Ecuador President Daniel Noboa announced on Monday the imposition of a 27% tax on products imported from Mexico, a measure that took the commercial sectors of both countries by surprise. According to the president, the decision “reaffirms” his government’s stance on advancing toward a Free Trade Agreement (FTA) with Mexico, albeit under conditions that, in his view, protect Ecuador from “abuses.” The statement, made through his account on X, was accompanied by an image of the non-oil trade balance, which recorded a deficit of $218 million for 2024. “The New Ecuador has always been open to trade integration, but not when there is abuse,” Noboa wrote.
Como demostramos estos días, el Nuevo Ecuador siempre ha estado abierto a la integración comercial, pero no cuando hay abuso.
Ratificamos nuestra postura de firmar un Tratado de Libre Comercio con México. Pero, hasta que eso suceda y sea una realidad, vamos a aplicar un arancel… pic.twitter.com/mqezXjityM
— Daniel Noboa Azin (@DanielNoboaOk) February 3, 2025
This announcement comes amid a delicate international context, marked by economic tensions between Mexico and the United States, whose relationship faces uncertainty following Donald Trump’s recent inauguration. On Monday, Trump temporarily suspended a similar 25% tax on Mexican products after a conversation with Mexico’s President Claudia Sheinbaum. This decision comes in an even more complex scenario: the diplomatic rupture between Mexico and Ecuador, following the assault on the Mexican embassy in Quito in April 2024, when Noboa authorized a police raid on the diplomatic mission to arrest former Vice President Jorge Glas, who had been granted asylum there.
According to Noboa, the tariff imposition is intended to protect local industry. However, analysts warn of potential repercussions for bilateral trade. In 2024, Mexico exported goods worth $446 million to Ecuador, representing less than 1% of its total exports. Among the most significant products Mexico exports to Ecuador are pharmaceuticals, whose prices would increase significantly due to the new tariff.
