The President of Ecuador, Daniel Noboa, announced on February 3, 2025, the imposition of a 27% tariff on Mexican imports. This decision follows the breakdown of diplomatic relations between both countries in 2024, suggesting the influence of political factors in the implementation of this tariff.
Trade between Ecuador and Mexico has been imbalanced in recent years. Ecuador was in the process of negotiating a Free Trade Agreement (FTA) with Mexico and its incorporation into the Pacific Alliance before this crisis. Analysts warn that this measure could hinder dialogue between both nations and cause a negative impact on trade and diplomatic cooperation in the short and medium term.
The imposed tariff complicates negotiations for a possible FTA and deepens the divide between both governments. Ecuador seeks to defend its sovereignty and promote its trade policy, while Mexico may respond with similar measures. The uncertainty regarding the future of trade relations between both countries is growing.
This tariff mainly affects key sectors such as pharmaceuticals, where Mexico is a vital supplier for Ecuador. The measure aims to protect the Ecuadorian industry and negotiate an FTA under more favorable terms for Ecuador. The diplomatic rupture in 2024 was due to an incident at the Mexican embassy in Quito, leading to a distancing between both governments.
The trade balance in favor of Mexico has been an argument for imposing the tariff, promoting the consumption of domestic products and reducing dependence on Mexican imports. Beyond the economic issue, the imposition of the tariff reflects a context of high diplomatic tension with Mexico, complicating the possibility of reconciliation and a trade agreement even further.
The economic impact on Ecuador is significant, as Mexico is a key trading partner. Essential products could become more expensive in the Ecuadorian market, affecting importers and consumers. Noboa's decision represents a new obstacle in Mexico-Ecuador relations, affecting the stability in the economic and political ties of both countries.
