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Updated May 28, 2024
Ecuador: Country Overview and U.S. Relations
Ecuador is an ethnically and geographically diverse country
Figure 1. Ecuador at a Glance
of 18.5 million people, encompassing portions of South
America’s Pacific coast, Amazon Basin, and Andean
highlands. Guayaquil, a major port city, has become a
transit hub for cocaine trafficked from neighboring
Colombia and Peru, the world’s largest cocaine producers
(see Figure 1). Ecuador faces an acute security crisis, with
gangs fighting for control of drug trafficking routes and
prisons and seeking to influence politics. Some Members of
Congress have expressed concern about the deteriorating
security conditions in Ecuador. Congress enacted a
framework to deepen economic and security ties with
Ecuador in 2022 and may consider legislation to further
strengthen bilateral ties.
Current Political Conditions
Ecuador held snap general elections in August 2023 to elect
a new president and parliament (National Assembly).
President Daniel Noboa, the head of the center-right
National Democratic Action (ADN) political coalition, took
Sources: Central Intelligence Agency (CIA) World Factbook,
office in November 2023 to complete the term of his
International Monetary Fund (IMF), Ecuador’s National Institute of
predecessor, Guillermo Lasso (2021-2023), after winning
Statistics and Censuses (NISC), Trade Data Monitor (TDM).
an October runoff vote. Lasso, who called the elections but
did not run, had pushed for market-friendly political and
Security Crisis
economic reforms but faced opposition from Indigenous
Ecuador has seen a rise in violence over the past four years,
movements and a legislature dominated by leftist parties
primarily due to increased competition among gangs
that had repeatedly tried to impeach him. The assassination
affiliated with transnational criminal organizations (TCOs),
of a presidential candidate and other political figures,
including Mexican cartels and Albanian crime groups. After
allegedly by criminal groups, marred the 2023 elections.
being considered one of the safest countries in the region
for decades, Ecuador saw a surge in homicides after the
Voters also elected new members to the 137-member
COVID-19 pandemic. Homicides reportedly reached 44.5
unicameral National Assembly and approved national and
per 100,000 in 2023, among the highest rates in Latin
regional referenda to halt oil and mineral extraction in two
America. High fatality riots in prisons, from which criminal
ecologically sensitive regions. The leftist Citizens
groups reportedly run their operations, have plagued
Revolution party (RC), tied to former president Rafael
successive presidential administrations since 2020. These
Correa (2007-2017), won the most seats (51), followed by
groups also are alleged to have infiltrated Ecuadorian
the anti-corruption Build Ecuador Movement (26), the
politics and institutions; the attorney general alleges that
conservative Social Christian Party and allies (18), and the
she has uncovered extensive corruption networks linking
ADN (14). President Noboa and the newly elected
politicians, judges, and law enforcement to criminal groups.
legislators are to serve until May 2025.
In January 2024, President Noboa declared a state of
Unlike President Lasso, whose minority government faced
emergency and “internal armed conflict” after the leader of
disruptive protests and impeachment attempts, President
Ecuador’s largest gang, Los Choneros, escaped from prison
Noboa formed a legislative majority through a loose
and an acute wave of violence swept the country. The order
political alliance that included his ADN, the RC, and the
limited some constitutional rights, designated 22 criminal
Social Christian party. The alliance enacted several Noboa-
groups as terrorist organizations, and enabled the armed
backed economic and energy-related reforms but broke
forces to conduct public security functions. The state of
down after Ecuadorian forces invaded the Mexican
emergency expired on April 8, but a court order determined
embassy in Quito in April 2024 to detain former vice
that the armed forces may continue to perform public
president and RC member Jorge Glas (2013-2018) on
security functions. Ecuadorians voted to formalize the
corruption charges; Glas had received asylum from Mexico.
armed forces’ role in public security in an April 2024
As a result, Mexico broke diplomatic relations with
referendum, approving eight additional security-related
Ecuador. Ecuador and Mexico each have presented cases
measures, including the extradition of Ecuadorian citizens.
against the other in the International Court of Justice in
relation to the incident.
https://crsreports.congress.gov
Ecuador: Country Overview and U.S. Relations
Noboa’s security efforts appear to have had mixed results.
for FY2023 (P.L. 117-263). The act includes measures
Homicide rates have declined, but other crimes (e.g.,
intended to strengthen democratic governance in Ecuador
kidnapping and extortion) have increased. Several
and increase bilateral security cooperation and economic
politicians have been assassinated since January 2024.
and commercial ties.
Human Rights Watch has alleged that security forces have
committed serious human rights violations. In May 2024,
The Biden Administration has expanded U.S. security
Noboa declared a new 60-day state of emergency in seven
cooperation and assistance to Ecuador. In 2023, the two
provinces along the Pacific coast and in the northeast where
countries launched the U.S.-Ecuador Defense Bilateral
organized-crime-related violence is prevalent.
Working Group. In February 2024, President Noboa ratified
two military cooperation agreements with the United States,
Economic Background
establishing a framework for U.S. military personnel to
During his decade in power (2007-2017), populist president
operate in Ecuador and allowing for joint naval operations
Rafael Correa oversaw a public-investment-driven
to combat drug trafficking and other illicit activities. The
economic expansion, with growth averaging 5% annually
U.S. Treasury Department has imposed asset-blocking
from 2010 to 2014, amid high oil prices. Correa used that
sanctions on Los Choneros under Executive Order 14059,
economic growth to increase social expenditures and reduce
which levies sanctions on foreign persons involved in the
poverty. His policies, however, left Ecuador indebted and
global illicit drug trade.
more dependent on revenue from petroleum extraction.
The Biden Administration requested $48.6 million in
The impact of the COVID-19 pandemic and a decline in
bilateral foreign assistance for Ecuador for FY2024 and
global oil prices drove Ecuador into a deep recession. In
$49.2 million for FY2025; the Administration allocated an
2020, the economy contracted by 9.2% and the national
estimated $49 million to Ecuador in FY2023. U.S.
poverty rate climbed to an estimated 32%. The economy
assistance to Ecuador aims to build capacity to counter
recovered in 2021, growing by 9.8% (in part due to rising
TCOs, drug trafficking, and corruption; manage weapon
oil prices) before moderating to 6.2% growth in 2022.
stockpiles; preserve biodiversity; and improve economic
Growth slowed to 2.3% in 2023, according to the
integration for marginalized groups, among other activities.
International Monetary Fund (IMF), amid tightening global
Congress did not designate an overall funding level for
financial conditions, domestic turbulence, and drought.
Ecuador in the Department of State, Foreign Operations,
Some observers forecast that the 2023 referenda limiting oil
and Related Programs Appropriations Act, 2024 (P.L. 118-
and mineral extraction could reduce foreign investment and
47, Division F). The explanatory statement accompanying
hamper economic growth.
P.L. 118-47 specifies $17.5 million in International
President Noboa has taken steps to improve Ecuador’s
Narcotics Control and Law Enforcement aid for Ecuador. It
fiscal situation. In late 2023, the National Assembly passed
also directs the Secretary of State to work with the
tax reform intended to incentivize payments of back taxes,
Secretary of Defense to submit an integrated security
encourage firms to hire younger workers (in part to reduce
assistance strategy for Ecuador within 90 days. Congress
criminal recruitment), and provide tax rebates to the
may assess that strategy and conditions in Ecuador as it
construction sector. The Noboa administration also
considers the Administration’s FY2025 budget request.
temporarily raised Ecuador’s value-added tax to help offset
U.S.-Ecuador goods trade totaled $16.5 billion in 2023. The
increased public security expenditures. In April 2024, the
Biden Administration has not expressed support for a free
IMF and Ecuadorian officials reached a provisional four-
trade agreement (FTA) but has welcomed Ecuador’s
year $4 billion financing agreement to support
implementation of Noboa’s policies and structural reforms.
participation in the Americas Partnership for Economic
Prosperity, an effort to foster regional competitiveness and
The National Assembly also approved Noboa’s energy
inclusive growth. An FTA between Ecuador and China
reform intended to improve efficiency and foster private
entered into force in May 2024. The 118th Congress may
investment in the electricity sector. Ecuador, however, has
consider S. 913 and H.R. 6414, which would make Ecuador
continued to grapple with blackouts and electricity
eligible for designation as a beneficiary country under the
rationing measures, due in part to prolonged drought and
Caribbean Basin Economic Recovery Act, potentially
aging infrastructure. In April 2024, Noboa declared an
providing access to certain unilateral U.S. trade preferences.
energy emergency and fired his energy minister, alleging
“corruption and negligence” by some energy officials.
In addition to considering foreign assistance appropriations
and trade legislation, Congress could assess how to respond
U.S.-Ecuador Relations
to irregular migration from Ecuador to the United States.
Some Members of Congress have introduced legislation
Former President Correa’s populism and self-styled “anti-
imperialist” policies
(H.R. 7371) and called on the Biden Administration to
contributed to friction in the otherwise
designate Ecuador for Temporary Protected Status, which
close U.S.-Ecuador relationship. Among other actions,
would allow Ecuadorian nationals in the United States to
Correa shuttered U.S. counterdrug operations at Manta Air
remain and work—regardless of immigration status—on the
Force Base in 2009 and expelled the U.S. ambassador in
grounds that returning to Ecuador would be unsafe.
2011. Closer bilateral relations resumed under Correa’s
successors, including President Noboa.
Joshua Klein, Analyst in Foreign Affairs
President Biden signed the United States-Ecuador
IF11218
Partnership Act of 2022 in 2022, as Title LV, Subtitle B, of
the James M. Inhofe National Defense Authorization Act
https://crsreports.congress.gov
Ecuador: Country Overview and U.S. Relations
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https://crsreports.congress.gov | IF11218 · VERSION 15 · UPDATED