From News Desk
The European Commission has concluded negotiations with Ecuador on a Sustainable Investment Facilitation Agreement (SIFA). This SIFA, the first negotiated with a Latin American country, will be instrumental in promoting EU investments in Ecuador.
The deal will support the creation of a more transparent and efficient business environment in Ecuador by addressing challenges such as regulatory uncertainty and bureaucratic hurdles. Improvements in the investment climate will benefit both EU and local investors and promote additional sustainable investment.
At a time of increasing uncertainties and geopolitical shifts, this Agreement shows that predictability and stability can be achieved through a shared commitment to international cooperation and the rules-based order. Ecuador business climate is improving as shown, for example, by faster procedures to proceed pending payments by public authorities.
The agreement also upholds environment and climate commitments, as well as respect for labour rights, making sure the facilitation of investments contributes to sustainability objectives and the achievement of the Sustainable Development Goals.
Improvements in the investment climate will help unlock investment in sectors with untapped potential, such as renewable energy. In addition to economy-wide investments provisions, the SIFA includes a first-of-its-kind Annex with specific provisions for investment in sustainable energy and raw materials. These are sectors of particular interest for EU investors and Ecuador.
The EU will also support Ecuador through an €8 million project on “Improving Ecuador’s investment climate and energy transition”, which aims, among other objectives, to address key bottlenecks to investment and help create a more predictable regulatory environment.
Disclaimer – Views are those of the spokespersons and this website doesn’t necessarily endorse them. Readers are urged to use their own discretion while making a decision about using this information in any way. There has been no monetary benefit to the Publisher/Editor/Website Owner for publishing this post and the Website Owner takes no responsibility for the impacts of using this information in any way.
News and Opinions... 