Political and Economic Situation

In the past decade, Ecuador has weathered a number of political and economic crises. In late 1999, then-president Jamil Mahuad abandoned the country's domestic currency in favor of the U.S. dollar as a last-ditch effort to stop hyperinflation. The Correa Presidency

On January 15, 2007, Rafael Correa, a left-leaning, U.S.-trained economist, began a four-year term as President of Ecuador. Constituent Assembly

President Correa has carried out his campaign pledge to enact constitutional reform. On April 15, 2007, 82% of Ecuadorians approved a referendum to convene a Constituent Assembly with the power to rewrite the country's constitution and dismiss its current elected officials. Elections for the new Constituent Assembly were held in September 2007. U.S. officials have expressed concerns about Correa's populist tendencies, his ties with Hugo Chávez of Venezuela, and his state-centered economic policies. On October 16, 2008, the 110 th Congress enacted legislation to extend ATPA trade preferences until December 31, 2009 for Colombia and Peru, and until June 30, 2009 for Bolivia and Ecuador ( P.L.
Ecuador, a small, oil-producing country in the Andean region of South America, has experienced ten years of political and economic instability. On January 15, 2007, Rafael Correa, a left-leaning, U.S.-trained economist, was inaugurated to a four-year presidential term, becoming the country's eighth president in ten years. President Correa has fulfilled his campaign pledge to call a Constituent Assembly to reform the country's constitution. The Assembly, which had a majority of delegates elected from Correa's party, drafted a new constitution that was approved by 64% of voters in a referendum held in late September 2008. New presidential, legislative, and municipal elections are scheduled for April 26, 2009. Some observers are concerned that the new constitution concentrates too much power in the Ecuadorian presidency. U.S. officials have expressed concerns about President Correa's populist tendencies, ties with Hugo Chávez of Venezuela, and trade and energy policies. Despite those concerns, Congress enacted legislation in October 2008 to extend U.S. trade preferences for Ecuador through June 2009. For more information, see CRS Report RS22548, ATPA Renewal: Background and Issues, by [author name scrubbed].