RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/S/O/GTM 
8 September 2003 
 (03-4685) 
Council for Trade in Services 
Special Session  Original:   Spanish 
 
 
 
GUATEMALA 
 
Initial Offer  
  
 The following initial offer was received from the Delegation of Guatemala on 
26 August 2003 with the request that it be circulated  to Members of the Council for Trade in Services. 
 
_______________ 
  
 This initial offer is not a legal text and is su bmitted solely for the purpose of negotiation in the 
context of paragraphs 47 and 49 of th e Doha Ministerial Declaration, especially in the light of the need 
to achieve an overall balance in the outcome of all World Trade Organization (WTO) negotiations.  This preliminary offer may therefore be modified or withdrawn and is conditional upon such a balance. 
 
 The contents of this initial offer should be  understood as being subject to any horizontal 
disciplines agreed upon in the framework of the ongoing negotiations of the Working Party on GATS (General Agreement on Trade in Services) Rules and the Working Party on Domestic Regulation and 
may therefore be revised on the basis of the outcome of these negotiations.  
 The Republic of Guatemala is submitting this offer as proof of its commitment to making a 
major contribution to the multilateral system for tr ade in services, pursuant to Articles IV and XIX.2 
of the GATS.    
 TN/S/O/GTM 
Page 2 GUATEMALA - INITIAL OFFER OF SPECIFIC COMMITMENTS 
Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
1. HORIZONTAL COMMITMENTS 
 All Sectors 
  
 
(4) Movement of suppliers  
  Unbound, except for senior and specialized 
personnel related to a commercial prese nce and 
who must contribute to the training of 
Guatemalan personnel in the specialized fields 
of activity concerned.  In addition, the Labour 
Code provides the following:  
 
(a)  “Employers must employ 90 per cent of 
Guatemalan workers and pay them at 
least 85 per cent of total company wages.  
These requirements may be modified for 
the following reasons:  
 ** 
(4)  Unbound, except for the categories of 
persons indicated in the market access 
column.  
 
  (1), (2), (3)  Article 45 of the Income Tax 
Law, Decree No. 26-92 of 9 April 1992, 
establishes the following:  
 
 Tax on natural and legal persons not 
domiciled in Guatemala is calculated by 
applying the following percentages as final 
payment to income from Guatemalan 
sources whether received or credited to an 
accoun t:  
  
   (i)  protection and promotion of the 
national economy;  
  (ii)  lack of Guatemalan technical 
personnel for specific activities;  
  (iii)  protection of Guat emalan workers 
with demonstrated competence.”  (a)  12 per cent on dividends, profit -
sharing, ea rnings and other benefits 
paid or credited by companies or 
establishments domiciled in 
Guatemala.  
  
                                                      
** With a view to technically improving it s access offer from the technical standpoint, Guatemala has decided not to include taxa tion measures in its horizontal 
commitments.  However, for the sake of tr ansparency, parties which consider it necessa ry may obtain the information previously provided at:  www.sat.gob.gt.  
  TN/S/O/GTM
 Page 3Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 
  The Ministry of Labour may, at its discretion, 
reduce these percentages by up to 10 per cent for 
a period of five years or increase them to 
eliminate th e employment of foreign workers.  
An authorization to reduce these percentages 
must include the requirement to train 
Guatemalan technical staff in the activity 
concerned over the same period.  (b)  12 per cent on payments or credit in 
the form of interest, fees, 
allowances, commissions, bonuses 
and other services subject to tax, 
including wages and salaries;  
interest on loans granted by financial 
institutions is exempt, provided that 
the corresponding foreign exchange 
has been negotiated through the 
nationa l banking system.   
  (c)   25 per cent on payments or credit for 
royalties and other fees for the use 
of patents and trademarks or for 
scientific, economic, technical and 
financial consultancy services.  
(d)  25 per cent on payments or credit to 
an account for other income from 
Guatemalan sources not mentioned 
in the preceding paragraphs.  
  Agents or representatives in 
Guatemala of taxpayers not 
domiciled in Guatemala or natural 
and legal persons dealing directly 
with them must withhold and pay 
the tax withi n the first 15 working 
days of the calendar month 
immediately following that in which 
the income is received or earned.    
 TN/S/O/GTM 
Page 4 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 
 All sectors 
 
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
 (4) Unbound, except as established in the Labour 
Code, which states that, other than pursuant 
to special laws on the matter, at least 90 per 
cent of the workers hired by any employer 
must be Guatemalan and that they must be 
paid at least 85 per cent of total company 
wages. 
Both proportions may be adjusted: 
(a) Where required for obvious reasons relating 
to the protection and promotion of the 
national economy, the lack of Guatemalan 
technical specialists in a particular field of 
activity or the protection of Guatemalan 
workers with demonstrated competence.  In 
all such cases, the Executive Power may, by 
means of a reasoned decision issued through 
the Ministry of Labour and Social Security, 
either reduce both proportions by up to 10 per cent each for a period of five years per 
company or increase them to eliminate the 
employment of foreign workers. 
 
 In the event of the Ministry of Labour and 
Social Security authorizing a reduction in 
these percentages, the companies concerned will be required to train Guatemalan 
technical specialists in the field of activity 
concerned over the period of time granted for 
that purpose;  and 
(b) Where immigration is authorized or 
controlled by the Executi ve Power or involves 
workers which it has hi red itself and who are 
entering or have entered the country to help 
establish or develop agricultural or livestock 
settlements or to work for social welfare or (4) Unbound, except as indicated in the 
market access column.  
   
  TN/S/O/GTM
 Page 5Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 
 
 
  
 
  cultural institutions; or where the people in 
question are of Central American origin.  In 
all these circumstances, the scope of the 
respective adjustment must be determined by 
the Executive Power on a discretionary basis, 
but the decision to be issued through the 
Ministry of Labour and Social Security must 
clearly state the grounds for and extent and 
duration of the adjustment.  
Fractions should be ignored when calculating the 
percentages given in the first paragraph.  Where 
the total number of workers is five or less, four 
must be Guatemalans. 
 
This measure does not apply to company 
managers, directors, admini strators, supervisors or 
general executives.  
 
II. SECTOR-SPECIFIC COMMITMENTS 
1. BUSINESS SERVICES  
 
A. Professional Services  
 a. Legal services.  Solely 
advisory services on the 
legislation of the country of origin (CPC 86190 ). 
  
 
  
 
(1) None 
(2) None 
(3) Unbound 
(4) Unbound, except as indicated in the 
horizontal section.  
  
 
  
 
(1) None 
(2) None 
(3) Unbound 
(4) Unbound, except as indicated in the 
horizontal section.  
   
 TN/S/O/GTM 
Page 6 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
B. Computer services  
B. Computer and related services  
 Consultancy services related to 
computers and data processing. (CPC 84100-84390)  (including:  
software implementation 
services, systems analysis, data processing, time sharing services 
and input preparation or 
digitization). 
 (1) None 
(2) Unbound
  None  
(3) None 
(4) Unbound, except as indicated in the horizontal 
section 
 (1) None 
(2) Unbound   None  
(3) None 
(4) Unbound, except as indicated in the 
horizontal section 
  
2. COMMUNICATIONS 
SERVICES  
C. Telecommunications services  
a) Voice telephone services 
(CPC 7521) 
b) Packet-switched data 
transmission services 
          ( CPC 7523) 
c) Circuit-switched data 
transmission services 
         ( CPC 7523) 
d) Telex services ( CPC 7523) 
e) Telegraph services  
(CPC 7522) 
f) Facsimile services  
(CPC 7521, CPC 7529) 
g) Private leased circuit services 
(CPC 7522, 7523)   
 
  
(1) International traffic must be routed through the 
facilities of an enterprise with a frequency licence and/or a telecommunications registration 
certificate. 
(2) None (3) None 
(4) Unbound, except as indicated in the horizontal 
section  
 
  
(1) None 
  
 
(2) None (3) None 
(4) Unbound, except as indicated in the 
horizontal section. The Government of 
Guatemala undertakes 
additional commitments as set out in the Annex.  
  TN/S/O/GTM
 Page 7Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
o) Other 
 Paging services (CPC 75291) 
 Mobile telephone services 
 (CPC 75213) 
 Personal communications 
services 
 Mobile data services  Satellite services. 
    
6. ENVIRONMENTAL 
SERVICES 
 
D3. Nature and landscape 
protection services 
(CPC 94060) 
  
  
 
(1) None (2) None 
(3) None, except that provi sion of these services 
must be consistent with national policies on the development and maintenance of natural 
resources and biodiversity. 
(4) Unbound, except as indicated in the 
horizontal section.  
  
  
 
(1) None (2) None 
(3) None, except that provision of these 
services must be consistent with national policies on the development and 
maintenance of natural resources and 
biodiversity. 
(4) Unbound, except as indicated in the 
horizontal section.  
   
 TN/S/O/GTM 
Page 8 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
7. FINANCIAL SERVICES  
A. Insurance services  
A. All insurance and insurance-
related services  
Reinsurance of policies (81229)  
c. Reinsurance and retrocession  
(CPC 81299∗)  
 
  
 
 
  
 
(1) None (2) None 
(3) Unbound
 None  
(4) Unbound , except as indicated in the horizontal 
section    
 
 
  
 
(1) None (2) Unbound 
(3) Unbound
  None  
(4) Unbound , except as indicated in the 
horizontal section    
B. Banking Services  
B. Banking and other financial 
services  (other than insurance)  
k. Advisory and other auxiliary 
financial services  ( CPC 8131 or 
8133 ) 
  
 
  
 
 (1) None 
(2) None 
(3) None.  Only foreign financial institutions legally 
established in Guatemala 
(4) Unbound, except as indicated in the horizontal 
section. 
 
  
 
  
 
 (1) Unbound 
(2) Unbound 
(3) Unbound  
(4) Unbound, except as indicated in the 
horizontal section. 
 
  
l. Provision and transfer of 
financial information and financial data processing  
         (8113)
  (CPC 8131 ) 
 (1) None 
(2) None 
(3) Only foreign financial institutions legally 
established in Guatemala 
(4) Unbound, except as indicated in the horizontal 
section . 
 (1) Unbound   None  
(2) Unbound 
(3) Unbound 
 
(4) Unbound, except as indicated in the 
horizontal section .  
                                                      
∗  Unbound because not technically feasible.  
  TN/S/O/GTM
 Page 9Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
9. TOURISM AND TRAVEL-
RELATED SERVICES  
 
 Tourist sector  
 Hotel and other lodging services  
(6410 -6419)  
(CPC 64110, 64120) 
(including hotels, motels, 
apartment-hotels and tourist 
resorts) 
         (Four- and five-star categories 
only)  
 
 
  
 
 
(1) Unbound
∗ 
(2) None 
(3) None 
(4) Only senior and specialized personnel related to 
a commercial presence to the extent required for 
training Guatemalan personnel. 
  
 
 
  
 
 
(1) Unbound
∗ 
(2) None 
(3) None 
(4) None 
  
 Meal-serving services ( CPC 
64210 - CPC 64290) (including 
full restaurant service, self-service facilities, caterer services and other food-serving services) 
 (1) Unbound
∗ 
(2) None 
(3) None (4) Only senior and specialized personnel related to 
a commercial presence to the extent required for 
training Guatemalan personnel. (1) Unbound
∗ 
(2) None 
(3) None (4) None 
  
 Tourist marina operators 
 
 
 (1) Unbound 
(2) None 
(3) None 
(4) Only senior and specialized personnel related to 
a commercial presence to the extent required for 
training Guatemalan personnel. 
 (1) Unbound 
(2) None 
(3) None 
(4) None 
  
 Travel agency and tour operator 
services (CPC 74710∗∗) (1) Unbound 
(2) None (3) Unbound 
(4) Unbound, except as indicated in the horizontal 
section.  (1) Unbound 
(2) Unbound (3) Unbound 
(4) Unbound, except as indicated in the 
horizontal section.   
                                                      
∗  Unbound because not technically feasible. 
  
  
 TN/S/O/GTM 
Page 10 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
 Tourist guide services 
(CPC 74720) (1) Unbound∗ 
(2) None 
(3) Unbound (4) Unbound, except as indicated in the horizontal 
section.  (1) Unbound
∗ 
(2) Unbound 
(3) Unbound (4) Unbound, except as indicated in the 
horizontal section. 
  
10. RECREATIONAL, 
CULTURAL AND 
SPORTING SERVICES  
(other than audiovisual services) 
 
A. Entertainment services 
(including theatre, band and 
orchestra entertainment and 
circus services) (CPC 96191 and CPC 96192)  
 
  
 
 
  
 
(1) Unbound (2) None 
(3) None 
(4) Unbound, except as indicated in the 
horizontal section.  
  
 
 
  
 
(1) Unbound (2) Unbound 
(3) Unbound 
(4) Unbound, except as indicated in the 
horizontal section.  At least one 
Guatemalan performer must take part 
in every show. 
  
                                                                                                                                                                                                                                                                
∗∗  Service specified is only part of the full range of  activities covered by the corresponding CPC heading. 
∗  Unbound because not technically feasible.  
  TN/S/O/GTM
 Page 11Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
11. TRANSPORT SERVICES  
 
C. Air transport services  
  Aircraft repair and maintenance 
services 
(pursuant to paragraph 3 of the 
Annex on Air Transport 
Services) 
 
 
 Sale and marketing of air 
transport services (pursuant to paragraph 3 of the 
Annex on Air Transport 
Services) 
 
 (CPC 74710 
– 74720 (including 
travel agency, tour operator and 
tourist guide services))  
 
 
 Computer reservation system 
(CRS) services (pursuant to paragraph 3 of the 
Annex on Air Transport 
Services)   
 
 
  
(1) None 
(2) None (3) None 
(4) Unbound, except as indicated in the horizontal 
section . 
 
(1) Unbound 
(2) None (3) Unbound 
(4) Unbound, except as indicated in the horizontal 
section.  
 
 
 
 
  
(1) None 
(2) None (3) None 
(4) Unbound, except as indicated in the horizontal 
section. 
  
 
 
  
(1) None 
(2) None (3) None 
(4) Unbound, except as indicated in the 
horizontal section . 
 
(1) Unbound 
(2) Unbound (3) Unbound 
(4) Unbound, except as indicated in the 
horizontal section.  
 
 
 
 
  
(1) None 
(2) None (3) None 
(4) Unbound, except as indicated in the 
horizontal section. 
  
 
 TN/S/O/GTM 
Page 12  
 
 ANNEX 
 
Reference Paper
 
  
 Additional commitments by Guatemala with  regard to pro-competition regulations. 
 
Scope 
 
 The following are definitions and principles relating to the regulatory framework for basic 
telecommunications services. 
 
Definitions 
 
Users
 means telecommunications service consumers. 
 
Essential facilities  means facilities of a public telecommuni cations transport network or service that: 
  (a) Are exclusively or predominantly provided by a single or limited number of 
suppliers;  and 
 
 (b) cannot feasibly be economically or tec hnically substituted in order to provide a 
service. 
 A major supplier
 is a supplier which has the ability to materially affect the terms of participation (having 
regard to price and supply) in the relevant market for basic telecommunications services as a result of: 
 
 (a) Control over essential facilities;  or   (b) use of its position in the market.  
1. Competitive safeguards 
1.1 Prevention of anti-competitive practices in telecommunications 
 
 Appropriate measures shall be maintained for the purpose of preventing suppliers who, alone 
or together, are a major supplier from engaging  in or continuing anti-competitive practices. 
 1.2 Safeguards 
 
 The anti-competitive practices referred to above shall include in particular:   (a) Engaging in anti-competitive cross-subsidization;    
 (b) using information obtained from competitors with anti-competitive
 results;  and 
  (c) not making available to other services suppliers on a timely basis technical  
information about essential facilities and comme rcially relevant information which is 
necessary for them to provide services. 
  TN/S/O/GTM 
 Page 13 
 
 
 2. Interconnection 
2.1 This section applies to linking with supplie rs providing public telecommunications transport 
networks or services in order to allow the users of  one supplier to communicate with users of another 
supplier and to access services provided by another supplier.  2.2 Interconnection to be ensured 
 
 Within the limits to which market access is permitted, interconnection with a major supplier shall be ensured at any technically feasible point  in the network.  Such interconnection shall be 
provided: 
 
 (a) Under non-discriminatory terms, cond itions (including technical standards and 
specifications) and rates and of a quality no less favourable than that provided for its 
own like services or for like services of non-affiliated service suppliers or for its subsidiaries or other affiliates;  and 
 
 (b) in a timely fashion, on terms, conditions (including technical standards and 
specifications) and rates that are transparent
, having regard to economic feasibility, 
and sufficiently unbundled  so that the supplier need not pay for network components 
or facilities that it does not require for the service to be provided. 
 2.3 Public availability of the procedures for interconnection negotiations 
 
 The procedures applicable to interconnecti on to a major supplier shall be made publicly 
available.  2.4 Transparency of interconnection arrangements 
 
 It is guaranteed that all major suppliers shall make either their interconnection agreements or 
a reference interconnection offer publicly availa ble only during the period from 18 May 1997 to 
18 May 2000.  2.5 Interconnection:  Dispute settlement 
 
 If, within a period of 40 (working) days, the parties have not reached agreement on access to essential resources, the Superintendency of Teleco mmunications (SIT) shall issue a ruling under the 
procedure specified in the General Telecommunications Law. 
 
 Only an appeal for review may be lodged against a decision by the Superintendency of Telecommunications, and it shall be resolved by the Ministry of Communications, Transport and 
Public Works.  An administrative appeal shall lie against any decision by the Ministry of 
Communications, Transport and Public Works resulting from an appeal for review.  3. Universal service 
 Any Member has the right to define the ki nd of universal service obligation it wishes to 
maintain.  Such obligations shall not  be regarded as anti-competitive per se , provided that they are 
administered in a transparent, non-discriminator y and competitively neutral manner and are not more 
burdensome than necessary for the kind of universal service defined by the Member. 
 
4. Public availability of licensing criteria 
 Where a licence is required, the following shall be made publicly available: TN/S/O/GTM 
Page 14  
 
  
 (a) All the licensing criteria and the period of time normally required to reach a decision 
concerning an application for a licence;  and 
  (b) the terms and conditio ns of individual licences. 
 
 The reasons for the refusal of a licence sha ll be made known to the applicant upon request. 
 
5. Independent regulators 
 The regulatory body is separate from, and not accountable to, any supplier of basic 
telecommunications services.  The decisions of and procedures used by regula tors shall be impartial 
with respect to all market participants.  
6. Allocation and use of scarce resources 
 Any procedures for the allocation and use of scarce resources, including frequencies, numbers 
and rights of way, shall be carr ied out in an objective, timely, transparent and non-discriminatory 
manner.  The current state of allocated frequency ba nds shall be made publicly available, but detailed 
identification of frequencies allocated for specific government us es is not required. 
 
  
  TN/S/O/GTM
 Page 15GUATEMALA - FINAL LIST OF ARTICLE II (MFN) EXEMPTIONS) 
Sector or subsector Description of measure indicating its 
inconsistency with Article II Countries to which the 
measure applies Intended duration Conditions creating the need for the exemption 
 
ALL SECTORS  
 
 
  
 
 
 
  
 Measures stemming from:
 
 1.
 Agreements signed by Gu atemala in the 
framework of Central American integration, 
including:  
 
- Multilateral Treaty on Free Trade and 
Central American Economic Integration;  
 
- Central American Agreement on the 
Equalization of Import Duties and 
Charges;  
 
- Treaty of Economic Association ; 
 
- General Treaty on Central American 
Economic Integration.  
 
2. The Central American  Exemption Clause 
does not allow the extension to third 
countries of bilateral or multilateral 
concessions between Central American 
countries.  
 
3. Investment Guarantee Agre ement with the 
United States of Ameri ca  (Decree No. 1545 
of 22 August 1962).  
 
 Government Decision No. 693 -86, published 
on 22 September 1986, on rules for the 
implementation of the United States 
Investment Guarantee Agreement concluded 
between the Govern ments of the United 
States and Guatemala.  
  
 
Costa Rica, El Salvador, 
Honduras and Nicaragua  
  
 
 
 
  
 
  
 
  
 
Costa Rica, El Salvador, 
Honduras and Nicaragua  
 
  
 
United States
 
 
 
 
 
  
 
  
  
 
Indefinite
 
 
  
 
 
 
  
 
  
 
  
 
Indefinite
 
 
 
  
 
Indefinite
 
 
 
  
 
Maintenance o f preferences granted to countries 
of the region.  
 
 
 
 
 
  
 
  
 
  
Maintenance of preferences  granted to countries 
of the region.  
 
 
  
Promotion of investment.
 
  
 TN/S/O/GTM 
Page 16 Sector or subsector Description of measure indicating its 
inconsistency with Article II Countries to which the 
measure applies Intended duration Conditions creating the need for the exemption 
 4. Trade and Investment  Agreement between 
Central American countries and Colombia 
and Venezuela, c oncluded on 12 February 
1993.  
 Colombia, Costa Rica, El 
Salvador, Honduras, 
Nicaragua and Venezuela  
 Indefinite  
 Maintenance of preferences  granted to countries 
of the region.  
 
 5. Tuxtla Gutiérrez Agreem ents concluded on 
11 January 1991 . 
 Costa Rica, El Salvador, 
Honduras, Mexico and 
Nicaragua  
 Indefinite  
 Maintenance of preferences  granted to countries 
of the region . 
 
Cross-border trade in 
services and 
investment   
 
  
Investment 
 
 
  
Trade and investment 
 Preferential treatment fo r a range of service 
providers in the four modes of supply within the 
framework of Central American economic integration and the scope of the Central 
American Exemption Clause. 
  
Preferential treatment with regard to the non-
commercial risks of capital investment in 
Guatemala. 
  
Preferential treatment with regard to the agreed 
provisions, designed to promote trade and investment. 
 
 
 Costa Rica, El Salvador, 
Honduras and Nicaragua
  
 
  
United Status of America 
 
 
  
Colombia, Costa Rica, El 
Salvador, Honduras, Nicaragua and 
Venezuela 
 Indefinite 
 
  
 
  
Indefinite 
 
 
  
Indefinite 
  
 
 Need to ensure market access and investment 
promotion. 
 
 
 
 Investment promotion. 
 
 
 
 Need to ensure market access and investment 
promotion.  
 
 
__________