Feb. 23 (UPI) -- Nearly $273 million in annual Ecuadorian exports are at stake if a reciprocal 30% tariff announced by Ecuador and Colombia takes effect, according to the Ecuadorian Federation of Exporters, Fedexpor.
The trade group said 580 Ecuadorian companies export to Colombia and warned that for several of them, the impact of new tariffs could be devastating, as up to half of their revenue depends on that market.
Although the tariff has not been implemented, Fedexpor said uncertainty is already affecting business decisions. Colombian buyers are reluctant to close deals amid the possibility that the measure could made formal in the short term, local newspaper Primicias reported.
The government of President Daniel Noboa announced Jan. 21 that Ecuador would impose a 30% tariff, described as a "security fee," on imports from Colombia. Quito said the move responds to what it considers a lack of commitment by the government of President Gustavo Petro to border security.
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