In a major rebuke to President Daniel Noboa, Ecuador's Constitutional Court ruled unanimously on March 9 that his controversial Bilateral Investment Treaty with the United Arab Emirates cannot be fast-tracked and must be approved by the National Assembly.

The decision blocks the right-wing president's unconstitutional attempt to bypass the National Assembly. Still, this is just one step in Ecuador's continued fight for its Constitution and its democracy.

This treaty is the test case for a far broader corporate coup, one that aims to resurrect a legal weapon Ecuador’s people have repeatedly rejected: Investor-State Dispute Settlement (ISDS).

The treaty, signed in a rushed ceremony in December 2025, was littered with errors, referencing the non-existent "United Arab States" and citing provisions that aren't there. When Ecuador’s pro-corporate Constitutional Court rightly demanded a corrected text, it asked for an English version, a bizarre move in a Spanish-speaking republic.

“We are witnessing a government ignoring its own Constitution and the will of its people to serve the interests of transnational capital."

In response, Noboa issued an extraordinary decree authorizing Ecuador’s ambassador to unilaterally correct the text, bypassing normal diplomatic and legal channels.

The court has now sided with Ecuador’s progressive Constitution. However, that is not where this fight ends; instead, the treaty will have to be taken through a two-stage review process, unless Noboa decides to ignore the court altogether—a move that would be unsurprising given the young autocrat’s continued destruction and dismissal of Ecuador’s other branches of government.

The Constitutional Court will have 30 days to conduct a second, deeper review of the treaty's content to verify its full conformity with the Constitution. If the treaty survives that scrutiny (or if the court does not respond in 30 days), it will go to the National Assembly, where it requires absolute majority approval. Currently, Noboa’s party only has two-fifths of the total assembly seats, with leftist, pro-Indigenous, and some centrist parties occupying the rest.

The urgency of this corporate agenda explains the government's simultaneous brutal crackdown on democratic opposition. In a move that has drawn international condemnation, an electoral judge, on the request of the Noboa-aligned prosecutor general, suspended the country's largest opposition party, the left-wing Revolución Ciudadana (RC), for nine months.

The RC would not be able to conduct any political activities, or run in the 2027 local elections. The left-wing party, which won 44% of the vote in the last presidential election, controls the country's largest cities, including Quito and Guayaquil.

Interestingly, the right-wing pro-Trump billionaire president has himself been credibly accused of electoral fraud, corruption, and stakes in the drug-trafficking trade.

The case against RC relies on the testimony of an individual awaiting trial for child sexual abuse, who was given preferential treatment in prison in exchange for implicating the party on cooked-up money laundering charges. This follows the February pre-trial detention of Guayaquil's Mayor, Aquiles Alvarez, another opposition leader targeted by the prosecutor general. This thus follows a long pattern of Noboa's crackdown on opposition. The right is also cutting off the opposition's ability to vote against Noboa's measures in the assembly.

The UAE BIT contains ISDS provisions that grant foreign investors the right to sue Ecuador in international tribunals for billions over laws or policies that harm their profits, and those they expect to make in the future, including environmental and health regulations that protect local and marginalized populations. This is explicitly prohibited by Article 422 of Ecuador’s Constitution, a prohibition upheld by the people in national referenda in 2024 and again in 2025.

“This is all very clearly unconstitutional,” says Ladan Mehranvar, a senior legal researcher at the Columbia Center on Sustainable Investment who focuses on international investment law and human rights. “They are trying to push the BIT through by sidestepping constitutional safeguards, including the requirement of prior approval by the National Assembly,” she added.

“We are witnessing a government ignoring its own Constitution and the will of its people to........

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