The United States and Ecuador have maintained close ties based on mutual interests in maintaining democratic institutions; combating narcotrafficking; building trade, investment, and financial ties; cooperating in fostering Ecuador's economic development; and participating in inter-American organizations. Ties are further strengthened by the presence of an estimated one million Ecuadorians living in the United States and by 150,000 U.S. citizens visiting Ecuador annually, and by approximately 17,000 U.S. citizens residing in Ecuador. More than 100 U.S. companies are doing business in Ecuador.

The United States assists Ecuador's economic development directly through the Agency for International Development (USAID) and through multilateral organizations such as the Inter-American Development Bank and the World Bank. In addition, the U.S. Peace Corps operates a sizable program in Ecuador. Total U.S. assistance to Ecuador exceeded $60 million in 2001, and is projected to surpass $65 million in 2002.

The United States is Ecuador's principal trading partner. In 2002, U.S. exports to Ecuador were $1.6 billion. Ecuadorian exports to the U.S. in 2002 were over $2.1 billion. For 10 years Ecuador benefited from duty-free entry for certain of its exports under the Andean Trade Preferences Act (ATPA) and received additional trade benefits under the Andean Trade Promotion and Drug Eradication Act (ATPDEA) in 2002. Those benefits will expire in 2006. In October 2003, President Gutierrez proposed to enter into free trade agreement discussions with the United States.

Both nations are signatories of the Rio Treaty of 1947, the Western Hemisphere's regional mutual security treaty. Although there are problems with money laundering, border controls, and illegal alien immigration, Ecuador shares U.S. concerns over narcotrafficking and international terrorism and has energetically condemned terrorist actions, whether directed against government officials or private citizens. The government has maintained Ecuador virtually free of coca production since the mid-1980s and is working to combat money laundering and the transshipment of drugs and chemicals essential to the processing of cocaine.

Ecuador and the U.S. agreed in 1999 to a 10-year arrangement whereby U.S. military surveillance aircraft could use the airbase at Manta, Ecuador as a Forward Operating Location to detect drug trafficking flights through the region.

Ecuador claims a 320-kilometer-wide (200-mi.) territorial sea. The United States, in contrast, claims a 12 mile-boundary and jurisdiction for the management of coastal fisheries up to 320 kilometers (200 mi.) from its coast but excludes highly migratory species. Although successive Ecuadorian governments have declared a willingness to explore possible solutions to this issue, the U.S and Ecuador have yet to resolve fundamental differences concerning the recognition of territorial waters.

The U.S. Embassy in Ecuador is located at Avenida Patria 120, Quito (tel. (593)(2) 256-2890/256-1634). The Consulate General is at 9 de Octubre and Garcia Moreno, Guayaquil (tel. (593)(4) 232-3570). Consular Agent for the Galapagos (Jack Nelson) is in Puerto Ayora at (593) 5 526-330 or (593) 5 526-296.