the bipartisan US-Ecuador Partnership Act of 2022. For their part, the Government of Ecuador recently signed the Protocol on Trade Rules and Transparency in 2020 which improved custom procedures through increased transparency, modernization, and institutionalization, in addition to the implementation of regulatory measures specific to the facilitation of US-Ecuador trade. Additionally, Ecuador ratified the ICSID Convention On The Settlement Of Investment Disputes Between States And Nationals Of Other States in 2021, strengthening its position as a trading partner for U.S. industry.

Diplomacy: Government leaders of Ecuador and the United States are meeting more regularly and at higher levels than seen in recent years. Since 2018 the United States and Ecuador have experienced a resumption of essential platforms for dialogue and cooperation–bilateral political dialogue, the Trade and Investment Council, as well as the reopening of the USAID office in Ecuador. The USAID initiated its resumed activities in Ecuador with a five-year program focused on sustainable development, environmental protection, governance, and democracy. Furthermore, Ecuador has joined the Alliance for Development in Democracy, participates in the Americas Partnership for Economic Prosperity, attended both Summits for Democracy, and is engaged with the Working Group on Anti-Corruption.

The latest advancement in the strengthening U.S.–Ecuador bilateral relationship is the recently proposed Innovation and Development in Ecuador Act (IDEA) of 2023.

The IDEA Act, introduced by Senator Jim Risch (R-Idaho) and Senator Robert Menendez (D-NJ), Ranking Member and Chair of the Senate Committee on Foreign Relations, proposes the inclusion of Ecuador as a beneficiary country under the Caribbean Basin Initiative (CBI) preference program. The CBI aims to support the development of economies in the Caribbean by establishing a tax-free trade relationship for the majority of goods traded between the United States and beneficiary countries. In the case of Ecuador, the CBI covers nearly all of the products imported from the United States and over 50% of imports from Ecuador. At present, Ecuador is the only country in the West Pacific with which the United States does not have a trade agreement. With the passing of the IDEA Act, the United States and Ecuador would have the opportunity to formulate such a bilateral trade agreement that would benefit consumers in both countries.

The IDEA ACT legislation was introduced to the House of Representatives in November 2023 by Representative Adriano Espaillat (D-NY) and Western Hemisphere Subcommittee Chairwoman María Elvira Salazar (R-FL). Reps. Espaillat and Salazar are joined on this legislation by Reps. Warren Davidson (R-OH), Vern Buchanan (R-FL), and Ruben Gallego (D-AZ).

About Us

The US-Ecuador Business Coalition (USEBC) is a Washington, D.C.-based organization with the goal of advancing commercial relations between the United States and Ecuador.

What We Do: Foster high-level discussion between key decision makers in the U.S. Government, the Government of Ecuador, and U.S. industry. These events will be held as in-person roundtables with U.S. Government and visiting Ecuadorian officials in Washington, DC as well as on virtual/hybrid platforms.

Who We Are: Our organization works to enhance U.S.-Ecuador trade and investment to advance the commercial relationship between the two countries. We are unique in that membership is only open to companies with headquarters in the United States.