“Ecuador could be a benchmark for green investment”

The Ambassador of the European Union to Ecuador, Jekaterina Dorodnova, spoke with Forbes Ecuador about the start of negotiations for an agreement aimed at promoting sustainable investment in the country. She highlighted that Ecuador is the first Latin American partner to engage in these negotiations, which also represents an opportunity for the country to position itself as a reliable investment destination. (Source: Forbes Ecuador), Check

In a context of low foreign direct investment and rising sustainability requirements, Ecuador has become the first country in Latin America to begin negotiations with the European Union (EU) for a Sustainable Investment Facilitation Agreement (SIFA). The EU Ambassador to Ecuador, Jekaterina Dorodnova, explains why this step could transform the business climate, attract European capital, and position the country as a regional benchmark in renewable energy, agribusiness, and responsible trade.

If Ecuador makes progress, it could raise its international profile and consolidate itself as a key partner of the European Union in Latin America, as well as become a regional reference for “green investment,” the ambassador says in an interview with Forbes.

The relationship between Ecuador and the EU is considered “deeply strategic.” Bilateral trade has grown since the entry into force of the multiparty trade agreement. Last year alone, Ecuador’s non-oil exports reached USD 5.884 billion, representing a 37.8% increase, according to the Ministry of Production, Foreign Trade and Investment, consolidating the EU as the main destination for Ecuadorian exports.

The latest news is that the European Union has begun negotiations with Ecuador for a Sustainable Investment Facilitation Agreement. What does this mean?

It is very good news for Ecuador and for the European Union. This is a new type of agreement; we currently have only one with Angola and are negotiating another with Côte d’Ivoire. Ecuador will be the first partner in Latin America with whom we negotiate this type of agreement.

What is it about?

As its name suggests, it is about facilitating sustainable investments. Above all, it seeks to improve the investment climate in order to attract more European investment. Ecuador lacks foreign direct investment. The European Union is the leading investor and the main strategic trade partner of Ecuador, accounting for 24% of foreign direct investment.

Looking at the broader picture, FDI represents less than 1% of GDP, which is very low. Given that we are the main trade partner under a multiparty agreement that Ecuador uses effectively, this is a logical next step to attract more foreign investment and improve the business environment.

What conditions need to improve for this to work?

The agreement seeks precisely that: transparency, legal certainty, transparent and competitive public procurement with real prices, streamlined procedures, and predictability.

Are these conditions not currently in place?

There are many areas that can be improved. Much depends on a country’s efforts to attract investment. This requires legislative reforms. Today, we see legal instability, frequent regulatory changes, slow administrative and customs procedures, and some degree of institutional coordination that needs improvement. The goal of the agreement is to address these issues, recognizing that each country is different.

What is the reference framework, and are we comparable to Angola?

They are not comparable, but there are international standards that apply globally, as well as European market expectations that are universal: transparency, traceability, and due diligence. This agreement is a very natural complement to our broader sustainable trade policy, ensuring that investment is also sustainable, responsible, and inclusive.

What characterizes sustainable trade?

There are unsustainable trade practices. For example, if Ecuador exports tuna to Europe that results from illegal fishing, that would be unsustainable trade and we do not support it. In contrast, when small and medium-sized enterprises have certified products, meet international standards, avoid deforestation, and apply good labor and environmental practices, we are talking about sustainable trade. That is the difference.

Why was Ecuador chosen to initiate these agreements?

Ecuador has great potential for European investment because it is a country that has it all: natural resources, agriculture and agribusiness, renewable energy (solar, wind, geothermal), and sustainable tourism. Ecuador could become a regional benchmark and gain a competitive advantage over other economic partners in the region.

What would it mean for Ecuador to conclude this agreement compared to its neighbors?

If we succeed in attracting European investment in renewable energy, Ecuador could become a reference for green investment. While neighboring countries offer similar export products, Ecuador offers a unique combination of factors that make it attractive for investment.

When will negotiations officially begin?

Teams from both sides will participate. On Ecuador’s side, the Ministry of Production, Foreign Trade and Investment will likely lead the process with its experts. On the EU side, the negotiating team will come from Brussels, led by the European Commission’s Directorate-General for Trade.

How long will negotiations last?

Expectations on both sides are high regarding the speed of negotiations. They can be launched immediately; the first round may take place later this year or in early 2026. The negotiations were announced at the EU–CELAC Summit in Santa Marta, Colombia. The EU Council has already granted the mandate, so there are no obstacles to starting.

Which sectors are prioritized for investment?

Renewable energy, agribusiness, circular economy, bioeconomy, and sustainable infrastructure. Logistics are particularly important for attracting investment and developing these sectors. Agribusiness is key: the EU is the main destination for Ecuadorian exports, especially organic products.

Why do European consumers demand Ecuadorian products?

Because they are high quality and high value-added. Growth has been driven by the multiparty trade agreement: 99% of these products enter the European market tariff-free. Over the past seven years, exports have increased every year, generating a significant surplus for Ecuador. The European market of 27 countries and around 500 million consumers values quality, traceability, and organic products and is willing to pay more for them. Ecuador knows how to deliver this.

What about traceability and EU regulations against deforestation?

We are referring to the European regulation on deforestation-free supply chains, which establishes strict criteria for product traceability. The deadline was initially set for the end of this year, although discussions are underway on whether it can be extended to allow companies more time to comply.

In the tuna sector, exports grew by 25% last year, but concerns remain about the EU’s yellow card. What are the expectations and when will there be a resolution?

That depends on the steps Ecuador takes. There is ongoing technical dialogue, led by the European Commission’s Directorate-General for Maritime Affairs, which remains in constant contact with the relevant Ecuadorian authorities.

In recent months, the Security, Hope and Resilience for Peace (SERPAZ) program was launched.

What is it about?

SERPAZ is our main cooperation program with Ecuador in the field of security and is aligned with government priorities. It has four components: combating money laundering, led by Italy; prison system reform to improve control and conditions; Secure Cargo, aimed at ensuring safe and sustainable export supply chains—particularly important for the private sector affected by insecurity and cargo contamination—with pilot sectors including bananas and cocoa; and resilient communities, focused on preventing youth recruitment by organized crime and promoting alternative development. The program involves multiple public and private actors and is tailored specifically to Ecuador.

What is the budget for the program?

Approximately EUR 20 million in non-reimbursable cooperation, with the participation of France, Italy, Spain, and Germany. For these projects to be sustainable, long-term commitment from the Ecuadorian State is also required.