EU submits Sustainable Investment Facilitation Agreement with Ecuador to Council

Purpose and scope

The agreement aims to make it easier for EU companies to invest and expand operations in Ecuador and to benefit both EU and local investors. It targets economy-wide obstacles such as bureaucratic hurdles and regulatory uncertainty and is relevant for sectors with untapped potential, including renewable energy.

Sustainable energy and raw materials

For the first time in a SIFA, the text includes specific provisions intended to deepen cooperation and facilitate investment in sustainable energy and raw materials, sectors noted as particularly interesting for EU investors and Ecuador.

Context and alignment

The SIFA is presented as closely aligned with the EU's Global Gateway strategy in Ecuador, which supports investments and sustainable infrastructure across energy, water sanitation and waste management. The EU's FDI stock in Ecuador reached €9.1 billion in 2024, with major investment flows into construction, business services, transport, storage, communications and manufacturing.

Procedure and next steps

The Commission has proposed decisions for the signature and conclusion of the SIFA and is seeking the Council’s approval to sign. After Council agreement, the proposal will be sent to the European Parliament for consent; following approval the agreement can enter into force.