South American neighbours deepen trade war with massive tariffs

Colombia’s Ministry of Commerce, Industry and Tourism has announced on April 10 it will raise tariffs on neighbouring Ecuador to 100 percent, up from 30 percent. The new rate mirrors the level Ecuador imposed a day earlier, as trade tensions and diplomatic friction intensify between the two South American nations.

In recent months, Ecuador has increased tariffs on its western neighbour, citing a trade deficit and accusing Colombia of failing to adequately combat drug trafficking, as reported by El Pais.

Colombia has rejected those claims, pointing instead to its ongoing military operations aimed at intercepting illicit drugs. Just last November, authorities seized their largest shipment in a decade.

The dispute has also deepened political divisions between Ecuador’s right-wing government under Daniel Noboa and Colombia’s president, Gustavo Petro.

Earlier this week, Noboa criticized Petro’s comments regarding the imprisonment of former Ecuadorian Vice President Jorge Glas, calling them an “assault on our sovereignty”.

Petro, meanwhile, has repeatedly described the left-wing Glas as a “political prisoner” and has urged that the former vice president — who was convicted of corruption — be transferred to Colombian custody.

Tensions escalated further last month when Petro accused Noboa of carrying out bombings near the Colombian border without prior coordination. Reports indicated that charred bodies were recovered from the scene.

Following the retaliatory measures, Colombian Trade Minister Diana Morales said on this week that the tariff hike was a direct response to Ecuador’s move to raise its own tariffs to 100 percent a day earlier.

“We have exhausted all diplomatic efforts and kept channels of dialogue open with the government of Ecuador, seeking a solution that benefits both countries, businesses, and above all, the communities on both sides of the border,” she said.

Morales added that Colombia’s countermeasures would take effect immediately, while Ecuador plans to implement its tariffs starting May 1.

By Nazrin Sadigova