CAN Resolution 2582 Orders Ecuador-Colombia Tariff Withdrawal Within 10 Business Days; Colombian Exports Already Down 60%

The Andean Community of Nations (CAN) General Secretariat issued Resolution No. 2582 on May 7, 2026, ordering Ecuador and Colombia to withdraw their reciprocal tariffs within 10 business days or face further institutional action. The body determined that both countries' measures are "incompatible with the Cartagena Agreement" — the foundational treaty governing intra-Andean trade liberalization.

Tariff Escalation Timeline

Date	Ecuador Action	Colombia Response
Feb 1, 2026	30% "security tax" on Colombian imports	—
Through Apr 30	Raised to 50%	Retaliatory tariffs at 30%
May 1	Raised to 100%	Escalated to 75%
Jun 1 (upcoming)	Reduced to 75%	—

President Noboa framed the original tariff as a security measure, citing Colombia's border control failures. Colombia responded with graduated retaliation, though not uniformly across all product categories.

Trade Impact: January-March 2026

The bilateral trade data through Q1 2026 shows asymmetric damage:

Metric	Value	Change
Ecuador exports to Colombia	$145M	+4.5%
Ecuador imports from Colombia	$248M	-20.1%
Colombian exports to Ecuador (through March)	—	-60%
Energy sector exports	—	-77.1%
Sugar exports	—	-26% ($40M+ annual impact)

The most severe impact falls on Colombian exporters, with total shipments to Ecuador down 60% through March. Energy-sector trade has effectively collapsed, declining 77.1%. Sugar — a significant bilateral commodity at over $40 million annually — contracted 26%.

Industry Response

Business leaders on both sides of the border expressed skepticism that the CAN resolution or the reduction to 75% will restore normal trade conditions.

Xavier Rosero, Fedexpor (Ecuador's export federation): The reduction "won't meaningfully change bilateral trade conditions given the tariff remains prohibitively high."

Juan Carlos Navarro, Guayaquil Chamber of Industries (CIG): "This type of decisions shouldn't be temporary or political but part of stable, technical trade policy."

Javier Díaz, Analdex (Colombia's national exporters association): "With a 75% tariff, it's impossible to conduct commerce."

Miguel Ángel González, Guayaquil Chamber of Commerce: Some importers may delay purchases until June, though sectors dependent on continuous Colombian supply cannot pause operations.

What to Watch

• Compliance timeline. The 10-business-day deadline puts the drop-dead date around May 21. Whether both governments comply — or invoke national security exceptions — will determine whether the CAN process has teeth
• June 1 rate adjustment. Ecuador's reduction to 75% is already scheduled. Whether Colombia reciprocates or maintains current rates will set the tone for H2 2026
• Supply chain substitution. Three months of prohibitive tariffs may have permanently redirected some trade flows. Colombian suppliers who lost Ecuador market share may not return even if tariffs drop
• CAN enforcement mechanisms. The Andean Community's dispute resolution capacity is limited. If either country ignores the resolution, it tests the institutional framework that underpins Andean trade integration
• Sector-specific exemptions. Energy and sugar have been disproportionately affected. Watch for bilateral negotiations carving out sector-specific arrangements independent of the broader tariff framework

Sources: El Mercurio, Primicias, El Universo