The European Commission has sent a proposal to EU member states for the EU to sign and conclude a new Sustainable Investment Facilitation Agreement (SIFA) with Ecuador.
The agreement is the first SIFA the EU has negotiated with a Latin American country and is designed to make it easier for EU companies to invest in Ecuador and expand their operations, the Commission reported on Friday.
The deal would cover investment across the economy and includes measures intended to address issues such as bureaucratic hurdles and regulatory uncertainty.
It added that, for the first time in a SIFA, the agreement contains provisions focused on cooperation and investment in sustainable energy and raw materials.
What happens next
EU foreign direct investment (FDI) stock in Ecuador reached €9.1 billion in 2024, the Commission said.
The Commission is now seeking approval from the Council — representing EU member states — to sign the agreement.
If the Council agrees, the proposal will be sent to the European Parliament for its consent, and the deal can then enter into force following approval.
