Colombia-Ecuador trade war escalates
Colombia on Tuesday blasted Ecuador’s decision to hike up transportation fees for Colombian oil, calling the move an act of “aggression,” as a trade war between the two Andean nations intensifies.
Ecuador announced on Monday a tenfold increase in fees for Colombian companies using its oil pipelines, raising the rate from $3 to $30 per barrel. The move would make it harder for oil companies in Colombia to use a pipeline that takes oil from western Ecuador and southwestern Colombia to ports along the Pacific Ocean.
Power cutoff
One of the companies that will most likely be affected is Colombia’s state-run Ecopetrol, which uses the pipeline to move more than 12,000 barrels of oil per day.
Ecuador hiked its pipeline fees days after Colombia suspended electricity sales to its neighbor. The power cutoff was a major blow to Ecuador, which relies largely on hydroelectric power and suffered from serious power outages in 2024 following a spell of dry weather.
The trade war between the neighboring countries started last Thursday, when Ecuadorian President Daniel Noboa announced a 30-percent tariff on Colombian imports, which is set to start in February.
Noboa, a conservative who has sought to deepen ties with the Trump administration, has described the tariffs as a “security tax,” saying last week on social platform X that Colombia was not taking “firm actions” to fight drug cartels that operate along their shared border and send cocaine to Ecuador.
Noboa said the tariffs would be in place “until there is a true commitment” on behalf of Colombia to fight drug trafficking and illegal mining.
Security problems
Colombian officials have dismissed the accusations, noting that under the administration of Colombian President Gustavo Petro there have been record numbers of cocaine seizures. Colombia’s government responded to Noboa’s tariffs last week by imposing its own 30 percent tariffs on many Ecuadorian imports, including rice, sugar, and car tires. On Tuesday, Colombia’s Minister of Commerce said tariffs could be placed on other goods that still haven’t been hit.
In statement issued on Tuesday, Colombia’s Foreign Affairs Ministry said it would seek a meeting with its counterparts in Ecuador this week to assuage tensions and roll back tariffs.
“Colombia prioritizes dialogue and solutions that avoid impacting communities and businesses,” the statement read.
Trade between both countries was worth approximately $2.3 billion last year, according to Colombia’s statistics agency, with Colombia sending about $1.7 billion worth of goods to Ecuador, a nation that has about one third of Colombia’s population.
Noboa’s critics have said that the president is trying to find someone to blame for the nation’s security problems.
