The Agro Chamber warns of the disadvantages that Guatemala now has to export to the United States, after this country imposed 10% tariff on imports of our products, compared to Mexico that maintains zero tariffs.
Since April 5, 2025 Guatemalan exports to the United States face a 10%reciprocal tariff, while countries like Mexico maintain free access to tariffs under the Free Trade Agreement between Mexico, the United States and Canada (T-MEC), recalled the Chamber of Agro de Guatemala (Camagro).
He warns that “this measure puts Guatemala at a clear competitive disadvantage in its main export market” and that it is worrying because more than 30% of Guatemalan exports are allocated to the United States, including multiple agricultural products.
The problem is that a 10% tariff for imports increases Guatemalan products against competitors who have free access, the entity said in a statement.
In addition, it refers that more than 1 million rural and urban jobs in Guatemala are directly or indirectly linked to agricultural export activity, and especially to the United States, so they fear impact on thousands of jobs.
What is at stake?
The business organization makes known the different areas that are at stake in the face of this loss of competitiveness.
- Formal employment in the export sector
- Attractiveness for productive investment
- Guatemala strategic position in regional value chains.
- The United States represents more than 32% of total exports
- It is the main destination for agricultural products such as coffee, banana, sugar, vegetables and fresh fruits
- “A 10% tariff can mean a loss of competitiveness for key agro -export sectors, loss of rural jobs and an increase in irregular migration,” says the entity.
Disadvantaged and risk products
When referring to some products at risk mentions the banana, which Guatemala is a leader with 50% market share of the United States and directly competes with Mexico that is the third supplier and with South America.
There is also coffee. In the case of melons and watermelons it is indicated that it is one of the main products sent from Guatemala and competes with Mexico that is the main supplier to the US market.
Chinese pea and the ejote lead horticultural exports, but face competitive pressure, and among other fruits also mentions that they are emerging, high value and price -sensitive products, they are also short -cycle crops that can easily be replaced by Mexican competitors.
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For this, the country must seek conditions of fair treatment in commerce, to maintain competitiveness and must be excluded from the reciprocal tariff scheme to preserve preferential access that it has built for decades with the United States, adds Camagro.
He assures that he will continue working in a coordinated manner with the business chambers and the Government of Guatemala, to seek the exclusion of the tariff in question, it was added.
Recently, Carla Caballeros, executive director of Camagro, said that apart from Mexico, which was left with zero tariff, if any other competitor country in the region manages to negotiate before Guatemala and be excluded from the tariff would be another loss of competitiveness.
Exports, costs and factors
The total exports of Guatemala to the United States in 2024 were US $ 4,614 million, and when making a simple estimate, the cost of 10% tariff would be about US $ 461 million.
Of the total exported US $ 1,974.1 million were from the agricultural sector, according to AGEXPORT data.
Meanwhile, Camagro explained several factors:
- In the most relevant exporting sectors, including agriculture (with bananas, coffee, sugar, fruits and vegetables and vegetables), as well as costumes and textiles, exporting companies are not those who put sales prices.
- “That is, it is not as simple as saying that this 10% will be transferred by one to the importer or the consumer,” Caballeros said when the tariff was imposed.
- In addition, one of the characteristics of many supply chains is that international importers or buyers transfer the additional cost to the exporter or producer of the country of origin.
- “In this case Guatemala, who, although most contracts are FOB, in the same way they pass the cost as part of the export sale price,” said the executive when the US government set the new tariffs.