In Guatemala, both decisions generated expectation, within the framework of a favorable negotiation for national exports to the US. And the possibility of signing a proposal framework for tariff negotiation with that country.
Francisco Ralda, president of the Guatemalan Association of Exporters (AGEXPORT), points out that uncertainty continues with tariffs, which can contract the investment, generate economic inefficiency, promote inflation and cause loss of confidence, factors that affect the market.
According to the manager, it is necessary that the Government of Guatemala continue to negotiate while the judicial case in the US is resolved.
Ralda recommends that this dialogue channel is not interrupted, but that everything necessary to continue the negotiation and effort to meet the requirements indicated by the United States government regarding non -tariff commercial barriers, as established by the annual report of the Office of the United States Commercial Representative (USTR) be done.
Carla Caballeros, Executive Director of the Agro Chamber of Guatemala (Camagro), says that while the tariffs remain in judicial analysis in the United States, the audience of July 31 and its final resolution will have to wait.
However, it agreed that, as a sector, they will continue working in coordination with the governments of both countries to advance in the dialogue process that allows to restore preferential access of tariffs for Guatemalan exports offered by the FTA.
Official visit
In the midst of the tariff situation, the Undersecretary of State of the United States, Christopher Landau, scheduled visits this week to Guatemala, Mexico and El Salvador. In the country there is expectation that you bring answers on the subject of tariffs.
In its tour includes meetings with authorities to address issues that strengthen diplomatic ties and cooperation, as well as conversations to boost economic growth led by the private sector, in addition to promoting US commercial investments in the region and treating the eradication of illegal immigration, according to the embassy.
In this regard, Caballeros described this visit as very important, since “it shows the assessment around Guatemala is a reliable and strategically aligned partner with the United States”, so they trust that the bilateral dialogue will allow to advance soon with actions that strengthen the trade, investment and competitiveness of both countries.
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On the other hand, Juan Carlos Zapata, executive director of the Foundation for the Development of Guatemala (Fundesa), said that the Government must continue advancing in the digitalization and infrastructure agenda, as stated in the elimination plan of non -tariff barriers that the Ministry of Economy promotes. He added that it is also necessary to promote legal reforms in Congress that improve the competitiveness of the country, such as reforms to the Private Public Alliances Law and the Law of the National Port System.
Do tariffs between the US open for Guatemala?
Trump announced Wednesday that the United States reached an agreement with China to set 10%tariffs. This represents that Chinese products that enter the United States will have a 55% tariff (due to an previous previous rate), while US products exported to that Asian country will have a 10% tariff, according to business sources. In addition, the agreement is pending to formalize with the signing of both leaders.
Regarding the agreement with China, Ralda indicates that it reflects a tariff asymmetry that seeks to close the commercial deficit that the United States has with China.
On the opportunities for Guatemala to export more to the US. If the 55% tariff is maintained to Chinese products, compared to 10% applied to the Guatemalans, the president of AGEXport does not observe benefit at the moment, since the country does not currently have the ability to manufacture the products provided by China.
He considers that the relocation of Chinese factories in Guatemala could be an opportunity, although he does not see it very viable, due to the strategic relationship between Guatemala and the United States, which could hinder the tariff negotiation process with that country.
The directive of Camagro says that they see with interest the announcement of that agreement and considers that it sends a positive signal for Guatemala, since it could mean that the United States will advance in negotiations with other countries, especially with Guatemala, which is also a strategic ally for hemispheric safety.
Although trade between Guatemala and the US is not as great as with China, it is claimed that it is a favorable surplus trade for the US. In addition, more than half of Guatemalan exports to that country are agricultural, and the United States also considers Guatemala an important market for its agricultural exports (it is its number 15), which generates jobs and trade for both countries, without representing unfair competition.