Daily coverage from across the country, written for the expat community
Ecuador will formally accept its largest hydroelectric plant from Chinese builder Sinohydro by April 17, despite more than 7,600 documented fissures in critical equipment that the Comptroller ordered repaired. The settlement releases approximately $200 million in guarantees back to Sinohydro. The plant currently operates at less than half its 1,500 MW capacity.
Ecuador's monthly fuel price adjustment on April 12 could push low-octane gasoline past the $3/gallon mark for the first time in history. Extra and Ecopaís currently sit at $2.89/gallon; with the 5% monthly cap, they could reach $3.03. Diesel may hit $2.96. The driver: global oil price spikes from the Strait of Hormuz disruption.
The United States and Ecuador have finalized a reciprocal trade agreement that eliminates a 15% surcharge on $2.8 billion in non-oil Ecuadorian exports and opens Ecuador's agricultural market to US soybeans, dairy, beef, and poultry. Most-favored-nation treatment takes effect by August 2026.
Ecuador has slapped 50% tariffs on Colombian imports, threatened to cut electricity sales, and hiked pipeline transit fees by 900%. With $2.8 billion in bilateral trade at risk, Colombian products are getting more expensive and de-escalation talks are just beginning.
Ecuador's Semana Santa holiday generated an estimated 800,000 domestic trips and $70 million in economic activity. Manta led all destinations with 158,000 visitors and 80% hotel occupancy, while Amazon lodges hit 90%. A temporary VAT cut to 8% for tourism services sweetened the deal.
Ecuador's monthly fuel price adjustment takes effect April 12, raising prices on low-octane gasoline (Extra and Ecopais) and diesel. Super gasoline stays the same. The change pushes up transport costs and adds inflationary pressure to groceries and services.
Amid confusion over Ecuador's IVA reclassification, the SRI has clarified that 94 out of 115 basic basket food items remain at 0% IVA. Fresh milk, raw meats, unprocessed produce, rice, lentils, and legumes are all tax-free. 21 items have moved to 15%. Here is what stays exempt -- and what this means for your grocery budget.
Ecuador's SRI issued a circular on March 26 reclassifying over 60 processed food products from 0% to 15% IVA. Lactose-free milk, all bread and pastries, instant noodles, and pre-cooked meats are now taxed. Fresh natural milk and raw unprocessed foods remain at 0%. The change directly impacts grocery costs for residents.
Ecuador returned to international capital markets in January 2026 for the first time since its 2020 debt restructuring, selling $4 billion in sovereign bonds across two tranches. The move included a $3 billion debt buy-back and sent country risk plummeting from over 2,000 points to 460.
The European Commission concluded negotiations on a Sustainable Investment Facilitation Agreement (SIFA) with Ecuador -- the EU's first such deal with any Latin American country. The agreement focuses on streamlining investment authorizations, improving transparency, and includes a first-of-its-kind annex on sustainable energy and raw materials.
The UAE and Ecuador signed a Comprehensive Economic Partnership Agreement (CEPA) during the Crown Prince of Abu Dhabi's visit, unlocking over $3 billion in investment across clean energy, digital infrastructure, mining, logistics, and agriculture. Ecuador becomes the fourth Latin American country with a UAE trade deal.
The IMF reached a staff-level agreement on the fifth review of Ecuador's $5 billion Extended Fund Facility on March 31. If approved by the Executive Board, Ecuador will receive a $394 million disbursement, bringing total draws to $3.33 billion -- 66% of the program.
