Andean community orders colombia and ecuador to remove tariffs

The Andean Community of Nations has ordered Colombia and Ecuador to eliminate tariffs imposed amid a bilateral trade dispute. The bloc gave the countries 10 days to comply with resolutions issued by its General Secretariat.

The order is based on resolutions 2581, 2582 and 2583, which found that the tariffs violate the Cartagena Agreement signed in 1969. According to the bloc, the restrictions harm free trade and the Trade Liberalization Program in force among member countries.

Secretary General Gonzalo Gutiérrez Reinel noted that in 2024 Colombia exported 3.197 billion dollars to the region, while Ecuador recorded 2.033 billion dollars. The measures have caused losses exceeding 340 million dollars and a drop of more than 70% in bilateral trade.

Gutiérrez Reinel warned of rising smuggling and job risks in border areas such as Putumayo, Nariño and Carchi. The organization recalled that it can only act with member countries and that Ecuador has threatened to leave the group.

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Illustration depicting Colombia-Ecuador border standoff amid 100% tariff hikes on imports.
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Colombia to raise tariffs on Ecuadorian imports to 100%

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Colombia's Minister of Commerce, Industry and Tourism, Diana Marcela Morales Rojas, rejected Ecuador's trade measures and announced that the country will raise tariffs on imports from Ecuador to 100%. The move responds to Ecuador's announced increase of its tariff on Colombian products to 100%, citing border security issues. Business leaders from both nations called for presidential dialogue to avert economic harm.

The Colombian government retaliated against Ecuador's 100% tariff hike on Colombian products by imposing the same on over 70 Ecuadorian tariff subheadings. Trade Minister Diana Morales amended Decree 170 after unsuccessful diplomatic efforts. Colombian exports to Ecuador dropped 35% in February to US$109.3 million.

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In the latest escalation of the Colombia-Ecuador trade dispute—following initial 30% tariffs in February—Ecuador's 100% tariff on Colombian products took effect May 1, after Colombia imposed 35%, 50%, and 75% tariffs on 190 Ecuadorian products. Border business groups report trade collapse and smuggling risks amid narcotrafficking accusations.

Brazil's Senate approved the EU-Mercosul free trade agreement on Wednesday (4), completing congressional proceedings and sending the text for presidential sanction. The treaty is expected to take provisional effect in May after notification to the EU. Negotiated since 1999, it links markets with a combined GDP of $22 trillion and will eliminate tariffs on 91% of bilateral trade.

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China's embassy in Colombia responded to the government's 25% tariffs on steel imports from countries without a free trade agreement, denying unfair competition against the local steel industry. It emphasized that Chinese products are of good quality and competitive prices, accounting for less than 0.3% of total imports in 2025. It warned that restrictions would raise costs in other sectors and harm employment.

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