Israel-Guatemala free trade pact comes into force

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The free commerce settlement between Israel and Guatemala got here into drive right now after being signed by Minister of Finance Bezalel Smotrich. Guatemala will cut back customs duties on Israeli meals and agricultural merchandise, with a full exemption for vegetation, olive oil, and matza, and lowered duties on seeds, nuts, nut merchandise, halva, and wine. Guatemala will cancel or regularly cut back duties on Israeli industrial merchandise resembling medicine, cosmetics, plastics, ceramics, glass, jewellery and diamonds, iron and metal, digital machines and parts, and medical gear.

For its half, Israel is decreasing duties and opening as much as imports of merchandise from Guatemala, amongst them agricultural merchandise resembling meat, flowers and ornamental vegetation, nuts, and greens. Duties have been abolished altogether on bananas, spices, forest fruits, and halva, and on industrial merchandise together with plastic and rubber merchandise, ceramics, digital machines and parts, and jewellery.

Guatemala thus joins the checklist of Latin American international locations which have free commerce agreements with Israel: Mexico, the Mercosur international locations (Brazil, Argentina, Uruguay, and Paraguay), Panama, and Colombia. Even beforehand, Guatemala was for years one of many international locations most pleasant to Israel, and it was one of many first to maneuver its embassy to Jerusalem.

In October, Guatemala’s earlier international minister, Mario Bucaro, expressed unreserved help for Israel on the UN Common Meeting. Since January 15, a brand new authorities has been in energy, headed by President Bernardo Arévalo, who studied on the Hebrew College of Jerusalem whereas his father was Guatemalan ambassador to Israel.

Guatemala has the biggest economic system in Central America when it comes to inhabitants – 17 million – and GDP – $95 billion in 2022 in accordance with the World Financial institution, with common annual development over the previous decade of three.5%. However, the nation has a excessive charge of poverty (55.2%) and a black economic system estimated to be 49% of GDP, with a excessive charge of emigration and intensive dependence of households on switch funds.

Printed by Globes, Israel enterprise information – en.globes.co.il – on February 29, 2024.

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