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Rubio Calls for Increased U.S. DFC Investment in Ecuador
In the absence of alternative investment opportunities with the United States, Ecuador plans to sign a free trade agreement with the People’s Republic of China. Such an agreement, expected this month, would provide the Chinese Communist Party with increased influence in Ecuador, a valued U.S. ally.
U.S. Senator Marco Rubio (R-FL) sent a letter to Scott Nathan, Chief Executive Officer of the U.S. International Development Finance Corporation (DFC), urging enhanced U.S. investment in Ecuador to counter Chinese Communist Party influence.
- “While the Biden Administration continues to assert that the U.S. is the ‘partner of choice’ for Ecuador and other Latin American countries, governments and civil society in the region bemoan the lack of American-led, and other Western alternatives, to the Chinese Communist Party’s (CCP) current and future investments.”
- “I urge you to work with the Ecuadorian government to identify strategic sectors of the Ecuadorian economy, such as telecommunications, infrastructure, energy, and mining, so that Ecuador has options, other than CCP-backed entities, for investment in these areas. Doing so would not only safeguard Ecuador from the CCP’s expanding global network of mass oppression, but provide new opportunities for American workers and businesses.”
Want more information? The full text of the letter is below.
Dear Mr. Nathan:
I write to urge the U.S. International Development Finance Corporation (DFC) to continue to support a valued American ally, Ecuador. While the Biden Administration continues to assert that the U.S. is the “partner of choice” for Ecuador and other Latin American countries, governments and civil society in the region bemoan the lack of American-led, and other Western alternatives, to the Chinese Communist Party’s (CCP) current and future investments. It is vital that the DFC follow through on its mandate and provide Ecuador with an alternative to the CCP-directed investments, which have been shown to entrap developing countries.
Before the end of the year, it is my understanding that Ecuador plans to sign a free trade agreement with the People’s Republic of China (PRC). This agreement would provide further opportunities for companies controlled by the CCP to enter and influence critical sectors of the Ecuadorian economy. As the CCP’s public rhetoric and actions increasingly make clear, it is intent on exporting its authoritarian model to other countries, including the systems Beijing currently uses to suppress peaceful protests in the PRC. The United States has an enduring interest in keeping this repressive system from our hemisphere.
You may recall that the previous administration signed a framework agreement with the Ecuadorian government that promised up to $2.8 billion in DFC funding for projects in Ecuador. Therefore, I urge you to work with the Ecuadorian government to identify strategic sectors of the Ecuadorian economy, such as telecommunications, infrastructure, energy, and mining, so that Ecuador has options, other than CCP-backed entities, for investment in these areas. Doing so would not only safeguard Ecuador from the CCP’s expanding global network of mass oppression, but provide new opportunities for American workers and businesses.
Thank you for your attention to this matter. I look forward to your response.
Sincerely,