Transport workers from Ecuador and Colombia participate in a rally at the border bridge in Rumichaca, Ecuador, in early February. The workers demanded that Presidents Daniel Noboa and Gustavo Petro eliminate the 30% tariffs imposed on each other at that point. Photo by Xavier Montalvo/EPA
Feb. 26 (UPI) — Ecuador’s government said Thursday it will raise tariffs on imports from Colombia to 50% from 30%, effective Sunday, as tensions escalate over border security, trade and anti-narcotics cooperation between the neighboring Andean countries.
Ecuador’s Ministry of Production, Foreign Trade, Investments and Fisheries said in a statement the tariff increase follows what it described as Colombia’s “lack of implementation of concrete and effective measures” to improve security along their shared border and combat drug trafficking.
“This decision responds to national security criteria, to strengthen shared responsibility in a task that must be joint: confronting the presence of drug trafficking at the border,” the ministry said, according to Ecuadorian outlet Primicias.
Authorities have focused on sensitive border crossings, such as Rumichaca, a major commercial transit point where officials cite heightened risks of smuggling and organized crime.
The announcement came one day after Ecuadorian Foreign Minister Gabriela Sommerfeld said the government “maintains dialogue” with Colombia through diplomatic channels, including embassies and direct contacts between officials.
Analysts cited by Ecuadorian newspaper La Prensa said the tariff hike may serve as diplomatic pressure to advance a bilateral security agreement aimed at addressing cross-border crime while stabilizing trade relations.
Trade tensions began early earlier this year when President Daniel Noboa’s administration imposed a 30% tariff on Colombian goods. Officials framed the move as necessary to protect Ecuador’s trade balance and economic security.
Colombia responded with reciprocal measures. Authorities in Bogotá this week began to apply a 30% tariff to 23 categories of Ecuadorian agricultural, food and industrial goods, according to Colombian newspaper El Colombiano.
The dispute has expanded beyond tariffs. Colombia has suspended electricity exports to Ecuador, while Quito has increased fees for transporting Colombian crude oil through its pipeline system — moves that signal broader strain in bilateral economic ties.
Colombian President Gustavo Petro’s government also filed complaints with the Andean Community, a regional trade bloc, arguing Ecuador’s tariffs violate existing free trade commitments.
Economic impacts already are emerging in sectors such as border commerce, energy and oil production in Colombia’s Putumayo region. Colombia’s National Association of Financial Institutions warned costs for both economies could become significant if the dispute persists.
According to Ecuador’s Federation of Exporters, about $273 million a year in exports could be at risk if Colombia maintains its reciprocal 30% tariff. The group said roughly 580 Ecuadorian companies export to Colombia.
For some firms, up to half of their revenue depends on that market, raising concerns about potential economic fallout if tensions continue.