Andean Community orders Colombia and Ecuador to end tariff war within 10 days
Primary region South America
Tags Trade · Economy · Diplomacy
Regions South America
The Andean Community (CAN) ruled on May 8 that reciprocal tariffs imposed by Colombia and Ecuador violate the Cartagena Agreement's free trade program, giving both nations 10 business days to withdraw the measures. Ecuador's President Noboa began the dispute in January 2026, raising tariffs to 100% on Colombian imports, citing insufficient anti-drug-trafficking efforts and trade deficits. Colombia's President Petro responded with retaliatory tariffs up to 75% on approximately 190 products and suspended electricity exports. Bilateral losses exceed $340 million with trade down over 70%, affecting approximately 4,600 SMEs. Ecuador announced a planned reduction to 75% starting June 1.
Strategic interpretation
The CAN ruling tests the bloc's enforcement capacity and the willingness of both governments to comply. The trade war's rapid escalation — from 30% to 100% tariffs in months — reflects how drug trafficking and border security disputes can quickly overwhelm regional trade frameworks.