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BOGOTA/QUITO, Jan 22 (Reuters) – Colombia will suspend electricity sales to Ecuador and impose a 30% tariff on 20 products from its neighbor, it said on Thursday, in an escalating dispute over trade and the fight against drug trafficking.
The move came a day after Ecuador’s President Daniel Noboa said his government would impose a 30% “security charge” on goods from Colombia, starting on February 1, citing a trade deficit and a lack of cooperation on fighting drug trafficking.
Colombia, which has repeatedly denied accusations it is not doing enough to tackle drug smuggling, is an important exporter of power to its South American neighbor. Noboa’s government later said the measure included exceptions for the sale of electricity and oil logistics services.
In response to Bogota’s tariff announcement on Thursday, Ecuador’s energy minister said Colombian crude being transported on the OCP pipeline – Ecuador’s second-largest – would have “the reciprocity given in the case of electricity”. She gave no further details on what that would mean in practice.
Ecuador’s trade deficit with Colombia totaled $838 million in the first 10 months of last year, according to Ecuador’s central bank.
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Sean Hocking
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