Colombian President Gustavo Petro wants to punish Israel for being in the Hamas-controled Gaza Strip. The leftist leader’s most recent slate of anti-Israel actions is an executive decree to suspend coal exports from his country to Israel and that has sparked fears among industry stakeholders that Colombia will break international trade agreements over Petro’s ideological narratives. The Colombian Mining Association (ACM) has warned that this move will jeopardize market confidence in commodities and foreign investment from Israel’s closest allies, among them, the United States.
On Saturday, Colombian President Gustavo Petro announced the suspension of coal exports to Israel, “until the genocide ends.” He also referenced the decree stipulating that exports would only restart if Israel complies with an International Court of Justice order to halt military actions in Rafah. Petro’s announcement came on the same day four hostages were rescued by the IDF during a daring military operation inside souhern Gaza.
Israel has consistently denied accusations of genocide, arguing that its military operations are directed against terrorist groups embedded within civilian areas. The escalating rhetoric between Petro and Israeli Prime Minister Benjamin Netanyahu has further strained relations, with Colombia seeking to join South Africa’s genocide case against Israel at the International Court of Justice.
Colombia is the world’s fifth-largest coal producer, exporting 56.7 million metric tons last year. Of this, 3 million tons were sent to Israel, constituting 5.4% of Colombia’s total coal exports. According to the Colombian National Statistics Department, coal exports to Israel were valued at over $320 million in the first eight months of last year. While this is a fraction of Colombia’s overall coal export value of more than $9 billion in 2023, the potential disruption has raised alarms within the industry.
The ACM has voiced strong opposition to the export ban, emphasizing the potential risks to Colombia’s international commitments and market stability. “This decision would not comply with international commitments by Colombia that should be respected and puts at risk the confidence of markets and foreign investment,” the ACM stated. Highlighting Israel as a significant market for Colombian thermal coal, the association warned that the suspension of shipments will also violate those commitments.
The suspension also casts a shadow over the free trade agreement between Israel and Colombia, which has been in effect since 2020. Israel relies heavily on Colombian coal, importing more than 50% of its coal from the South American nation. This coal is crucial for powering Israeli and Gazan power plants, underscoring the humanitarian implications of an export ban. The potential disruption to trade relations and foreign investment comes as the Colombian government must slash public expenditure by COP$20 billion (US$5.6 billion) for 2024.
Given that coal is Colombia’s second largest export commodity after oil, former Minister of Commerce, Trade and Industry, José Manuel Restrepo, highlighted that coal exports to Israel give back to Colombia an estimated COP$650,000 million pesos (US$163 million) per year in taxes, royalties, and contributions, of which 100,000 million (US$25 million) go directly to infrastructure and development projects in the department of La Guajira where the country’s largest open-pit coal mine – Cerrejón – is located.
