Mar 10 • 19:30 UTC 🇪🇨 Ecuador El Universo (ES)

Investment treaty with the United Arab Emirates will undergo a second constitutional review before reaching the National Assembly

Ecuador's government is concerned about a Constitutional Court ruling that could jeopardize clauses in an investment treaty with the UAE, potentially deterring foreign investors.

Ecuadorian officials are expressing worries over a Constitutional Court ruling regarding the investment treaty with the United Arab Emirates. This ruling may compel the government to amend or remove certain clauses in the treaty that are seen as critical for maintaining foreign investor interest. The court indicated that the treaty violates Article 419 of the Ecuadorian Constitution, stating that international treaties must receive legislative approval in specific situations before they can take effect.

The Constitutional Court's decision refers to a stipulation in the constitution concerning the approval of international treaties by the National Assembly. The article cites several conditions under which treaties must secure legislative consent. Most notably, these conditions include treaties related to territorial issues, political or military alliances, commitments that might alter laws, and those that affect rights and guarantees protected under the Constitution.

As the treaty heads for a second constitutional review, its future appears uncertain, contributing to fears that altering key terms could discourage potential foreign investments in Ecuador. This situation highlights the ongoing balancing act that the Ecuadorian government must navigate between securing foreign investment and adhering to constitutional mandates, with significant implications for economic policy and international relations.

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