Doing Business with Ecuador – A European Perspective

Ecuador may not be the first country that comes to mind when European companies think of Latin America—but this Andean nation, with its capital in Quito and commercial heart in Guayaquil, is quickly becoming one of the region’s most dynamic and accessible markets.

A strong economic foundation

• Dollarized economy: Ecuador uses the US Dollar (USD) as its official currency, offering financial stability and minimizing exchange-rate risks—an asset for long-term business plans.
• EU–Ecuador Trade Agreement in force: As of October 2024, the EU–Colombia–Peru–Ecuador trade agreement officially entered into force, granting preferential access and reducing tariffs for industrial and agricultural goods exported both ways.

Trade highlights – 2024 figures

According to the European Commission’s Eurostat data:

This trade balance highlights how Ecuador is solidly integrated into the European goods market, with growth particularly pronounced in imports from Ecuador.

Globally, Ecuador reported exports worth US $34.4 billion in 2024, with the European Union accounting for 17.1%—roughly US $5.88 billion—making the EU one of Ecuador’s top export destinations  .

A new political momentum: President Daniel Noboa

Under President Daniel Noboa, Ecuador has been actively strengthening its international relations—especially with the United States and the European Union. His administration has emphasized modernization, foreign investment, and collaborative security initiatives, setting the stage for a more dynamic and open economic environment.

Several sectors are on a fast track:

• Mining: Rich resources are inviting international, particularly European, investment in sustainable and technologically advanced extractive methods.

• Agriculture and Agribusiness: Ecuador remains a global powerhouse in bananas, shrimp, and cocoa, with growing opportunities in processed food and agro-industrial exports.

• Security & Tech: Rising demand for infrastructure, digitalization, and security technologies is opening doors for innovative EU firms.

• Construction & Infrastructure: Rapid urban expansion and new development initiatives need high-quality engineering, construction, and project financing.

A Golden Opportunity for European (Especially Scandinavian) Companies

For European businesses—and notably those from Scandinavia, known for innovation, design, and sustainability—Ecuador is a promising and strategic partner. Here’s why:

• Trade incentives: Reduced tariffs and transparent rules under the new trade agreement make entry smoother and more predictable.

• Economic stability: Dollarization means less currency volatility and smoother financial planning.

• High demand for quality: Advanced European solutions are in growing demand across infrastructure, renewables, agri-tech, and beyond.

• Gateway to the region: Ecuador’s Pacific coast location offers strategic access to broader Andean and Latin American markets.

My thoughts

Ecuador might not be the largest Latin American economy—but it stands out as one of the most dynamic and open right now. Under President Noboa’s global outreach and with promising trade figures in 2024, now is an excellent time for European—and especially Scandinavian—companies to build partnerships, explore investments, and help shape Ecuador’s growth.

Lassi Pensikkala

Economist – International Business Consultant based in Ecuador

AmerExperience.com/Business

Sources

1. European Commission – Ecuador trade factsheet (2024)
   
   Official EU trade statistics and country profile, including 2024 export/import values, main sectors, and partner countries.
2. WTO – Ecuador Trade Policy Profile (2024)
   
   World Trade Organization profile of Ecuador’s trade flows, partners, and key indicators.
3. Wikipedia – EU–Colombia–Peru–Ecuador Trade Agreement
   
   Background on the trade agreement’s history, negotiations, and implementation status (Spanish).
4. Wikipedia – European Union Association Agreements (general framework)
   
   Explains the broader EU framework of association agreements and their legal impact.
5. EU Trade – My Trade Assistant
   Practical EU tool for businesses: tariffs, SPS requirements, rules of origin, and customs procedures for trading with Ecuador.