Ecuador pursues energy deals with Panama and trade pact with Japan

Ecuador is pursuing several international economic initiatives, including potential energy imports from Panama and a Free Trade Agreement with Japan.

Following a meeting between President Daniel Noboa and Panamanian President José Raúl Mulino in Guayaquil, Ecuador is exploring the possibility of purchasing surplus electricity from Panama. While Panama has excess energy, technical challenges remain, as the two countries do not share a border and would require a regional interconnection network. Additionally, the two nations have established terms of reference to begin negotiating a Partial Scope Agreement and discussed circular labor migration for Ecuadorian workers in Panama's agricultural and fishing sectors.

Separately, President Noboa confirmed that Ecuador is advancing negotiations for an Economic Partnership Agreement (EPA) with Japan. This move follows a visit by Japanese Foreign Minister Motegi Toshimitsu in August. The initiative is supported by Japanese private sector interest and aims to strengthen trade in sectors such as mining and crude oil. While non-oil exports from Ecuador to Japan saw a 20.4% increase in 2025, recent data for 2026 indicates a decline.