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Trade War Between Colombia And Ecuador Escalates, With 50% Tariffs Threatened

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)

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)

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Colombian Council of State Suspends 23% Minimum Wage Increase for 2026

The surprise ruling is a temporary win for employers, but creates even more uncertainty. The Council of State has ruled that Petro’s 23% raise in minimum wage violates technical limits established by law.

The Colombian Council of State has issued a provisional suspension of the government decree that established a 23% increase in the national minimum wage for 2026. The judicial decision halts the implementation of the adjustment, which had set the monthly salary at $1,750,905 COP plus a transportation assistance allowance, totaling approximately $2,000,000 COP.

The suspension follows several legal challenges arguing that the administration of President Gustavo Petro exceeded its authority by setting an increase significantly higher than the 5.1% inflation rate recorded in 2025. The court found reasonable doubt regarding whether the executive branch adhered to the technical criteria mandated by Law 278 of 1996, which requires adjustments to be based on inflation, productivity, and economic growth.

Immediate Regulatory Timeline and Compliance

The high court has granted the Ministry of Labor an eight-day window to issue a new provisional decree. During this period, employers are instructed to maintain current payment levels until the new administrative act is published.

Legal experts emphasize that the ruling does not have retroactive effects. Juan Pablo López, managing partner at López & Asociados, told daily El Tiempo that payments made between January 1 and the issuance of the new decree remain valid. Companies are legally prohibited from discounting or requesting the return of the additional 23% already paid to employees for January and the first half of February.

Vicente Umaña, partner at Posse Herrera Ruiz, clarified to the same publication that while payments currently due must honor the 23% increase, the forthcoming decree will likely establish a lower rate. This adjustment will subsequently impact other costs indexed to the minimum wage, including administration fees, fines, and transport costs.

Economic and Labor Market Projections

The initial 23% hike sparked concerns among economic think tanks regarding formal employment and inflation. Fedesarrollo published an analysis suggesting that such an increase could lead to the loss of up to 600,000 formal jobs and a three-percentage-point rise in labor informality.

Economic researchers at Bancolombia (BVC: BCOLOMBIA, NYSE: CIB) estimated potential job losses could reach 734,000. Their data highlights specific sectors at risk:

  • Professional activities: 390,537 jobs
  • Commerce: 71,917 jobs
  • Construction: 54,537 jobs
  • Manufacturing: 42,774 jobs

According to Medellín-based El Colombiano, Camilo Cuervo, partner at Holland & Knight, noted that the Council of State’s language suggests the original decree may not survive a final merits review. Luis Fernando Mejía, CEO of Lumen Economic Intelligence, indicated that the suspension could serve to stabilize price escalations observed in early 2026.

Business Community and Government Reactions

The National Federation of Merchants (FENALCO) and the National Business Association of Colombia (ANDI) have addressed the ruling. Jaime Alberto Cabal, president of FENALCO, described the suspension as a necessary correction to an adjustment that did not reflect economic realities. Bruce Mac Master, president of ANDI, stated that the ruling establishes important jurisprudence for technical responsibility in wage setting.

Mauricio Montealegre, partner at Pérez-Llorca Gómez-Pinzón, observed that while the government could theoretically attempt to justify the same figure in a new decree, the president has called for a new concertation table to align with the court’s criteria.

Guidance for Employers

Business owners and human resources departments operating in Colombia should consider the following steps:

  • Maintain Current Payroll: Continue paying the 1,750,905 COP base salary until the new decree is officially published in the government gazette.
  • Avoid Retroactive Deductions: Ensure that no attempts are made to recoup the 23% increase already paid to staff for previous periods.
  • Monitor the New Decree: Prepare for a mid-month adjustment in the second half of February, as the new rate will apply immediately upon publication.
  • Contractual Review: Assess contracts and service agreements tied to the minimum wage to prepare for downward adjustments in indexed costs if the new rate is lower.

Photo © Loren Moss

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What Jumps Out: 7 Days, 7 Questions

Welcome to the weekend one and all. A week dominated, or at least that was the perception, by politics. Who will be standing in which primary and who will choose / have to go direct to Round 1 in May. Aside from that, the debate over the impact of the 23% minimum wage increase, continues.

1. How was January inflation from Departamento Administrativo Nacional de Estadística – DANE Colombia ?

2. Is the full impact of the Minimum Wage increase now baked in according to Bancolombia ?

3. How were Exports for December from Departamento Administrativo Nacional de Estadística – DANE Colombia ?

4. How many Presidential candidates do we expect to see on the ballot in May ?

5. Why is Petro again discussing Emergency Economic powers ?

6. What are FENALCO & ANDI – Asociación Nacional de Empresarios de Colombia saying about vehicle sales in 2026 ?

7. How have the markets been this week ?

That is our lot for this weekend. Wherever you are, please have a relaxing and peaceful day.

my regards

Rupert

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Colombia’s Petro Defies Court Suspension of Minimum Wage Hike

Colombian President Gustavo Petro on Sunday mounted a forceful defence of his government’s 23.7% minimum wage increase for 2026, pledging to issue a temporary decree to keep the so-called “vital wage” in place after the Council of State provisionally suspended the original measure.

Speaking in a televised address on Feb. 15, Petro said that while he disagreed with the high court’s decision, he would respect the judicial process and comply by issuing a transitory administrative decree, pending a final ruling.

“The vital wage will remain in place until the new decree is issued,” Petro said, rejecting claims that the increase had triggered inflation or job losses and insisting that workers’ purchasing power must not be subordinated to shifting economic variables.

The Council of State questioned the technical justification and procedural basis of the December decree that lifted the monthly minimum wage to 1.75 million pesos ($470) – close to 2 million pesos including transport subsidies – forcing the government to revisit the measure barely six weeks after it took effect on Jan. 1.

Rather than retreating, Petro escalated the confrontation, calling for nationwide demonstrations on Feb. 19 to defend what he described as a historic social gain for Colombian workers.

“We’ll see each other in all public squares across Colombia,” the president wrote on social media, framing the dispute as a struggle over dignity and constitutional labour rights rather than a technical wage-setting debate.

Petro anchored his argument in Constitutional Court ruling C-815 of 1999, which he said obliges governments to consider not only inflation and productivity but — “with prevailing character” – the constitutional mandate to guarantee a minimum, vital and mobile wage.

Even higher wage not ruled out

In a move that further unsettled markets and business groups, the government signalled that the revised decree could maintain – or even exceed – the original 23.7% increase.

Labour Minister Antonio Sanguino said on Monday that “nothing is ruled out” as the government reconvenes the Permanent Commission on Wage and Labour Policy, bringing unions and employers back to the negotiating table.

The president himself suggested that a true “vital wage” should be closer to 2.15 million pesos, well above the current level.

Sanguino said the commission would review updated economic indicators from the national statistics agency DANE and the finance ministry, including inflation data for early 2026 and labour market trends from 2025.

Inflation and employment debate intensifies

Petro dismissed warnings that the wage hike could fuel inflation or unemployment, arguing that recent data contradict those claims. In a post on “X”, he said that even with Central Bank’s inflation forecasts near 6.4%, wage growth would remain strong and support domestic production and productivity. “It would be a national stupidity to lower the vital wage,”added  Petro, affirming also that the country’s first leftist administration would still listen to business leaders.

Economists and employers, however, remain sceptical. Financial analysts claim the suspension highlights institutional concerns over policy predictability, and fear the standoff could undermine investor confidence at a time when Colombia is grappling with deep fiscal debt and high labour informality.

The wage dispute has sharpened tensions between Colombia’s Executive, judiciary and private sector, just three months before first-round presidential elections in May 31.

The outcome of the Council of State’s final ruling – and whether the Executive succeeds in forging a late compromise with employers — will shape not only labour costs in 2026 but also a broader debate over economic governance and the autonomy of the Banco de la República.

For now, the minimum wage remains in legal limbo — enforced by decree, contested in court, and to be defended by his political base this week on the street.

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Petro and Trump: What next in U.S.–Colombia relations?

Nearly a week after Donald Trump hosted Colombia’s president, Gustavo Petro, at the White House, calm has returned to a bilateral relationship that only recently appeared headed for rupture. The insults have stopped. The social media theatrics have faded. Diplomacy, not spectacle, is back in charge.

This alone tells us that both governments have agreed to “disagree” and agree again.

The meeting itself produced no headline agreements. Instead, it marked something more consequential and less dramatic – a quiet end to illusions. In Washington, Petro’s flagship policy of “Total Peace” is now widely regarded as exhausted, if not outright discredited. What replaces it is a far more traditional, conditional partnership: security cooperation first, democracy under scrutiny, and patience in short supply.

The timing matters. Within days of the White House meeting, the U.S. State Department announced that John McNamara, Washington’s chargé d’affaires in Bogotá, will leave his post on February 13. McNamara arrived a year ago at a moment of open hostility between Trump and Petro, when the relationship was being tested not only by policy disagreements but by personal antagonism. His task was not to advance grand initiatives, but to prevent a collapse. That he succeeded says much about the value of professional diplomacy in an era of impulsive politics.

His departure now marks the end of a holding pattern. What comes next will be harder, more explicit, and less forgiving.

The Trump – Petro encounter was cordial, almost surprisingly so. Trump praised Petro as “terrific.” Petro shared a handwritten note from Trump declaring his affection for Colombia. The optics were deliberate. But the substance lay elsewhere.

According to officials and lawmakers briefed on the talks, Washington’s message was blunt: negotiations without consequences have failed. Petro’s Paz Total—a strategy built on ceasefires, open-ended negotiations, and the assumption that armed groups could be coaxed into disarmament—has not reduced violence. In many regions, it has coincided with territorial expansion by FARC dissidents, rising extortion, and a deepening humanitarian crisis. From Washington’s perspective, it has blurred the line between peace realpolitik and paralysis.

U.S. cooperation with Colombia is now explicitly conditioned on key demands. First, decisive military action against armed groups, especially the ELN along the Venezuelan border, where insurgents have long enjoyed sanctuary. Second, ironclad guarantees that Colombia’s upcoming electoral processes will be free, fair, and transparent ahead of a high-stakes 2026 presidential race.

This is not ideological hostility. It is strategic calculation – from Bogotá to Caracas, and ultimately, the Oval Office.

Colombia remains indispensable to U.S. interests: a capstone of regional security, a key counter-narcotics partner, and a democratic anchor in a hemisphere unsettled by authoritarian drift and Venezuelan instability. But indispensability does not mean indulgence. Washington’s conclusion is that leverage must now be used, not deferred.

The shift was visible almost immediately. Colombian forces bombed ELN encampments in the Catatumbo region near the Venezuelan border, killing several fighters and seizing weapons. The strikes signaled a return to military pressure after months of restraint under Paz Total.

Yet they also exposed the moral and political cost of the new course. According to Colombia’s forensic authorities and reporting by El Colombiano, one of those killed in Catatumbo was a child. Seven bodies were recovered after the operation, including that of a minor. The incident echoed last November’s bombing in Guaviare that killed seven minors, among them an 11-year-old girl.

Shift in tone and strategy

Petro, in the aftermath of the Trump encounter, has responded with a stark argument: armed groups recruit children precisely to deter military action. Halting airstrikes, he said, would reward a “cowardly and criminal” strategy and accelerate forced recruitment. It is a grim logic, but not an implausible one—and it illustrates the impossible trade-offs now confronting the Colombian state.

Peace negotiations have not been spared. The Clan del Golfo, one of the country’s most powerful criminal organizations, suspended talks with the government after reports that Colombia and the United States discussed targeting “high-value” leaders. From Washington’s perspective, this reaction only reinforces its skepticism: armed groups talk peace when it buys time, not when it requires surrender.

None of this suggests enthusiasm in Washington for a militarized Colombia. It suggests resignation. The United States has seen this cycle before – in Colombia and throughout the hemisphere. Negotiations without enforcement are a contradiction. Ceasefires without verification entrench armed actors. Elections held amid coercion corrode democratic legitimacy from within.

Which brings us to the second pillar of the new relationship: electoral transparency.

U.S. officials have made clear that Colombia’s democratic processes will now be watched closely – not as a moral abstraction, but as a strategic necessity. A Colombia that cannot guarantee free elections is not a reliable ally, no matter how aligned its security policies may be.

This is the bargain now on offer. Not a reset. No rupture. Conditional coexistence.

John McNamara’s departure symbolizes the transition. His tenure was about keeping the peace between governments. The next phase will be about enforcing terms.

For Petro, the challenge is severe. He must deliver security results demanded by Washington without losing legitimacy at home, where skepticism of militarization runs deep. He must demonstrate democratic integrity while navigating a polarized political landscape. And he must do so knowing that Total Peace, once his signature promise, no longer commands confidence abroad.

The calm in U.S.–Colombia relations is real- but it is not comfort. It is the quiet before accountability.

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All That Glitters Isn’t Trump Nor Petro

Colombian President Gustavo Petro appeared on Tuesday to melt into the gilded woodwork of the Oval Office, wearing a gold tie and an uncharacteristically sober dark suit. Seated beside U.S. President Donald Trump, the two-hour meeting appeared—at least on the surface—to be a cordial encounter between political adversaries entrenched on opposite sides of the ideological divide.

After months of public insults, veiled threats and mutual distrust, both leaders emerged from their first face-to-face meeting keen to project warmth. “We got along very well,” Trump told reporters afterward. “I thought he was terrific.” Petro, speaking later at the Colombian embassy in Washington, described the encounter as “optimistic” and “constructive,” particularly on counter-narcotics cooperation.

Yet behind the gold accents, handshakes and flattering soundbites, the meeting revealed less of a breakthrough than a carefully choreographed de-escalation – one that stabilizes a fraught bilateral relationship without resolving its deepest contradictions.

The meeting defied expectations precisely because expectations were so low. Trump and Petro had spent months trading insults from afar. Trump had previously labeled the Colombian leader a “sick man” and an “illegal drug leader,” offering no evidence. Petro, a former left-wing guerrilla turned president, accused Trump’s administration of committing war crimes through strikes on suspected drug-smuggling vessels and denounced the U.S. operation that removed Venezuelan leader Nicolás Maduro as a “kidnapping.”

Analysts in Bogotá and Washington alike feared the encounter could spiral into confrontation—or worse, an unfiltered monologue. Instead, the Oval Office doors closed to the press, and when they reopened, both leaders spoke in unusually measured tones.

“There was more fear of what could go wrong than hope for what could go right,” wrote El País. “None of it happened.”

Trump hailed the talks as “terrific,” while Petro posted a photograph on X showing the two men smiling, accompanied by a handwritten note from Trump reading: “Gustavo – A great honor – I love Colombia.” For Petro, the optics alone mattered: after months of diplomatic frost, he had secured not only an invitation but public validation from the most unpredictable ally Colombia has.

Gilded optics for now

Despite the upbeat rhetoric, neither side announced concrete agreements. Trump said the two leaders were “working on” counter-narcotics efforts. Petro said he had urged Trump to cooperate in locating and capturing major drug traffickers living outside Colombia, including in the United Arab Emirates, Europe and the United States.

On Venezuela, Petro floated the idea of trilateral cooperation on oil and gas exports involving Caracas, Bogotá and Washington – an ambitious proposal that runs headlong into U.S. sanctions policy. He also claimed Trump agreed to mediate Colombia’s escalating trade dispute with Ecuador, whose president, Daniel Noboa, is a close Trump ally.

What emerged was less a roadmap than a reset: an agreement to keep talking.

That alone represents progress. Colombia’s security situation has deteriorated sharply, with armed groups such as the ELN expanding their reach. U.S. intelligence, technology and funding remain central to Bogotá’s counterinsurgency and counter-narcotics strategies—just as they were during the years that led the FARC to the negotiating table.

Petro’s political calculus

Domestically, the meeting strengthened Petro at a sensitive moment. As El País noted, Colombia is already edging toward a heated electoral cycle, and the prospect of a public clash with Trump had unnerved even some of Petro’s allies.

Instead, the Colombian president managed to appear pragmatic without abandoning his ideological posture. “He did not change his way of thinking on many issues, and neither did I,” Petro said. His quip about a “pact for life” to “make the America(s) great again” signaled both irony and accommodation – a rhetorical olive branch wrapped in Trump’s own slogan.

The presence of senior officials on both sides underscored the meeting’s importance. Petro was joined by Foreign Minister Rosa Yolanda Villavicencio, Defense Minister Pedro Sánchez and Ambassador Daniel García-Peña. Trump was flanked by Vice President J.D. Vance, Secretary of State Marco Rubio and Republican Senator Bernie Moreno.

The Clinton List

One issue loomed quietly in the background: Petro’s status on the so-called Clinton List. According to Colombian media reports citing sources close to the White House, Washington may reassess Petro’s inclusion only after Colombia’s 2026 presidential elections, with a decision expected no earlier than June.

If confirmed, the message is clear: Trump’s administration is willing to thaw relations—but not without leverage.

Trump also said he was working on lifting U.S. sanctions imposed on Petro last year over alleged links to the drug trade, accusations the Colombian president has repeatedly dismissed as “slander.” No timeline was offered.

Alliance restored

For the United States, Colombia remains indispensable: a key intelligence partner, a bulwark against narcotics flows, and a strategic player in a volatile region where Venezuela’s political and economic future remains uncertain. For Colombia, the relationship is existential – economically, militarily and diplomatically. Nearly 30% of Colombian exports go to the U.S., while remittances from more than three million Colombians living there exceed $13 billion annually.

What Tuesday’s meeting achieved was not reconciliation, but recalibration.

The gold tie, the flattering notes, the carefully chosen words – all that glittered. But neither Trump nor Petro abandoned their instincts, their ideologies or their mutual suspicion. The real test will come not in photographs or handwritten dedications, but in whether cooperation materializes once the optics fade.

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Colombia’s President, an Outspoken Trump Critic, Heads to the White House

President Gustavo Petro of Colombia and President Trump have had a tense relationship that escalated into threats by Mr. Trump, before easing. Anything could happen at their Feb. 3 meeting.
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Colombia’s Petro claims U.S. “kidnapped” Maduro during Caracas strike

Colombian President Gustavo Petro said on Tuesday that Nicolás Maduro should be returned to Venezuela to face trial in his home country, calling the U.S. military operation that captured the ousted leader in Caracas earlier this month a “kidnapping” that violated Venezuelan sovereignty.

“They have to return him and have him tried by a Venezuelan court, not a U.S. one,” Petro said during a public event in Bogotá, days before a scheduled meeting with U.S. President Donald Trump at the White House on Feb. 3.

Maduro and his wife, Cilia Flores, were captured by U.S. forces on Jan. 3 during a military incursion in Caracas and flown to New York, where they face federal charges including drug trafficking, weapons possession and conspiracy. Both pleaded not guilty at an initial court appearance on Jan. 5 and are being held under maximum-security conditions at the Metropolitan Detention Center in Brooklyn. A follow-up hearing is scheduled for March 17.

Petro said the operation lacked a legal basis and risked causing long-lasting damage across Latin America. “No one in their right mind would bomb the homeland of Bolívar,” he said, referring to Venezuelan independence hero Simón Bolívar. “No young man or woman in Latin America will forget that missiles fell on the land of Bolívar.”

The Colombian president framed his remarks as part of a broader critique of U.S. foreign policy and international institutions, reviving rhetoric he has used previously against Trump. He argued that the case should be handled within Venezuela’s judicial system, citing what he described as civilizational differences between Latin America and the Anglo-European world.

“The Latin American civilization is different,” Petro said. “That is why he must be judged there, not in the United States.”

Petro’s comments came during an event announcing the reactivation of Bogotá’s historic San Juan de Dios Hospital, where he appeared alongside Mayor Carlos Fernando Galán. Later in the day, Petro again urged Trump to grant Maduro his freedom or return him to Venezuela, while criticising the United Nations for failing to stop the war in Gaza.

“The way to overcome that failure is not with missiles over the poor,” Petro said. “It is not bombing Caracas.”

The remarks come at a sensitive diplomatic moment, as Petro prepares to travel to Washington after the U.S. government granted him a temporary, five-day visa allowing him to attend the Feb. 3 meeting with Trump. The visa will be valid from Feb. 1 to Feb. 5 and is limited exclusively to the official visit, according to Colombia’s presidency.

Petro’s U.S. visa was withdrawn in September following an unscheduled pro-Palestinian speech he gave in New York during the United Nations General Assembly. On Tuesday, he questioned the decision to reinstate it.

“They took away my visa, now they say they put it back,” Petro said. “Why did they take it away from me? I don’t know if it was for a while or permanently. We’ll know on Feb. 3.”

He described the upcoming meeting with Trump as “determinant,” not only for him personally but “for the life of humanity,” language that underscored both the political symbolism and unpredictability surrounding the encounter.

Colombia’s presidential palace confirmed that the bilateral meeting will take place at 11 a.m. on Feb. 3 inside the White House and said the agenda has been set by the U.S. administration. Officials said the talks aim to stabilise bilateral relations, which have been strained in recent months by disagreements over foreign policy and regional security.

Foreign Minister Rosa Villavicencio will also travel to Washington under the same short-term visa arrangement, ensuring her participation in the official programme, the presidency said.

U.S. authorities have accused Maduro and Flores of overseeing armed groups involved in kidnappings and killings and of receiving hundreds of thousands of dollars in bribes linked to narcotics trafficking. The Justice Department has declassified indictments related to weapons possession and conspiracy involving machine guns and destructive devices.

Although U.S. authorities had previously offered rewards of up to $50 million for information leading to Maduro’s capture, Washington said no reward would be paid because the arrest was carried out directly by U.S. forces under Trump’s renewed extraction orders.

Petro did not address the specific charges against Maduro, focusing instead on what he said were the broader legal and moral implications of the operation, as Colombia seeks to balance its relationship with Washington while maintaining its longstanding opposition to foreign military interventions in the region.

On Wednesday, U.S. Secretary of State Marco Rubio is due to meet with Venezuelan opposition leader María Corina Machado at the State Department. The meeting follows U.S. intelligence assessments raising doubts over whether Venezuela’s interim Chavista-run government would cooperate with the Trump administration by severing ties with close international allies such as Iran, China and Russia. Reuters has reported that CIA Director John Ratcliffe travelled to Caracas on Jan. 15 for talks related to Venezuela’s political future. “I want to be clear with you what I’ve shared publicly. We made multiple attempts to get Maduro to leave voluntarily and to avoid all of this because we understood that he was an impediment to progress. You couldn’t make a deal with this guy,” remarked U.S Secretary of State Marco Rubio.

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Colombia, Ecuador locked in trade dispute as pipeline tariff jumps 900%

Ecuador has sharply increased tariffs on Colombian crude oil transported through its pipeline system, deepening a trade and energy dispute between the two Andean neighbours that has already disrupted electricity exports and bilateral commerce.

Ecuador said on Tuesday it had raised the tariff paid by Colombia for each barrel of oil transported through the state-owned Trans-Ecuadorian Oil Pipeline System (SOTE) by 900%, lifting the fee from $3 to $30 per barrel. The move came in response to Colombia’s decision to suspend electricity exports to Ecuador from Feb. 1, 2026.

Bogotá has yet to issue an official response to the tariff increase.

The dispute has widened beyond trade into energy cooperation and crude transportation, straining relations between the two countries amid longstanding tensions over border security and cooperation against drug trafficking.

Without explicitly referring to the trade conflict, Colombia’s Ministry of Mines and Energy last week issued a resolution suspending international electricity transactions (TIE) with Ecuador, describing the measure as a preventive step aimed at protecting Colombia’s energy sovereignty and security amid climate-related pressures on domestic supply.

Colombia is a key electricity supplier to Ecuador, particularly during periods of drought. Ecuador has faced prolonged power cuts in recent years, including in 2024 and 2025, in a country where roughly 70% of electricity generation depends on hydropower.

Colombia’s leftist President Gustavo Petro said his country had previously acted in solidarity during Ecuador’s worst drought in decades. “I hope Ecuador appreciated that when it needed us, we responded with energy,” Petro said last week.

Ecuador’s Environment and Energy Minister Inés Manzano said the crude transport tariff increase applied to Colombia’s state oil company Ecopetrol and private firms exporting oil through the SOTE. “We made a change in the tariff value,” Manzano said. “Instead of three dollars, it is now 30 dollars per barrel.”

According to Ecuadorian news outlets, the SOTE transported nearly 10,300 barrels per day of Colombian crude in November, shipped by Ecopetrol and private companies.

Manzano has also said Ecuador will impose new fees on Colombian crude transported through the Oleoducto de Crudos Pesados (OCP) pipeline, citing reciprocity following Colombia’s suspension of electricity exports.

The trade conflict began last week when Ecuadorian President Daniel Noboa, a close political ally of U.S. President Donald Trump, announced a 30% tariff on imports from Colombia, effective from February. Speaking from the World Economic Forum in Davos, Noboa said the measure was justified by what he described as insufficient cooperation from Bogotá in combating drug trafficking and organised crime along the shared border.

“We have made real efforts of cooperation with Colombia,” Noboa said in a post on social media, adding that Ecuador faces a trade deficit of more than $1 billion with its neighbour. “But while we insist on dialogue, our military continues confronting criminal groups tied to narcotrafficking on the border without cooperation.”

Colombia’s foreign ministry rejected the move as unilateral and contrary to Andean Community (CAN) trade rules, sending a formal protest note to Quito. Bogotá has proposed a high-level ministerial meeting involving foreign affairs, defence, trade and energy officials to de-escalate the dispute, though no date has been confirmed.

Colombia’s Ministry of Commerce, Industry and Tourism (MinCIT) responded by announcing a 30% tariff on 23 Ecuadorian products, which have not yet been specified, with the option to extend the measure to additional goods. Trade Minister Diana Marcela Morales Rojas said the tariff was proportional, temporary and intended to restore balance to bilateral trade.

“This levy does not constitute a sanction or a confrontational measure,” the ministry said in a statement. “It is a corrective action aimed at protecting the national productive apparatus.”

Business groups say Colombia exports mainly electricity, medicines, vehicles, cosmetics and plastics to Ecuador, while importing vegetable oils and fats, canned tuna, minerals and metals. Ecuador’s exporters federation, Fedexpor, said non-oil exports to Colombia rose 4% between January and November last year, with more than 1,130 products entering the Colombian market.

Colombia and Ecuador share a 600-kilometre border stretching from the Pacific coast to the Amazon rainforest, a region where Colombian guerrilla groups and binational criminal organisations operate, including networks involved in drug trafficking, arms smuggling and illegal mining.

Although Quito and Bogotá have both signalled willingness to engage in dialogue, the rapid escalation of tariffs and energy measures has raised concerns among exporters, energy producers and regional analysts about the risk of prolonged disruption to trade and cooperation between two of the Andean region’s closest economic partners.

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Colombia, Ecuador in trade and energy spat after Noboa announces 30% “security” tariff

Colombia and Ecuador have started exchanging trade retaliations after Ecuadorian President Daniel Noboa announced a 30% “security” tariff on imports from Colombia, escalating tensions between Andean neighbours over border security cooperation.

Noboa said the measure would take effect on Feb. 1 and would remain in place until Colombia shows “real commitment” to jointly tackle drug trafficking and illegal mining along the shared frontier. He made the announcement from Davos, where he is attending the World Economic Forum.

“We have made real efforts of cooperation with Colombia… but while we have insisted on dialogue, our military continues facing criminal groups tied to drug trafficking on the border without any cooperation,” Noboa said in a post on X, citing an annual trade deficit of more than $1 billion.

Colombia’s foreign ministry rejected the tariff in a formal protest note, calling it a unilateral decision that violates Andean Community (CAN) rules, and proposed a ministerial meeting involving foreign affairs, defence, trade and energy officials on Jan. 25 in Ipiales, Colombia’s southern border city.

The government of President Gustavo Petro also announced a 30% tariff on 20 products imported from Ecuador in response, though it has not specified the items. Diana Marcela Morales, Colombia’s Minister of Commerce, Industry and Tourism (MinCIT) said Ecuador’s exports covered by the retaliatory measure total some $250 million, and described the policy as “temporary” and “revisable.”

Fedexpor, Ecuador’s exporters federation, said non-oil exports to Colombia rose 4% between January and November 2025, and that the Colombian market receives more than 1,130 Ecuadorian export products. The top exports include wood boards, vegetable oils and fats, canned tuna, minerals and metals, and processed food products.

The dispute has also spread into the energy sector. Colombia’s Ministry of Mines and Energy said on Thursday it had suspended international electricity transactions with Ecuador, citing climate-related pressure on domestic supply and the need to prioritise national demand amid concerns over a possible new El Niño weather cycle.

Ecuador has struggled with severe droughts in recent years, triggering long power cuts in 2024 and 2025 in a country where roughly 70% of electricity generation depends on hydropower, while Colombia has supplied electricity during periods of shortage.

President Petro noted that Colombia acted in solidarity during Ecuador’s worst drought in 60 years. “I hope Ecuador has appreciated that when we were needed, we responded with energy,” Petro said on Wednesday.

Following Colombia’s electricity suspension, Ecuador announced new tariffs on transporting Colombian crude through its heavy crude pipeline system. Environment and Energy Minister Inés Manzano said the oil transport fee through the OCP pipeline would reflect “reciprocity,” without giving details.

Colombia and Ecuador share a 600-kilometre border stretching from the Pacific coast to the Amazon, where Colombian armed groups and criminal networks operate, including organisations involved in drug trafficking, arms smuggling and illegal mining. Relations between Petro and Noboa, who sit on opposite ends of the political spectrum, have frequently been strained.

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