Colombia, Ecuador Escalate Trade Dispute Over Reciprocal Tariff Increases

(MENAFN) Colombia has announced plans to significantly raise import duties on goods from Ecuador, intensifying a growing trade conflict between the neighboring countries. According to reports, the decision comes after Ecuador revealed it would increase its own tariffs on Colombian products from 50% to 100%, effective May 1.

In response, Colombia’s trade authorities confirmed they would align with Ecuador’s move by lifting existing tariffs on Ecuadorian imports from 30% to 100%.

Addressing the situation, Trade, Industry and Tourism Minister Diana Marcela Morales stated: “Despite all diplomatic efforts, we did not receive a positive response; on the contrary, (Ecuadorian) President Daniel Noboa’s administration announced it would further harden its stance on the trade front.”

She further indicated that Ecuador’s actions breach the 1969 Cartagena Agreement, a foundational pact aimed at promoting regional economic cooperation, adding that legal proceedings have already been set in motion, according to reports.

Earlier, Ecuador had declared its intention to impose higher duties on Colombian imports, doubling them to 100% beginning in May.

According to statements referenced in reports, Ecuador’s Ministry of Production justified the move by criticizing Colombia for insufficient efforts in tackling drug trafficking and maintaining security along their shared border.

The situation has also strained diplomatic ties. Reports indicate that Ecuador recalled its ambassador from Bogota for consultations following comments made by Colombian President Gustavo Petro, with Colombia taking a similar step by recalling its envoy from Quito.

At the core of the dispute are broader disagreements between Petro and Ecuadorian President Daniel Noboa, particularly regarding strategies to address drug trafficking networks operating in border areas.

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