Message from Ambassadors

Ecuador isOpen for Business!
Jaime Barberis
Ambassador of the Republic of Ecuador to Japan
Ambassador Jaime Barberis received his doctorate in Law at the Catholic University of Ecuador in 1981. He is a member of the Ecuadorian
Foreign Service since 1979. He has held diplomatic posts in Austria,
Switzerland, Washington, Germany, Hungary, Bulgaria, Rumania, Serbia, Greece and Croatia. He was appointed as Ambassador of theRepublic of Ecuador in Japan in March 2017.

Under the premise “More Ecuador in the World and MoreWorld in Ecuador”, the Government of Ecuador, led byPresident Guillermo Lasso, directs national policies
towards confirming Ecuador as a land of opportunities forforeign investment.
This vision is centred on the attraction of responsible
investors, who are committed to contributing to thecountry’s development through the injection of capital,and in strict compliance with national legislation,
especially in matters of the environment, labour rights
and human rights, though public-private and privateprojects, in the fields of aquaculture, fishing, agroindustry,
energy, infrastructure, mining and tourism.
The governmental actions focus on enhancing
national legislation and improving processes to easebusiness making. The action-angle is primarily supported
by creating free trade zones, supporting entrepreneurship,
facilitating foreign investment, tax adjustments and fiscal
sustainability.
The promotion and attraction of investment arestate policies since 2018 and a priority public policy sinceJune 2021, ensuring foreign capital flow, promoting
foreign investment to achieve national development
goals, maintaining an economic boost, and warrant
investors’ rights. Ecuador’s financial system has shown
positive enhancement in the last years, marked by adollarized economy that ensures economic stability andlow inflation. For instance, the Ecuadorian Gross
Domestic Product (GDP) grew by 1.9% from 2010 to2020, which is 0.2% higher than Latin America and theCaribbean average, and the inflation rate is currently thesecond-lowest in the region -0.83% (March 2021).
Complementarily, national policies safeguard andfortify incentives for investment, which are keystones toenhance the relationship with foreign private undertakings.
In this regard, through trade agreements (FTAs) anddouble-taxation prevention treaties (DTAs) signed with
our main commercial partners, Ecuador has access to amarket of 800 million people. Thus far, Ecuador is part ofeleven FTAs, comprising bilateral and regional schemes
such as the European Union, EFTA, the Andean
Community and Mercosur, and twenty-one DTAs,including Japan.
Moreover, with the signing of the agreement on theSettlement of Investment Disputes between States andNationals of Other States (ICSID), on June 21st, 2021,
Ecuador shows its precise determination to promote asafe and trustful environment for foreign investment andto meet new commercial partners and strengthen
relationships with those where alliances are already inplace.
In practice, the deployed Ecuadorian strategy topromote foreign investment is based on three pillars:
investment contracts, SEDZ (Special EconomicDevelopment Zones) and PPPs (Public-PrivatePartnerships).

Investment Contracts
Investment contracts are focused on investments of morethan 1 USD million, which need to be oriented to creating
new job places. The contracts establish the terms andconditions regarding a particular investment project,including the stability over tax incentives for up to 15years.

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Special Economic Development Zones
The establishment of SEDZ is oriented to increase foreign
investment in technology & innovation, industry, logistics
and tourism by offering tax incentives and financial andcustom benefits. Those zones are presently located in thecities of Quito, Posorja and Progreso; the Port ofGuayaquil; and in the Universities of Yachay and LitoralESPOL.

Public-Private Partnerships
PPPs represent a legal-financial scheme agreed between apublic institution and a private entity to provide goods,
work or services for the central and local governments.
Projects can be framed in strategic sectors such as energy
or telecommunications; prioritized sectors such asagroforestry or petrochemistry; and basic industries suchas refining copper, metallurgy, or cellulose.

Investment Incentives
The incentives included in the Ecuadorian law cover
general investment, investment in prioritized sectors,
SEDZ, depressed and borderline areas, and associatedwith PPPs. General incentives apply for all new andproductive investments and include additional deductions
for calculating the Income Tax (IR), easement of payment
in foreign trade taxes and the exception of the Foreign
Exchange Outflow Tax (ISD). Regarding new andproductive investments in prioritized sectors, investors
could benefit from an IR exemption for 12 years, 8 years
if the investment is within the urban perimeter of
Guayaquil and Quito, 15 years for investment in industrial,
agro-industrial and agricultural-associative sectors, or infrontier cities; and 20 years exemption if the investment isin tourism for SMEs or in a communitarian or associative
manner.
Furthermore, foreign investment in SEDZ receives
a 10 year IR and ISD exemption and the Value Added Tax(VAT) for importing machinery or raw materials. Besides,investors could receive a VAT tax credit on nationalpurchases in acquiring machinery and raw materials andan exemption from tariffs on imported goods.
Public-Private Partnerships PPPs also receive
incentives such as a 10 year exemption in IR from the firstyear of operation, ISD exemption on imports, financing
and dividend payments, and exemption of tariffs and VAT
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Port Guayaquil

on imports related to the project.

Portfolio of Investment Projects
Finally, in a complemental way, a portfolio of projects has
been designed to guide investors and financial institutions,both national and international, on Ecuador’s investment
opportunities. These projects are classified into publicprivate and private investments and cover, as stated before,
the areas of aquaculture, fishing, agroindustry, energy,infrastructure, mining and tourism.

Ecuador and Japan
Whereas the bilateral trade relationship between Ecuador
and Japan has been based on agricultural products,
agroindustry could be a possible area of primary interest
for Japanese companies. Nonetheless, given theirexperience, other sectors such as mining, energy andinfrastructure could also be in their sight and interest.
The invitation to invest in Ecuador is open. I am
confident that Japanese companies would not miss seeing
Ecuador as a land of investment opportunities.
お問い合わせJOI 事業企画部

E-mail: bd@joi.or.jp 、TEL:03-5210-3311

駐日エクアドル共和国大使館
Ricardo Romero

Second Secretary, Economic and Cooperation Affairs
E-mails: info@ecuador-embassy.or.jp 、
eecujapon@cancilleria.gob.ec