Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the market for this country.
Last Published: 8/8/2016
  • Ecuador’s overall investment climate remains challenging as economic, commercial, and investment policies are subject to frequent changes. Frequent changes in Ecuador’s tax code make business planning difficult. Please see the Investment Climate Statement for additional information on this subject. 
 
  • Ecuador has a civil codified legal system. Systemic weakness in the judicial system and its susceptibility to political pressures create challenges for U.S. companies investing in Ecuador. According to the 2015 Rule of Law Index of The World Justice Project, Ecuador ranked 77 out of 102 within the countries surveyed. 
 
  • The legal complexity resulting from the inconsistent application and interpretation of existing laws complicates the enforcement of contracts and increases the risks and costs of doing business in Ecuador. Business disputes with U.S. companies can become politicized, especially in sensitive areas such as the energy sector. Several high-level investment disputes involving U.S. companies, mostly linked to the energy sector, are under international arbitration. 
 
  • In April 2016, the United States Trade Representative moved Ecuador from Priority Watch List to Watch List in its annual Special 301 Report on intellectual property. This decision was in recognition of Ecuador’s passage of an amendment reinstating criminal procedures and penalties for intellectual property violations. Enforcement against intellectual property infringement remains a serious problem in Ecuador.

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