Colombia Resumes Energy Exports to Ecuador After Trade Dispute Over Tariffs

Colombia has restarted energy sales to Ecuador, ending a suspension that began in January. The suspension was Colombia's response to tariffs imposed by Ecuador's President Daniel Noboa, which sparked a trade war that officially concluded in June. The Ministry of Environment and Energy of Ecuador announced the resumption of international electricity transactions, stating that Colombian authorities had authorized the mechanism's reinstatement. For the current day, Ecuador plans to import 288 megawatts of energy, accounting for approximately 6.2% of its daily demand. The ministry highlighted that these transactions are occurring under more competitive conditions, with the average import price at $0.33 per kilowatt-hour. This price is about 67% lower than previous operations, which reached $0.99 per kilowatt-hour. Colombian Minister of Energy Edwin Palma had previously indicated on social media that the government would "extend a hand to the brotherly Ecuadorian people" by resuming energy exports. He also noted that mechanisms were activated for export contracts between companies in both nations' electricity sectors, a move unprecedented in 23 years of transactions. The trade war between Ecuador and Colombia, which lasted from February to June, was initiated by Noboa to pressure Colombia to increase border surveillance, citing concerns that Ecuador's criminal violence was fueled by cocaine trafficking from the neighboring country. The conflict escalated with tariffs of up to 100% and other measures, such as Colombia suspending energy sales and Ecuador increasing transit fees for Colombian oil. The dispute was resolved after intervention from the Andean Community (CAN), though Noboa also attributed the resolution to an agreement with a presidential candidate.