The Free Trade Agreement (FTA) between Guatemala and Israel is the first commercial instrument that the current government authorities put into effect, after closing the process of rounds and negotiations carried out previously and the due ratification by the legislative bodies. from each country: September 8, 2022 for Israel and November 29, 2023 for Guatemala.
The Ministry of Foreign Affairs (Minex) published this day in the Central American Newspaper the content of the agreement, while the Ministry of Economy (Mineco) published the list of tariffs applicable for the import of goods that will enjoy preferential measures.
Balance of trade
According to foreign trade statistics, there is a long history of commercial exchange between both countries, but the balance favors Israel, which means that more is bought from it than sold to it.
Statistics from the Bank of Guatemala (Banguat) indicate that, in 2021, Guatemala’s exports to Israel totaled US$21.9 million; in 2022, US$18.3 million; and in 2023, US$11.3 million. Meanwhile, imports totaled US$41 million in 2021; US$37.5 million in 2022; and US$30.9 million in 2023.
The Israeli ambassador to Guatemala Yiftah Curiel explained that “it is a very good instrument, as well as the relationship with the new government of Guatemala. There are challenges in which Israel can intervene in a very positive way, ranging from the issue of agriculture and water improvements, to security issues. There are already many Israeli companies that are already involved and others will be involved next year. Furthermore, it seems to me that the FTA is going to boost trade,” he noted.
For Guatemalan businessmen, opportunities are open for exporters of coffee, cardamom and sugar, among others, as it will be easier for them to reach the Israeli market. “We are very happy, optimistic and positive,” said the diplomat.
On the other hand, he reported that future trade missions and events are being scheduled, together with the Guatemala-Israel Chamber of Commerce, to make business opportunities known to entrepreneurs, especially in the agricultural sector.
Double the exchange
At the beginning of the year, Jonathan Peled, undersecretary for Latin America and the Caribbean of the Israeli Ministry of Foreign Affairs, was in Guatemala and stated that doubling the scale of trade, business, investment, tourism and cooperation is one of the short-term objectives of the referred FTA, as well as strengthening relations with the new Government authorities.
He also urged the economic agents of both countries to seek business opportunities, since this agreement brings opportunities for the exchange of goods and services, mutual investment and a boost to technology and innovation.
Summary
- Israel and Guatemala have already ratified the Free Trade Agreement (FTA) and it came into force on March 1.
- On December 13, it was published in the Central American Newspaper the FTA on the part of Guatemala, so the instrument will be launched.
- The trade balance of recent years favors Israel.
- As of December 2023, Guatemala has sold US$11.3 million to Israel, and of which US$7.7 million corresponds to cardamom. Meanwhile, Guatemala has bought US$30.9 million: plastic materials and their manufactures US$5.7 million; aluminum, US$4 million; insecticides, fungicides and disinfectants US$3.8 million, which are the most relevant, according to foreign trade figures.
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