Description
Ecuador is relatively open to foreign investment (FDI) in most sectors. Its overall investment climate remains challenging and uncertain as Ecuador’s economic, commercial, and investment policies are often contradictory and subject to change. The regulatory framework has specifically targeted the banking and media sectors, negatively affecting these industries. Frequent changes in Ecuador’s tax code make business planning difficult. In general, the legal complexity resulting from the inconsistent application and interpretation of existing laws complicates enforcement of contracts and increases the risks and costs of doing business in Ecuador. Business disputes with U.S. companies can become politicized, especially in sensitive areas such as the energy sector. Several high level investment disputes involving U.S. companies, mostly linked to the energy sector, are under international arbitration.
