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[BUSINESS] · Ecuador, United States · 2 sources

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Ecuador Constitutional Court mandates legislative approval for U.S. trade deal

The Constitutional Court of Ecuador has ruled that the Reciprocal Trade Agreement signed with the United States requires approval from the National Assembly. The court's unanimous decision stated that the agreement falls under constitutional requirements for treaties that involve legal modifications or commitments to integration and trade.

The agreement, negotiated between 2025 and early 2026, aims to eliminate a 10% surtax imposed by the United States on approximately 53% of Ecuador's non-oil exports. This includes agricultural products such as bananas, cacao, coffee, and various fruits, as well as strategic minerals like gold and copper. In exchange, the pact provides for reduced tariffs on U.S. imports to Ecuador, specifically targeting agricultural, industrial, and construction machinery.

While business groups have welcomed the deal for its potential to expand export opportunities, opposition sectors and social groups have raised concerns. Some critics argue the agreement extends beyond trade into political, military, and security commitments, potentially affecting strategic sectors and local production.

Entities

Constitutional Court of Ecuador · Daniel Noboa · Ecuador · National Assembly of Ecuador · United States