JD Supra (JD Supra Ecuador)

1. GENERAL INTRODUCTION: In Ecuador, foreign individuals or corporations in general are permitted by law to invest, except in the so called “strategic sectors of the economy”: electricity, water and sewage, highways, airports, ports and railways infrastructures, oil and others. However, those fields can also be given in concessions or associations by the State for a certain period of time and by...

[author: Ximena Bustamante] In countries with a continental European legal tradition, it is very rare for State institutions to undergo mediation procedures. And even if they do, it is highly unlikely that they would reach binding agreements that would resolve their disputes. Nonetheless, Ecuador is an exception. As a result of the enactment of the Arbitration and Mediation Law, there has been

[author: Ximena Bustamante] En países con una tradición jurídica continental europea, resulta muy poco común que las instituciones del Estado se sometan a procedimientos de mediación. Y aún si lo hacen, es poco probable que lleguen a acuerdos vinculantes que pongan fin a sus controversias. Sin embargo, el Ecuador es una excepción, pues desde la promulgación de la Ley de Arbitraje y Mediación...

1. GENERAL INTRODUCTION: In Ecuador, foreign individuals or corporations in general are permitted by law to invest, except in the so called “strategic sectors of the economy”: electricity, water and sewage, highways, airports, ports and railways infrastructures, oil and others. However, those fields can also be given in concessions or associations by the State for a certain period of time and...

The Ecuadorian Ministry of Energy and Non-renewable Resources (“the Ministry”) recently announced a tender process for the Administration, Operation, Repair, Fuel and Emissions Quality Improvement, and Construction of a High-Conversion Unit, for the State-owned Refinery in Esmeraldas Province.

The Labor Justice Act (Ley de Justicia Laboral) published in the Statutes at Large, has introduced unfair dismissal protection for pregnant women as well as for women who are union leaders.

KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER ECUADOREAN LAW - I. STANDARD FORMS OF AGREEMENTS - A. Offer to Purchase sets forth Buyer’s offer of price, date for closing, contingencies for inspections, financing etc. and date for signing a formal Promise of Purchase and Sale agreement, which for validity has to be a notary public deed. B. Promise of Purchase and Sale Agreement sets forth...

1. GENERAL INTRODUCTION: In Ecuador, foreign individuals or corporations in general are permitted by law to invest, except in the so called “strategic sectors of the economy”: electricity, water and sewage, highways, airports, ports and railways infrastructures, oil and others. However, those fields can also be given in concessions or associations by the State for a certain period of time and

Medical Use: No. There is proposed legislation (Health Code) for congress approval. Recreational Use/Adult Use: Recreational/adult use is not permitted. Current Regime/Legislation (or Proposed Legislation): Current: The Criminal Code establishes that possession of narcotic or psychotropic substances for personal use or consumption in the amounts established by the corresponding...

The Ecuadorian Ministry of Telecommunications and Information Security has announced an investigation into data analytics company Novaestrat after news broke this week that the company left an Elasticsearch server open without any password protection, allowing open access to the data.

KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER ECUADOREAN LAW - I. STANDARD FORMS OF AGREEMENTS - A. Offer to Purchase sets forth Buyer’s offer of price, date for closing, contingencies for inspections, financing etc. and date for signing a formal Promise of Purchase and Sale agreement, which for validity has to be a notary public deed. B. Promise of Purchase and Sale Agreement sets forth...

On May 18, 2018, the Department of State (DOS) announced the termination of a bilateral investment treaty (BIT) between the United States and Ecuador, a year after the government of Ecuador provided notice of the termination. The termination of the BIT affects the availability of E-2 treaty investor visas for Ecuadorian nationals.

1 .What role does the government of Ecuador play in approving and regulating foreign direct investment? The Ecuadorian state guarantees and promotes foreign investments. Foreign investors have the same rights and obligations as Ecuadorian individual and institutional investors. The Government has encouraged foreign investment issuing new legislation, with tax exemptions or reductions in...

The January 2017 issue of Debt Dialogue reported on a decision rendered in federal court for the Southern District of New York, Penades v. The Republic of Ecuador (SDNY Sept. 30, 2016), on the application of a no-action clause found in an indenture governing sovereign debt of Ecuador.

The New York Department of Financial Services (NYDFS)’s finalized Cybersecurity Requirements for Financial Services Companies (“regulations”), went into effect on March 1, 2017. NYDFS has provided a 6 month safe harbor to enable institutions to become compliant: initial compliance is expected by September 2017.

The Internal Revenue Service in Ecuador (hereinafter, “SRI” for its acronym in Spanish) established  regulations in regards to indirect expenses in order to apply a deductibility threshold for these expenses when calculating the Income Tax for Ecuadorian taxpayers, when expenses have been allocated from abroad by their related entities.

This month’s tracker reflects key initiatives from January 15, 2015 – February 15, 2016. LAR is quickly embracing consumer-right-to-know initiatives through a host of new proposed labeling and product claims standards. Some of these are broad bills that would cover a range of consumer products while others are targeted toward specific issues of consumer concern. Mexico has proposed a product

On March 6, 2015, Ecuador announced that it is imposing a balance of payments safeguard consisting of import tariffs between 5 and 45 percent on approximately 32 percent of products. The safeguard measure becomes effective on March 11, 2015, and will remain in place for 15 months, after which it will gradually be phased out.

Bilateral Investment Treaties (BITs) afford investors a series of guarantees against expropriation or unfair treatment of investments in foreign jurisdictions. They also typically allow investors to enforce those rights before a neutral international arbitral tribunal under the rules of the International Centre for Settlement of Investment Disputes (ICSID) (affiliated with the World Bank) or the...

The Eleventh Circuit affirmed a decision permitting discovery for use in foreign proceedings which were contemplated but not yet pending. In this case, which arose from a billing dispute between Consorcio Ecuatoriano de Telecomunicaciones S.A. (“CONECEL”) and Jet Air Service Ecuador SA, CONECEL applied in the district court for an order...

Situated on the northwest coast of South America, the Republic of Ecuador encompasses an area of approximately 256,549 square kilometers, or 99,438 square miles. Ecuador is a constitutional, democratic, sovereign and independent state. The 2008 Constitution mandates that the president stay in his functions up to a four-year term and can be reelected only one time. The...

In last week’s decision in Chevron v. Donziger, the court enjoined the enforcement of a $9.5 billion Ecuadorian judgment against Chevron Corp. for environmental pollution, alleged to have been caused by its predecessor, Texaco Inc., finding that the judgment was procured by fraud and through a pattern of racketeering on the part of Steven Donziger, a New York-based attorney for the Ecuadorian...

On February 7, 2013, an investment arbitration tribunal issued its third interim measures award in the Chevron vs. Ecuador case. The tribunal found Ecuador in breach of its previous award ordering Ecuador to take all measures necessary to prevent enforcement within or without Ecuador of a $19 billion environmental judgment against Chevron in an Ecuadorian court, pending adjudication of Chevron’s...

In the latest U.S. chapter of the long and hard-fought battle over claims of pollution and adverse health effects from oil development in the Ecuadorian rain forest by Texaco (acquired by Chevron in 2001), a potentially important court victory has gone to the so-called Lago Agrio plaintiffs. On January 26, 2012, the Second Circuit Court of Appeals issued an opinion in Chevron Corp. v. Naranjo, ___

In the environmental litigation pending against Chevron in Ecuador, the Court has issued a ruling showing respect but no deference to the international arbitral interim injunction issued against Ecuador on Jan. 25, 2012 (we posted on the subsequent interim award on 2/27/12).  The decision, translated in the attached link, deserves attention for practitioners in international...

In the ongoing battles between Chevron and Ecuadorian plaintiffs and, relatedly, with Ecuador itself, an international arbitration tribunal has issued a Second Interim Award on Interim Measures.  The matter is captioned, In the matter of arbitration  before a tribunal consistituted in accordance with the Treaty Between the United States of America and the Republic of Ecuador...

In re Republic of Ecuador and Dr. Diego Garcia Carrion’s Application Under 28 U.S.C. Sec. 1782, 2:11-mc-00052 (GSA) (E.D. Cal. 2011), is an application the Ecuador among others to take the testimony in the U.S. of one Douglas M. Mackay.  Chevron moved to stay the discovery application.   The use to be made of the discovery is in connection with the international...

We have posted several times on the U.S. aspects of the international dispute between Chevron and the plaintiffs from Ecuador suing for environmental contamination. We have followed the Southern District’s decision granting an injunction as well as the Second Circuit’s reversal of that decision. We predicted U.S. reaction to the District Court’s negative statements about the Ecuadorian judiciary,

On October 11, 2011, Ecuador passed a new competition law, two weeks after it was approved by the legislature. The new Regulation and Control of Market Power Law (the Law) introduces merger control in Ecuador as well as behavioural penalties for cartels and abuse of dominance. The new law also contains provisions specifying limits to the interests that can be held in the media and banking sectors