06:45 AM
This weekend, President Gustavo Petro announced that his Government will suspend coal exports to Israelin retaliation to this country for its attacks on Gaza.
Among the first to react was Juan Camilo Nariño, president of the Colombian Mining Association (ACM), who reiterated thatColombia’s exports to Israel represent $650 billion annually and of those, close to $100 billion goes directly to the departments and municipalities.
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“In the midst of a panorama with fiscal difficulties due to lower collection and in which many municipalities have budgetary needs, Banning coal exports to that country is a measure that will mainly affect thousands of Colombians“, warned the union leader.
To these statements, the national leader responded and reproached the ACM that should understand that people’s lives, people’s rights, the fight against genocide can never be subordinated to business.
“If this is done with an issue like Israel, condemned by the United Nations as a murderer of children, what will happen in the territories of Colombia?” asked the president of Colombia.
The National Federation of Coal Producers (Fenalcarbón) also spoke out and considered that The proposal made by the National Government brings serious harm to Colombia, and in particular to the regions producing thermal coal destined for Israel (La Guajira and Cesar).
“This is a commercial measure that goes against the interests of the national industry, generating serious effects and uncertainty for the coal sectorits productive chain and the areas of influence,” said Carlos Cante, executive president of Fenalcarbón.
Until now, the draft decree prohibiting coal exports is known. But this union has already warned that Colombia will stop receiving foreign currency by about 470 million dollars on average per yearalso violating the business freedom of a particular economic sector, and legitimate trust.
Petro also responded to Fenalcarbón. He said that the same treaties The World Trade Organization determines that exports to a place with serious human rights violations can be suspended.
“It was done with South Africa, Why not where almost 16,000 children have been murdered? Are the owners of the coal plants that export Colombian nationals? Don’t they have ethical commitments in their own countries? What does Glencore think? What do Swiss citizens think?” asked the national leader.
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It must be remembered that the world demanded about 8.5 billion tons of coal in 2023 and 1.07 billion tons were moved through international trade. Colombia contributed 54.5 million tons, of which a little more than 5.5% went to Israel.
On the other hand, Colombia and Israel have had a Free Trade Agreement in force since 2020 where it is established that prohibitions or restrictions on the import or export of goods from the other country cannot be adopted or maintained.
Regarding this, Analdex, the Colombian foreign trade union, specified that, within the considerations of the draft decree that seeks to prohibit these external sales to Israel, there are that The measure does not comply with the constitutional mandate, nor does it develop a commercial policy reasoninstead resorts to a measure of a moral nature not regulated in Colombian legislation for these customs and foreign trade matters.
“The draft decree establishing a ban on coal exports to Israel, It is a violation of the Political Constitution and the National Development Plan, which is why it would be crossing these red lines. Due to the arguments presented and in accordance with the considerations of the bill that proposes the prohibition of exports to Israel, It is concluded that said measure does not comply with the constitutional mandate nor is it based on a commercial policy reason.“, indicated Javier Díaz Molina, president of Analdex.
In 2023, Colombia exported 447 million dollars in coal to Israel, which represented a 57% drop compared to 2022, the year in which the barrier of 1,000 million dollars was surpassed., according to Dane figures. Similarly, between January and April 2024, coal exports to Israel were 88 million dollars, 62.3% less than in the same period in 2023.
According to Fenalcarbón, this is not about denying a historical conflict, but these types of measures are not part of the solution, and they do cause a detriment to the well-being of the Colombian nation in a reduction in rent payments and, of course, of the payment of royalties associated with coal production levels, which for the departments of La Guajira and Cesar means on average 10% and 6% less production respectively. “Economically suffocating Colombia does not solve the world’s problems,” said the union leader.
Díaz added that the intention to suspend said exports is based on a moral measure that is not contemplated in Colombian legislation for customs and foreign trade matters.
“The project does not comply with the provisions of the standard and, furthermore, said provision would only apply in the case of imports but is not provided for in the field of exports. Likewise, This is a violation of the FTA that has been signed between both countries, which will celebrate four years since its entry into force on August 11.”.
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