Ecuador’s President Daniel Noboa has announced a significant trade hike on Mexican imports, imposing a 27% tariff to ensure fair treatment of Ecuadorian producers. This move comes amidst escalating tensions between the two nations and follows a complex history of diplomatic relations.
Ecuador will apply a 27% tariff on Mexican goods to ensure fair treatment of Ecuadorian producers, President Daniel Noboa announced on Monday. The decision comes after the president expressed his willingness to sign a free trade deal with Mexico but emphasized that there must be no abuse.
In 2023, Ecuador imported $541 million worth of goods from Mexico, with ‘medication’ being the largest single import at 12.6% of total Mexican exports to Ecuador. However, despite this significant trade volume, Ecuador accounts for less than 0.1% of the value of Mexico’s exports last year.
Tensions between the two countries have been escalating, particularly after the Ecuadorean government broke off diplomatic relations with Mexico in 2023 following a raid on the Mexican embassy in Quito to arrest ‘Jorge Glas,’ a former Ecuadorean vice president. The incident highlighted the complex and often tense relationship between the two nations.
The diplomatic relationship between Mexico and Ecuador began in 1831, with the establishment of formal ties.
Both countries are members of various regional organizations, including the Organization of American States (OAS) and the Union of South American Nations (UNASUR).
Trade agreements have facilitated economic cooperation, with Mexico being Ecuador's second-largest trading partner.
Cultural exchanges and tourism also contribute to the strengthening of bilateral relations between Mexico and Ecuador.
The announcement by President Noboa comes after US President ‘Donald Trump‘ paused his threat of 25% tariffs on all imports from Mexico following a conversation with Mexican President ‘Claudia Sheinbaum.’ This development may have contributed to Ecuador’s decision to impose its own tariff on Mexican goods, as the country seeks to protect its domestic producers.
As the youngest president in Ecuador’s history, Daniel Noboa has been at the forefront of an uncompromising agenda aimed at tackling rampant crime. He has declared ‘war’ on over 20 criminal gangs and pledged to rein in corruption. The imposition of a tariff on Mexican goods is seen as part of this broader effort to promote fair treatment for Ecuadorean producers.
Daniel Noboa is an Ecuadorian businessman and politician.
He is a member of the National Assembly of Ecuador, representing the province of Guayas.
Noboa comes from a prominent business family in Ecuador and has been involved in various sectors including agriculture, finance, and energy.
His family's conglomerate, Noboa Group, is one of the largest private companies in Ecuador.
