Ecuador and South Korea Look at Energy and Mining Deals
Ecuador · TRADE
Key Facts
- —Trade pact Ecuador and South Korea are exploring cooperation under the Strategic Economic Cooperation Agreement (SECA).
- —Coverage SECA has 23 chapters covering trade, investment, technology, energy and infrastructure.
- —Tariff access About 98.8% to 98.9% of Ecuador’s exports will enter Korea duty-free once fully implemented.
- —Approval Ecuador’s National Assembly approved SECA on 14 April 2026 by 83 votes to 57.
- —Legal status Ecuador’s Constitutional Court declared SECA constitutional on 19 March 2026.
A trade pact approved by Ecuador’s Congress in April could soon open Korean markets to nearly all of the country’s exports.
Ecuador and South Korea are exploring cooperation and investment opportunities in strategic sectors under their trade agreement. The sectors named are energy, hydrocarbons and mining, according to El Universo on 20 August 2026.
Exploring Energy and Mining Deals
Ecuador and South Korea are looking at energy and mining deals as part of their broader trade relationship. Ecuadorian authorities presented a portfolio of projects in these sectors.
The focus is on energy, hydrocarbons and mining, which are key to Ecuador’s economy. This exploration follows the approval of a major trade agreement between the two countries.
The Strategic Economic Cooperation Agreement
The trade agreement is called the Strategic Economic Cooperation Agreement, or SECA. It has 23 chapters covering trade in goods and services, investment, technology transfer, energy and supply chain security, and infrastructure development.
SECA is a comprehensive pact that goes beyond simple tariff reductions. It aims to deepen economic ties between Ecuador and South Korea.
Tariff-Free Access for Most Exports
Under SECA, about 98.8% to 98.9% of Ecuador’s exportable products will enter Korea free of tariffs once the agreement is fully implemented. This means most goods will face no import tax, making them cheaper for Korean buyers.
However, sensitive goods such as bananas and shrimp will see phased reductions. This gradual approach helps protect local industries.
Approval and Legal Clearance
Ecuador’s National Assembly approved SECA on 14 April 2026, by 83 votes to 57. This was a significant step forward for the agreement.
In addition, the Constitutional Court declared SECA constitutional on 19 March 2026. That removed the last internal legal barrier, according to reports.
Why the Dollar Helps Investors
Ecuador uses the US dollar as its currency, which removes exchange rate risk for foreign investors. This makes the country more attractive for Korean companies looking at energy and mining projects.
Because there is no currency fluctuation, investors can plan with more certainty. Therefore, the dollar is a strong selling point for Ecuador.
What a Tariff Means
A tariff is a tax a country charges on imports. Removing it makes the exporting country’s goods cheaper for buyers.
For example, if Ecuador exports bananas to Korea without a tariff, Korean consumers pay less. This boosts trade and benefits both sides.
Next Steps for the Agreement
Although SECA has been approved and declared constitutional, it has not yet entered into force. The exact date remains unknown.
Still, the exploration of energy and mining deals signals that both countries are eager to move forward. Once SECA is fully implemented, the tariff benefits will apply.
Potential Impact on Trade
With nearly all Ecuadorian exports entering Korea duty-free, trade volumes are likely to increase. This could open new markets for Ecuadorian products beyond traditional ones.
Meanwhile, Korean investment in energy and mining could help develop Ecuador’s natural resources. As a result, both economies stand to gain.
Overall Outlook for Ecuador and South Korea
In short, Ecuador and South Korea are building a stronger economic partnership through SECA. The focus on energy and mining deals is just one part of a wider relationship.
Although many details are still being worked out, the foundation is set for deeper cooperation. Therefore, the future looks promising for both countries.
Frequently Asked Questions
What is SECA?
SECA stands for the Strategic Economic Cooperation Agreement between Ecuador and South Korea. It has 23 chapters covering trade, investment, technology, energy and infrastructure.
When did Ecuador approve SECA?
Ecuador’s National Assembly approved SECA on 14 April 2026 by 83 votes to 57. The Constitutional Court had already declared it constitutional on 19 March 2026.
What sectors are Ecuador and South Korea exploring?
They are exploring cooperation in energy, hydrocarbons and mining. Ecuadorian authorities presented a portfolio of projects in these areas.
How will SECA affect tariffs?
Under SECA, about 98.8% to 98.9% of Ecuador’s exports will enter Korea free of tariffs once fully implemented. Sensitive goods like bananas and shrimp will have phased reductions.
Connected Coverage
Sources: El Universo; Ecuadorian National Assembly; Korean trade ministry.
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