Ecuador’s president slams Colombia as a trade war between the neighbors escalates
QUITO, Ecuador (AP) — Ecuador’s President Daniel Noboa called neighboring Colombia his country’s worst trade partner Friday as he defended raising tariffs on Colombian imports by 50% in an escalating trade war between the South American countries.
Noboa’s comments to a radio station follow a rift between the countries over trade and security along their shared border.
“Our worst trading partner in the world, in percentage terms, is Colombia,” Noboa said, noting that Ecuador’s trade deficit with its neighbor has reached $1.1 billion.
The tensions started in January, when the Ecuadorian president — a conservative who has sought to deepen ties with the Trump administration — announced a 30% tariff on Colombian imports, citing concerns that Bogota has failed to sufficiently curb the flow of cocaine across their shared border.
Colombia countered by imposing 30% tariffs on dozens of Ecuadorian goods — including rice and car parts — and saying it would stop selling electricity to Ecuador.
On Thursday, Noboa doubled down and said the tariffs on Colombian goods would increase from 30% to 50%, arguing, again, that Colombia has not yet taken concrete actions to control security on the binational border. The new tariffs will go into effect on March 1.
Colombian officials have repeatedly dismissed the accusations, noting that under the administration of Colombian President Gustavo Petro there have been record numbers of cocaine seizures. However, production continues to hit all-time highs, driven by increased lab efficiency and a surge in cultivated hectares.
Colombian and Ecuadorian merchants and business organizations have protested the escalating war, warning that the levies will hurt the economy of both nations.
“At least 40,000 Ecuadorian jobs are at risk because of this situation,” the Ecuadorian Federation of Exporters warned late Thursday in a statement. It noted that Colombia remains the fifth largest market for Ecuador’s non-oil exports — accounting for an estimated $65 million in monthly trade — and urged both nations to engage in “an urgent dialogue at the highest level.”
Noboa has given no indication that a meeting to resolve the crisis is in the works.
“We have spoken with Colombia for the last two years, and they have never fulfilled their commitments,” he said Friday.
Colombia’s Trade Minister Diana Marcela Morales told Blu Radio on Friday that the country is evaluating a plan to increase tariffs to 50% on 73 Ecuadorian products already subject to a 30% rate.
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