The high price of the dollar in Colombia amazes Ecuadorians, who cross the border in search of the best prices. The difference is noticed above all in food and household appliances and is already alarming Ecuadorian traders.
Hundreds of Ecuadorian shoppers have moved from the Ecuadorian city of Tulcán to the shopping centers of the Colombian cities of Ipiales and Pasto, which are 12 and 94 kilometers away, respectively.
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Motivated by the rise of the dollar in Colombia, where it reached the $5,000 barrier, Ecuadorians cross the border in search of better prices and take advantage of the fact that, since it is a ‘dollarized’ economy, they receive their income. in United States currency.
The biggest price differences can be seen in electrical appliances – even of the same brands – and food, which are offered at a more affordable price on the Colombian side.
The trend has spread so much that the mode of purchase is no longer traditional, in person, and purchase procedures were established where Ecuadorians can carry out international transactions and Colombian sellers are responsible for bypassing border points to bring them orders.
According to local media outlet El Comercio, Ecuadorian cross-border vendors are already suffering the consequences of this situation with declining sales and are seeking measures from the national and local government to prevent business closures.
For the president of the Tulcan Chamber of Commerce, Alexander Chamorro, there are several factors that contribute to the continuation of this practice, among them, the devaluation of the Colombian currency and the impact of smuggling.
In the face of the exodus of customers to Colombia, Ecuadorian merchants try to defend their services, stressing that the items offered by the Ecuadorian side are strictly registered and offered according to legal processes. In addition, the products have the corresponding technical service.
Chamorro warned, however, that the closure of businesses on the Ecuadorian border is not a new phenomenon. He explained that of the total number of new ventures, 90% close after the fifth year of work, while only 10% remain.
With information from Sputnik
