As Ecuador’s largest trading partner, the United States traditionally has been a “natural” source for products and services. The factors favoring U.S. exports are the two countries’ geographic proximity; large number of U.S. firms operating in the region; technological leadership that the U.S. maintains in many key industrial sectors; the high quality of U.S.-made products; Ecuador’s use of the U.S. dollar as its currency; and the number of Ecuadorians who study abroad in the United States and develop an affinity for U.S. products.
After-sales service is significant, not only in the original buying decision, but also in maintaining the sales relationship. U.S. suppliers must either have their own representative with adequate operations or obtain an Ecuadorian representative who can offer sufficient after-sales service. To obtain better prices, guarantees, parts, and after-sales servicing, Ecuadorians prefer to deal directly with manufacturers rather than trading companies.
U.S. firms competing for major infrastructure contracts should begin early in the contracting cycle. U.S. manufacturing and construction, service, and engineering companies should initiate contact as soon as possible with government entities and private firms that have indicated plans, or even just an interest, in developing projects. Once a project has gone to tender, it may too late to be competitive if the supplier company has not already engaged early in the process.
As mentioned in the section “Selling to the Government,” a local agent or legal representative is required for all government contracts. Therefore, U.S. companies interested in government procurement or contracts should conduct due diligence and appoint an agent or representative as quickly as possible.
Most U.S. products do not require any changes to comply with regulations applicable to the Ecuadorian market. Some products are subject to technical requirements such as compliance with specific International Organization for Standardization (ISO) standards, Good Manufacturing Practices (GMP), labeling requirements, and conformity assessment certificates. Price competitiveness is an important sales factor. For practical rather than legal reasons, U.S. firms selling high-tech products usually provide training and maintenance support to their distributors and agents. Local distributors frequently expect foreign suppliers to underwrite marketing and promotion costs as well as sales support and training. Sales materials should be in Spanish.
Under the current invoicing system mandated by Ecuador’s Internal Revenue Service (SRI), a digital sales invoice must be submitted for every transaction regardless of the amount – even when carrying out a free transfer of title. This obligation applies equally to the provision of professional services of any nature and transactions where the 15 percent value-added tax (IVA) rate applies.
Trade Promotion and Advertising
The Organic Communications Law (LOC) and its Regulations in June 2013 outlined rules and parameters governing the production and issuance of advertisements in Ecuador. The LOC bans all foreign-made advertisements. Advertisements under this law will only be considered a national ad if a majority of the production company’s shareholders are citizens or legal residents of Ecuador and if at least 80 percent of those contributing to an advertisement’s production are Ecuadorian citizens or legal residents.
In August 2023, the Ecuadorian Government published a new regulation that clarifies that the LOC considers “national” advertisements to include those produced in a country with which Ecuador has signed an integration treaty. The definition of an integration treaty is not spelled out in the regulation, but private sector companies have interpreted the change to be a relaxation of LOC rules on advertisements. Despite the regulation, the requirement that 80 percent of those contributing to an advertisement’s production be Ecuadorian citizens or legal residents remains in place.
In addition, the government prohibits the advertising of any product whose regular use may affect the user’s health. The Ministry of Public Health (MSP) is responsible for determining the list of these products. As of August 2025, MSP has not issued a list, though it may eventually include items such as processed and ultra-processed foods, alcoholic beverages, and tobacco. Notably, the MSP regulates advertisements distributed in national media for food or health-related products.
For alcoholic beverage advertisements, the MSP requires that the following warning messages be included: “Consumption of alcohol limits your capacity to drive and operate machinery, it can cause health problems, and it can damage your family”; and “Sale of alcohol to minors is prohibited.” These warnings must also be printed on the beverage label and must occupy six percent of the label. Advertising of alcohol on television cannot be aired between 6 a.m. and 9 p.m., and the warning messages must be shown for at least three seconds when the product has less than five percent alcohol, or five seconds when the content is five percent or higher. The font must be visible and must contrast with the background. The same restrictions apply for cable or satellite television. For radio advertisements, the warnings must be clearly read at the end of the commercial. Underage children or adolescents may not be part of advertisements for these goods. These advertisements are also forbidden during programs for children on radio or television. Alcohol companies are not allowed to sponsor events whose primary audience consists of minors.
Nutritional supplements also are bound by the food regulations above. In addition, restrictions apply to advertising supplements for children under six months. For baby food supplements and infant formula, an authorization is required by the Sanitary Agency, and they will consider the age of the target babies and whether they are being breastfed. The regulations address the promotion of breastfeeding, and products should bear a message stating: “Breast milk is the best food for your infant’s health and nutrition, as it is the only complete and irreplaceable food. This product should not be the only food for your baby.”
Section 3 of the Ecuadorian Code of Ethics and Self-Regulation for Advertisers regulates fear, superstition, and violence in relation to ads. Advertisements cannot exploit any type of superstition or be based on fear, unless there is any socially relevant or plausible justification.
Prescription medicines require a statement that they are only sold under prescription from a professional doctor. All medicines are required to show the following information:
- Generic or brand name of the product
- Trademark
- Lot number
- Name of the producer
- Net weight
- Health registration number
- Expiration date or maximum time of consumption
- List of components with their specifications
- Public price
- Country of origin
- Contraindications or side effects
Political advertising is heavily regulated by the Constitution and Election Laws. Article 115 of the Constitution states that political advertising for elections must be distributed equally and fairly among candidates to promote debate and diffusion of all the proposals. The Constitution also forbids advertising with political intolerance. The Childhood and Adolescence Protection Law protect children and adolescents against appearing in programs or shows with political or religious campaigns.
Ecuador guarantees freedom of religion. Advertising may not proselytize or attempt to persuade a person to follow any religion. The Constitution forbids advertising that promotes religious intolerance. Religious ads are very rare in Ecuador except during Easter, Christmas, or other important religious holidays.
The Consumer Defense Law, approved in 2000, regulates deceptive or misleading use of trademarks in commerce, and the Antitrust Law may give rise to unfair competition claims. The Antitrust Law prohibits deceptive advertising and defines it as affirmations (or omissions) which are not truthful or exact about products or services. The advertiser has the burden of proving its affirmations and is required to have the documentation to prove them. The right of consumer protection against misleading advertising is included in the Consumer Defense Law. It establishes national standards of customer protection and makes them the National Ombudsman’s responsibility.
The advertising industry also self-regulates by voluntarily adhering to the Ecuadorian Code of Ethics and Self-Regulation for Advertisers. This code provides that the advertising agency complies with the Code and can be held responsible for violations.
The Consumer Defense Law requires that all data and information in labels, containers, packaging, or other types of wrapping of offered products, as well as all advertising, information, or announcements in relation to services offered must be in Spanish, in the currency in circulation (U.S. dollars), and in general-usage measurement units (metric). However, the data may also be provided in other languages or measurement units.
Some international advertising firms operate in Ecuador through representation agreements. Some have offices in Quito and Guayaquil, where municipal ordinances regulate billboard advertising.
Advertising has experienced a dramatic shift from traditional media (TV, radio, newspapers, and magazines) to digital platforms (websites and social media). Facebook is the preferred targeted advertising platform for brands. According to Ecuador’s Council for Development and Regulation of Communications (CORDICOM), Ecuador had 992 registered media outlets in January 2025, including radio, television, audio and video subscription (with their own signal), newspapers, magazines, and digital media.
Main Newspapers and Periodicals
El Universo
El Comercio
El Telegrafo
La Hora
Expreso
Vistazo
Primicias
TV Networks
Ecuavisa
Teleamazonas
Telerama
RTS
Ecuador TV
Oromar Television
TC Television
GAMAVISIÓN
Cable/Satellite TV Networks
Direct TV
Xtrim TV Cable
Claro TV
CNT TV: www.cnt.gob.ec/tv/
Advertising and Communications Agencies
Rivas Herrera Young & Rubicam:
Publicis
Ogilvy
Comunicandes
Trade Promotion
Centro de Exposiciones
HJ Becdach Ferias
Expoplaza
Pricing
Electric power and petroleum products like diesel, gasoline, and natural gas are subject to government price controls, as are telephone tariffs, fertilizers, agrochemicals, and pharmaceutical products. There is a minimum support price for paddy rice (long and short grain), hard yellow corn, bananas, plantain, sugar cane, wheat, soybean, and milk. The government constantly analyzes the establishment of price ceilings for additional products or allowing direct imports of raw materials, to avoid increasing consumer costs. Prices for other imported products are defined by supply and demand and for the most part have not been subject to official price controls.
Imported products are subject to import quotas, tariffs, and a variety of taxes, including a special consumption tax, value-added tax (IVA), and, indirectly, a capital exit tax (ISD) of 5 percent. Because of often changing regulations, interested parties are encouraged to contact the U.S. Embassy at EcuadorCommercial@state.gov for up-to-date information.
Ecuadorian markets are more concentrated than is typical of larger, more competitive markets. Relatively few players dominate most market sectors. This conveys considerable pricing power to distribution companies and creates the opportunity for collusion in pricing. In the case of packaged consumer products, there are only a few, well-positioned retail chains. Vertical integration, in which the manufacturer controls its own distribution, is common.
Services, business and commercial transactions, and imports are subject to a 15 percent IVA. Luxury items are subject to a special consumption tax (ICE). A list of products exempts from paying IVA can be viewed at Ecuador’s Internal Revenue Service (SRI) website.
Sales Service/Customer Support
Ecuador’s Consumer Protection Law calls for suppliers of goods and services to provide appropriate warranties for products sold. The availability of trained and competent service technicians and spare parts are often a critical part of purchasing decisions for equipment, machinery, and technically sophisticated products. U.S. companies exporting products that require maintenance, and spare parts should ensure that their Ecuadorian distributor provides both.
Local Professional Services
Companies new to the Ecuadorian market are strongly encouraged to retain professional services to structure commercial transactions. Establishing a foreign, wholly owned subsidiary, joint venture, or representative office requires compliance with complex contract approval requirements, business registration requirements, taxation regulations and statutes, and labor regulations. Some Ecuador professional service providers also have substantial experience serving foreign clients.
Several legal and business services providers in Ecuador are found on the U.S. Commercial Service’s Business Services Provider webpage.
Accountants
Foreign companies should consider contracting for accounting services to prepare and file annual financial statements and other financial documents required by Ecuadorian law.
Attorneys
There are many international and domestic law firms in Ecuador, although no major U.S. law firms have offices in the country. To be licensed to practice law in Ecuador, one must attend and graduate from an Ecuadorian law school. However, those who have attended law schools in other countries are not prohibited from being partners at firms. Only attorneys licensed in Ecuador may appear in court and provide legal advice on Ecuadorian legal matters. Due to the restrictions and specific requirements in the banking and finance industry, as well as for importing or exporting, retaining a domestic or international law firm that has licensed Ecuadorian lawyers is invaluable.
Management Consultants
Foreign companies new to the Ecuadorian market often engage the services of local consultants to develop market entry strategies, conduct due diligence investigations, and identify potential investment partners, sales agents, and customers. Many of the major foreign consulting firms are active in the Ecuadorian market, along with several small niche players as well as many local companies.
Principal Business Associations
Ecuador has five American Chambers of Commerce, i.e., AmCham’s. They are located in Quito, Guayaquil, Cuenca, Ambato, and Manta. The AmCham’s are independent, non-profit business organizations that provide an important link between the private sector and the Ecuadorian government as well the U.S. Embassy in Ecuador. AmCham’s provide important services to business that serve the American market including networking, government relations, trade events, commercial information resources, and more. Local chambers of commerce listed here are in Ecuador’s main cities.
Limitations on Selling U.S. Products and Services
The Ecuadorian government controls most of the provision of public services such as water (drinking and irrigation), sewage, electricity, roadways, telecommunications, and ports and airports infrastructure. Exceptionally, and as determined in various laws and regulations, the government may delegate the provision of a public service to public-private companies in which the government is the major shareholder. Private sector actors are prominent in telecommunications services and airport operations.