Ecuador – Iran relations
Encyclopedia
Ecuador - Iran relations refer to foreign relations between Ecuador
and Iran
. During the presidencies of Rafael Correa
and Mahmoud Ahmadinejad
in the 21st century relations between the two countries was strengthened. Amongst closer ties both countries established embassies in each other's capitals.
n government, as represented by President Hugo Chavez
, helped foster ties between Iran and Ecuador.http://shadow.foreignpolicy.com/posts/2011/08/10/state_snubs_house_request_to_examine_argentina_iran_ties
In a December 2008 visit to Tehran
, Ecuadorian President Rafael Correa
signed several agreements. Correa announced that both countries would open embassies in each other's capitals by January 2009. As a result of the diplomatic conflict with Colombia
over the raid of an alleged FARC camp in Ecuador, Correa is reported to have discussed the possibility of an arms deal with Iran. As a member of ALBA, Correa participated in a joint declaration of support to the Iranian government in June 2009.
, it also looked to Iran to procure armaments. Due to the 2008 Andean diplomatic crisis
with Colombia
, Correa said Ecuador had "a very serious problem on the northern border with Colombia, an irresponsible government that does not take care of its border. We need to equip ourselves… Iran can supply us and help us with credit."
The termination of the American lease at Mantas
meant Ecuador looked elsewhere for defense partners. Ecuadorian Defense Minister, Javier Ponce, said he sought to collaborate with Iran to help Ecuador develop its defense industry. "We have our own policies, our own geostrategic positions, and what interests us, with Iran for instance, is boosting information technology and our national defense strategies."
. Trade between the two went from a paltry $8m to $168m from 2007 to 2008.
In 2009, Iran provided a USD40 million loan to Ecuador to help finance the building of two power plants.
In a 2010 visit to Iran, the Ecuadorian Vice President, Lenin Moreno
, signed an agreement with his Iranian counterparts to construct three hydroelectric centers using Iranian technology. He also affirmed Iranian support for the Ecuadorian Yasuni
-ITT program to receive international funds in order not to transition to sustainable energy
.
Ecuador and Iran have also cooperated in the port, agriculture and auto industries.
and financing terrorism. It said Ecuador had not "constructively engaged" with the body and was "not committed" to global standards on money crimes. Correa was quick to condemn the move: "What arrogance! And why? Because we have relations with Iran. That's it. This is imperialism in its most base form. ... This has nothing to do with the struggle against money laundering or the fight against the funding of terrorism… It has to do with that we have an embassy in Iran. So because we have misbehaved. They are giving us a smack so we don't misbehave. [It is] hypocritical punishment. Instead of revising themselves, they condemn us. There is no money laundering here my friends. There is no terrorism, and no funding of terrorism. Imagine if he had money to fund terrorism, I wish I had money to build all the schools that I want to build. "We have been blacklisted along with Iran, Ethiopia, Angola and North Korea. We are the financiers of terrorism in the world!” Correa said indignantly. He added “it's a stick so you don't misbehave, naughty boy. You didn't do what I said, don't get involved with Iran. So because you went ahead, we'll put you on the blacklist, that's all." He asked why no pressure was added on rich countries like the United States and Switzerland over money laundering in their financial systems. He also added that Ecuador's bank had adequate legislation to protect from laundering and terrorism financing and called the report "a huge lie."
Meanwhile, Ecuador's private bank association also said the Iran factor was behind the country's inclusion on the FATF list citing a 2009 agreement between Ecuador's Central Bank and some Iranian financial institutions. However, Ecuador maintained its ties with Iran would not change.
The Ecuadorian central bank President, Diego Borja
, also traveled to the USA to dispel concerns about the Iranian central bank's plans to deposit 40 million euro
s with Ecuador’s central bank.
After an attempted coup on Correa
in 2010, the two countries signaled intentions to deepen ties.
Ecuador
Ecuador , officially the Republic of Ecuador is a representative democratic republic in South America, bordered by Colombia on the north, Peru on the east and south, and by the Pacific Ocean to the west. It is one of only two countries in South America, along with Chile, that do not have a border...
and Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
. During the presidencies of Rafael Correa
Foreign policy of Rafael Correa
|The foreign policy of Rafael Correa is the policy initiatives towards other states by the current President of Ecuador, as differed to past, or future, Ecuadorian foreign policy. Correa's foreign policy is somewhat similar to that of the other leaders of the Bolivarian Alternative for the Americas...
and Mahmoud Ahmadinejad
Foreign policy of Mahmoud Ahmadinejad
|The foreign policy of Mahmoud Ahmadinejad is the policy initiatives towards other states by the current President of Iran, as different from past, or future, Iranian foreign policy. Ahmadinejad's tenure as President came at a time of greater conflict, rhetorical or physical, than his predecessors...
in the 21st century relations between the two countries was strengthened. Amongst closer ties both countries established embassies in each other's capitals.
History
The VenezuelaVenezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
n government, as represented by President Hugo Chavez
Foreign policy of Hugo Chávez
The foreign policy of the Hugo Chávez government concerns the policy initiatives made by Venezuela under its current President, Hugo Chávez, towards other states...
, helped foster ties between Iran and Ecuador.http://shadow.foreignpolicy.com/posts/2011/08/10/state_snubs_house_request_to_examine_argentina_iran_ties
In a December 2008 visit to Tehran
Tehran
Tehran , sometimes spelled Teheran, is the capital of Iran and Tehran Province. With an estimated population of 8,429,807; it is also Iran's largest urban area and city, one of the largest cities in Western Asia, and is the world's 19th largest city.In the 20th century, Tehran was subject to...
, Ecuadorian President Rafael Correa
Rafael Correa
Rafael Vicente Correa Delgado born is the President of the Republic of Ecuador and was the president pro tempore of the Union of South American Nations. An economist educated in Ecuador, Belgium and the United States, he was elected President in late 2006 and took office in January 2007...
signed several agreements. Correa announced that both countries would open embassies in each other's capitals by January 2009. As a result of the diplomatic conflict with Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
over the raid of an alleged FARC camp in Ecuador, Correa is reported to have discussed the possibility of an arms deal with Iran. As a member of ALBA, Correa participated in a joint declaration of support to the Iranian government in June 2009.
Military relations
Due to the new approach in foreign policy under Correa, Ecuador looked to non-tradition partners for their arms supplies. While Ecuador was the first foreign country to buy arms for Indian weapons manufacturersHindustan Aeronautics Limited
Hindustan Aeronautics Limited based in Bangalore, India, is one of Asia's largest aerospace companies. Under the management of the Indian Ministry of Defence, this state-owned company is mainly involved in aerospace industry, which includes manufacturing and assembling aircraft, navigation and...
, it also looked to Iran to procure armaments. Due to the 2008 Andean diplomatic crisis
2008 Andean diplomatic crisis
The 2008 Andean diplomatic crisis was a diplomatic stand-off between the South American countries of Ecuador, Colombia and Venezuela. It began with an incursion into Ecuadorian territory across the Putumayo River by the Colombian military on March 1, 2008, leading to the deaths of over twenty...
with Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
, Correa said Ecuador had "a very serious problem on the northern border with Colombia, an irresponsible government that does not take care of its border. We need to equip ourselves… Iran can supply us and help us with credit."
The termination of the American lease at Mantas
Mantas
-People:*Herkus Mantas, a leader of the Great Prussian Uprising*Mantas Jankavičius, a Lithuanian singer*Mantas Kalnietis, a basketball player*Jeffrey Dunn, a British death/black metal musician also known as Mantas, as such as his band of the same name....
meant Ecuador looked elsewhere for defense partners. Ecuadorian Defense Minister, Javier Ponce, said he sought to collaborate with Iran to help Ecuador develop its defense industry. "We have our own policies, our own geostrategic positions, and what interests us, with Iran for instance, is boosting information technology and our national defense strategies."
Economic relations
Economic ties have grown during the Correa and Mahmoud Ahmadinejad administration. Like other states in Latin America, Iran has extended financing for a host of projects. Ecuador, in turn, has become the primary importer of Iranian products having replaced PeruPeru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
. Trade between the two went from a paltry $8m to $168m from 2007 to 2008.
In 2009, Iran provided a USD40 million loan to Ecuador to help finance the building of two power plants.
In a 2010 visit to Iran, the Ecuadorian Vice President, Lenin Moreno
Lenín Moreno
Lenín Boltaire Moreno Garcés is an Ecuadorian lawyer and politician.Moreno has been the Vice-President of Ecuador since 15 January 2007...
, signed an agreement with his Iranian counterparts to construct three hydroelectric centers using Iranian technology. He also affirmed Iranian support for the Ecuadorian Yasuni
Yasuni
Yasuni is an area in Ecuador renowned for its extremely diverse wildlife. It has 616 species of trees, having the most species of tree of any forest in the world....
-ITT program to receive international funds in order not to transition to sustainable energy
Sustainable energy
Sustainable energy is the provision of energy that meets the needs of the present without compromising the ability of future generations to meet their needs. Sustainable energy sources include all renewable energy sources, such as hydroelectricity, solar energy, wind energy, wave power, geothermal...
.
Ecuador and Iran have also cooperated in the port, agriculture and auto industries.
Western backlash against Ecuador
In 2010, the Financial Action Task Force (FATF) named both Ecuador and Iran as countries failing to comply with international regulations against money launderingMoney laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
and financing terrorism. It said Ecuador had not "constructively engaged" with the body and was "not committed" to global standards on money crimes. Correa was quick to condemn the move: "What arrogance! And why? Because we have relations with Iran. That's it. This is imperialism in its most base form. ... This has nothing to do with the struggle against money laundering or the fight against the funding of terrorism… It has to do with that we have an embassy in Iran. So because we have misbehaved. They are giving us a smack so we don't misbehave. [It is] hypocritical punishment. Instead of revising themselves, they condemn us. There is no money laundering here my friends. There is no terrorism, and no funding of terrorism. Imagine if he had money to fund terrorism, I wish I had money to build all the schools that I want to build. "We have been blacklisted along with Iran, Ethiopia, Angola and North Korea. We are the financiers of terrorism in the world!” Correa said indignantly. He added “it's a stick so you don't misbehave, naughty boy. You didn't do what I said, don't get involved with Iran. So because you went ahead, we'll put you on the blacklist, that's all." He asked why no pressure was added on rich countries like the United States and Switzerland over money laundering in their financial systems. He also added that Ecuador's bank had adequate legislation to protect from laundering and terrorism financing and called the report "a huge lie."
Meanwhile, Ecuador's private bank association also said the Iran factor was behind the country's inclusion on the FATF list citing a 2009 agreement between Ecuador's Central Bank and some Iranian financial institutions. However, Ecuador maintained its ties with Iran would not change.
The Ecuadorian central bank President, Diego Borja
Diego Borja
Diego Borja Cornejo is an Ecuadorian economist and politician. He was born in Quito, Ecuador, on May 1, 1964. He was elected member of the National Constitutional Assembly on September 30, 2007...
, also traveled to the USA to dispel concerns about the Iranian central bank's plans to deposit 40 million euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
s with Ecuador’s central bank.
Continued support
Despite US pressure, Correa affirmed commitment to the relationship saying "we [Ecuadorians] have nothing against Iran. Iran has done nothing to us." He later said "[we are] not going to stop getting closer to Iran because (the United States) has it on a black list." Ecuador also affirmed support, along with various other international pariah states, for Iran's nuclear programme.After an attempted coup on Correa
2010 Ecuador crisis
The 2010 Ecuador crisis took place on September 30, 2010, when elements of the National Police and military forces of Ecuador blockaded highways, occupied the National Parliament, blocked the Mariscal Sucre International Airport in Quito and the José Joaquín de Olmedo International Airport in...
in 2010, the two countries signaled intentions to deepen ties.