Noboa starts trade war with Colombia that could lead to electric blackouts for Ecuador

Colombia is firing back following President Daniel Noboa’s decision to impose a 30% tariff on Colombian imports for “lack of cooperation” in combatting drug trafficking at the border. For Ecuadorians, a trade war could mean a return to electric blackouts.

President Daniel Noboa

Wednesday morning, Noboa announced that Ecuador will impose a 30% tariff on Colombian imports beginning February 1 due to “lack of cooperation to combat drug trafficking and insecurity at the northern border.” He justified the tariffs, claiming Colombia was allowing drug traffickers and other criminals to move freely across the border and doing little to combat illegal mining in the region.

Within hours, Colombian President Gustavo Petro responded. “Colombia will counter President Noboa’s decision in accordance with the principles of reciprocity.” Included in the reciprocity is the cutoff of electricity sales to Ecuador.

In addition, Colombia is matching Noboa’s 30% tariff on imports from Ecuador.

Colombia’s Energy Minister Edwin Palma said he will order private Colombian companies to end sales of electricity to Ecuador effective January 22. “We reject the tariff measures imposed by Ecuador, which we consider economic aggression that breaks the principle of regional integration,” he said. “I am ordering the dismantling of agreements that allow Ecuador to buy energy directly from our power generation companies.”

If Palma follows through on the threat, it could lead to electricity shortages for Ecuador since the country imports as much as 10% of its power from Colombia. Last week, more than 6% of the country’s electricity was imported.

In a statement, the Colombian Ministry of Defense denied that there was a lack of cooperation between the two countries, pointing out what it called “successful missions” to arrest drug traffickers and seize cocaine. It cited a recent joint naval operation that resulted in the seizure of 2.2 tons of drugs in the Pacific Ocean.

In a post on X, Colombia Defense Minister Pedro Arnulfo said he was “shocked” by Noboa’s tariff announcement. “In my opinion, Colombia and Ecuador have maintained close and historic cooperation against drug trafficking, the results of which have benefitted both countries.”