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On February 3, Ecuador’s President Daniel Noboa announced the implementation of a 27% tariff on all products imported from Mexico. Combined with the recent attack on the Mexican embassy in Ecuador, trade relations between these two countries have only grown more tense.
Why Did Ecuador Impose Tariffs on Mexico?
This measure stems from Ecuador’s interest in signing a Free Trade Agreement with Mexico to benefit its economy.
Additionally, the tariff aims to promote Ecuadorian industries, which risk being displaced due to the country’s unfavorable trade balance with Mexico, as Ecuador imports more than it exports.
What Is the Trade Situation Between Mexico and Ecuador?
According to data from Banxico, in 2023, Mexico’s exports to Ecuador reached $595 million.
Meanwhile, imports from Ecuador totaled $228 million, resulting in a trade surplus of $367 million in Mexico’s favor.
Top Products Mexico Exports to Ecuador
According to Data México, these are the top 10 products Mexico exports to Ecuador:
- Packaged medicines
- Trucks and tractors
- Light automobiles
- Monitors and projectors
- Malt extract
- Corn
- Water and processed beverages
- Iron tubes and pipes
- Gypsum-based products
- Perfumes and cosmetics
These are the products now affected by the tariffs recently imposed by President Noboa.
Despite the variety of exported goods, shipments from Mexico to Ecuador account for only 0.1% of Mexico’s total exports.
Top Imports from Ecuador to Mexico
- Confectionery products without cocoa
- White chocolate
- Fish preparations and preserves
- Particle boards
- Glues and adhesives
- Engine parts
- Plates and sheets
- Fruits
- Safety glass
- Wood-based products
It is worth noting that Ecuador and Mexico have long attempted to negotiate a Free Trade Agreement. However, talks stalled during Mexico’s previous administration due to the Mexican government’s refusal to include Andean shrimp and bananas in the deal.
Given the current political and trade tensions, as well as the stance of both governments, resuming negotiations to finalize this agreement seems increasingly unlikely.
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