The Constitutional Court is expected to play an increasingly important role in Ecuador`s investment narrative. The Court can engage in a useful dialogue to reconcile the constitutional objectives with the interests of foreign investors. During the ratification process of BIMO or other similar instruments, the Court can create channels through which it could assist the Ecuadorian State in concluding modern investment agreements that take into account the concerns of climate change, sustainable growth and human rights. [31] Ecuadorian politics often present dramatic shifts in political priorities after an election that will bring a new government to power – and foreign investment policy-making was no exception. Preferential Trade and Investment Agreements (PDOs) are broader economic agreements between countries that are concluded to facilitate international trade and the cross-border transfer of factors of production. These may be economic integration agreements, free trade agreements (EPAs), economic partnership agreements (EPAs) or similar types of agreements covering, inter alia, provisions relating to foreign investment. In ITTPs, the foreign investment section is only a small part of the contract and usually covers one or two chapters. Other topics covered in the IPIs are trade in goods and services, tariffs and non-tariff barriers, customs procedures, sector-specific provisions, competition, intellectual property, temporary entry of people and much more. The focus is on trade and investment liberalization. Often, the structure and appearance of each foreign investment chapter is similar to a BIT. Although biTs do not play a key role in promoting foreign direct investment, they do offer effective provisions to protect investment.

They are the quintessence for providing investors with neutral and independent access to remedies under international law that assume State responsibility. The ILO`s objective today is to strike the right balance between state regulation and investor rights. Similarly, the legal protection of foreign investment without an ILO must reflect this careful balance. Robust and transparent processes need to be put in place in national investment protection legislation to promote and protect foreign investment. This will enhance the economic benefits of foreign investment, namely growth, employment, and sustainability.12 [7] IMF. (2019, September 23). The IMF has agreed at the staff level on the second revision of Ecuador`s economic program under the Expanded Fund. IMF. www.imf.org/en/News/Articles/2019/09/23/pr19347-ecuador-imf-reaches-staff-level-agreement-on2nd-review-under-the-eff> President Moreno was not popular during his tenure and changes in his predecessor`s economic policy led to a counter-reaction from civil society groups, resulting in political instability and higher political risk. For example, a few weeks after an agreement was reached with the IMF to remove fossil fuel subsidies,[7] transport unions, indigenous organizations, opposition groups (allegedly allied with Correa) and, perhaps surprisingly, environmental groups headed to Quito to demonstrate against the agreement. Moreno then temporarily transferred the government to Guayaquil[8] and declared a state of emergency. [9] After nearly two weeks of clashes in which protesters were injured and killed, the government agreed to reinstate subsidies.

This crisis has led to a significant increase in Ecuador`s country risk index[10] and indicates that efforts to further revise Ecuador`s investment policy framework, including the signing of new BITs, could face considerable opposition from civil society and opposition parties. . . .