Ecuador’s Tariff Announcement Amidst Political Turmoil and Violence

Ecuadorian President Daniel Noboa announced a 27% tariff on Mexican imports amidst a diplomatic crisis, an action criticized by economists and seen as a political move as he prepares for re-election. With Ecuador experiencing significant violence and an economic downturn, Noboa’s campaign faces scrutiny regarding his ability to resolve ongoing crises.

On February 3, Ecuadorian President Daniel Noboa unexpectedly announced a 27% tariff on imports from Mexico during a time of diplomatic tensions between the two nations. Mexican President Claudia Sheinbaum acknowledged the situation but remarked that Ecuador constitutes a mere 0.4% of Mexico’s foreign trade, indicating minimal impact. Economists are puzzled by Noboa’s decision, especially since Ecuador primarily imports medicines from Mexico, raising questions about potential political motivations behind the tariff.

The announcement of tariffs coincides with a precarious political landscape in Ecuador, where President Noboa is facing re-election on February 9, 2024, after just 15 months in office. His administration has been marred by violence, particularly following the assassination of presidential candidate Fernando Villavicencio and ongoing security issues that have plagued the country for a significant duration. The economic challenges, alongside an energy crisis, contribute to a complexity in addressing national issues promptly. Noboa’s strategy may be aimed at building a strongman image in a difficult political climate.

President Daniel Noboa’s imposition of tariffs on Mexican imports serves to highlight his effort to bolster domestic image amid ongoing crises. While the tariff decision appears politically motivated, the actual economic ramifications seem minimal due to the limited trade volume between the countries. Noboa’s campaign for re-election unfolds against a backdrop of violence and security turmoil, raising questions about his ability to deliver on promises within his short term in office.

Original Source: www.lemonde.fr