A tariff dispute between Colombia and Ecuador escalated to 100% duties on Colombian imports after Ecuador cited a lack of cooperation on border security

The Andean Community of Nations (CAN) ordered Colombia and Ecuador to dismantle, within 10 business days, the trade restrictions and tariff measures imposed since late 2025, concluding that they violate the legal framework governing the regional bloc composed of Bolivia, Colombia, Ecuador, and Peru.

The decision was adopted through three resolutions issued May 8, 2026, by the CAN General Secretariat, led by Gonzalo Gutiérrez Reinel, following an assessment of trade disputes that emerged between the two countries amid tensions related to border security and commerce.

The organization concluded that several measures implemented by Quito and Bogotá violate the Cartagena Agreement, the founding treaty of Andean integration, which prohibits restrictions on intraregional trade among member states.

More information about the “security tariff”: Colombia and Ecuador Escalate Trade Tensions with Tariffs Raised to 100%.

Ecuador ordered to lift border restrictions and “security tariff”

The first resolution, No. 2581, ruled in favor of Colombia in a complaint related to Ecuador’s decision to limit bilateral land trade to a single border crossing. The General Secretariat classified the measure as a “restriction on Andean subregional trade” and granted Ecuador 10 business days to withdraw it.

The resolution also urged both countries to strengthen bilateral cooperation on border security matters.

“To urge the Republic of Ecuador and the Republic of Colombia to strengthen bilateral cooperation and coordination mechanisms in border control (…) through joint actions, without affecting the normal development of subregional trade,” the organization stated in Resolution 2581.

Meanwhile, Resolution 2582 ordered Ecuador to eliminate the so-called “security tariff” imposed exclusively on Colombian imports, which initially stood at 30% and later escalated to 100%.

According to CAN, the measure violates the Trade Liberalization Program established under the Cartagena Agreement and constitutes a “disguised tariff.”

The General Secretariat concluded that the so-called Customs Control Service Fee (TSCA) or “security tariff” does not qualify as a legitimate fee because it does not compensate for an individualized service to importers, but instead finances general state functions related to intelligence and strategic security.

Ecuador was given a maximum of 10 business days to dismantle the measure and formally report compliance. So far, the government of President Daniel Noboa has not issued an official response to the resolutions.

CAN also orders Colombia to dismantle countermeasures

“I have no problem removing tariffs on Ecuadorian products in the same manner and timeline in which they were imposed,” Petro wrote on X after the ruling became public.

The third resolution, No. 2583, rejected the trade countermeasures adopted by Colombia in response to Ecuador.

The government of President Gustavo Petro had issued Decree 0170, later tightened through Decree 0455, imposing reciprocal tariffs ranging from 30% to 75% on Ecuadorian products and restricting the entry of rice, potatoes, onions, and fishery products through specific border crossings.

CAN concluded that these measures are also incompatible with Andean community regulations.

Trade dispute rooted in security tensions

The commercial dispute between the two countries intensified beginning in late 2025 and reached its peak in April 2026, when both governments progressively increased tariffs and trade restrictions, citing concerns related to border security and anti-narcotics enforcement.

The tensions particularly affected border regions, where business groups and transport operators warned of disruptions to trade flows and rising logistical costs.

CAN’s resolutions now seek to restore free trade conditions within the Andean bloc and reduce diplomatic tensions between two of its largest economies.

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)