Trade Turbulence: Ecuador-Colombia Tensions Soar Amid Tariff Battle

Ecuador's President Daniel Noboa has accused Colombia of being Ecuador's worst trade partner, escalating tariffs on Colombian imports to 50%. This move is part of a trade dispute over border security and cocaine trafficking. Colombian officials have denied accusations, and business groups warn about economic fallout.

Ecuador's escalating trade war with Colombia reached a fever pitch as President Daniel Noboa lashed out at Colombia, branding it as the worst trade partner for Ecuador. In response, Noboa announced a dramatic 50% increase in tariffs on Colombian imports, intensifying tensions arising from border security concerns and the cocaine trade.

The dispute, simmering since January, began with a 30% tariff imposed by Ecuador over accusations of Colombia's failure to manage cross-border narcotics flow adequately. Colombia, under President Gustavo Petro, has denied these claims, emphasizing significant cocaine seizures despite rising production levels.

Ecuadorian and Colombian business communities have raised alarms over the trade friction, cautioning against economic backslides. The Ecuadorian Federation of Exporters highlighted the potential loss of 40,000 jobs, urging a high-level dialogue to mend ties, though Noboa remains doubtful of a resolution's prospects.

(With inputs from agencies.)