Leaders in Nariño say 75% tariffs on Ecuador would encourage illegality
The tariff crisis between Colombia and Ecuador has escalated following the release of a new draft decree by the Ministry of Commerce, which seeks to raise tariffs on the neighboring country by up to 75%.
TL;DR
- Colombia's Ministry of Commerce proposed increasing tariffs on Ecuador by up to 75%.
- This proposed measure has caused concern among residents and businesses in Nariño.
- The tariffs could lead to increased illegal trade and a potential loss of approximately three thousand jobs.
- Nariño is heavily reliant on food imports from Ecuador, and high tariffs could cause inflation.
- Ecuador had previously announced a 100% tariff increase on Colombian goods starting May 1st.
- Both countries cite national security and combating drug trafficking as reasons for their tariff actions.