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On March 13, 2026, the Reciprocal Trade Agreement between the Republic of Ecuador and the United States of America was signed in Washington, D.C. To enter into force, the Agreement requires a prior ruling by the Constitutional Court, approval by the National Assembly, and ratification by the Executive Branch.
This instrument establishes labor-related obligations that Ecuador must adopt and implement as a condition for the development of bilateral trade relations, including the following:
1. Labor rights
The Agreement expressly prohibits Ecuador from reducing or weakening its labor protections in order to attract trade or investment, and this prohibition also applies to special economic zones and export processing zones.
2. Freedom of association
With regard to freedom of association, the following obligations are established:
– Reduce the minimum number of workers required to form a union.
– Permit and protect industry- and sector-level unions, and allow such unions to bargain collectively at the sectoral level.
– Simplify the union registration process.
– Eliminate the requirement of Ecuadorian nationality for union leaders.
– Prohibit anti-union discrimination, dismissals for such reasons, and the use of blacklists.
3. Employment Contracts
Regulations must be issued to limit the use of non-standard contracts for core employer tasks, restricting the number of successive contracts and their cumulative duration.
4. Labor Inspectorate
The Inspectorate must be provided with sufficient resources in terms of funding, personnel, training, transportation, and equipment, including for inspections in the fishing sector.
5. Forced labor and child labor
The importation of goods produced through forced labor is prohibited, and an action plan to combat child labor must be implemented within the first year of the agreement’s entry into force.
For more information or labor-related advice, please contact Tobar ZVS at laboral @ tzvs.ec.
© TobarZVS
This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.