Although in general there are high expectations of strengthening Guatemala as a strategic partner of the United States and advancing in the solution of commercial barriers, so that 10% of tariffs are eliminated to their products, exporters are not yet so optimistic due to the time that negotiations can take, in addition to the proposals and requests that that country has made, such as reducing the commercial gap of the agricultural segment.
The delegation of government officials and private sector representatives continued on its second day of meetings with authorities and business associations in the United States. This tour began on Tuesday with the official meeting between Guatemalan authorities and the United States commercial representative, Jamieson Greer, to initiate conversations and negotiate the elimination of the 10% tariff imposed last April, as well as advance in the solution of commercial barriers.
Asked about the responses found in the Office of the Commercial Representative (USTR), which according to the Ministry of Economy indicated that at the time it will send a proposal of framework that will serve as a basis to initiate formal conversations with respect to the non -tariff commercial barriers and the 10%tariff, Francisco Ralda, president of the Guatemalan Association of Exporters (AGEXPORT), said they have expectations, but in terms of deadline Office The priorities are negotiating with countries with which they have large commercial deficits, which makes not a hurry to negotiate with Guatemala, so no deadlines were set.
The second point it observes is that, even when the eight requirements indicated by the United States as commercial barriers, there is no certainty that the tariff is eliminated, because that is a measure that was not agreed.
As a third point, he mentioned that the United States has an important commercial and fiscal deficit, and needs income from tariffs, so now, in different circles, it is indicated that trade changed and that the 10% tariff will become the base, that is, the new 0%. One would like to think and have hope that tariffs will be reduced or eliminated, but considers that what could contribute to it, rather than a negotiation, is the impact they have on the US economy.
He commented that it is the highest tax increase in the last 50 years, affects US $ 3 billion in imports and it is estimated that the average tariff will increase from 2.5% to 18%, with an estimated impact of US $ 4,000 per year in the cost of living of a typical home in the United States, because it will also generate commercial reprisals from other countries. These aspects could have an impact that leads to reducing or eliminating rates, but for now they are still in force.
Regarding the current scenario, he considers that it is still negative mainly due to the deadlines, due to uncertainty about how long it will take formal negotiations to eliminate the tariff. He indicated that, unofficially, there is talk that 60 days could pass, which, if true, considers excessive, since the impact for exporting companies is being very severe, because the affected products are not of high added value, so this 10% directly impacts its usefulness.
We recognize that the Government, especially the Ministry of Economy, is making a great effort to facilitate trade and meet the requested requirements, but it is still necessary. Although complying with these requirements will also relieve Guatemalan entrepreneurs who suffer from the same problems or barriers and proceedings indicated.
They ask to reduce agricultural commercial gap
The president of AGEXPORT explained that on Tuesday they met with authorities of the United States Department of Agriculture (USDA), where non -tariff commercial barriers indicated in the USTR report that affect the sector were discussed.
He said that, although in the total marketed between both countries the United States has surplus, in the agricultural area it is Guatemala that has the balance in its favor, with a surplus of around US $ 1 billion annually. That is, Guatemala sells more agricultural products to the United States than you buy.
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It has been mentioned that the General Commercial Balance favors the United States in US $ 5 billion, but the Agriculture Department said that, in their sector, they have a deficit of US $ 1 billion and that they wish to close that gap.
According to data from the Bank of Guatemala (Banguat), at the end of 2024, the country made imports from the United States for US $ 1045.4 million and exports for US $ 4,615 million.
For its part, information from the Agro Chamber of Guatemala (Camagro), based on USDA data, indicates that in 2024 the agricultural and agroindustrial trade between the two countries recorded that the United States imported from Guatemala US $ 2,881 million and exported US $ 1 thousand 876 million, with a balance in favor of Guatemala of US $ 1 thousand 005 million.
Guatemalan exports include bananas, coffee, fresh fruits, dry or frozen, legumes and vegetables, sugar, banana, among others. Products such as corn, soy flour, cotton, processed vegetables, wheat, rice, dairy and meat products were imported.
Carla Caballeros, executive director of Camagro, explained that US companies consider agricultural trade with Guatemala, for factors such as:
- Guatemala occupies the number 15 among the US agricultural export markets.
- The total value exported in 2024 was around US $ 1,876 million.
- The average of the last three years was US $ 1,770 million, with a compound growth of 5.3% between 2015 and 2024.
He commented that the USDA’s request to reduce the agricultural gap is based on the fact that trade is between companies, and these may sell more as Guatemala’s economy is strengthened. He reiterated that recovering preferential access to the US market benefits companies from both countries. In addition, improving the competitiveness of ports and roads will facilitate trade, as well as simplify procedures in the Ministries of Agriculture and Health.
He also mentioned that if the Guatemalan Textile Manufacturing Hiring Orders increase, that will promote US cotton sales to Guatemala.
Other observations and requests: ethanol, plant law, procedures
According to Ralda, the USDA also requested to expedite the implementation of the law that allows you to import ethanol mixed with fuel. This observation was shared by a business chamber, where interest in exporting ethanol to Guatemala was noticed, although this requires modifications to the service stations.
It was also requested to promote legislation to export biotechnology, since as long as it is not approved, there are limitations to import new varieties and seeds. Caballeros explained that it refers to the Law for the Protection of Plant Varieties (UPOV Law), which is a commitment of the CAFTA-DR Treaty, Chapter 15.
USDA also raised the need to expedite records in the Ministries of Agriculture and Health, as well as strengthen the protection of intellectual property, in line with the USTR requirements. Caballeros added that the issues of the report of commercial barriers that Guatemala must resolve, such as the processes in the Magic Biotechnology Unit, unnecessary fumigations of OIRSA to frozen foods and duplicity of procedures for sanitary licenses.
Guatemala reaffirms its commitment as a reliable destination for direct foreign investment
From the Ministry of Economy, we continue to consolidate Guatemala as a strategic partner of the United States, with a shared vision based on democratic values, growth … pic.twitter.com/vmf9d9j4pf
– Economy Ministry (@minecogt) May 28, 2025
Strategic meetings
The managers are in the delegation of officials and representatives of the private sector who traveled to Washington to seek the elimination of the tariff and position Guatemala as a strategic partner.
The purpose is to publicize the strategic relationship between Guatemala and the United States, considering that US companies that supply Guatemala from agricultural supplies, cotton and textiles, machinery, and these US companies are integrated into Guatemala exports and therefore are affected with the 10%tariff, added Knights.
For example, there was talk of the importance of bilateral trade between Guatemala and the United States. In the case of the USDA, the importance of exports of United States farmers to Guatemala, who have constantly grown every year, was constantly. Registering average growth of three digits in the last 10 years for some important products for food security.
Amcham Guatemala accompanies the second day of the mission in Washington DC to strengthen bilateral relations and boost investment
Amcham Guatemala, represented by its executive director @Waleskasterkel Participate in the public-private delegation visited by Washington DC … https://t.co/6c0iqzwkbm
– Amcham Guatemala (@amchamgt) May 29, 2025
While the Ministries of Foreign and Economy Relations reported in their respective social networks of some of the meetings held:
• National Council of Textile Organizations (NTT): Guatemala’s role was highlighted as a key destination for American cotton and textiles, transformed into garments that generate employment in both countries and strengthen the supply chains of the hemisphere.
• Office of Textiles and Apparel (Otexa), US Department of Commerce: It was discussed on strategies to consolidate the integrated regional production, promoting employment in the US. UU. And ensuring the supply of strategic sectors in Guatemala.
• Atlantic Council: The importance of Guatemala was addressed as an ally in the defense of democracy, regional stability and shared security.
• The Banana Association of North America and the International Fresh produces Association: the relevance of the right access to the US market was emphasized to guarantee food security and support millions of jobs in the agri -food chain.
• Council of the Americas: a regional agenda based on economic freedom, responsible investment and institutional strengthening was promoted.
• US Chamber of Commerce: Guatemala reiterated its commitment to reforms for competitiveness, facilitation of trade and legal certainty, with the aim of attracting greater US investment.