Ecuador and Colombia are embroiled in an escalating trade war. The Ecuadorian government announced a hike in tariffs on Colombian products from 50% to 100%. This measure came in response to Colombian actions and followed statements from leaders of both nations. Colombian President Gustavo Petro called the tariff increase a "monstrosity," declaring the end of the Andean Pact for Colombia. Ecuadorian President Daniel Noboa, in turn, stated that agreements cannot be reached with a government not committed to fighting drug trafficking and organized crime. Noboa emphasized that since the trade measures began, violent deaths on the northern border have decreased by 33%.
This trade war began on February 1 with the imposition of 30% tariffs, which were later raised to 50% in March. Bilateral trade volume was around $2.8 billion, with a negative balance for Ecuador of about $900 million. The tariff escalation was accompanied by reciprocal sanctions in the energy sector. Colombia cut its electrical interconnection with Ecuador, which depends on Colombian electricity supplies to meet internal demand during generation shortfalls. Ecuador responded by increasing the transport price for Colombian state company Ecopetrol's oil through Petroecuador's pipelines from $3 to $30 per barrel.
Tensions between the two countries were further exacerbated by Petro's statement that former Ecuadorian Vice President Jorge Glas is a "political prisoner." Noboa labeled this an "attack on sovereignty" and recalled the Ecuadorian ambassador from Bogotá. Ecuador's Foreign Minister Gabriela Sommerfeld announced that the scheduled technical talks between the two countries had been suspended. Glas remains imprisoned, and his case continues to be a point of sharp political contention between the nations.
