Ecuador will also impose tariffs on imports from Mexico

The president of Ecuador, Daniel Noboa, announced on Monday the imposition of a 27% tariff on products imported from Mexico, in a context of growing trade tensions with the United States on the part of the Aztec nation.

This measure responds to the lack of a trade agreement with Mexico, which had been promoted by the previous government in Ecuador, and adds to the complications of the bilateral relationship between both countries.

Ecuador had been negotiating a treaty with Mexico to join the Pacific Alliance, but the talks, which had advanced up to 99%, were suspended by decision of the government of former Mexican president Andrés Manuel López Obrador.

Noboa's announcement comes at a critical moment, as on the same day Mexico managed to postpone for a month the application of 25% tariffs by the United States, after Mexico's president, Claudia Sheinbaum, reached an agreement with Trump to temporarily halt the measure.

This shift in Mexico's trade policy, coupled with the tensions that persist between Ecuador and Mexico, reflects the delicate balance of trade relations that Latin American countries must manage.

Relations between Ecuador and Mexico deteriorated last year, when Ecuadorian police stormed the Mexican embassy in Quito to arrest former vice president Jorge Glas, who was taking refuge there to avoid being tried for a corruption case.

This incident exacerbated the diplomatic tensions between both countries, which were already marked by the failed negotiations of a trade agreement.

On his X account, Noboa justified the imposition of the tariff by stating that Ecuador has always been open to trade integration, but only under conditions of "fair treatment" and against what he considered as "abuse" in Mexico's demands during previous negotiations.

Additionally, the Ecuadorian president reiterated his willingness to sign a Free Trade Agreement (FTA) with Mexico, but noted that, until such an agreement is finalized, the 27% tariff would be applied to products imported from that country.

The announcement of the imposition of this tariff is also based on statistics showing a trade deficit for Ecuador with Mexico in recent years.

According to figures from the Central Bank of Ecuador, between January and November of last year, Ecuador imported Mexican products worth 573 million dollars, while Ecuadorian exports to Mexico were only 337 million dollars, resulting in a negative balance of 26 million dollars.

This highlights the trade inequality between both countries, which, according to Noboa, justifies the need to promote local industry and protect Ecuadorian producers.

Ecuador exports around 320 products to Mexico, including cocoa, palm oil, processed fish, non-electric machinery, sweets and chocolate, and iron and steel pipes and profiles.

Meanwhile, Ecuador mainly imports from Mexico mechanical devices, pharmaceuticals, machines, vehicles, electrical appliances, and cosmetics.

This trade structure has left Ecuador with a persistent deficit in its trade balance with Mexico, which reinforces Noboa's stance on the need for a fairer deal for Ecuadorian producers.

The decision to impose a 27% tariff also seeks to promote Ecuador's internal production and reduce dependence on imports. In this sense, the Ecuadorian government hopes that the measure will boost the growth of local industries and encourage employment in key sectors of the economy.

Although the Ecuadorian government is willing to sign a Free Trade Agreement with Mexico in the future, in the meantime, the measure seeks to balance the trade balance and protect the local industry.