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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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 Acoplásticos trade group celebrated Ecuador's government decision to eliminate the 100 % tax on imports from Colombia. The move restores normal bilateral trade conditions and enables recovery of some 170 million dollars in annual exports.

Сообщено ИИ

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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