Pipeline Tensions: Ecuador and Colombia's Heating Trade War

Colombia criticizes Ecuador's increase in transportation fees for Colombian oil as trade tensions escalate. Ecuador imposed the fee hike following Colombia's suspension of electricity sales. The trade conflict began after Ecuador announced a tariff on Colombian imports, citing security concerns related to drug trafficking.

Tensions have escalated between Colombia and Ecuador following Ecuador's decision to significantly increase transportation fees for Colombian oil. On Tuesday, Colombian officials denounced the move as an act of 'aggression,' marking another turn in the ongoing trade conflict between the two Andean nations.

Ecuador announced it would increase the fees for Colombian companies using its oil pipelines from USD 3 to USD 30 per barrel, a tenfold jump aimed at Colombian oil firms, including the state-run Ecopetrol. This increase comes days after Colombia suspended electricity sales to Ecuador, raising hostilities further between the neighboring countries.

The initial strike in this trade war came when Ecuadorian President Daniel Noboa imposed a 30% tariff on Colombian imports, citing Colombia's inadequate measures to combat drug trafficking. In a retaliatory measure, Colombia introduced similar tariffs on Ecuadorian imports, intensifying the economic stand-off that highlights security and trade concerns in the region.