Commission presents EU-Ecuador Sustainable Investment Facilitation Agreement (SIFA) to Council

This is the first SIFA negotiated with a Latin American country and will help promote further EU investment in Ecuador. The EU-Ecuador SIFA aims to make it easier for EU companies to invest and expand their operations in Ecuador. It benefits both EU and local investors.

It will facilitate investment across the whole economy by supporting efforts to address challenges such as bureaucratic hurdles and regulatory uncertainty, which is especially relevant in sectors with untapped potential, such as renewable energy. For the first time in a SIFA, the agreement with Ecuador contains specific provisions which aim to deepen cooperation and facilitate investment in sustainable energy and raw materials - sectors of particular interest for EU investors and Ecuador. The SIFA is closely aligned with the EU's Global Gateway strategy in Ecuador, which supports investments and sustainable infrastructure in sectors such as energy, water sanitation, and waste management.

The EU is a leading trade and investment partner for Ecuador, with the EU's FDI stock in the country reaching €9.1 billion in 2024. The sectors receiving the most EU foreign direct investment include construction, business services, transport, storage, communications, and manufacturing.

Pursuing SIFAs is among the objectives set out in the EU's Competitiveness Compass, which highlighted the need to seek new ways of deepening partnerships and creating benefits for EU businesses.

Next steps

With its proposals for the signature and conclusion of the SIFA, the Commission is seeking the Council's approval to sign the agreement. Once the Council gives its agreement it will be sent to the European Parliament for consent. Following approval, the deal can enter into force.

For more information

Commission proposals for Council decisions on the signature and conclusion of the EU-Ecuador Sustainable Investment Facilitation Agreement (SIFA)

EU and Ecuador conclude negotiations for a SIFA

EU-Ecuador trade relations