Colombia-Ecuador trade collapsing as tariff war intensifies, business groups say
By Tito Correa
RUMICHACA BRIDGE, Colombia/Ecuador, May 1 (Reuters) - The flow of goods between Colombia and Ecuador is drying up, industry groups on the South American countries' border say, as high tariffs resulting from an intensifying trade dispute came into full force this week.
A 100% tariff announced by Ecuadorean President Daniel Noboa took effect on Friday, though his government has not specified which products are affected. Colombia's government, led by President Gustavo Petro, formalized differentiated tariffs of 35%, 50% and 75% on about 190 Ecuadorean products on Thursday.
Noboa has justified the measures, originally imposed in February at lower levels, because of a trade deficit with Colombia and what he says is that country's failure to combat drug trafficking along their 586-kilometer (364-mile) border. Petro has repeatedly rejected that accusation.
Colombia's response has been appropriate and is an effort to limit the impact of the Ecuadorean tariffs on the Colombian economy, Bogota's trade minister said on Thursday.
"It's a whim, the very inflated egos of the two presidents have kept escalating this," Carlos Bastidas, the head of the Heavy Transport Association of Carchi in Ecuador, told Reuters. "The movement of goods is minimal, but from next week this drops to zero."
Up to 150 trucks are typically waiting to cross the Rumichaca International Bridge, Bastidas said. On Friday, about five vehicles were there.
"This is generating unemployment and people have to look for alternatives. There are many crossings here, so what are people going to do? Turn to smuggling," he warned.
Noboa's press office did not immediately respond to a request for comment.
Ecuador's government has said the initial tariffs created a positive trade balance with Colombia for the first time ever - a combined $62.9 million surplus in February and March versus a $146 million deficit for the same two months in 2025.
"The measure practically shuts down exports," said Ivan Florez, head of the Ipiales Chamber of Commerce on the Colombian side of the border. "What you see along the border is very different from the view in Quito and Bogota."
Bogota has suspended electricity sales to Ecuador, which also imports significant amounts of medicines and pesticides from its northern neighbor.
(Reporting by Tito Correa at Rumichaca Bridge; Writing by Alexandra Valencia and Julia Symmes Cobb; Editing by Paul Simao)
