The European Union (EU) and Ecuador have opened negotiations for a Sustainable Investment Facilitation Agreement (SIFA) on November 10, 2025. The deal aims to boost sustainable development in Ecuador by easing EU investment in sectors such as renewable energy, digitalisation, agriculture, transport and logistics.
It will increase transparency, streamline authorisations, reduce red tape and strengthen dialogue with investors while ensuring strong labour and environmental safeguards.
The SIFA complements the existing EU–Andean Community Multiparty Trade Agreement and aligns with the EU’s Global Gateway strategy. It is intended to improve Ecuador’s regulatory and administrative environment, encouraging investment, growth, job creation and responsible business practices, the European Commission said in a release.
Ecuador is the first Latin American nation to negotiate such an agreement with the EU. The EU is Ecuador’s largest trade and investment partner, with EU FDI stock rising to over €8 billion (~$9.27 billion) in 2023, up from €7.1 billion (~$8.22 billion) in 2022.
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