Exporters show concern about the country’s deadlines to prepare and negotiate tariffs with the US.

Home Business Exporters show concern about the country’s deadlines to prepare and negotiate tariffs with the US.
Exporters show concern about the country’s deadlines to prepare and negotiate tariffs with the US.

The key question focuses on the times, and it is the concern that many exporters expressed, because the tariffs began to be applied since April 5 and some buyers have been very clear in saying that they in the United States will not absorb this 10% rate and that the consumer prices are not going to raise, Fanny D. Estrada, Director Institutional Relations of AGEXPORT.

D. Estrada consulted about the deadlines, the Guatemala ambassador to Washington, Hugo Beteta, who participated in the virtual conference on perspectives of the commercial relationship between Guatemala and the United States, carried out by that organization

In addition, other importers have stated that they analyze options to provide in Mexico since that country did not establish a new tariff rate, the executive added.

“That is what perhaps generates the highest stress” and that translates into the multiple questions at the conference, said D. Estrada when consulting the ambassador about it.

Beteta said it is difficult to estimate it and that part of the response has to do with the country’s ability to solve long -standing problems.

So, times are also related to what we are going to lead to negotiation and what we are going to be able to solve of the different non -tariff barriers.

The diplomat said that the issues of avocado have been followed up, and in that process phytosanitary issues were evidenced that the United States sees it as the country’s difficulty to solve some problems.

A part of the time has to do with the ability to present results in key issues, collective results, as a nation, said Beteta.

He added that you can see experiences from other countries since, Taiwan said he is willing to lower all tariffs to zero, but the United States told him it was not enough.

Beteta mentioned as an example that Scott Besent, secretary of the Treasury, said that negotiation with countries will last months.

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While the president of the United States, Donald Trump, is saying “talk to me and we solve it”, but, he said that this is for large economies.

Meanwhile, said Beteta, that Peter Navarro, one of Trump’s main advisors, has expressed that this is not a negotiation, but is an instrument to solve real problems that face his country’s exports.

Beteta said he would like to be more specific, and that to present a solution to the problems, they will have to focus at this time on the short -term ones that are Low Hanging Fruit (concept used for the simplest tasks that must be done in the first place) and rapid actions to reach some proposals to the table and have a road map for the things that are more difficult, this within the commercial barriers that the United States mentioned to Guatemala. They will be evidenced that the country is able to continue in that direction.

He considers that different United States officials see it different and by level of global disruption that they are considering that it will not be so simple to be able to stabilize the system, since there are hundreds of countries.

According to Beteta, you have to work immediately to work immediately and arrive with the minimum agenda as evidence that the message is being taken seriously.

D. Estrada said that some actions may be easier such as the implementation of electronic platforms to facilitate trade, but fighting smuggling is very complicated, also the issue of intellectual property especially with the high informal economy, so, according to the executive they give them the impression that this can take many months.

Another of the consultations and comments made by D. Estrada, is whether the country could deliver information about what is more feasible to solve more quickly and that could be reduced to remove 10%, due to the impact that will be taken for example with Mexico because you could not compete with that country for months or years given the internal complications of Guatemala and both work that must be done to remove those eight elements mentioned as commercial barriers. He said that in these conditions it cannot be done as quickly as it is needed and the urgency that is removed to the country that 10%.

According to the Executive, the key will be the ability of the negotiators and propose a process that as the results are advancing.

Beteta said that he considers that for that modality he should work, start with the simplest and fastest tasks and that they put the country on the route and with that going to negotiate Washington.

He believes that the shared roadmap to push the solutions that arrive from Guatemala, and businessmen’s experts are needed to present things that are viable.

Asked about the time in which I could start negotiating, Beteta said that they were very emphatic that would not arrive empty, but to show results from the areas where they have indicated that there are problems, so he does not believe it is that it is that everything is completely resolved, but that it is to show results.

Export sector strategy

Amador Carballido, general director of AGEXPORT, said the sector proposes a fairly practical strategy.

The first point that it establishes is that it is to reduce the time window for Guatemala to somehow stimulate or generate a negotiation with the US government. “That there is no speech of months, but of a few weeks maybe two or three, because talking about four weeks is a long time, we have to try to reduce,” he added.

In second point, they were established that, from the issues to work specifically, they identified three which they grouped, they presented themselves to Cacif to be transferred to the Government of Guatemala to seek, not only to overcome the schemes that the USTR sets in the terms of trade, but also on security issues and other issues that the US government is also interested in the commercial.

“The idea is that in Guatemala I have a proposal that calls the attention of the US government to react and we can have a faster negotiation and do not enter a very long tail where it is not resolved quickly.”

They also want to propose a meeting at the highest level with the Government and Private Sector Company to try to arrive with important authorities in the United States and be able to influence this proposal.

“It is a complex negotiation” it has been seen that countries have returned aggressive proposals and there is still no solution.

During the Beteta conference he presented the advances that have been had in the country, such as agreements with the United States for the port issue, the Competition Law, and others, and said that the country is considered to be a good time in its relations with said nation reinforced with the recent visit of the Secretary of State, Marco Rubio.

David Lewis, Vice President of Manchester Trade, based in Washington DC shares what Beteta said about the involvement that Nicaragua has been set 18% of tariff, since Central America has production chains, so any link that is weakened affects all countries.

He adds that the region has to be creative, there is the advantage of a FTA in which there are two decades of experience, what has to be seen is how that FTA is used to have a gear with what the Trump administration is proposing, individually, country by country, at the bilateral level or as a regional group.

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