Colombia to impose 100 pc tariffs on Ecuador in tit-for-tat move amid tensions
Bogota, April 11
Colombia's trade ministry said that it will raise tariffs on imports from neighboring Ecuador to 100 per cent from 30 per cent, matching a decision made a day earlier by Quito, as tensions between the two countries escalate.
Trade Minister Diana Morales said on Friday in a statement that Ecuador's latest tariff hike from 50 per cent to 100 per cent forced Colombia to align its policy, accusing the Quito move of distorting competition and harming domestic producers of both countries.
The process to implement the new measure would begin immediately, she said, adding that Colombia had pursued dialogue with Ecuador but received no positive response.
"We have exhausted all diplomatic efforts and kept channels of dialogue open with the government of Ecuador, seeking a solution that benefits both countries, business people, and above all, the communities on both sides of the border," she said.
"However, we have not received a positive response. ... We are therefore forced to adjust our tariff measures to match Ecuador's new rate," she said, adding that the Colombian government will introduce support measures, including credit lines and financing access, to help affected businesses.
Citing a trade deficit and accusing Colombia of failing to effectively fight drug trafficking at the shared border, Ecuador has in recent months hiked tariffs against its larger neighbor, while Colombia has denied the allegations.
The two countries have also clashed over Colombian President Gustavo Petro's comments that Ecuador's former Vice President Jorge Glas is being held as a "political prisoner" and should be freed, Xinhua news agency reported.
The escalating tensions between Ecuador and Colombia come within the final months of Petro's presidency. Elected in 2022, Petro is Colombia's first left-wing president and a former rebel involved in the country's six-decade-long armed conflict.
— IANS
Reader Comments
Interesting to see this from South America. While the drug trafficking accusation is serious, using tariffs as a weapon rarely solves the root problem. It just makes goods more expensive for citizens. Hope they find a diplomatic solution soon.
Tit-for-tat policies never end well. Both economies will take a hit. Colombia's offer of credit lines is a good step to cushion the blow for their businesses, but prevention is better than cure. They should have de-escalated earlier.
The political prisoner comment from President Petro really complicated things! Leaders should be more careful with their words, especially with neighbors. It's not just about trade, it's about sovereignty and respect. 🇮🇳
From an economic perspective, a 100% tariff is essentially a blockade. This will cripple cross-border supply chains. It's sad that diplomacy failed. The timing, near the end of Petro's term, suggests this might be more about politics than policy.
As an Indian, I feel for the common people there. When two elephants fight, it's the grass that suffers. Hope they remember their shared history and culture and find a way back to the table. Jai Hind!
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.