Feb 19 • 22:00 UTC 🇪🇨 Ecuador El Universo (ES)

Fedexpor: Colombia quotes Chinese, Brazilian, and Mexican companies for the substitution of Ecuadorian products

The Ecuadorian export sector urges a swift resolution to the trade conflict with Colombia, highlighting the negative impacts on both countries' supply chains and businesses.

Ecuador's export sector is calling for an urgent resolution to the ongoing trade conflict with Colombia, as the delays in addressing complaints raised before the Andean Community's General Secretariat are beginning to show adverse effects. Xavier Rosero, the executive president of the Ecuadorian Federation of Exporters (Fedexpor), emphasizes that while the overall export numbers to Colombia may not seem affected yet, the interconnections and dependencies between companies from both countries are taking a hit. These businesses rely on each other not only for local trade but also for supplying third-party markets.

Rosero pointed out that Colombia has announced the imposition of a 30% tariff on 73 categories of Ecuadorian products, which is expected to have a significant impact on various supply chains. Among these products are palm oil derivatives, beans, waterproof footwear, sunflower oil, and cocoa. The potential repercussions of these tariffs extend beyond immediate trade concerns, threatening to disrupt established supply networks and jeopardizing the livelihoods of workers in both nations.

Given the growing reliance on imports from companies in China, Brazil, and Mexico as potential substitutes for Ecuadorian products, rapid action and negotiation between the two nations are essential. If not addressed promptly, this conflict could escalate and lead to further economic challenges, emphasizing the interconnected nature of trade markets in the Andean region and the dire need for cooperative solutions to avoid long-term damage to bilateral relations.

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