A roadmap, as well as the joint guidelines between representatives of the central government and organized private sector is the beginning of a strategy to develop after the United States included in the list to Guatemala the imposition of a tariff rate that began to govern last weekend.
During the afternoon of this Tuesday, representatives of the business chambers held a meeting with President Bernardo Arévalo, as well as the members of the Economic Cabinet (Gabeco) to treat the crisis and in which the Macroeconomic Panorama, commercial relations with the United States and the actions that together will begin to be carried out as of today.
The Guatemala ambassador to the United States, Hugo Beteta Méndez-Ruiz in virtual, who explained in the meeting the actions and spaces that are being carried out with officials of the State Department, office of the United States Commercial Representative (USTR).
It is the first high -level meeting that is held to address the measures and actions in the face of the concern of the productive sector about the possible effects in the short and medium term that can mean the tariff imposition to the goods that are dispatched to the United States which is the main destination market and that in 2024 the currencies represented US $ 4,650 million for sales.
Constructive Meeting
Raúl Bouscayrol, president of the Guatemalan Chamber of Industry (CIG) commented that the results were important to give it the urgent treatment and in session the messages could be transferred.
The presentation explained that the Minister of Economy, Gabriela García de Quinn, will begin from this Wednesday the execution of the plan and the road map that is executed in the coming weeks, so she described as “a constructive meeting and the sense of urgency that must be established.”
“One of the solutions to improve the processing is to use the agile windows: for example in CIG you have the agile import window (VAI) that if we manage to add the ministries that are especially missing in health, it would help a lot with simplifying and digitizing the procedures,”
Raúl Bouscayrol, president of the Chamber of Industry
He reiterated that the proposal that will be presented to the United States will be made possible to eliminate the 10% tariff rate that is not strictly due to the commercial relationship with the United States, but is related to non -tariff barriers that have been manifested for several years to attend and recover the competitiveness that has been lost from the country.
Among these, he mentioned the lack of infrastructure on roads and ports, processing, permits delays in the Ministry of Health, among others, which remain competitiveness and that in the current context becomes “doubly critical to attend it”.
“One of the solutions to improve the processing is to use the agile windows: for example in CIG you have the agile import window (VAI) that if we manage to add the ministries that are especially missing in health, it would help a lot with simplifying and digitizing the procedures,” said the president of the CIG.
Proposed in six weeks
Bouscayrol, added that the head of the Mineco presented the program that lasts six weeks to address the different observations made by the United States and that would justify the tariff rates to Guatemala and the actors that should participate.
“You have to do it quickly to direct us and have a proposal in a shorter possible time so we mention that in six weeks it is very long, because it is something that is changing daily and just as there are other countries that are the same as we are trying to negotiate and arrive agreements with the United States,” he said.
He reiterated that in six weeks and in the current conditions having a proposal can be very long, so it is a matter of hours and days in which it must be reacted, in order to be one of the first countries to justify that Guatemala should not “deserve that 10% of tariff” being an ally with the United States and the important relationships.
Álvaro González Ricci, president of the Bank of Guatemala (Banguat) at the end of the meeting indicated that the time factor is “indispensable” so it has to be a subject among the public and private sector, by the ruler Arévalo expressed all the collaboration to be able to find a joint solution.
“The government is aware of the issue, how the economy can be affected, and what we have been doing is finding ways to work together to solve the problem”
Charles Bland President of Cacif
He added that the meetings could begin with the most affected sectors that is the costume and agricultural items sector, which are the main products that are exported to consumers in the United States, and also address the non -tariff barriers and requests that were made in the document.
Cacif: Work together
Charles Bland President of the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (CACIF) pointed out that at the meeting the strategy to work together was found so that the implementation of tariffs to Guatemalan products was not necessary.
“The government is aware of the issue, how the economy can be affected, and what we have been doing is finding ways to work together to solve the problem,” he emphasized.
By consulting you about strategies these have to do with the issue of imports and exports, the management of procedures, streamlining and in general competitiveness as a country.
“We find a starting point to start seeing a strategy, we know that there is an urgent issue, there is a time issue, and what we want to do is implement this strategy as soon as possible. It is still being prepared, but the idea is that we work closely with the government and the private sector to find the best strategy,” concluded the president of the Cacif.
Government: Work Plan
The Minister of Finance, Jonathan Menkos at the end of the meeting declared that the objective was to present the work that has already been developed to the representatives of the private sector and other actions that have been developed with authorities of the United States.
In addition, he announced the work agenda that will be developed in the following weeks.
He clarified that the evolution of the indicators such as economic growth and with the Banguat and the Monetary Board will be monitored, the possible impacts on the economy will be measured by the imposition of tariffs.
“It closed – the session – with the recommendations of some agilizations that must be had and of course what Guatemala is facing needs the call, the shared commitment of both the government and the private sector,” said the minister.
Most competitive country
The official also responded about the request of the business representatives during the meeting in the sense of expediting the proposal to which he replied: “There is a discussion about certain barriers that are perceived that they are non -tariff barriers that have to do with management in the ports, with the care and speed in licenses, sanitary records, medication records and all this is part of the work agenda that will require. Rethinking some processes, expediting some processes and of course I would like to be very clear that all this agenda is an agenda to also have a much more competitive country. ”
Final version
Menkos also referred to the proposal that would be coordinating the Mineco and said that at the time the work agenda would be presented to economic agents.
“Here you need a shared commitment of the private sector and the government to be able to get ahead and be able to arrive with a series of proposals to the US government to be able to eliminate in the best social cases,” he concluded.
Government proposal
After the meeting with directors of the business sector convened by the President of the Republic, Bernardo Arévalo, the Government announced the five points on which its proposal is based to negotiate the elimination of tariffs with the United States.
Arévalo was accompanied by ministers of the State Cabinet while the presidents of various cameras and business associations participated in the private sector.
During the meeting, five fundamental points were addressed that will mark the shared roadmap between the public and private sector, with the aim of protecting the economy and strengthening the competitiveness of the country, the government said in a statement.
- Will for public-private collaboration: According to the Government, both parties expressed an excellent disposition to work together, with the commitment to maintain an open, constructive and constant dialogue between the public sector and the private sector to face the challenges that represent the tariff measures.
- External and internal strategies: It was agreed to implement a bilateral strategy, and establish diplomatic and commercial channels with the United States to review the implications of the tariff imposition, so that it can be reduced or eliminated. In addition, take internal actions to address the simplification of procedures, licenses and permits to improve the competitiveness of the country and attract investment.
- Government’s commitments: The Government reiterated its commitment in key areas such as the fight against corruption and drug trafficking, institutional strengthening and the improvement of infrastructure, understanding that these are fundamental pillars to generate confidence and favorable conditions for investment and development.
- Sense of urgency: both the government and the private sector recognized the urgency of the moment. There is clarity in which immediate response mechanisms must be activated to contain possible economic and social effects. President Arévalo reiterated that Guatemala does not seek to respond to the measure of the US government with a war of tariffs.
- Strategic Unit: It was agreed that the most important thing is at this time is to advance together, strategically and articulated, to mitigate any negative impact on the national economy. This alliance seeks to defend employment, production and opportunities for all Guatemalans. Assuming the commitment between the private and public sector to generate a fair environment for investment and economic growth with the aim of improving the quality of life of Guatemalans.