Ecuador’s tariff cut and export decline strain border trade and producers

On 1 June, Ecuador eliminated tariffs on Colombian products to revive bilateral commerce, particularly in the border cities of Tulcán (Ecuador) and Ipiales (Colombia). Colombian authorities have not reciprocated, keeping tariffs on Ecuadorian goods, which local traders and transport workers say continues to depress cross‑border activity. Ecuadorian officials have urged Colombia to match the measure, warning that the asymmetry hurts families and businesses on both sides of the frontier.

At the same time, Ecuador’s non‑oil, non‑mining exports fell 4% in the first four months of 2026, reaching US$7.848 billion versus US$8.195 billion a year earlier. The decline was driven mainly by a sharp drop in cacao and related products, which fell from US$1.623 billion to US$0.668 billion. Gains in aquaculture, especially shrimp, and modest increases in banana and plantain exports could not offset the loss. The export mix shifted, with the aquaculture sector becoming the leading source of foreign‑exchange earnings.