Colombia reported a sharp drop in exports after President Gustavo Petro's government banned sales to Israel, which is the main buyer of Colombian coal.

President Gustavo Petro’s government banned sales to Israel, the main buyer of Colombian coal. In July, coal shipments fell by nearly half from the same month a year earlier. File Photo by Rafa Salafranca/EPA UPI

Sept. 8 (UPI) -- Colombia, Latin America's leading coal producer, reported a sharp drop in exports after President Gustavo Petro's government banned sales to Israel, the main buyer of Colombian coal.

In July, coal shipments fell by nearly half from the same month a year earlier. According to Colombia's National Administrative Department of Statistics, exports dropped 45.8% to $479.8 million, down from $885.8 million in July 2024.

From January to July, coal exports totaled $2.85 billion, a 35.5% drop from the $4.42 billion reported in the same period of 2023.

Colombia's coal export sector has faced a steady decline in revenue because of lower international prices and domestic policies, with sales falling by nearly half compared with 2022, when the country earned $12.2 billion.

While global prices have been pressured by increased coal production in Indonesia, export volumes began to drop in June 2024, when Petro ordered a halt to shipments to Israel to protest its war in Gaza. The decree excluded contracts approved before that date.

Last month, a second decree renewed the 2024 measure, specifying that beginning Aug. 28, the ban would apply "without exceptions" and "under any circumstances," the presidency said in a statement.

Another factor affecting the industry is that, as part of efforts to promote sustainability and renewable energy, the government has imposed higher taxes on coal.

In 2024, Petro cut diplomatic ties with Israel, calling Prime Minister Benjamin Netanyahu "genocidal." He also halted purchases of Israeli weapons.

Petro said that despite the ban, coal ships continued to arrive in Israel because his officials disobeyed him, so last month he ordered the Colombian navy to prevent those shipments from leaving port.

"Colombia cannot be indifferent to the suffering of the Palestinian people. This is a concrete act to stop the escalation of war and a firm contribution from our country to world peace," Trade Minister Diana Marcela Morales Rojas said when announcing the measure.

The ban is based on three principles: respect for international law, protection of civilians and Colombia's role as a member of the U.N. Human Rights Council for the 2025-2027 term.