Colombia–Ecuador trade slumps amid retaliatory tariffs

Trade between Colombia and Ecuador has fallen sharply after new tariffs were imposed, with business groups warning of mounting damage to the cross-border economy.

Ecuador’s President Daniel Noboa imposed a 100% tariff on Colombian imports from 1 May, although the government has not specified which products are affected. Colombia responded by imposing tariffs ranging from 35% to 75% on about 190 Ecuadorian goods.

Transport and business representatives on both sides of the border say the measures have significantly reduced commercial activity. Carlos Bastidas, head of the Carchi Heavy Transport Association, said the dispute had escalated gradually and was driven by what he described as “ego and stubbornness” from both governments.

He said the once-busy border region had suffered social harm as imports and exports declined, warning the situation was leading to job losses and encouraging smuggling as people look for ways to support their families.

Truck traffic at the Rumichaca border crossing has dropped from around 150 vehicles a day to just a handful, according to Ecuadorian transport groups. Iván Flórez, president of the Ipiales Chamber of Commerce, said exports had been “practically shut down”, with only a few trucks passing through, mostly in transit to or from Peru.

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He described the situation as suffocating for border communities, which depend heavily on cross-border trade, adding that appeals had been made to both governments and the Andean Community of Nations to intervene.

President Noboa has defended the tariffs, saying they were introduced in response to a trade deficit with Colombia and what he described as inadequate action against drug trafficking along the border. Colombia has rejected those claims.

Ecuador says the measures have improved its trade balance with Colombia for the first time, while Colombian officials say exports have almost ground to a halt. Colombia has also suspended electricity sales to Ecuador, which relies on its neighbour for imports, including medicines and pesticides.

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Ecuador Colombia Tariffs BorderRelations Trade war