Overview
- Ecuador announced a 30% “security tariff” on Colombian imports effective February 1, citing insufficient cooperation against drug trafficking and illegal mining and a persistent trade gap.
- Colombia responded by imposing a 30% duty on an initial list of 20 Ecuadorian products and suspending electricity sales to Ecuador, describing the actions as proportional, transitory and revisable.
- President Gustavo Petro rejected Ecuador’s claims, citing 200 tons of cocaine seized on the border and ongoing joint operations, and signaled openness to expanded cooperation.
- Ecuador faces energy risks from the power cutoff, having relied on Colombian electricity for up to about 10% of consumption and around 450 megawatts during previous shortages.
- Ecuador said it will adjust transport charges for Colombian crude on the OCP pipeline to mirror the electricity decision, as business groups in both countries warn of immediate trade and employment impacts.