Investment
Guide
Investment
Climate Overview
Government
Support for Foreign Investment
Ecuadorian
Stock Market Links
Investment
Climate Overview
The
current investment climate in Ecuador is extremely favorable,
as compared to other Latin American countries. A dollarized
economy, combined with a stable political culture and low
wage levels, create many opportunities for foreign investors.
Other investment advantages include an abundance of natural
resources and the fastest growing economy in the region,
with a GDP growth rate of 5.40% for 2001.
Nevertheless,
the Ecuadorian economy also poses various risks and obstacles
for potential investors. These risks include those typically
found in most developing nations. For example, inflation,
while having dropped significantly in 2001, is still a persistent
problem. In 2001, the Ecuadorian economy registered an inflation
rate of 22.40%. Infrastructure, such as telecommunications
networks and roads, is also still not on par with that found
in more developed countries.
Government
Support for Foreign Investment
Both
the Ecuadorian Constitution and the Investment Promotion
and Guarantee Law, passed in December 1997, protect the
investment rights of foreign investors and ensure that
they will be treated similarly to Ecuadorian nationals.
Specifically, foreign investors enjoy the following legal
protections:
-
Right
to own property.
-
Freedom
to transfer profits abroad.
-
Freedom
to fully negotiate investments.
-
Access
to all tariff preferences granted to Ecuador, including
the Andean Trade Preference Act.
-
Freedom
of access to the domestic financial system, including
the country´s stock markets.
-
Freedom
to dispatch resources in case of total or partial liquidation
of companies.
-
Freedom
of access to domestic resources for promotional and/or
technical purposes.
For
more information regarding the Ecuadorian investment and
foreign-trade regime, please see the following links:
COMEXI
(Foreign Trade and Investment Council of Ecuador)
MICIP
(The Ministry of Foreign Trade, Integration, and Fishing;
Spanish-only site)
Quito
Chamber of Commerce
The
Ecuadorian government is generally very enthusiastic about
foreign investment. As a result, it has established various
programs to promote such activities. These programs are
coordinated through CORPEI - The Export and Investment Corporation
of Ecuador.
For
more information, please see the following link:
CORPEI
