Shifa Htut
2. Ecuador is relatively open to foreign investment in most sectors including general
manufacturing retails and services. It is very low comparison with other countries in Latin
America. At the same time, investment in Ecuador’s economic is uncertain because of the
investment policies are often contradictory and continue to change. Such as unfavorable
economic terms, legal uncertainties, government tax policies, environmental liability concerns
and lack of a consistent energy policy. That effect most notably in regulated sectors such as
petroleum and electricity and private investment sectors have declined in recent years.
Corruption in a county is a serious problem in Ecuador. Some of the official government and
private Ecuadorian business have used trick and some legal maneuvers to affect foreign company
operations in the country. Companies have been scammed by either additional payments that are
not in original agreements or other have their assets seized. Because of that they have been
ranked transparency international very poorly consistently among countries around in the region.
https://www.state.gov/documents/organization/228171.pdf
4. Ecuador has enforced it wide range of tariff and non-tariff restrictions on trade in goods and
services. In 2014 and 2015 was a year where import tariffs have been significantly increased.
Ecuador is one of the World Trade Organization (WTO) they have been limited most of tariff
rate to 30 percent or less. According to the Most Favored Nation (MFN) tariff rate was 7.6
percent for industrial products and 19.6 percent for agricultural products but Ecuador tariff will
be may be higher. In 2015 of March, Ecuador enforced tariff surcharges ranging from 5 to 45
percent on 2,800 tariff lines, which represents about 32 percent of the Ecuador’s imports. They
government said increased tariff because they want to be protected the country’s balance of
