Concerns about the rule of law, politicization of the judicial process and treatment of U.S. companies in Ecuador require regular monitoring to ensure that Ecuador meets the obligations required in order to enjoy these trade benefits.  We also believe the shorter term extension provides an opportunity for the program’s important benefits to be extended while Congress undertakes a broader review of the programs.

The claim made by the Los Angeles Times, that Ecuador has “demonstrated a willingness to work with the U.S.” does not reflect what is actually happening with the bilateral relationship.  In the last year alone, Ecuador has taken a variety of actions that demonstrate its hostility to U.S. interests.  For example, it evicted the United States from an air base where it ran drug interdiction efforts for at least a decade.  It also became only the second country in history (after Bolivia) to withdraw from a 156-member international dispute settlement body after calling the body “an atrocity” that “signifies colonialism” and “slavery . . . to Washington.”  It also announced intent to withdraw from investment treaties with the United States and a dozen other countries, and it provided Ecuadorian interests a roadmap for using U.S. intellectual property rights without permission.  The situation in Ecuador has gotten so bad that in November, Transparency International called Ecuador one of the most corrupt governments in the Americas, with a score worse than 27 of the 31 countries tallied in the Hemisphere and 146th out of 180 countries total worldwide.

Ecuador once was a U.S. ally that respected the rule of law, but that has not been the case in recent years, and its treatment of U.S. investors and its obligations on investment and contractual matters reflects that change.  The U.S. government, Transparency International, and the World Bank have all noted serious concerns with Ecuador’s judicial system and adherence to the rule of law.  Contrary to the editorial’s assertion, Chevron is not asking the U.S. to force a favorable outcome in the case.  It asks for a fair hearing, a hope that Ecuador will honor its contractual obligations, and consideration of Ecuador’s actions on well-established trade and investment treaties and guidelines.

Chevron has been a longstanding supporter of trade preferences program.  However, we believe that extending unilateral trade preferences should carry with it some type of recognition that the recipient countries must adhere to the rule of law and trade and investment obligations.  We would hope that U.S. policymakers, and Los Angeles Times editorial writers, believe in this same standard.

Chevron has consistently maintained that rule of law in Ecuador has been compromised. The following letter further underscores the fact that it has become impossible for Chevron to receive a fair trial in Ecuador.

Read the letter here.