Colombian Minister of Trade, Industry and Tourism Diana Marcela Morales stated in her statement that they will retaliate against the new tariff to be implemented by the Ecuadorian government.
Emphasizing that the 30 percent tax on products imported from Ecuador will be increased to 100 percent, Morales stated that all diplomatic initiatives have been tried for the benefit of the two countries and the business world.
Morales said, “Despite this, we did not receive a positive response; on the contrary, the administration of President Daniel Noboa announced that it would get tougher on the trade front. For this reason, Colombia has decided to equalize import taxes with the new tariff determined by Ecuador.” he said.
Arguing that the new customs duties announced by Ecuador violate the Cartagena Agreement, which forms the basis of regional integration, Morales added that the necessary legal process has been initiated on this issue.
PERIOD
Ecuador announced that it would increase the customs duty imposed on Colombia from 50 percent to 100 percent as of May 1, citing Colombia’s failure to take sufficient measures regarding border security.
The Ecuadorian government announced yesterday that it had recalled its Ambassador to Bogota for “consultations” in response to Colombian President Gustavo Petro’s statements that allegedly amounted to interference in the country’s internal affairs.
Following the decision, Colombia decided to withdraw its Ambassador Quito as a reaction to Ecuador.
DIPLOMATIC TENSION AMONG LEADERS
There is diplomatic tension between Colombian President Petro and Ecuadorian President Noboa due to their methods of combating drug organizations in the border regions.
The two leaders make harsh accusations against each other.
The trade tension between Colombia and Ecuador, which have deep-rooted and long-standing commercial relations, started with the 30 percent customs duty that was implemented as of February 1. Ecuador increased the said rate to 50 percent as of March 1.
The Colombian government announced that it stopped exporting electricity to neighboring Ecuador, which decided to impose customs duties, as of February 1.
Ecuador responded to this move on February 27 by increasing the fee for transporting oil belonging to the Colombian state oil company Ecopetrol through the Ecuadorian state company Petroecuador pipelines from $3 to $30 per barrel.
