The Minister of Economy, Gabriela García, mentioned that these are very different issues, so she does not consider appropriate to make a comparison between them or give a percentage of progress.
However, he explained that, as for technical barriers, 50% of the diagnosis of what should be done is carried out. These include some aspects that officials of other ministries detected that they could be solved almost immediately, since they are simplification issues such as processing, in which progress had already been made, and what has been done is to accelerate the measures.
Each barrier has a different advance, and technical barriers are working with four ministries, including the Mineco, and that are related to trade facilitation.
He commented that, between the barriers indicated by the United States, tariff barriers are mentioned, but these no longer exist because countries are part of the free trade agreement with the United States, Central America and the Dominican Republic (CAFTA), and the tariffs were already at zero, before that country established in April 10% of global tariff.
The second barrier refers to trade facilitation issues, which includes the procedure part. The third mentioned is piracy, which is related to intellectual property.
Another pointed barrier is the certainty for professional services, which refers to the collegiation, since if a person graduated in another country and wishes to establish a company or work in Guatemala exercising his profession, he must be collegiate, and that becomes a long process, especially for foreign companies who want to settle in the country with their professionals, explained the minister.
Another of the aforementioned barriers is related to inspection in ports and customs, which crosses the issue of intellectual property, such as piracy.
Other points refer to bribery and corruption, and decent work, that is, there is no child labor, among others.
It is not only trade facilitation but strategic aspects
Asked about whether, with the advances they have achieved to address the designated barriers, they consider that they are ready to negotiate and that the United States could remove or reduce the tariff, the official explained that there are two large lines, since the issue of trade facilitation is only a part. He said that Guatemala is too important and strategic for the United States to put the weight of a negotiation only in that part.
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Garcia explained that these edges are important, but the strategic part is key, since Guatemala is a fundamental partner for the United States on issues such as drug trafficking, security and migration.
So, the combination of these issues “I think is going to lay the foundations of a dialogue and a possible negotiation. My feeling is that we are in a very privileged position with the United States. We are allies, friends, but we had to have 10% tariff, because they put them all.”
According to information released by Congress, in relation to the citation that the Foreign Relations Commission made on Thursday, May 8, several authorities to know the progress, officials indicated that there are 94 countries to which the same 10%tariff is applied.
It was added that, through dialogue, a favorable agreement for Guatemala is sought, so that the tariff can be eliminated by technical negotiations.
Regarding the most affected products, it was indicated in Congress that they could be the bananas, unleashed coffee and some textiles.
The parliamentarians pointed out the need for a national economic development plan and the urgency of reducing the dependence of exports to the United States.
The authorities reported at that meeting that works to address other markets and that the update of a treaty with Peru was recently signed, which will allow progress in the process to put it into force.
On the issue of tariffs, Julio Orozco, Vice Minister of Foreign Affairs (MINEX), explained that the Guatemala Embassy in the United States has sent a report with eight strategic points that must be considered, in addition to other actions that are intended to work together with other portfolios.
AGEXPORT: Tariffs absorbed by producers and exporters
Asked about the advances mentioned by the Ministry, Fanny D. Estrada, Director of Institutional Relations of the Guatemalan Association of Exporters (AGEXPORT), explained that the sector has participated in the technical tables that Mineco has summoned public and private entities to find solutions. Considers that having 50% of the problems and possible solutions defined is a good advance, although the ideal is to continue increasing that percentage.
It considers that the United States requests to improve efficiency, competitiveness and investment climate are a great opportunity for the country to advance in these issues.
Regarding whether Guatemala is ready to negotiate or what would be needed, the executive said that some issues are easier to solve than others. For example, in some cases, Guatemala only has to communicate that it has existing solutions, but that have not been applied. While in other cases, the solutions are more complex and some will require regulatory changes and even the participation of Congress.
“The convenient would be that they can sit at the negotiating table with concrete solution proposals and with deadlines for compliance with them,” added D. Estrada.
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Among the most affected products during the first month of the 10% tariff to import Guatemalan products to the United States, he mentioned that the vast major Joined.
“We are providing for a decrease in exports of these weeks,” added the Agexport directive.