Edit: further context:
>Sen. Robert Menendez, D-N.J., head of the Senate Foreign Relations Committee, promised Wednesday that he would block renewal of the pact should Snowden be granted asylum.
>"Our government will not reward countries for bad behavior," he said in a statement, following other lawmakers who have spent years saying that the pact should be allowed to lapse, partly down to the country's links with Iran. [1]
If my tentative understanding of events is correct, this economic act of aggression (which would have hurt innocent civilians - does the US even care about that anymore?) was the main form of likely retaliation the US would have pulled in response to Snowden being granted asylum. Preempting this move by giving up the preferential treatment is, IMO, a very astute move by the Ecuadorian government, and puts America in a position of not having that leg to stand on.
[1] http://www.reuters.com/article/2013/06/26/us-usa-security-sn...