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Updated September 15, 2023
Ecuador: Country Overview and U.S. Relations
Ecuador is a small, ethnically and geographically diverse
political figures, killings allegedly carried out by organized
country of 18.3 million inhabitants located in South
crime groups.
America between Colombia and Peru (see map, Figure 1).
Members of Congress have expressed an interest in a broad
Figure 1. Ecuador at a Glance
range of issues related to Ecuador, including strengthening
bilateral trade relations, combatting crime and drug
trafficking, limiting Chinese influence, and protecting
Ecuador’s Amazon and Indigenous communities.
Snap Elections and Current Conditions
Conservative President Guillermo Lasso took office for a
four-year term in May 2021. He sought to build on the
market-friendly political and economic reforms of his
predecessor, Lenin Moreno (2017-2021), who pursued
closer ties with the United States. Lasso encountered strong
resistance, including from the country’s powerful
Indigenous movements and a divided legislature.
On May 17, 2023, facing an imminent impeachment vote,
President Lasso invoked constitutional article 148, the so-
called cross death decree, dissolving the National Assembly
Sources: World Factbook (CIA), International Monetary Fund (IMF);
(Ecuador’s unicameral legislature) and requiring snap
Ecuador’s National Institute of Statistics and Censuses (NISC); Trade
general elections to elect a president and all 137 members
Data Monitor (TDM).
of the Assembly to serve out remaining terms of office to
2025. Lasso did not seek reelection. The snap election was
Ecuador has seen a sharp rise in violence in the past three
held on August 20, 2023. A new National Assembly is
years attributed primarily to illicit drug trafficking and turf
scheduled to be seated on December 8, 2023, and a new
disputes between organized crime groups. Ecuador’s
President is scheduled to take office December 11, 2023.
neighbors, Colombia and Peru, are the world’s two largest
cocaine-producing countries. The homicide rate rose to
The presidential candidate from former leftist populist
nearly 26 per 100,000 persons in 2022, almost double the
President Rafael Correa’s Citizens’ Revolution (RC by its
prior year and comparable to the homicide rates in Mexico
Spanish acronym) party, Luisa González, came in first
and Colombia. High-fatality prison riots prompted the
place in the eight-candidate field with 33.6% of the vote but
Lasso government to address poor conditions and gang
fell short of the margin needed to avoid a runoff. Daniel
rivalries in prisons. In April 2023, the Lasso government
Noboa of the pro-business National Democratic Action
declared some Ecuadorian gangs to be terrorist
(ADN by its Spanish acronym) alliance placed second, with
organizations, allowing further military support for law
23% of the vote, and will face González in a second-round
enforcement efforts. Drug gangs are suspected of having
runoff election scheduled for October 15, 2023. According
assassinated the mayor of Manta, Ecuador’s fourth-largest
to preliminary legislative election results, the RC gained the
city, in July. In August 2023, following the Villavicencio
largest slate with 48 National Assembly seats. The Build
assassination, President Lasso declared a national state of
Ecuador Movement, allied with assassinated anti-corruption
emergency. Insecurity is a top concern for Ecuador’s
presidential candidate Fernando Villavicencio, won 28
electorate, according to most polls.
seats, followed by the Social Christian Party and the ADN
Political and Economic Background
with 14 seats and 13 seats, respectively.
During a decade in power (2007-2017), populist President
About 30% of the prior National Assembly Members were
Correa brought some stability to Ecuador’s tumultuous
returned to office, and Indigenous representation dropped
political scene. He presided over a public investment-driven
significantly. Most analysts forecast a fragmented
economic expansion, with growth averaging 5% annually
legislature. Ecuadorians also voted by large margins in
between 2010 and 2014. Correa used that economic growth
national and regional referendums to halt oil and minerals
to increase social expenditures and reduce poverty.
extraction in two ecologically sensitive regions of the
However, his policies left Ecuador with significant debt to
country, an outcome that could disrupt Ecuador’s economic
China and more dependent on revenue from petroleum
development model. The election was marred by the
extraction. Correa also governed in an increasingly
assassinations of Villavicencio and at least two other
authoritarian manner, limiting civic freedoms and
restricting judicial independence. In September 2020,
https://crsreports.congress.gov
Ecuador: Country Overview and U.S. Relations
during the Moreno government, Ecuador’s Supreme Court
in Ecuador and increasing security cooperation and
ratified a lower court ruling sentencing Correa in absentia
economic and commercial ties between the two countries.
to an 8-year prison term and a 25-year ban from returning
to public office for bribery. Correa has lived in exile in
The Biden Administration has expanded its security
Belgium since early 2020.
cooperation and assistance to Ecuador in response to the
deteriorating security climate. At the July 2022 Conference
Lasso defeated Andrés Arauz, a Correa loyalist, in
of Defense Ministers of the Americas, Secretary of Defense
Ecuador’s 2021 presidential election. However, Lasso’s
Lloyd Austin III met with Ecuador’s Minister of Defense,
pro-business party won only 12 of 137 seats in the National
Luis Eduardo Lara Jaramillo, to discuss enhanced bilateral
Assembly, frustrating his goals of enacting a tax reform
cooperation, including strengthening Ecuador’s defense
intended to promote growth, reducing import duties,
institutions. In mid-2023, the two countries launched the
building closer ties to the United States, and doubling oil
U.S.-Ecuador Defense Bilateral Working Group and signed
production and mining concessions. Lasso struggled to
a memorandum of understanding to strengthen the
advance his pro-business and fiscal stabilization agenda
capabilities of the Ecuadorian armed forces. The
through the National Assembly, with his 24-seat pro-
Administration also has notified Congress of its intention to
government voting bloc facing opposition from a 47-seat
significantly scale up security assistance to Ecuador.
coalition linked to former President Correa. The Pachakutik
party—affiliated with the country’s main Indigenous
The Biden Administration’s FY2024 congressional budget
organization, the Confederation of Ecuadorian Indigenous
justification proposed $45.7 million in bilateral foreign
Nationalities (CONAIE by its Spanish acronym)—held 27
assistance for Ecuador. That total included $27.0 million in
seats and acted as a swing voting bloc before ultimately
Development Assistance to support government
broadening the opposition to Lasso’s government.
transparency, environmental protection, and sustainable
economic development efforts. It also included $13.3
Rising inflation associated with Russia’s war in Ukraine
million for International Narcotics Control and Law
and the government’s withdrawal of fuel price subsidies
Enforcement programs and $5.0 million in Foreign Military
prompted nearly three weeks of protests (led by CONAIE)
Financing. From 2017 through September 2023, according
in June 2022. The protests, at times violent, propelled the
to the U.S. Agency for International Development, the
Correa-affiliated coalition in the National Assembly to
United States will have provided $240 million in assistance
attempt, unsuccessfully, to impeach Lasso in mid-2022. The
to help Ecuador address the needs of 500,000 Venezuelan
protests ended when the Lasso government restored
migrants and refugees and their host communities.
subsidies and suspended new oil and resource extraction
projects in Indigenous territories, among other guarantees.
U.S.-Ecuador merchandise trade totaled $17.5 billion in
2022. According to the Central Bank of Ecuador, the
The impact of the Coronavirus Disease 2019 (COVID-19)
United States remained Ecuador’s largest trade partner.
pandemic and a crash in global oil prices drove Ecuador
However, in 2022, China exceeded the United States in
into a deep recession in 2020, when the economy contracted
non-oil trade for the first time. The Lasso government
by nearly 8% and the poverty rate climbed to an estimated
advocated for a U.S.-Ecuador free trade agreement (FTA),
33%. Under Lasso, the economy began to recover in 2021,
building on a first-phase limited trade agreement signed in
with 4.2% growth, followed by an estimated 3% growth in
2020. The Biden Administration has not indicated support
2022, driven in part by rising oil prices. The International
for an FTA but has welcomed Ecuador’s participation in the
Monetary Fund (IMF) projects 2.9% growth for 2023.
Americas Partnership for Economic Prosperity initiative,
Fiscal stability improved under Lasso, following efforts to
intended to increase regional competitiveness, strengthen
reduce public spending and improve tax collection. In
supply chains, and promote inclusive growth. Ecuador
December 2022, Ecuador concluded an agreement with the
announced FTA negotiations with China in 2022 and signed
IMF for the first time in two decades, gaining access to
an agreement in May 2023 but has not ratified the
$6.5 billion in financing.
agreement due to the legislature’s closure.
U.S.-Ecuador Relations
Members of Congress have expressed concerns about the
Although the United States traditionally had close relations
potential for further political violence in Ecuador ahead of
with Ecuador, former President Correa’s populism and self-
the second-round presidential election in October 2023.
styled “anti-imperialist” policies increased friction. Among
Members also have expressed various views on aspects of
other actions, Correa shut down U.S. counterdrug
the U.S.-Ecuador relationship. These include support for an
operations at Manta Air Force Base in 2009 and expelled
FTA and concerns about China’s economic engagement,
the U.S. ambassador in 2011. Closer bilateral relations
significantly increased drug flows, and security (including
resumed under President Moreno and continued under
maritime security). Ecuador’s growing role in irregular
President Lasso. In June 2022, Lasso proposed a “Plan
migration is also an area of congressional concern, as are
Ecuador” to advance U.S.-Ecuadorian cooperation in the
environmental damage and risks to Indigenous communities
fight against drug trafficking.
caused by oil extraction, illegal mining, and deforestation in
fragile Amazon ecosystems. Some Members may have
The United States-Ecuador Partnership Act of 2022 was
concerns about potential changes to U.S.-Ecuador security
signed into law by President Biden on December 23, 2022
cooperation priorities with the new government scheduled
as Title LV of the James M. Inhofe National Defense
to take office in December.
Authorization Act for Fiscal Year 2023 (P.L. 117-263). It
includes measures for strengthening democratic governance
June S. Beittel, Analyst in Latin American Affairs
https://crsreports.congress.gov
Ecuador: Country Overview and U.S. Relations
IF11218
Ramon Miro, Analyst in Latin American Affairs
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