The country becomes the first in Latin America to initiate this type of accord with the EU
Ecuador took a key step in its economic opening strategy by authorizing the start of
negotiations with the European Union for a Sustainable Investment Facilitation
Agreement (SIFA). The ruling by the Foreign Trade Committee enables both parties to work
on a specific framework aimed at attracting European capital with responsible,
environmentally sustainable standards. With this decision, Ecuador becomes the first Latin
American country to pursue such an agreement with the EU.
The SIFA is not a traditional trade agreement but a tool designed to improve the
investment climate: streamline procedures, digitalize processes, increase regulatory
transparency, and strengthen institutional coordination when foreign investment arrives. The
priority is to channel projects aligned with energy transition, green economy practices, and
digital transformation, particularly in sectors such as renewable energy, sustainable
agriculture, infrastructure, transport, and logistics.
For the EU, the agreement aligns with its Global Gateway initiative, which aims to foster
sustainable investments in partner countries. For Ecuador, it represents an opportunity to
reinforce its reputation as a reliable destination, update its investment framework, and attract
projects with higher technological content and stronger environmental and labor standards.
The EU is already one of Ecuador’s main investors—particularly in energy, water,
telecommunications, and services—and the SIFA would formalize and deepen this
relationship.
The potential impact extends beyond the volume of capital that may arrive. An agreement of
this nature can provide regulatory certainty, reduce investor risk, and send a strong signal
of stability to markets. The challenge for Ecuador will be to translate negotiations into
tangible changes: less bureaucracy, clearer rules, and institutional capacity capable of
supporting long-term sustainable investment projects. If successful, the SIFA could become
a cornerstone in diversifying the econo