23 January 2026, the European Commission concluded negotiations with Ecuador on a Sustainable Investment Facilitation Agreement (SIFA). This SIFA, the first negotiated with a Latin American country, will be instrumental in promoting EU investments in Ecuador.
The deal will support the creation of a more transparent and efficient business environment in Ecuador by addressing challenges such as regulatory uncertainty and bureaucratic hurdles. Improvements in the investment climate will benefit both EU and local investors, and promote additional sustainable investment.
At a time of increasing uncertainties and geopolitical shifts, this Agreement shows that predictability and stability can be achieved through a shared commitment to international cooperation and the rules-based order. Ecuador business climate is improving as shown, for example, by faster procedures to proceed pending payments by public authorities.
The agreement also upholds environment and climate commitments, as well as respect for labour rights, making sure the facilitation of investments contributes to sustainability objectives and the achievement of the Sustainable Development Goals.
For more information, please see here.