+1 (520) 780-6269 investment@latamfdi.com

The Free Trade Agreement between Guatemala and Israel to enter into force

by | Feb 18, 2024

On March 4, 2023, the free trade agreement between Guatemala and Israel will enter into force, which is expected to double trade and investment between the two nations.

The trade pact was negotiated by the government of Alejandro Giammattei

As one of the notable achievements of the government of past President Alejandro Giammattei, as part of its General Government Policy 2020-2024, this past September 2023, the Minister of Foreign Affairs, Mario Búcaro, and the Vice Minister of Integration and Foreign Trade, María Luisa Flores, in representation of the Minister of Economy, Dr. Janio Rosales, signed with Israeli economic authorities the Free Trade Agreement between Guatemala and Israel, which further strengthens the commercial and friendship ties that already unite the two nations.

In addition to Minister Búcaro and Vice Minister Flores, the Minister of Economy and Industry of Israel, Mrs. Orna Barbivai, and representatives of various productive and business sectors of Guatemala and Israel participated in the ceremony.

The free trade agreement between Guatemala and Israel contains:

  • Increased market access
  • Favorable rules of origin
  • Streamlined customs procedures and trade facilitation
  • Business-friendly sanitary and phytosanitary measures
  • Decreased technical barriers to trade
  • Strengthened commercial defense
  • Expanded Intellectual property protection
  • Efficient agreement administration
  • Increased trade cooperation
  • Expanded customs cooperation and mutual assistance
  • More significant concessions on market access

Guatemala granted Israel access to the following agricultural products: seedlings, tomato powder, peanuts, olive oil, rapeseed oil, chocolates, bakery preparations (Matzá), prepared or preserved fruits and vegetables, almond paste, powders for baking and wines.

In industrial products, access was given to petroleum derivatives, perfumery and hygiene preparations, adhesives, agrochemical inputs, rubber manufactures, leather manufactures, miscellaneous manufactures, diamonds and precious stones, aluminum manufactures, agricultural instruments, laboratory apparatus, instruments musical instruments, wooden furniture, lighting devices, and toys.

Under the trade agreement between Guatemala and Israel, the latter country granted Guatemala access to the following agricultural products: beef, shrimp, flowers, fresh and frozen vegetables, frozen fruits, spices, soybean oil, sunflower oil, vegetable fats and oils, oil mixtures, confectionery goods, chocolates, bakery products, vegetable and fruit preparations including guacamole and ice cream.

In industrial products, Israel granted immediate (duty-free) access to all tariff sections of the industrial sector of chapters 25 to 97 of the Israeli Harmonized System.

Benefits expected from signing the TLC

A free trade agreement between Guatemala and Israel yields substantial economic advantages for both nations. Currently, bilateral trade between Guatemala and Israel stands at approximately $200 million annually, with Guatemala primarily exporting coffee, fruits, and vegetables to Israel. In contrast, Israel exports pharmaceuticals, technology, and machinery to Guatemala. Implementing the free trade agreement between Guatemala and Israel will eliminate tariff barriers, facilitating increased trade volumes and diversification of goods and services exchanged. This expansion in trade is poised to stimulate economic growth and job creation in both countries. Guatemala stands to benefit from access to advanced Israeli technology and pharmaceuticals, enhancing productivity and competitiveness in various sectors. Simultaneously, Israel gains access to high-quality Guatemalan agricultural products and can tap into Guatemala’s burgeoning consumer market. Consequently, the free trade agreement between Guatemala and Israel fosters mutual prosperity by leveraging each country’s comparative advantages, leading to sustainable economic development and job opportunities.

Additional important data

Negotiations of the free trade agreement between Guatemala and Israel began in July 2018 following the official visit of the President of Guatemala on the occasion of the transfer of the Guatemalan embassy to Jerusalem. Talks related to the accord concluded in April of 2023. To date, Guatemala has 13 trade agreements in force.

Since 2009, Guatemala has had an investment agreement with Israel that promotes and gives certainty to investments between both countries.

The FTA with Israel was signed in compliance with the General Government Policy 2020-2024, in agreement with the pillars of economy, competitiveness, and prosperity, which seeks among its strategic actions to generate instruments that promote the increase in Guatemalan exports to the world.

In conclusion, the Free Trade Agreement between Guatemala and Israel marks a significant milestone in strengthening economic ties and fostering mutual prosperity between the two nations. With comprehensive provisions covering market access, rules of origin, and trade cooperation, this agreement sets the stage for doubling trade and investment, unlocking new business opportunities, and enhancing competitiveness. By leveraging each other’s strengths and market potential, Guatemala and Israel stand poised to capitalize on a wide array of benefits, from expanded market access to technological innovation and job creation. This agreement underscores the importance of international cooperation and strategic partnerships in driving sustainable development and shared prosperity as a testament to the government’s commitment to promoting economic growth and prosperity.

Contact LATAM FDI to discuss your foreign direct investment plans in Latin America.

Data centers in Latin America are a great opportunity for economic growth

According to data from the consulting firm Research and Markets, the market for Latin American data centers is experiencing considerable growth. Brazil is by far the country that continues to lead the way.

The May Pact in Argentina establishes ten principles for a reformed institutional and economic order

The May Pact in Argentina, spearheaded by President Javier Milei, has garnered significant support from various sectors of society, including business chambers, financial institutions, and trade councils.

How the Canal benefits the economy of Panama

The Panama Canal is a testament to human ingenuity and engineering prowess. It transcends its role as a mere waterway to become a linchpin of global trade and a cornerstone of Panama’s economy.

Mercosur-EU Agreement: Balancing Progress and Political Dynamics

Mercosur and the European Union countries are preparing for a meeting at the end of April 2024 to preserve the progress made in recent rounds of negotiations for the long and complex free trade agreement they are considering.

Tax advantages in Brazil have been increased to attract more investment

Brazil, one of Latam’s first and most prominent markets for international investors, has decided to boost the tax advantages it offers companies. The Brazilian government intends to increase national and foreign capital capture by its economy.

Companies are interested in investing in the Interoceanic Corridor of the Isthmus of Tehuantepec project

The Tehuantepec Isthmus Corridor project, one of the most important works of the current Mexican federal administration, has aroused the interest of 90 companies from various sectors to invest and establish themselves. This

Invest in Peru: Key Variables for Success

Peru is a land of opportunity for business investors, boasting natural resources, a growing market, and a favorable regulatory environment. However, to make informed decisions to invest in Peru, it's essential to consider several significant variables that can...

Doing business in Uruguay: 9 Reasons to Invest

Foreign investors enjoy the same incentives as local investors when doing business in Uruguay. They are protected by a Law of National Interest that, from a tax point of view, puts foreign and domestic companies on equal terms.

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our LATAM FDI team.

You have Successfully Subscribed!