Colombia threatens 50% tariffs on Ecuadorian goods as trade row deepens

Colombia’s commerce minister, Diana Marcela Morales, has said she will propose raising tariffs on certain Ecuadorian goods from 30% to 50%, as a trade dispute between the neighbouring countries intensifies.

Her remarks follow Ecuador’s announcement on Thursday (26 February) that it will increase tariffs on Colombian imports to 50% from 1 March. Quito said the move was prompted by what it described as a lack of cooperation from Colombia in tackling drug trafficking along their shared border - an allegation Bogotá denies.

“We are going to present the proposal not only to raise tariffs on the 73 tariff subheadings, but also to consider other products that could generate some degree of sensitivity due to the measures Ecuador has taken today,” Morales told Blu Radio.

“It would be 50% for the 73 subheadings that currently have a 30% rate,” she added.

Ecuadorian President Daniel Noboa defended the decision, reiterating his claim that Colombia has failed to cooperate on border security. The frontier region is a major hub for cocaine trafficking and other forms of contraband.

Noboa said the surcharge reflected Colombia’s “absolute lack of oversight at the border”, adding that Colombian forces had withdrawn several hundred kilometres from the frontier. As a result, Ecuador’s border protection costs had doubled to nearly $400 million a year, he said.

He added that Ecuador had already raised $13 million through the tariff, which was first announced in January, and that violence in the area had declined.

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According to Noboa, Ecuador runs a trade deficit of $1.1 billion with Colombia.

Shortly after the initial tariffs were imposed, Ecuador increased the fee on Colombian crude transported through its SOTE pipeline by 900% to $30 per barrel, prompting Colombia to halt shipments.

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