An overhaul of legislation governing Ecuador's aquaculture and fisheries sector is being welcomed as an opportunity to help boost foreign investment.

The first regulatory changes in these areas since the mid-1970s may come as a boost for both the tuna and shrimp producing industries.

"This law is a message that we are giving to the world, reflecting the aspirations of our production chain and offers us norms to guarantee our sustained and sustainable growth," said Jose Antonio Camposano, president of the National Chamber of Aquaculture trade body.

The new legal framework rule is expected to better define the sanction mechanisms and give more stability to a sector, previously only regulated by ministerial agreements.

Legislation currently being scrutinized by lawmakers comes with Ecuador's export-led shrimp industry expanding rapidly.

Chinese demand for Ecuadorian shrimp has soared in recent times, helping the country to more than double overall exports to 1.39 billion pounds in the five years to the end of 2019.

Approval of the bill currently before lawmakers is seen a key for the European Union to be able to lift the "yellow card" sanction imposed on Ecuador last year, threatening to jeopardize Ecuadorian tuna exports to the trade bloc.

In dishing out the yellow card warning, the European Commission said its decision is based on identified shortcomings in the country's ability to comply with agreed standards under international law of the sea as flag, port and market state.

The EU said Ecuador should develop an enforcement and sanctioning system to address IUU fishing activities.