Ecuador Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in ecuador, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Market Overview
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Market Overview

Ecuador, with a population of over 18 million inhabitants, is a small-to-medium market for U.S. exports. The country’s three largest commercial hubs are Guayaquil, Quito, and Cuenca. Ecuador has a relatively low English proficiency level with most day-to-day business being conducted in Spanish. Ecuador adopted the U.S. dollar as its currency in 2000. There is no foreign exchange risk in selling or investing in Ecuador, allowing for investment with minimal restrictions and repatriation of capital with a 5 percent capital exit tax (ISD).

The United States is Ecuador’s top trading partner. Ecuador remains a market with significant potential for U.S. firms. In 2024, U.S. exports of goods to Ecuador totaled $7.7 billion, which constituted a 28 percent share of Ecuador’s total imports. Major U.S. exports to Ecuador include fuel, minerals, machinery, agricultural products, and processed foods. Major Ecuadorian exports to the United States include crude oil, shrimp, bananas, mining products, tuna, cacao, and cut flowers. Ecuadorian consumers view U.S. products as attractive and of high quality. U.S. companies enjoy high levels of public acceptance in Ecuador. U.S., European, and Chinese products openly compete with domestic products in Ecuador.

The United States does not have a free trade agreement (FTA) with Ecuador. In 1990, the United States and Ecuador signed the Trade and Investment Council Agreement (TIC). The two governments signed a Protocol on Trade Rules and Transparency in 2020, which entered into force in 2021 following Ecuador’s National Assembly ratification. The Protocol updates the TIC with new annexes in four areas: Trade Facilitation and Customs Administration, Good Regulatory Practices, Anti-Corruption, and Small-Medium Enterprises (SMEs). Ecuador is a member of the World Trade Organization (WTO) and Andean Community of Nations (CAN).

President Daniel Noboa, originally elected in October 2023 to serve the 18 months remaining in former President Guillermo Lasso’s term, won re-election in April 2025 to a full, four-year term that runs through May 2029. Immediately following Noboa’s re-election, Ecuador’s country risk dropped 800 basis points on investors’ expectation that he will continue to run a pro-trade, pro-business administration with center-right policies and enjoy a strong bilateral relationship with the United States. Following the Noboa administration’s January 2024 declaration of an internal armed conflict against drug-trafficking organizations, heightened insecurity – especially in coastal provinces – remains the country’s greatest challenge. The first half of 2025 was the deadliest six months in the country’s history.

Under the Noboa administration, the United States expanded cooperation with Ecuador on security, trade, and strengthening institutions, and aims to foster further collaboration on energy, trade, and digital transformation. Still, the administration remains hampered as twin fiscal and security crises, low foreign direct investment (FDI), and high public expenditures complicate the economic outlook.

Ecuador’s economic growth has averaged between 1-2 percent annually over the last decade, lagging the regional average. Ecuador’s real annual GDP growth was 0.9 percent in 2024, with nominal GDP totaling $125 billion. The Central Bank of Ecuador (BCE) projects 2.8 percent economic growth in 2025. Ecuador’s inflation was 0.5 percent in 2024, the lowest in Latin America.

The BCE reports net inflows of foreign direct investment (FDI) of $232 million in 2024, the lowest in 14 years. Analysts attribute the 2024 drop in FDI primarily to recurring power outages due to electricity shortages, heightened insecurity amid a government-declared internal armed conflict, and political uncertainty in advance of the 2025 presidential elections.

Ecuador and the International Monetary Fund (IMF) agreed upon a $4 billion, 48-month Extended Fund Facility (EFF) program in May 2024, raised to $5 billion in July 2025. As part of the EFF program, Ecuador committed to meeting several fiscal targets. In 2024, the Noboa administration passed five urgent economic reforms, raised the value-added tax (IVA) to 15 percent, and began phasing out fuel subsidies for regular gasoline. Ecuador plans additional fiscal reforms as part of EFF implementation.

Visit the State Department’s website for background on Ecuador’s political and economic environment.