The Guatemala government has already requested an appointment to the United States Trade Representative Office (USTR, in English), to present advances related to non -tariff commercial barriers indicated by said entity and seek the elimination of the 10%tariff. However, the date for the meeting has not yet been received.
While the authorities mention the advances and express their confidence that results will be achieved in that period, the sectors of producers and exporters insist on the need to expedite the times.
The Business Commission of Negotiations and International Trade (Cencit) that brings together various cameras and business associations, recently stated that the private sector accompanies and supports the formal application presented by the Government of Guatemala to hold a bilateral meeting with USTT in which it plans to present the plan and move towards a structural solution, they also expect this meeting to be confirmed in the coming days.
In addition, in that context, a high -level business delegation will travel to Washington DC. To accompany the official government delegation and participate in complementary meetings with business associations, international buyers and key counterparts interested in strengthening commercial ties with Guatemala.
Carla Caballeros, executive director of the Agro Chamber of Guatemala (Camagro), said that the most important thing is direct communication between the Ministry of Economy and the USTR, which are the competent authorities for official communication between both governments.
He added that this communication must be fluid and proactive, officially – among Ustr and Mineco – and develop through letters, telephone calls or electronic communications in the available formats. Therefore, “it is important that the Mineco maintains and reinforces this official direct communication with USTR in the next few days, so that the date of the face -to -face meeting is confirmed as soon as possible,” said Caballeros.
Regarding the deadlines mentioned by the authorities, Caballeros indicated that it is the execution of some actions or digitalization processes in ministries such as health and economics, among others. He added that if they are fulfilled, they could be considered reasonable by the USTR. “The ideal scenario is that they are efficient and it will not take more than the two months they raise, instead of requiring three. But above all, it is important that the deadlines are fulfilled and do not extend beyond those three months,” he said.
Caballeros said that there are identified actions that could be implemented in less time, and that depend mainly on political will, such as certain processes under the responsibility of the Ministries of Health, Agriculture or the Superintendence of Tax Administration (SAT).
In his opinion, it is important to have “small great achievements, called Quick Wins,” he added.
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Alejandro Ceballos, vice president of the Association of the Costume and Textile Industry (Vestex), attached to AGEXPORT, indicated that, although the progress achieved so far are valued, greater agility is necessary. “It is necessary to fix it as soon as possible. For this, the deputies, ministers and the president on a table should sit, for example, to solve the problem of public health records,” he said.
He added that these barriers did not originate with the current government, but that there is an opportunity to resolve them. “The private sector is 20 days ahead and the public sector goes behind due to bureaucratic procedures. Time and investments are lost waiting for permits,” he warned. “If those non -tariff barriers are not resolved and the United States keeps tariffs, the day that the rest of the countries open the door, we are left without work,” he concluded.
Alliance beyond trade
Cencit added that it has collaborated closely with the Government of Guatemala and together they have worked on the construction of an action plan aimed at attending in the short and medium term the barriers identified in the United States trade report (NTE Report), with the aim of improving competitiveness, transparency and trade facilitation.
“This joint effort seeks to generate tangible benefits for US and Guatemalan companies, through the reduction of regulatory barriers, the modernization of key processes and the opening of new investment and growth opportunities in strategic sectors,” he said.
Cencit considers that this alliance goes beyond trade, taking into account that Guatemala and the United States are close to formalizing “a historical agreement that will mark a milestone in the development of the country: the expansion and modernization of Puerto Quetzal.” He says that “it is an unprecedented project in recent history, it represents a joint strategic commitment to competitiveness, employment, regional development and hemispheric security.”
Advances and possible deadlines
The Mineco presented the advances in the diagnosis and implementation of actions, indicating that they have sustained more than 46 meetings with other ministries and authorities, as well as with the private sector, since April, when the tariffs for Guatemala were announced.
“I trust that we are going to have great advances in the next two or three months,” said the Minister of Economy. “At the time we are told that we can go to Ustr, we will bring the advances of each of the eight barriers indicated. They are very varied issues. And although not everything is the responsibility of the Mineco, it is it is to coordinate the advances and influence what we are responsible, to achieve palpable results in the reduction of time, digitalization and interoperability.”
The minister said that the 10% rate is applied to 94 countries and that it has advanced in the actions to correct the aforementioned. “In that negotiation we advance as much as we could. And if they tell us tomorrow see Washington, we are ready with the advances until that day. We are waiting for that appointment,” he said.
Actions
The official explained that, when analyzing the non -tariff barriers, it was discovered that some aspects no longer apply, so the processes and actions matrix is being updated. Processes were identified in which the Ministry of Economy has an incidence, especially in simplification and digitalization.
In coordination with other entities, such as the Ministry of Finance (by the RGAE and Guatecompras) or Congress (for the issue of professional services), it is sought to advance. With the Ministry of Health, 300 procedures were reviewed and the conclusion was reached that they could be reduced to 208, eliminating almost 100 procedures.
With each ministry, its internal capacities are analyzed to simplify, apply and digitize processes, which may require homologation of programs, contracting of personnel and other efforts.
He assured that, since the beginning of the current government, several of those barriers have been treated, and that a recent action is the diversification of markets, exploring treaties with United Arab Emirates, Türkiye and Canada.
Actions that must be worked with Congress
The minister explained that, among the actions to be implemented, there is an investment law that was approved, but that was never regulated. In that sense, the Government would evaluate its delegislation to propose a new regulation.
He added that it is already working together with the Ministry of Finance as part of the country qualification improvement process. The certainty and legal certainty for investments are key for Guatemala to be recognized as an attractive country to invest.
In addition, he indicated that Guatemala’s adhesion should be ratified to the commercial treaty with Korea, which is still pending in Congress. Its approval will allow Guatemala to advance as a key partner in his commercial alliances, it was added.
EE. UU. – China
On May 11, USA and China agreed to reduce their tariffs for 90 days: USA will apply 30% and China 10%, as of May 14. According to the minister, this agreement does not directly affect Guatemala, although it is necessary to maintain market diversification. On the other hand, the Guatemalan textile sector feels at a disadvantage: Guatemala now faces a 10%tariff, which reduces its competitiveness against China, which offers cheaper products. Ceballos mentioned as an example that a Chinese polo shirt exports to US $ 2.50 and Guatemala in US $ 5, due to the cost difference.
Conclusion
Knights emphasized that negotiations with other countries, such as the United Kingdom or China, do not directly affect Guatemala, but are signs of progress in global trade. He pointed out that the US has a commercial deficit with those countries, while with Guatemala it has surplus. “Guatemala represents much more than commerce: hemispheric security, migratory stability and opportunities for complementary chains,” he concluded.