Ecuador Imposes New Tariffs On Colombia, Peru

12/01/2015 12:00 - 521 Views

Ecuador's Ministry of Foreign Trade has confirmed new tariffs of 21 percent and 7 percent on imports from Colombia and Peru, which are intended to offset the impact on Ecuador of a stronger US dollar.

Ecuador, which uses the US currency, began applying the duties from January 5. The Ministry said the measure is intended to safeguard producers in Ecuador from Colombian and Peruvian imports, which are said to be entering Ecuador at below market prices.

According to the Ministry, the value of the Colombian peso has fallen 25 percent against the US dollar during the past six months, while the Peruvian sol has dropped 5.4 percent against the dollar.

Colombia and Peru have condemned Ecuador's decision to impose the duties, describing the move as protectionist. They have argued the duties go against the principles of the Andean Community (CAN), a customs union comprised of Bolivia, Colombia, Ecuador, and Peru.

Ecuador maintains that it is able to apply the tariffs in such circumstances under the terms of the CAN, but the country said it remains committed to seeking a resolution to the dispute through dialogue with Colombia and Peru. A meeting between Ecuadorian and Colombian officials is scheduled for January 14 to discuss the issue.

Source: Tax News