The free trade agreement between Israel and Guatemala has officially come into effect today after Minister of Finance Bezalel Smotrich signed the agreement. Under this agreement, Guatemala will reduce customs duties on Israeli food and agricultural products, with complete exemptions for plants, olive oil, and matza, as well as reduced duties on seeds, nuts, nut products, halva, and wine. In return, Israel will also reduce duties and open up to imports of products from Guatemala, including agricultural products such as meat, flowers, decorative plants, nuts, and vegetables.
Guatemala will also cancel or gradually reduce duties on Israeli industrial products such as drugs, cosmetics, plastics, ceramics, glass, jewelry, diamonds, iron and steel, electronic machines and components, and medical equipment. Similarly, Israel has abolished duties on bananas, spices, forest fruits, and halva, as well as on industrial products like plastic and rubber products, ceramics, electronic machines and components, and jewelry.
Guatemala now joins the list of Latin American countries that have free trade agreements with Israel, including Mexico, the Mercosur countries (Brazil, Argentina, Uruguay, and Paraguay), Panama, and Colombia. Guatemala has long been a friendly country towards Israel, being one of the first to move its embassy to Jerusalem.
Guatemala’s largest economy in Central America, with a population of 17 million and a GDP of $95 billion in 2022 according to the World Bank. Despite its economic strength, the country faces challenges such as high poverty rates, a significant black economy, and a high rate of emigration. The country’s new government, led by President Bernardo Arévalo, has shown support for Israel, with the President having studied at the Hebrew University of Jerusalem.
This article was published by Globes, Israel business news – en.globes.co.il – on February 29, 2024.
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