Ecuador: Political and Economic Situation and U.S. Relations

Ecuador, a small, oil-producing country in the Andean region of South America, has experienced 10 years of political and economic instability. On January 15, 2007, Rafael Correa, a left-leaning, U.S.-trained economist, was inaugurated to a 4-year presidential term, becoming the countrys eighth president in 10 years. President Correa has fulfilled his campaign pledge to call a constituent assembly to reform the countrys constitution. The assembly, which is controlled by representatives from Correas party, has until the end of July 2008 to draft a new constitution. Many Ecuadorians approved of Correas condemnation of Colombias unauthorized March 2008 raid of a Revolutionary Armed Forces of Colombia FARC camp in Ecuador. They also support his decision not to renew the current U.S. lease on the air force base at Manta when it expires in 2009, a decision which has strained U.S.-Ecuadorian relations. U.S. officials have expressed concerns about President Correas ties with Hugo Chavez of Venezuela and his stated polices on trade and energy matters. Despite those concerns, Congress enacted legislation in February 2008 to extend U.S. trade preferences for Ecuador through December 2008. For more information, see CRS Report RS22548, ATPA Renewal Background and Issues. This report will be updated.