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Weekly Report - 23 May 2006

ECUADOR: Oxy contract voided, FTA talks suspended

On 15 May the Ecuadorean government decided to accept the recommendation of the procurator-general and declare the contract with oil operator Oxy voided by the firm's breach of contract in failing to report the transfer of some of its rights to a third party. This relieves the Palacio administration of some of the domestic political pressure the issue has built up, but it has had a cost: the now overt suspension of the free-trade negotiations with the US.

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