Itongadol.- In move to decrease Israeli dependency on Europe, government approves 3-year, NIS 50 million plan to strengthen economic ties with Costa Rica, Columbia, Mexico, Chile and Peru.
The government on Sunday approved a three-year NIS 50 million plan to strengthen its economic ties with at least five Latin American countries to help Israel decrease its dependency on Europe as the primary trading partner.
The plan focuses on Costa Rica and the four countries that make up the Pacific Alliance. These are Columbia, Mexico, Chile and Peru.
These five countries have a combined GDP of over $3 trillion and constitutes 40% of Latin America’s GDP, according to the Prime Minister’s Office.
“We are making a very concentrated and focused effort to vary our markets, from our previous dependence on the European market, to the growing Asian and Latin American markets, in which Israel needs to take a small market share and bring about growth, employment and social welfare in the State of Israel,” Netanyahu said at the start of Sunday’s weekly cabinet meeting.
“This is a strategic and – I think – a very promising effort. It has already begun to show results and will continue to do so. I would like all ministers, each in his or her own field, to join this important effort,” Netanyahu said.
Israel wants to expand both that amount and the number of businesses that export to Latin American. At present 10 exporters account for almost 50% of the total exports to the region, according to the PMO.
The Pacific Alliance constitutes the sixth largest economy in the world, the PMO said. It added that 26% of foreign investment in Latin America, over $70 billion, goes to those countries.
The average growth of its member states is 5% and imports are expected to grow by 6% per annum, the PMO said.
Israeli technology as well as its expertise in infrastructures, agriculture and science is in high demand in Latin America, the PMO said.