The Guatemalan business sector has reacted to the 10% tariff imposed by the US and has urged the government to act urgently.
Therefore, the Government of Guatemala, has summoned the private sector to define a road map and address US concerns regarding trade, looking for solutions that guarantee competitiveness and economic stability.
These are the reactions of some sectors, even some of them will participate in the meeting on April 8.
Exporters
Amador Carballido, general director of the Guatemalan Association of Exporters (AGEXPORT) mentioned that it is important that the government has reacted publicly in the sense that the situation sees as a problem which must help solve, since a government negotiation to government is necessary.
The sector has had the objective that the country is aware of the importance of the effects of the United States decision. However, the manager said they do not consider so appropriate that it is already said that new tariffs that will have no effect on the economy. He considers that it is not yet time to say it, although they hope that the tax will be reversed, but believes that they advanced in that opinion since they consider that it can have effects.
The fact that the Government cites the business sector for this Tuesday to publicize its position is a demonstration that they are already giving sense of urgency, and other members of the cabinet are already involved and in particular the ambassador to the United States, Hugo Beteta, added Fanny D. Estrada, director of inter -institutional relations.
The executive added that it is expected that in the meeting with the private sector it can be discussed about how the country will face the objections that, in terms of trade and trade facilitation for the products of the United States in the country, since it must be actions from several government units such as the Ministries of Agriculture and Health, the SAT, intellectual property and others, to resolve trade barriers.
Now it is expected that a specific road map of what is going to be done so that the negotiation has livelihood, it is favorable and the elimination of the tariff can be achieved, added D. Estrada.
Industrialists
The position of the Government of Guatemala coincides with the recommendation that took place days from the organized industrial sector, considering that for an economy such as the Guatemalan, it is not an option to establish compensatory measures, so “our recommendation is to negotiate as soon as possible and resolve in the background the signs of the USTR, as well as any other issue that justifies the establishment of the compensatory tariff,” said Raúl Bouscayrol, president of the Chamber of Industry of Industry (CIG).
They consider crucial to address the complexities of the processing and regulations that hinder access to the Guatemalan market, so they advocate the implementation of measures to simplify customs procedures and promote transparency.
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CIG will participate in this Tuesday’s meeting to review the road map, and it is perceived that the points that the government negotiation strategy includes that includes highlighting diplomatic relations, identification of areas of opportunity, as well as programming of technical visits and the road map agreed with the different actors and sectors, are of the utmost importance to find actions that are of benefit for both countries. CIG assumes the commitment to collaborate at the Technical Tables, where the impact per product will be analyzed and we will define joint strategies.
“It is essential that any negotiation strategy is based on technical and economic criteria, and addressing the structural issues that represent opportunities for improvement,” he added.
Coffee
In the case of the National Coffee Association (Anacafé) as a sector, it joins the concern about the impact that the measure of the increase in tariffs can affect the different productive sectors of Guatemala, including the coffee sector, especially taking into consideration that exports to the US market represent 41% and mainly because there is a lot of uncertainty and lack of clarity of how measures will be implemented.
Regarding the strategy mentioned by the Government, Anacafé considers it important to work on a road map to negotiate with the United States. “We consider that the proposals must reflect rapid and feasible actions, since the measure imposed can subtract competitiveness,” the sector added.
Costumes and textiles
Alejandro Ceballos, Vice President of Vestex considers that it is extremely important for the export sector that the Government has announced in the short term a negotiation with the United States, since it is the main commercial partner and the main destination of exports.
The Vestex sector has already begun to feel the effect that the disadvantage is having with other countries and there are many doubts around the application of the new rates, he added.
It is positive that these negotiations can be given to the highest level and efficiently to provide certainty to exporters as soon as possible, Ceballos said.
And, now they expect to know the road map, and that these axes include the importance of our trade balance with the United States which is totally deficit for Guatemala.
The UST report highlights the deficiencies that Guatemala has in terms of trade facilitation, so we consider that within the commitments and actions that the Government of Guatemala will assume to correct them, setting dates and goals that allow security to the United States and the exporters and the ports and the situation of ports are one of the greatest obstacles must be raised.
Agro
The Chamber of Agro (Camagro) is working and coordinating with the Government through the Ministry of Economy and Ministry of Foreign Affairs from the moment the announcement of reciprocal tariffs in the strategy and actions necessary to seek to seek Guatemala to seek to be excluded from that scheme of 10% of the tariff, said the executive director of the organization, Carla Caballeros.
However, they consider it important that in addition to working in concrete actions to resolve US concerns in commercial barriers, it will be necessary to accelerate procedures reduction, improve processes efficiency and eliminate duplicities by reducing costs.
“It is also an opportunity to strengthen the alliance between the United States and our country to advance with the infrastructure improvement strategy in ports, train, subway and airport,” he said.