LegiStorm

Summary:

Ecuador is a small, oil - producing country of 16 million inhabitants located on the west coast of South America between Colombia and Peru . In 2017 , Ecuador was considered to have the third - largest proven reserves of crud e oil in South America, with 8.3 billion barrels . It is t he smallest member of the Organization of the Petroleum Exporting Countries (OPEC). Petroleum is Ec uador’s largest export t o the United States, the country’ s top trade partner. With the reduction in crude oil price since 2014 , Ecuador ’ s earnings have fallen after years of strong g rowth. Former President Rafael Correa (2007 - 2017), a leftist populist lead er, was elected and reelected over a decade , bringing stability to Ecuador. In 2015 , his popularity began to decline ; he dropped in the polls to a 35% approval level by the middle of 2016. A recession brought on by low oil prices had diminished government revenues , and President Correa had adopted many unpopular budget - tightening measures. Protests from diverse groups — indigenous people, trade unionists, environmentalists, and critics from the right and center - right — became more frequent. Correa ’ s critics acc used him of constraining freedom of assembly and association, stifling freedom of the press and expression, and restricting independence of the judiciary. O n April 2, 2017, presidential candidate Lenín Voltaire Moreno of the Alianza País (AP) party narrowly won a runoff election in Ecuador , with a margin of slightly more than 2% of the vote . The 2017 election was the first in a decade in which Rafael Correa did not run for president . His two former vice presidents both ran on the same ticket : Moreno , who served six years as Correa ’ s vice president, was at t he top of the ticket, and Jorge Glas, Correa ’ s most recent vice president , left the Correa Administration in 2016 to become Moreno ’ s vice presidential running mate . Once in office , V ice President G las remained close to Correa , whereas President Morena moved quickly to adopt a more moderate and conciliatory position and shifted away from Correa ’ s abrasive style . In October 2017, President Moreno suspended Glas from the v ice p residency due to accusations of “illicit association” with the Brazilian co nstruction company Odebrecht. In December 2017, Glas was convicted and sentenced to six years in prison for taking more than $13 million in bribes from Odebrecht executives . Out of office for 90 da ys, Glas was impeached in January 2018 and replaced by a cting Vice President Maria Alejandro Vicuña, who is close to Moreno . Correa ’ s party, the AP, had retained a majority in the February 2017 legislative elections but split as Moreno was accused of bein g a traitor and of undermining Correa ’ s reform approach, which he called the “Citizens ’ Revolution.” Many observers thought that Correa planned to return in 2021 to be easily reelected. Correa had pushed through legislation in the National Assembly allowing for indefinite reelection, and many assumed he would avail himself of this option after his former vice president s served a term as caretakers. Ho wever, President Moreno set a public referendum for February 4, 2018 , to limit the presidency to two terms , among other measures. The referendum was approved by a large margin, thus consolidating Moreno ’ s contr ol and making Correa ’ s return to power unlikely. U nder Correa, relations between Ec uador and the United States were strained , but the two countries maintained close economic ties . Following a period of currency turmoil, Ecuador adopted the U.S. dollar as its currency in 2000 . Ecuador receives significant remittances from Ecuador ans living in the United States and abroad . Ecuador also has become a popular destination for U.S. touris ts and retirees. This report examines the political and ec onomic conditions in Ecuador and U.S. - Ecuadorian relations .