Fabricato to maintain operations in Ecuador and US despite adjustments

Gustavo Lenis, president of Fabricato, stated at Colombiatex that the company will continue its operations in Ecuador and the United States, despite adjustments to its production structure, including the closure of its traditional spinning mill.

Fabricato, one of Colombia's leading textile companies, faces international market challenges but plans to sustain its presence in Ecuador and the United States. Gustavo Lenis, the company's president, explained at Colombiatex that the closure of the traditional spinning mill stems from lost competitiveness against imports, particularly from Asia, without abandoning the textile sector or external markets.

In Ecuador, a 30% tariff on Colombian fabrics complicates exports. Lenis stated: “With Ecuador's measure, it will be very difficult for us to sell a meter of fabric,” though the company will assess conditions to maintain operations there. For the United States, the 10% tariff and the USMCA rule of origin require Colombian or US yarn, making imported yarn more expensive. Despite a low dollar and high internal costs, Lenis stressed that this market remains strategic due to its size and proximity.

Additionally, Fabricato closed its denim plant, which accounted for 40% of production and sales, due to unfair competition from imports and smuggling. However, the company ended 2025 with positive results by refocusing on other lines. Its exports also target Central America, Mexico, Brazil, and the Caribbean through partnerships with garment makers. Lenis summarized: “Businesses are long-term and one must adapt” to an increasingly demanding environment.

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Dramatic border scene of Colombian officials imposing 30% tariffs on halted Ecuadorian trucks amid trade retaliation, with flags, cargo, and power lines.
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Colombia imposes 30% tariffs on Ecuadorian products amid trade tensions

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Ecuador imposed a 30% tariff on Colombian imports due to border security concerns, prompting Colombia to retaliate with similar measures, including tariffs on 23 Ecuadorian tariff items and a temporary suspension of electricity exports. This escalation impacts bilateral trade worth billions of dollars and endangers jobs in sectors like agriculture and manufacturing. Business groups urge restoring diplomatic dialogue to prevent further economic fallout.

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Ecuador's President Daniel Noboa announced a 30% security tariff on imports from Colombia, effective February 1, 2026, citing a lack of cooperation in border control against narcotrafficking and illegal mining. The measure has drawn immediate backlash from Colombian business groups and the government, who view it as a breach of the Andean Community of Nations (CAN) agreements. It is expected to significantly impact bilateral trade, worth billions of dollars annually.

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