Ecuador imposes 27% tariff on Mexican goods

BOGOTA, Colombia

Ecuadorian President Daniel Noboa announced on Monday that the country will impose a 27% tariff on all imported Mexican products.

"We reaffirm our commitment to signing a Free Trade Agreement with Mexico. However, until this agreement is finalized and implemented, we will apply a 27% tariff to imported products to promote domestic industry and ensure fair treatment for our producers," Noboa stated on X.

Ecuador and Mexico severed diplomatic relations in April 2024 after Ecuadorian police, acting on Noboa's orders, forcibly entered the Mexican Embassy in Quito to apprehend former Vice President Jorge Glas, who had sought political asylum there. Glas was wanted by Ecuadorian authorities on corruption charges.

Mexican investment in Ecuador significantly declined following the severing of diplomatic ties.

Upon assuming office in June 2024, Mexican President Claudia Sheinbaum stated that Mexico would not pursue diplomatic solutions to the conflict with Ecuador unless the South American nation issued an apology and acknowledged Jorge Glas's right to asylum. Glas has remained imprisoned since the assault on the Mexican embassy.

“(We will continue) everything that President Lopez Obrador has filed in international instances for the violation of the sovereignty of our country in the case of the Mexican Embassy in Ecuador,” Sheinbaum said in October.

Mexico filed a lawsuit against Ecuador with the International Court of Justice (ICJ) on April 11, alleging a violation of international law, which protects the inviolability of diplomatic missions. The ICJ rejected President Lopez Obrador's request.

The tariff measure announced by Noboa comes shortly after the US announced the imposition of 25% tariffs on imports from Mexico and Canada. However, Mexican President Sheinbaum announced on Monday that tariffs on Mexico would be temporarily suspended for one month.

On Sunday, Noboa announced the completion of negotiations for a bilateral trade agreement between Ecuador and Canada. According to a statement, the agreement aims to promote local job growth in sectors such as flowers, canned tuna, textiles, and auto parts.

Ecuadorian voters will head to the polls on Feb. 9 for the first round of general elections, in which Noboa is seeking re-election.