Ecuador's Bold Tariff Move on Colombia: A Trade War Fueled by Crime Crisis

Ecuador plans to impose a 30% tariff on Colombian goods due to trade imbalances and lack of cooperation on border crime issues. Colombian officials described it as 'economic aggression.' Ecuador is militarizing borders to combat organized crime, with ongoing political tensions affecting trade relationships.

Ecuador is set to impose a significant 30% tariff on goods imported from Colombia, its primary electricity supplier, starting February 1. President Daniel Noboa attributed the decision to an ongoing trade deficit and a perceived lack of collaborative efforts from Colombia in addressing drug trafficking and illegal mining at their shared border.

Colombian Energy Minister Edwin Palma, criticized the tariffs, labeling them as 'economic aggression.' In response, he's ordered the cessation of private firm involvement in cross-border energy sales to prevent scarcity. Palma emphasized Colombia's cooperative efforts in power supply, which currently accounts for 8% to 10% of Ecuador's consumption.

This announcement has strained diplomatic ties, with Colombia's defense ministry intercepting a marijuana shipment at the border. Meanwhile, Ecuador continues to grapple with organized crime, missile by militarizing San Lorenzo city and deploying 10,000 troops to combat gang violence. International pressure, particularly from the U.S., looms over the regional narcotics trade, further complicating diplomatic relations.

(With inputs from agencies.)