51.2% of the continental territory of Ecuador is covered by native forests, of which 74% is in the Amazon region. From 2002 to 2022, Ecuador lost 954 kha of tree cover, the equivalent of a 5% decrease in tree cover since 2000, with shifting agriculture being the main deforestation driver. Most of the tree cover loss is happening in the regions of Sucumbíos and Orellana. (Global Forest Watch, 2022) These regions, crucial for international exports, contain vast Amazon rainforests, including protected areas and Indigenous territories.
The European Union is one of the main export markets for Ecuadorian agricultural, agro-industrial and timber products. The agricultural sector in Ecuador consists mainly of smallholder farmers, who now face the risk of being excluded from international markets due to new requirements on proving sustainable and deforestation-free production. The main challenge now is to maintain the access of cocoa, coffee, palm oil and timber value chains to international markets and to take advantage of the opportunities that the EU regulation on deforestation-free products may present.