Breaking news, politics, economy, visas, safety, and lifestyle updates for expats living in Ecuador.
Ecuador and Colombia have imposed 50% tariffs on each other's imports in an escalating trade war that puts $2.8 billion in bilateral trade at risk. Colombia has also suspended electricity exports and raised pipeline fees by 900%.
Ecuador and the United States have signed a trade agreement that eliminates tariffs on 53% of Ecuador's non-oil exports. The deal covers bananas, shrimp, flowers, cacao, and other key agricultural products, strengthening economic ties between the two countries.
Ecuador has signed a comprehensive trade agreement with the United Arab Emirates worth an estimated $3 billion, eliminating tariffs on over 96% of goods traded between the two countries. The deal opens Middle Eastern markets to Ecuadorian agriculture and positions Ecuador as a gateway to Latin America for Gulf investors.
Ecuador's economy is projected to grow approximately 2% in 2026 with inflation holding near 1.5%. Country risk stands at 460 basis points. Here is what the numbers mean for expats living on dollar-denominated income in a dollarized economy.
Ecuador's international reserves reached $11,940 million as of March 13, 2026 — the highest level in the country's history. In a dollarized economy, reserves directly back every dollar in circulation, making this a significant indicator of financial stability.
Ecuador remains 50-70% cheaper than the United States in 2026, but inflation and the Colombia trade war are nudging some prices higher. Here are the latest monthly budgets, healthcare costs, and price benchmarks for expats in Cuenca, Quito, and the coast.
The United States and Ecuador formally signed their Agreement on Reciprocal Trade on March 13, 2026, cutting tariffs on 53% of non-oil exports worth $2.8 billion. Key sectors including bananas, shrimp, cocoa, coffee, and flowers get preferential access, while Ecuador eliminates its price band system on U.S. agricultural imports.
Relations between Ecuador and Colombia have deteriorated sharply in March 2026. Ecuador raised tariffs to 50% on Colombian goods on March 1, Colombia retaliated with tariffs on 280 products, and President Petro has accused Ecuador of bombing Colombian territory. $2.8 billion in annual bilateral trade hangs in the balance.
Ecuador's tax agency eliminated the 2.75% withholding rate and introduced new rates including a 5% tariff and 2% withholding on credit cards, insurance, and leasing. Plus: individual income tax declarations are due this month.
Latin America's largest mobile carrier will spend $600 million over three years to modernize its Ecuador network, expand coverage, and roll out 5G. Service is already live in Guayaquil, Quito, Puerto Ayora, and Coca.
Ambassador Jamieson Greer and Ecuador's Trade Minister signed the Agreement on Reciprocal Trade on March 13, locking in zero tariffs on $2.8 billion in Ecuadorian exports and opening the door to cheaper American imports. If you buy wine, medicine, or electronics in Ecuador, pay attention.
Ecuador hiked tariffs on Colombian imports from 30% to 50% on March 1. Colombia retaliated on 280 Ecuadorian products at the same rate. If you buy medicine, processed food, or pesticides in Ecuador, you're already paying more.
