Merchants in Tulcán, a city on the northern border of Ecuador, are experiencing a dramatic decline in the flow of goods from Colombia, with a reported 80% drop in imports. This decline has been attributed to a 30% security tax imposed by the Ecuadorian government on Colombian goods, which came into effect on February 1. The president of the Tulcán Chamber of Commerce, Nelson Cano, has indicated that this has severely affected trade and the entrepreneurial activities that usually thrive in the border region.

Adding to the difficulties, on February 24, Colombia retaliated by imposing a 30% tariff on goods coming into the country from Ecuador, which has further exacerbated the already strained trade dynamics. Cano highlighted that the Rumichaca International Bridge, traditionally a bustling gateway for trade between the two nations, has seen its economic activity effectively stagnate. The decline in trade not only diminishes opportunities for merchants but also impacts local consumers who rely on cross-border goods for various needs.

In a recent announcement made by the Ecuadorian government, it was declared that the security tax would increase from 30% to 50% starting March 1, a move that Cano predicts will deliver a final blow to cross-border commerce. He fears that such an extreme increase will put merchants in a precarious position and further limit the already minimal trade flow, creating a ripple effect on both sides of the border and urging for a reconsideration of these policies to restore economic vitality in the region.