Guatemala and Israel sign Free Trade Agreement

By Mayora IP

After completing the negotiation process, Guatemala and Israel signed a Free Trade Agreement (FTA) focused on the commercialization of goods and mutual tariff reductions, with the aim of expanding bilateral trade. The agreement also includes aspects concerning customs authorities as well as areas for future cooperation.

With the signing of this agreement, Guatemala joins the list of Latin American nations with which Israel has signed a Free Trade Agreement. This list includes Mexico, the Mercosur countries (Argentina, Brazil, Uruguay and Paraguay), Panama and Colombia. These free trade agreements remove existing trade barriers on the continent and allow Guatemalan companies to expand their activity in Israel.

In 2021, the volume of trade between Israel and Guatemala reached approximately USD 40 million. Compared to 2020, this represents an increase of approximately 11% in trade volume between the two countries. About 77% of the trade is the import of Israeli goods, while 23% represents the export of goods from Guatemala to Israel. The main Israeli export sectors to Guatemala are rubber and plastic (30%), chemicals and chemical industrial products (22%), machines, electrical and mechanical machinery (20%), fresh agricultural products and food products (11%). Israel's main import item from Guatemala is fresh agricultural products and food products, which represent approximately 93% of all imports.