Ecuador’s Constitutional Court Receives Support from Nine ‘Amicus Curiae’ and Opposition from Four in Regards to the Trade Agreement with China
Ecuador’s Constitutional Court has a 30-day period to issue its final ruling following the ‘amicus curiae’ submission stage, which concluded on September 11th.
Trade agreement between Ecuador and China put on hold after President Lasso’s decision
The trade agreement signed between Ecuador and China on May 10 is currently facing uncertainty following President Guillermo Lasso’s decision to dissolve the opposition-led National Assembly through the issuance of the decree of cross death. This has raised concerns about the ratification of the agreement, as the Minister of Government, Henry Cucalón, stated that it cannot enter into force during this period.
Chinese company Sinohydro under scrutiny for bribe payments in Latin American projects
The Chinese company Sinohydro is currently under investigation for alleged corruption in Ecuador, specifically related to the Coca Codo Sinclair project. It has been discovered that the company made bribe payments totaling US$76 million, which were subsequently deposited in accounts in Panama and distributed among various individuals, Ecuadorian companies, and foreign companies in tax havens.
Ecuador and China sign a historic Free Trade Agreement
The Free Trade Agreement (FTA) between Ecuador and China will be signed this week, marking the most significant trade agreement during the government of Guillermo Lasso. Although the agreement covers the liberalization of trade in goods and includes topics such as rules of origin, sanitary and phytosanitary measures, investment cooperation, and e-commerce, it does not include labor or environmental aspects.
Ecuador’s Public Prosecutor’s Office to file bribery charges in Sinohydro case after four-year investigation
The Ecuadorian Attorney General’s Office will finalize the investigation of the so-called INA Papers. After almost four years of investigation, the entity has renamed the process the Sinohydro case. The investigation focuses on a criminal structure that allegedly collected $76 million in bribes to the Chinese company Sinohydro, responsible for the construction of the Coca Codo Sinclair hydroelectric power plant during the government of Rafael Correa.
China, a giant that threatens Ecuador’s tuna supply
While Ecuador continues to be the European Union’s main supplier of tuna loins, China is fast closing in to take over the top spot. Despite the absence of any trade agreement, the European bloc is increasingly shifting its purchases to the Asian country. Ecuador’s share of the tuna market has fallen from 32% to 26%, while China’s grew rapidly from 9% to 24%, between 2015 and 2022.
After extensive negotiations, the FTA between Ecuador and the People’s Republic of China is almost concluded.
The president of Ecuador, Guillermo Lasso proclamed the trade agreement with China is concluded. He argueshat the country’s industrial sectors under consideration included a guarantee of employment in the manufacturing industry.