Trade between Ecuador and Paraguay is small, but almost duty-free. Here is how ACE 59 works, what moves today, which of Ecuador’s trade agreements you can use, how goods travel — and how a Paraguay–Ecuador pair of companies fits together.
Trade between Ecuador and Paraguay is small — about US$27 million in both directions combined in 2025 — but the legal framework is better than the numbers. Under ACE 59, the agreement between the Andean Community and Mercosur, almost all goods have moved duty-free between the two countries since 2018. Both governments signalled in 2026 that they want more: a binational trade working group in April, and a state visit by President Peña to Quito in July.
For a company, the more useful question is not bilateral trade but positioning: Paraguay as the Mercosur base, Ecuador as the dollarised Pacific and Andean base with a growing set of trade agreements. This guide sets out the rules that connect them.
Duty-free since 2018
Tariffs were phased out over 10 to 15 years from 2005; the longest schedules ended in 2018.
Exceptions
Sugar is excluded on both sides; Ecuador’s beef and dairy get preferences only within quotas.
Rules of origin
Regional content thresholds apply; check the product-specific rules in the agreement’s annexes before shipping.
Certificate
A certificate of origin under ACE 59 is what secures the zero tariff at Ecuadorian customs.
Law and practice: ALADI Economic Complementation Agreement No. 59 (2004), in force for Ecuador from 2005. Ecuador is a Mercosur associate state; Bolivia became a full member in 2024.
| 2025 | Value | Main products |
|---|---|---|
| Paraguay to Ecuador | US$15.4 million | Pharmaceuticals (about two thirds), milling products, oils, apparel, footwear |
| Ecuador to Paraguay | US$11.8 million | Meat and fish preparations, cut flowers, fish and crustaceans, oils |
Pharmaceuticals dominate Paraguay’s sales to Ecuador, and here a 2026 detail helps: Ecuador’s 5% outflow tax (ISD) is reduced to 0% for imports of listed pharmaceutical tariff lines this year, which lowers the importer’s cost of paying a Paraguayan supplier. Check whether your product’s tariff line is on the list.
Law and practice: UN COMTRADE data via Trading Economics, 2025; Ecuador Executive Decree 272 (2026 ISD rates).
| Ecuador agreement | Status, October 2026 |
|---|---|
| EU (Colombia–Peru–Ecuador agreement) | Applied since 2017 |
| China | In force since 1 May 2024 |
| Costa Rica | In force since October 2024 |
| South Korea (SECA) | Ratified by Ecuador April 2026; awaiting Korea |
| Canada | Signed July 2026; awaiting ratification |
| United States (reciprocal trade agreement) | Signed March 2026; Constitutional Court ruled on 16 October 2026 that the Assembly must approve it |
| Mercosur (ACE 59) | Free trade with Paraguay since 2018, except sugar and quota products |
A Paraguayan product shipped to Ecuador does not inherit Ecuador’s agreements with China or the EU: goods keep the origin of where they were made. The agreements matter if you produce in Ecuador — which is where the investment incentives come in.
Ecuador’s trade policy is also used as leverage. In 2026 it imposed a “security tariff” on Colombian goods that rose from 30% to 100% before being lifted on 1 June. Factor that volatility into any Andean supply chain.
There is no direct short route. Goods from Paraguay reach Ecuador by sea via the River Plate ports or by road to northern Chile and then by ship up the Pacific coast to Guayaquil or Posorja. Paraguay’s free deposits in Chilean ports and the Bioceanic Corridor, expected to be fully paved later this decade, will shorten the western route.
For low-volume, high-value goods such as pharmaceuticals, air freight via regional hubs is common. Model door-to-door cost and time before you price.
Paraguay: 10% tax, Mercosur origin, maquila for Brazil.
Ecuador: dollarised, EU and China access for Ecuadorian-made goods.
ACE 59 keeps it duty-free with a certificate of origin.
Ecuador’s ISD applies to payments out; dividends to a non-resident owner usually escape it.
No Ecuador–Paraguay tax treaty: check Ecuadorian withholding on fees.
For the Ecuadorian end, see our SAS guide and the ISD.
Yes. Under ACE 59 (CAN–Mercosur), nearly all goods have been duty-free since 2018, with exceptions such as sugar and quota limits on some Ecuadorian agricultural products.
Ecuador is an associate state, not a full member. Trade with Mercosur runs through ACE 59.
Small: about US$15.4 million from Paraguay to Ecuador and US$11.8 million the other way in 2025.
No. Goods keep the origin of where they were made; Ecuador’s agreements with China or the EU apply to Ecuadorian-made goods.
The EU agreement (since 2017), China (2024), Costa Rica (2024), with South Korea, Canada and the US agreement awaiting final approval.
No. There is no double taxation agreement between them.
Paraguay’s road to the Pacific ports.
Mercosur origin and the maquila route east.
Tell us what you make, where and who buys it. We map origin, tariffs and the companies you need on each side — fixed quote within one business day.
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