Colombia's commerce minister, Diana Marcela Morales, announced on Friday that she will seek government approval to raise tariffs on a set of Ecuadorian goods from a current 30% to 50%, escalating a trade dispute between the neighbouring countries.
Her proposed measure is framed as a reciprocal response to Ecuador's decision to raise tariffs on Colombian imports to 50% beginning March 1, a move Quito attributed to what it says is insufficient cooperation from Colombia on combating drug trafficking along their shared border - an assertion Colombia denies.
Speaking to Blu Radio, Morales described the scope of the planned proposal and the internal approval required. "We are going to present the proposal not only to raise tariffs on the 73 tariff subheadings, but also to consider other products that could generate some degree of sensitivity due to the measures Ecuador has taken today," she said, noting that "the move must be approved by a government committee." She added: "It would be 50% for the 73 subheadings that currently have a 30% rate."
In Quito, President Daniel Noboa reiterated his view that Colombia has not sufficiently cooperated to secure their mutual border, a corridor for trafficking of cocaine and other contraband. "This surcharge is the result of an absolute lack of oversight at the border on Colombia’s part; even the army has been withdrawn several hundred kilometers away, which doubles our cost of protecting our border, to nearly an additional $400 million a year," he said on Radio Centro de Quito.
Noboa said Ecuador has already collected $13 million from the tariff that was first announced in January and asserted that violence in the border area had declined following the measures. He also noted that Ecuador runs a trade deficit of $1.1 billion with Colombia.
Tensions have extended beyond consumer goods. Shortly after Quito implemented its initial tariffs, Ecuador raised its fee on Colombian crude transported through its SOTE pipeline by 900% to $30 per barrel. That increase prompted Colombia to halt shipments through the pipeline.
The proposed Colombian action would target the same 73 tariff subheadings that currently face a 30% levy, seeking parity with the 50% rate Quito has applied more broadly. Any change would require sign-off by the appropriate government committee before taking effect.
As both governments frame their measures around border security and economic leverage, the dispute affects trade flows and energy transport between the two countries and may influence commercial planning for exporters, importers and firms reliant on crude shipments through the SOTE pipeline.