Ecuador–South Korea Trade Deal Needs Congressional Approval, Constitutional Court Rules

Ecuador's path to expanding its trade partnerships just hit a procedural speed bump.

The Ruling

The Constitutional Court of Ecuador has ruled that the free trade agreement negotiated between Ecuador and South Korea must receive formal approval from the National Assembly before it can be ratified and enter into force.

Unlike the recently concluded Agreement on Reciprocal Trade (ART) with the United States — which was negotiated through executive channels and does not require a congressional vote — the South Korea deal was classified by the court as a full international treaty that falls under Article 419 of the Constitution. That article requires legislative approval for any international agreement that affects sovereignty, territorial integrity, or citizens' rights.

What the Agreement Covers

Ecuador and South Korea concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA) designed to reduce tariffs and increase bilateral trade. South Korea is already an important market for Ecuadorian products including bananas, shrimp, cacao, and cut flowers.

The agreement would also open doors for Korean investment in Ecuador's technology, automotive, and infrastructure sectors — areas where Korean firms like Samsung, Hyundai, and LG already have a significant presence in Latin America.

Bilateral trade between the two countries was valued at approximately $1.2 billion in 2024, with Ecuador running a trade surplus driven largely by agricultural exports.

The Legislative Path

With the ruling, the agreement now enters the National Assembly's agenda. Given the current political landscape — President Noboa's Acción Democrática Nacional (ADN) party holds a minority of seats — building a legislative coalition will require negotiation.

The timing is also complicated by the Assembly's current workload: lawmakers are simultaneously debating the urgent mining and energy bill (deadline: March 2) and beginning to pivot toward the 2027 local election cycle.

There is no fixed deadline for the Assembly to vote on the trade agreement, but analysts expect debate to begin in the second quarter of 2026 at the earliest.

What This Means for Expats

• More trade agreements = a stronger economy. Ecuador's strategy of diversifying trade partners beyond the U.S. and EU is positive for economic stability. A deal with Asia's fourth-largest economy would reduce dependence on any single market
• Potential for better goods access. Korean electronics, vehicles, and consumer goods could become more affordable in Ecuador if tariffs drop
• Investment inflows. Korean companies entering Ecuador's market could create jobs and improve infrastructure — particularly in technology and telecommunications
• The legislative requirement is actually reassuring. It means the deal will receive public scrutiny and debate rather than being fast-tracked by executive decree

Sources: Primicias, Constitutional Court of Ecuador