In the United States Senate, the Ecuador Innovation and Development Act was introduced on March 22, 2023, to make the country eligible for designation as a beneficiary of the Caribbean Basin Economic Recovery Act.

One of the benefits of this would be to reduce US tariffs on almost 50% of Ecuadorian exports to the United States.

The visit of a delegation of congressmen from the United States reinforces the possible start of FTA negotiations

The Senate Foreign Relations Committee reported that US Senators Bob Menendez and Jim Risch introduced the proposal. Menendez is the chairman of the board and Risch is the senior member.

On December 15, Congress approved the United States-Ecuador Bipartisan Partnership Act to expand cooperation on issues of mutual interest, including strengthening democratic institutions, promoting inclusive economic growth, supporting environmental initiatives, and increasing capacity to address corruption, crime and negative foreign influence.

The United States-Ecuador Association Act provides for the promotion of “inclusive economic growth” and cooperation on security and prison issues

Now, “with this new bill, the United States is deepening its partnership with a key democratic partner in America and creating the conditions for inclusive economic growth in both countries. Building on the partnership between the United States and Ecuador, which became law in December, this new law will further expand economic and trade ties between our two countries,” said Menéndez.

While Risch argued that “Ecuador is facing a series of crises, including illegal immigration, pressure from China, and violence from Mexican drug cartels,” and that the new law “would help Ecuador address these threats by promoting job creation in the private sector, so that Ecuadorians have greater economic mobility at home”.

In a press release, the Senate Foreign Affairs Committee states that this new law will enable:

On the part of the official CREO movement, this proposal was taken as a sign of confidence in the Government of Ecuador and President Guillermo Lasso. The representative and director of this political group, Guido Chiriboga, pointed out that the inclusion of Ecuador in the Law on Economic Recovery “reduces export tariffs, supports development projects and promotes entrepreneurship.”

The draft law proposes to amend Article 212 (b) of the Caribbean Basin Economic Recovery Act by inserting Ecuador after Dominica. It must be adopted by the Senate and the House of Representatives of the United States of America in Congress.