While Colombia & Ecuador are at peace, the neighboring presidents have a sour relationship going back to when Colombian President Gustavo Petro initially refused to recognize Daniel Noboa’s election.

Traders and transport operators have suspended a 19-day blockade at the Rumichaca International Bridge, the primary land crossing between Colombia and Ecuador. The protest, catalyzed by a 50% tax imposed by the Ecuadorian government on Colombian goods, was lifted to accommodate travel and commerce during the Semana Santa holiday period. Despite the suspension of the strike, the regional business community reports that significant economic damage and diplomatic tensions persist.

Ecuador’s President Daniel Noboa (photo: Carlos Silva/Presidencia de la República)

The closure of the border crossing created a substantial disruption in binational economic activity. Estimates from the Cámara de Comercio de Ipiales in Nariño, Colombia indicate that losses reached approximately $5 million USD per day due to freight remaining stationary in the border zone. The Comité Gremial de Trabajadores de la Frontera de Ipiales stated that while the reopening is a responsible gesture for the high-traffic holiday season, current tariff policies continue to threaten hundreds of direct and indirect jobs linked to foreign trade.

The Governor of Nariño, Luis Alfonso Escobar, criticized the trade barriers implemented by the administration of Ecuadorian President Daniel Noboa. Governor Escobar argued that such measures inadvertently encourage illicit activities in the region. He emphasized that instead of facilitating formal commerce, high tariffs drive trade toward illegality, undermining regional security efforts. To mitigate the conflict, the Comunidad Andina de Naciones (CAN) has initiated high-level dialogues. Diplomatic delegations led by Colombian Deputy Minister of Foreign Affairs Juana Castro and her Ecuadorian counterpart, Alejandro Dávalos, held a virtual working group to address pending issues in trade, transport, energy, and hydrocarbons.

“Decisions adopted without considering the reality of our communities have put at risk the livelihood of merchants, transporters, foreign trade workers, and thousands of people who live from binational exchange,” stated the Comité Gremial de Trabajadores de la Frontera de Ipiales.

Diplomatic friction has extended into the energy sector. President Noboa claimed that in 2017, Ecuador assisted Colombia during a potential blackout by charging 1.6 cents USD per kWh, whereas in 2024, Colombia charged an average of 28 cents USD per kWh during Ecuador’s hydroelectric crisis. In response, the Colombian Minister of Mines and Energy, Edwin Palma, clarified that prices during the 2023-2024 El Niño phenomenon reflected the actual costs of production and distribution, particularly when fossil fuel-powered thermoelectric plants using fuel oil and diesel were activated.

The ongoing trade dispute has impacted more than 5,500 companies over the past two months. Diana Marcela Morales, the Colombian Minister of Commerce, Industry, and Tourism, confirmed scheduled meetings with Ecuadorian officials to de-escalate the conflict and establish fair, transparent rules. Concurrently, the Ministerio de Comercio, Industria y Turismo has moved to protect domestic industries by implementing new tariffs on steel and ceramics from countries without existing free trade agreements. These measures aim to counter market distortions and protect a sector that employs more than 50,000 people while promoting circular economy practices and reducing CO2 emissions.

Above photo: Border between Ecuador & Colombia looking towards Ipiales, Colombia (Photo: Cancillería de Colombia)

Tensions between Colombia’s Gustavo Petro & Ecuador’s Daniel Noboa began last year when Petro refused to recognize Noboa’s election as legitimate.

Colombia and Ecuador are engaged in a tariff dispute that could affect both countries. At the beginning of February, Ecuador imposed 30% tariffs on products imported from its northern neighbor, and then Colombia responded with reciprocal tariffs at the same rate. Ecuador has now escalated the dispute by raising the tariff to 50%. Here is a summary of what is happening.

The most recent move by Ecuador was on February 26. “After confirming the lack of implementation of concrete and effective border security measures by Colombia, Ecuador is obliged to adopt sovereign actions. Starting March 1, the security fee on imports originating from Colombia will be increased from 30% to 50%,” the Servicio Nacional de Aduana said in a press release as retaliation for the announcement of reciprocal tariffs by Colombia.

Before that, the Colombian government had officially imposed a reciprocal 30% tariff on imports of goods originating from Ecuador, as established in Decree 170 of 2026, signed on February 24 by President Gustavo Petro and his ministerial cabinet.

The decree states that the measure responds to the 30% tariff previously imposed by Ecuador on Colombian products has generated “an estimated 97% drop in exports to that country, equivalent to an annual reduction of approximately $1.803 billion USD.”

Colombia has suspended electricity delivery to Ecuador in retaliation.

The Colombian decision came as a direct response to the so-called “security fee” introduced by Ecuadorian President Daniel Noboa on February 1, which applied the same rate to goods originating from Colombia.

At the time, the Secretaría General de Comunicaciones de Ecuador, announced the measure through the social media platform X, stating that the objective was to “protect national security and strengthen customs controls and security in the border area.” According to President Noboa, the decision was based on “a lack of reciprocity and the need for stronger security measures,” adding that the tariff would remain in place “until there is a genuine joint commitment to combat drug trafficking and illegal mining along the shared border.”

These actions mark an escalation in trade tensions between the two countries, which have faced growing political and diplomatic challenges in recent months. Colombia had already suspended electricity exports to Ecuador following the initial tariffs, while Quito increased fees for transporting Colombian petroleum through its pipelines.

Products affected by tariffs include beans, rice, fats and oils, unsweetened cocoa powder, fresh bananas, ethyl alcohol and denatured spirits, as well as insecticides, fungicides, and disinfectants, among others. Although the tariff is initially paid by importers at the border, these costs are typically passed on to end consumers through price adjustments.

Despite historically close trade relations, it remains unclear whether both countries will reach a short-term agreement, or move toward formal dispute resolution mechanisms. On February 6, foreign ministers from both nations held a negotiation meeting in Quito, though no formal agreement was reached. Ecuador, at the time, conditioned further decisions on progress in security and energy cooperation.

Additionally, according to Bogotá-based El Tiempo daily newspaper, both governments have filed formal complaints with the Comunidad Andina de Naciones (CAN), which must determine whether the claims will be accepted. Analysts generally agree that a diplomatic solution remains the most viable path to resolving the current trade dispute.

The Central Market in Tulcán, Ecuador, near the Colombian border, one of the most affected areas by the new tariffs. (photo: Jadin Samit Vergara)

Headline photo: Border between Tulcán, Ecuador, and Ipiales, Colombia, at the Rumichaca International Bridge. (Photo Jadin Samit Vergara)