By: Arye Green
The global trade war continues to escalate as a free trade area agreement between the State of Israel and the Republic of Panama went into effect over the weekend, lowering tariffs for importers in both countries in a variety of fields.
The agreement was signed by the Israeli Minister of Economy and Industry Eli Cohen and Panama’s Minister of Commerce and Industry Augusto Moreno in May.
The agreement will give the two countries preferential conditions for the export of products and lower barriers to mutual trade, and is intended to facilitate a positive environment for trade and investment between the two countries, and promote economic development and cooperation.
Under the agreement, tariffs on imports into Israel will be lowered by 10% in various fields such as chemicals, fruits and vegetables and processed food.
Israeli exporters will enjoy a similar decrease in tariffs on chemicals, vehicles and medical supplies, and a 15% decrease in fruits and vegetables, fish and processed food.
According to Israel’s Central Bureau of Statistics (CBS), in 2018, bilateral trade between the countries totaled approximately $ 19 million.
Israeli exported to Panama a total of $ 17.3 million worth of goods and services, mainly in the fields of machinery, metals, optics and chemicals. Panama exported about $ 1.8 million worth of goods and services consisting mainly of agricultural goods, food and machinery.
Minister of Economy and Industry Cohen said that his ministry is focusing especially on developing economies, such as that of Panama, due to their exceptional potential growth.
“The Ministry of Economy and Industry, through the Foreign Trade Administration, continues to strengthen Israel’s economic ties with the countries of the world, with emphasis on developing economies with great potential for growth. This is a significant strengthening of Israel’s foothold in Latin America, which is in line with the Ministry of Economy and Industry’s policy of opening new options to Israeli industry while providing a competitive advantage to Israeli manufacturers,” he said.
Israeli exports increased by almost 70% in the past decade, and 2019 will break another record in Israeli export which is expected to reach $114 billion, an increase of 4.5% compared to the previous year’s figures, according to a recent report by Israel’s Foreign Trade Administration (FTA).
In the past decade, seven free trade agreements have been signed or upgraded with countries such as South Korea, Ukraine, Colombia and Canada. This doubles the seven agreements that were in force in 2009.
In addition, the Administration is currently negotiating with a variety of other significant markets such as China, Vietnam, Russia, Belarus, Kazakhstan, Kyrgyzstan, Armenia and Guatemala.
(TPS)
