Ecuador Law on Oil Halts FTA
Quito, Apr 4 (Prensa Latina) — The Ecuadorian hydrocarbon law reform stopped negotiations for a Free Trade Agreement with the United States, putting the Ecuadorian government under pressure.
Congressional approval of legislation Thursday to redistribute oil profits due to the high oil prices, did not please Washington.
The legislators agreed that the State should be paid 60 percent of the extra profits received by the foreign companies due to the high oil barrel price on the international market.
The rejection of this measure by US companies invested in this country stopped the FTA negotiations on services and environment.
Vinicio Baquero, member of the FTA negotiating team, highlighted that the US representative stated clearly on Friday that without a change in the Ecuadorian position about hydrocarbons, there will not be any progress in the dialogue.