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Ecuador breaks off dialogue with Colombia amid trade war

Quito, Feb 27 (Prensa Latina) Ecuador unilaterally broke off dialogue with Colombia and will maintain the ongoing tariff war between the two countries indefinitely.

The Minister of Production, Foreign Trade, and Investment, Luis Alberto Jaramillo, stated that Colombia’s measure to prohibit the entry of 30 Ecuadorian food products across the land border has severely affected exporters of rice, bananas, avocados, potatoes, and seafood.

“This has affected us significantly. There should have been communication, at least, to allow time for a response and prevent the products from being held up at the border,” the Minister said in an interview with Ecuavisa television, where he confirmed the end of the talks.

Although Ecuador’s Foreign Minister, Gabriela Sommerfeld, stated this week that bilateral dialogue was ongoing, the government of President Daniel Noboa announced an increase in tariffs on Colombian imports from 30 to 50%.

The Minister admitted that approximately one-third of Ecuadorian exports will be affected, although he maintained that, in the case of imports, the situation could open opportunities to reduce the trade deficit in the medium term by seeking alternative suppliers.

So far, Colombia has not announced an official response to the new tariff increase, although complaints have been filed with the Andean Community.

The Ecuadorian government’s decision prompted a critical statement from Guayaquil Chamber of Commerce, which warned of negative impacts on formal trade, employment, and consumption, as well as a possible incentive for smuggling and the informal economy.

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