WT/TPR/M/348  
20 January 2017  
(17-0380) Page: 1/39 
Trade Policy Review Body   
16 and 18 November 2016  
  TRADE POLICY REVIEW  
GUATEMALA  
MINUTES OF THE MEETING  
Chairperson: Ms Irene Young (Hong Kong, China)  
CONTENTS  
 
1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  ................................ .......................  2 
2  OPENING STATEMENT BY  THE REPRESENTATIVE O F GUATEMALA   ...............................  4 
3  STATEMENT BY THE DIS CUSSANT  ................................ ................................ ................  9 
4  STATEMENTS B Y MEMBERS  ................................ ................................ ........................  14 
5  REPLIES BY THE REPRE SENTATIVE OF GUATEMALA  AND ADDITIONAL 
COMMENTS  ................................ ................................ ................................ .....................  34 
6  CONCLUDING REMARKS B Y THE CHAIRPERSON  ................................ .........................  38 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Guatemala  are reproduced in document WT/TPR/M/ 348/Add.1 and will be available 
online at http://www. wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/34 8 • Guatemala  
 
- 2 - 
 
  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The third Trade Policy Review of Guatemala was held on 16 and 18 November 2016. The 
Chairperson, Ms. Irene Young (Hong Kong, China), welcomed the delegation of Guatemala headed 
by H.E. Mr. Ruben Morales, Minister of Economy ; the delegation from Guatemala; and the 
discussant, H.E. Ambassador Esteban Aguirre (Paraguay) .  
1.2.  The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Guatemala  was co ntained in document 
WT/TPR/G/348  and that of the  WTO Secretariat in WT/TPR/S/348 . 
1.3.  Members  were also pleased to have with them the United Nations Industrial Development 
Organization which – as agreed by Members  earlier - was attending this meeting as observer on 
an ad hoc basis. The Chairperson also obtained  Members ' agreement to the presence in the room 
of the participants in the Advanced Trade Policy Course in Spanish, who were very interested in 
attending thi s review meeting.  
1.4.  Questions by the following delegations had been submitted in writing before the deadline: 
United States; Mexico; Republic of Korea; Argentina; European Union; Brazil; Paraguay; and 
El Salvador . The following delegations submitted written questions after the deadline: Colombia; 
Dominican Republic; Peru; Singapore; Ecuador; Canada; and Chile .  
1.5.  At its last TPR in 2009, Guatemala had been  praised for its commitment to trade 
liberalization, and for other modernization efforts to strengthen its market economy and 
institutional framework. Nevertheless, Members had noted that poverty and inequality were still 
high. Today, these same issues remain ed a challenge for Guatemala. Indeed, despite having 
achieved a per capita GDP growth of nearly 50% betw een 2009 and 2015, Guatemala 's poverty 
rate had actually increased during that period. In their advance written questions, some Members 
asked about Guatemala 's integrated policy on foreign trade, competitiveness and investment, and 
its relation to the Nati onal Development Plan K 'atun. It was useful to know how Guatemala 
intended  to mainstream trade in its development plans, in order to achieve more inclusive 
econo mic growth and reduce poverty.  
1.6.  Back in 2009, Members had commended Guatemala for the reforms it  had undertaken in 
customs procedures, and for not resorting to antidumping, countervailing and safeguard measures. 
During the review period, not only had Guatemala continued to abstain from applying contingency 
measures, but it had also adopted additional  trade facil itation measures. While recogniz ing the 
good work in this regard, Members still had a number of questions regarding customs procedures, 
in particular about customs valuation and rules of origin, which the Chairperson believed  the 
delegation would be happy to answer.  
1.7.  At the last TPR, Guatemala had reiterated its commit ment to meet the deadline of 
31 December 2015 for the elimination of export subsidies in order to comply with the WTO 
Agreement on Subsidies and Countervailing Measures. Noting tha t a new law to end export 
subsidies in Guatemala 's free zones and maquila regimes had  come into force, Members asked 
Guatemala to explain the implementation plan and how it would  affect businesse s operating in the 
free zones. They looked forward to Guatema la's elaboration.  
1.8.  In the previous TPR, Members had welcomed the progress that Guatemala had made in the 
protection o f intellectual property rights.  One recent development was a legislative amendment 
regarding the protection of geographical indicati ons and appellations of origin.  In their written 
questions, some Members sought further information on how these and other types of IPRs were 
being protected in the country.  
1.9.  Meanwhile, Guatemala had  also amended its government procurement legislation in order to 
enhance transparency, and had  introduced online auction as a new procurement method, hence 
addressing some of the concerns raised by Members at the last TPR. The Chairperson saw from the 
written questions that Members wanted to know more about the participa tion of foreign suppliers 
in government p rocurement.  The Chairperson hoped  the delegation could  also enlighten them on 
this. WT/TPR/M/34 8 • Guatemal a 
 
- 3 - 
 
  1.10.   Competition policy was another subject that continued  to attract Members ' attention. Back 
in 2009, Guatemala had been  working on th e development of its first competition legislation. A 
draft was available now, so it was useful, as suggested by some Members, that Guatemala 
elaborate d on its scope and time -frame for adoption.  
1.11.   In their questions, Members also showed interest in other ar eas, such as technical barriers 
to trade, sanitary and phytosanitary measures, and how economic in tegration in Central America 
had affected customs operations and other trade measures.  
1.12.   The Chairperson believe d Members would  take advantage of the current re view to discuss in 
greater detail these issues, as well as other issues of interest to them and of systemic importance 
to the multilateral trading system. She looked forward to a fruitful exchange.  WT/TPR/M/34 8 • Guatemala  
 
- 4 - 
 
  2  OPENING STATEMENT BY  THE REPRESENTATIVE O F GUATEMALA (H.E . MR. RUBEN 
MORALES ) 
2.1.  Good morning, Madam Chair, Members of the Secretariat, distinguished Ambassadors and 
colleagues here with us today. It is an honour for Guatemala to participate today in its third Trade 
Policy Review.  
2.2.  We are convinced that this mechani sm is a key exercise in transparency, in which we will be 
able to share and discuss with Members the significant achievements and challenges identified in 
Guatemala during the period 2009 -2016.  
2.3.  I take the opportunity to thank Ms  Irene Young, Permanent Repr esentative of Hong Kong and 
Chair of the Trade Policy Review Body, for her introductory remarks, as well as the Secretariat and 
the technical team in charge of our review for their commitment and the constant support 
provided throughout this whole exercise . Likewise, we thank Ambassador Juan Esteban Aguirre, 
Permanent Representative of Paraguay to the WTO, for the meticulous and thoughtful analysis he 
has shared with the Membership on the evolution of Guatemala's trade policies over the past 
seven years. Hi s comments are extremely valuable. They provide a major input for this discussion 
and a very clear guide for the deliberations in our review.  
2.4.  I believe it is important to flag, at the outset, that end August I was able to officially launch 
Guatemala's "Eco nomic Policy 2016 -2021", aimed at meeting the country's key challenges. By this 
means, we are adopting policies to reduce poverty, offer greater and better employment 
opportunities, primarily for young people, and develop the infrastructure and investment 
opportunities in the neediest geographical areas, as well as improving measures in favour of 
environmental protection. We are thereby seeking to exploit global opportunities by stimulating 
sustainable and inclusive economic growth, promoting the participat ion of all segments of the 
population and opening up national and international markets to young entrepreneurs, 
cooperatives, groups of producers and especially micro, small and medium -sized enterprises. The 
economic policy also provides for rational utili zation of natural resources, respect for the rights of 
communities, environmental conservation and developing value chains.  
2.5.  With the implementation of this policy, we expect in the short term to sustainably increase 
economic growth from an annual 3.8% to 5 .1% of GDP. To this end, it will be necessary to 
increase public and private investment as well as the tax burden, factors which will have a positive 
impact on the public debt, reduce the current account deficit and increase GDP.  
2.6.  Madam Chair, I have divide d by presentation into three points: (i) evolution of the economic 
environment and external trade; (ii) evolution of domestic trade policy; and (iii) the objectives, 
actions and results of the external trade policy. Then, to conclude, I will briefly outlin e the 
challenges we face and the direction taken in our trade policy in the short and medium term in 
order to make progress in meeting those challenges.  
EVOLUTION OF THE ECONOMIC ENVIRONMENT AND EXTERNAL TRADE  
2.7.  With regard to evolution of the economic envir onment and external trade, during the 
period  2009-2016 Guatemala maintained and reinforced its blueprint for opening up trade by 
entering into new trade agreements, adopting new trade facilitation measures and introducing a 
series of domestic regulatory an d structural reforms designed to increase the transparency of 
administrative procedures and strengthen the business climate.  
2.8.  According to figures published in 2015 by the World Bank, Guatemala is a country with a 
population of 16.3  million inhabitants, a G ross Domestic Product (GDP) of over US$63.7  billion and 
a GDP per capita of approximately US$3,900.  
2.9.  Between 2009 and 2016, Guatemala's economy continued to grow at a sustained rate, 
despite the impact of the global crisis. Since the last Trade Policy Revie w: 
 GDP has registered an annual growth of approximately 3.2%. Since 2010, GDP has 
increased faster than population growth. It is worth mentioning that in 2009 Guatemala was WT/TPR/M/34 8 • Guatemal a 
 
- 5 - 
 
  one of the few Latin American economies not to suffer contraction, despite the wide spread 
impact of the global crisis.  
 Thanks to a prudent fiscal and monetary policy, inflation has been kept down to a 
single -digit rate since the second half of the 1990s. The inflation rate stood at 3.6% during 
the period under review.  
 Agriculture, manufa cturing and trade in services all recorded sustained annual increases in 
the period since 2009. The year -on-year growth in agriculture during this period was 3.5%, 
while the manufacturing industry grew by 2.7% and services by 3.2%.  
2.10.   Over the past seven year s, Guatemala has also expanded its trade relations with the rest of 
the world. This was borne out by the average year -on-year growth in exports and imports over the 
review period, of 7.2% and 7.7%, respectively. The share of manufactured goods and services  in 
exports continued to rise. Nevertheless, exports of traditional and non -traditional agricultural 
products remain an extremely important pillar of our exports.  
2.11.   As far as our manufacturing capacity is concerned, the outstanding products 
include,  inter alia, clothing, textiles, chemical products and plastics. As regards services, tourism is 
a particularly dynamic sector. The Government considers that this result has been a positive factor 
in diversifying the economy and creating jobs nationally.  
2.12.   In spite o f these achievements, Guatemala acknowledges the major importance of 
reducing  poverty in the country. According to the 2014 Living Standard Measurement 
Survey  (ENCOVI), 59% of Guatemala's population lives in conditions of poverty. With a view to 
remedying this situation, the Guatemalan authorities have adopted a series of coordinated 
measures, such as:  
 launch of the Economic Policy 2016 -2021, briefly described at the beginning of 
this presentation;  
 formulation and implementation of the K'atun National Devel opment Plan, designed to 
structure public administration through development policies, plans and budget schedules;  
 establishment, in 2012, of the Ministry of Social Development, as the body responsible for 
formulating public policies to improve the welfare  of vulnerable individuals and groups;  
 launch of the Chronic Malnutrition Prevention Strategy 2016 -2020. The coordinated 
implementation of these programmes is expected to provide a solid foundation for 
generating more and better life opportunities for the Guatemalan population, in particular 
the most vulnerable groups.  
EVOLUTION OF DOMESTIC TRADE POLICY  
2.13.   In regard to the evolution of domestic trade policy, during the review period Guatemala 
focused efforts on facilitating trade through coordinated measures i n different areas. At the 
national level, a new National Customs Law was issued in 2013, reforming and greatly simplifying 
the application of customs rules.  
2.14.   Likewise, the Tax Administration Supervisory Authority (SAT) has published customs 
procedures on it s website and gradually set in motion the "Paperless Customs" project, and at the 
regional level Guatemala participated actively with the Central American countries in the 
establishment of the Central American Strategy for Trade Facilitation and Competitiv eness, 
underway since end 2015.  
2.15.   The WTO Trade Facilitation Agreement has been submitted to the Legislative Body for 
approval, and the Executive Body is carrying out intensive lobbying, within the confines of the 
remit conferred on it by law, to make people  aware of the importance of its speedy approval.  
2.16.   In 2015, important amendments were made to the State Procurement Law, by Congress 
Decree 9 -2015, in order to enhance controls and transparency in public procurement. The Law WT/TPR/M/34 8 • Guatemala  
 
- 6 - 
 
  retained the standard method of c ompetitive public procurement while introducing innovative 
concepts such as the reverse auction system and establishment of the Single Register of 
Suppliers  (RUP).  
2.17.   In regard to competition policies, the Congress of the Republic of Guatemala is in the 
proce ss of debating a draft competition law, which seeks to strengthen the existing regulations laid 
down in the Political Constitution of the Republic, the Commercial Code and the Civil and 
Commercial Code of Procedure, among other provisions of Guatemala's na tional law.  
2.18.   In the area of taxation, two significant measures were implemented during the review 
period. First, Decrees 4 -2012 and 10 -2012 were issued, aimed at strengthening and improving tax 
control, inspection and collection mechanisms. Secondly, in ear ly 2016, the Emergent Law on Job 
Protection was promulgated by Decree 19 -2016, with a view to significantly reforming the Law on 
the Promotion and Development of Exporting and Maquila Activities as well as the Law on Free 
Zones. Through this reform, Guatem ala sought to bring these subsidy schemes into line with its 
WTO commitments.  
2.19.   In order to strengthen the financial system, the Organic Law of the Bank of Guatemala was 
amended, so as to allow our Central Bank to play a more active role in providing financi al 
assistance to institutions facing liquidity problems. Similarly, Decree 25 -2010 strengthened the 
supervision of authorities in the area of insurance and brought the regulatory framework into line 
with international standards.  
2.20.   As regards intellectual pro perty, the National Intellectual Property Strategy (ENPI) was 
launched last year to encourage people to use it as a tool for economic and social development 
and to foster creativity and innovation as factors of productivity. Similarly, at the beginning of 
2016 Guatemala ratified the Marrakesh Treaty to Facilitate Access to Published Works for 
Persons  Who Are Blind, Visually Impaired, or Otherwise Print Disabled, thereby becoming one of 
the 20 countries that contributed to its entry into force.  
2.21.   In the Govern ment's report distributed to the Membership, we have mentioned other 
substantive reforms and improvements which we do not have time to go into in this presentation. 
We firmly believe that all the measures described, together with those covered in the repor t, 
constitute a sound input to usher in greater predictability and certainty in all the trade activities 
conducted in our country.  
OBJECTIVES, ACTIONS AND RESULTS OF THE EXTERNAL TRADE POLICY  
2.22.   With respect to the objectives, actions and results of the exter nal trade policy, the 
macroeconomic figures quoted above reveal that Guatemala has a small domestic market, and 
hence the application of protectionist measures would ultimately have high social, political and 
economic costs. Accordingly, Guatemala needs to  be able to count on open international markets, 
and has therefore participated actively for several decades in the multilateral trading system and 
has likewise contributed to the process of Central American integration.  
2.23.   Through its External Trade Policy, Guatemala seeks to improve access to its main markets 
for Guatemalan goods and services; foster private, domestic and foreign investment; enhance 
Guatemala's competitiveness and macroeconomic stability; and help to eradicate poverty.  
2.24.   In 2012, the Integrate d Foreign Trade Policy was revised in order to update the country's 
challenges and objectives in regard to attracting productive investment, expanding and 
diversifying trade, increasing the involvement of small and medium -sized enterprises (SMEs), and 
adapting to new international market trends.  
2.25.   In 2012, the National Competitiveness Agenda 2012 -2021 was launched as a cross -cutting 
strategy framing public actions and policies to improve the business climate, promote domestic 
and foreign investment and genera te better formal employment opportunities for Guatemalans. As 
a result of the implementation of this strategy, significant reforms were undertaken which have 
gained Guatemala 14 places in the rankings in the World Bank's Doing Business Report and 
recogniti on as one of the ten top reforming economies in the world. Furthermore, during the 
review period, foreign direct investment (FDI) coming into the country doubled.  WT/TPR/M/34 8 • Guatemal a 
 
- 7 - 
 
  2.26.   At the regional level, Guatemala has continued intense work with the Central American 
countri es in order to make tangible progress in the Central American Customs Union. To date, 
significant advances have been achieved in integration in areas such as trade facilitation, 
simplifying customs processes, sanitary and phytosanitary registers, and tax h armonization.  
2.27.   In order to deepen this integration, in 2015 Guatemala and Honduras signed the Enabling 
Protocol for the Process of Deep Integration towards the Free Movement of Goods and Natural 
Persons between the Republics of Guatemala and Honduras. This instrument entered into force at 
the beginning of 2016 and is expected to be fully implemented in the next few years. In the same 
vein, Guatemala is currently working with El Salvador on a process of trade facilitation between 
the two countries, designed t o streamline trade operations. With these processes, we hope in 
particular to promote small and medium -sized enterprises (SMEs).  
2.28.   During the review period, and in line with its Integrated Foreign Trade Policy, Guatemala 
consolidated its openness to trade th rough the negotiation and signature of new trade and 
investment agreements. New trade agreements came into force with important partners, such as 
the European Union, Colombia and Chile, along with the integration of previous bilateral 
agreements between Co sta Rica, El Salvador, Guatemala, Honduras, Nicaragua and Mexico. The 
Agreement with the EFTA countries is awaiting approval by the Legislative Body, and it is expected 
that negotiations for the Free Trade Agreement between the Republic of Korea and Centra l 
America will in fact be concluded today.  
2.29.   By dint of a diligent, coherent and sustained long -term trade policy, Guatemala has 
achieved the following:  
 it maintains a stable average MFN tariff;  
 to date, it has not applied any trade defence measures;  
 it has increased the transparency and flexibility of its Government procurement system;  
 it has also established a solid and diversified export platform (every year, more than 
4,000  different types of products are exported to over 130 markets, and the trend toward s 
stronger exports of services such as call centres and software development has continued);  
 it maintains a high standard of protection of intellectual property rights;  
 it has exercised its rights and ensured the fulfilment of WTO Members' obligations thro ugh 
the dispute settlement system.  
CHALLENGES/FUTURE ACTIONS  
2.30.   To round off my statement, I would like to share with you all an overview of the main tasks 
and challenges facing Guatemala.  
2.31.   In the social domain, it is a matter of priority to steadily reduce po verty, improve the 
relationship between population and development, and achieve better integration of Guatemala's 
population, on the basis of a stronger institutional framework, in order to achieve what we in 
Guatemala refer to as "humanizing the economy".  As pointed out in the opening part of my 
intervention, the Guatemalan authorities are addressing these issues with great diligence and to 
this end are implementing coordinated strategies which it is hoped will yield positive results in the 
short term.  
2.32.   Regarding trade, it is important to increase the rate of growth of our economy and deepen 
the trade liberalization process in an inclusive manner. To achieve these objectives, it will be 
necessary to continue strengthening the business climate, reduce the ext ent of the informal 
economy, expand measures in favour of trade facilitation, identify new potential markets, and seek 
to exploit the trade agreements concluded.  WT/TPR/M/34 8 • Guatemala  
 
- 8 - 
 
  2.33.   The Guatemalan authorities will continue to forge ahead with a foreign trade strategy 
focusing  on trade negotiations, promotion of exports, attracting investment, and effective 
administration of our trade agreements.  
2.34.   On the basis of what I have explained during my presentation, I should like to close by 
highlighting the immense value which Guatemal a, as a developing country and a small economy, 
attaches to international trade and the multilateral trading framework. We are convinced that 
these are a key success factor for global prosperity, and therefore urge Members to continue 
efforts to reduce tra de barriers and find ways to further facilitate the integration of developing 
countries in the global economy. Thank you all for your attention.  WT/TPR/M/34 8 • Guatemal a 
 
- 9 - 
 
  3  STATEMENT BY THE DIS CUSSANT  
3.1.  It is an honour for me to participate as Discussant in this third Trade Policy Rev iew of 
Guatemala, at a time when the country has stepped up its trade liberalization and economic 
reform process, so as to maintain sustainable and inclusive economic growth.  
3.2.  As everyone here is aware, Guatemala is a developing country with a vibrant econo my. It is 
committed to the multilateral trading system, and is an active participant in the negotiations as 
well as the WTO's various regular committees. It is worth pointing out that Guatemala leads the 
Group of Small and Vulnerable Economies and particip ates actively in various negotiation groups.  
3.3.  To use time wisely, my presentation will concentrate on: the economic and institutional 
environment; trade policy and its WTO commitments; the challenges still ahead; and, finally, an 
attempt to draw some conclu sions and recommendations.  
ECONOMIC AND INSTITUTIONAL ENVIRONMENT  
3.4.  As in many countries of the region, Guatemala's economy was affected by the global 
economic crisis of 2008, which resulted in lower growth in the years that followed; soon after, 
however, it s macroeconomic indicators improved considerably thanks to a combination of 
favourable external conditions, monetary and fiscal discipline, and a positive reaction from 
economic operators.  
3.5.  During the review period, GDP grew at an average annual rate of 3.2 %. Inflation was kept 
under control, at about 4 -5% per year. The per capita GDP growth of nearly 50% between 2009 
and 2015, when it reached US$3,943, is also worth highlighting. For the first quarter of 2016, 
economic activity as measured by estimated real  GDP increased by 2.8%. This trend was driven 
by the positive performance of private consumer spending and buoyant gross fixed capital 
formation. According to the Central Bank's revised estimates, the economy is expected to grow by 
between 3.1% and 3.9% in  2016 in spite of the slowdown in world economic growth.  
3.6.  Structurally, services continues to be the most important sector of the economy, contributing 
more than 60% of GDP in 2015, while crop farming, livestock breeding, hunting, forestry and 
fishing toget her represented 10.5%, with manufacturing accounting for 18.5%. The GDP shares of 
the two latter activities have remained broadly unchanged since the previous review period.  
3.7.  Services provided employment for 49.6% of the economically active population, whil e the 
manufacturing industry employed 13.1%, agriculture 31.7% and construction 5.6%. It is 
estimated that, in 2015, 67.9% of total employment was informal.  
3.8.  During the review period, government income has been equivalent to between 10.8% 
and 11.6% of GDP, and expenditure between 12.3% and 14.5%. This has generated central 
government deficits varying from 1.4% to 3.3% of GDP, higher than in the previous review period, 
but low compared to those of other countries in the region.  
3.9.  With the aim of reducing the fi scal deficit, Guatemala launched a tax reform process in 2012, 
entailing the approval of two legislative decrees: the Anti -Evasion Law and the Tax Update Law. 
The former contains measures to improve the control and inspection of taxes, and to combat tax 
evasion. It includes measures that amend income tax (ISR), value added tax (VAT) and the road 
and maritime vehicle tax; and introduces reforms to the Tax Code and Penal Code. The latter 
introduces a series of reforms entailing a new ISR law; a new tax on the  initial registration of road 
motor vehicles (IPRIMA); customs provisions; reforms to VAT; reforms to the vehicle tax; and 
reforms to the tax on fiscal stamps and official sealed paper.  
3.10.   With regard to monetary and exchange rate policy, as in the previous p eriod, Guatemala 
has continued to apply a flexible exchange -rate policy, with the Central Bank making occasional 
forays into the market, consistent with its basic goal of price stability. During the review period, 
the nominal exchange rate displayed limite d volatility, and the real effective exchange rate 
appreciated by 6% between 2009 and 2015. The Bank of Guatemala enters the Institutional 
Foreign Exchange Market with the sole aim of moderating the volatility of the nominal 
quetzal/dollar exchange rate, b ut without influencing its trend. In the context of the 2016 WT/TPR/M/34 8 • Guatemala  
 
- 10 - 
 
  Article  IV Consultation, the IMF indicated that  monetary policy was broadly appropriate but the 
authorities should remain vigilant if price pressures intensified . 
3.11.   Lastly, focusing on the core iss ue for the WTO, we point out that during the review period 
Guatemala recorded a balance -of-payments current account deficit of 11% of GDP in 2015. 
Exports climbed to US$10,716  million in 2015, an increase of almost 50% on 2009. The major 
contributor to thi s increase is the growth in exports from maquila and exports from free zones.  
3.12.   Manufactured goods generated about two thirds of total exports in 2015, mainly food 
industry products, clothing and clothing accessories and textile products, chemicals, base met als 
and plastics. Exports of primary products accounted for one third of the total in 2015, in particular 
coffee, fruit (particularly bananas), vegetables and seeds. The main maquila exports are clothing 
(one third of the total), metallic minerals, process ed fruit products and rubber. Exports from the 
free zones include fats and oils, pharmaceuticals, mineral fuels (refined products) and clothing.  
3.13.   Imports totalled US$17,639  million, some 52% above their 2009 level. The manufacturing 
sector accounted for abo ut three quarters of total imports, the main categories being machinery 
and transport equipment and chemicals. Imported primary products included fuels, cereals and 
dairy products, among others.  
3.14.   Guatemala's main trading partners are the United States, the other Central American 
countries, the EU, Mexico and China (for imports).  
3.15.   It should be highlighted that this considerable merchandise trade deficit is largely financed 
by remittances from workers abroad, which totalled US$6,285  million in 2015.  
3.16.   Guatemala's  services trade was in deficit throughout the review period, and the gap has 
been widening since 2012, reaching US$310  million in 2015, equivalent to 0.5% of GDP. 
The deficits are largely the result of ever larger shortfalls in the transport category, insu rance and 
pensions, and financial services . 
3.17.   One specific point, of which all of us here are aware, is the substantial development of 
tourism in Guatemala, which contributed 14% of the country's exports. Between 2009 and 2015, 
income earned from internation al tourism increased considerably, and the number of international 
visitors to the country rose from 1.2  million to 1.7  million over the same period. The main markets 
of origin are El Salvador, the United States, Honduras and Mexico; and the principal mode  of entry 
is by land (seven out of every ten visitors).  
3.18.   In 2015, there were more than 900 registered hotels and establishments providing lodging 
services; a total of 845 tourist guides; 520 inbound tour operators; more than 400 tourist 
transport enterprise s; and 18 marinas.  
3.19.   In this sector, Guatemala grants national treatment to foreign investors in hotels, lodging 
services, tour operators, travel agencies and other tourism -related services, although they are 
required to register. Foreigners may provide tour ist guide services as long as they are registered, 
work independently and reside in the country.  
TRADE POLICY  
3.20.   I now turn to the main aspects of Guatemala's trade policy during the review period, and 
especially what impact it has had here in the WTO. As eve ryone here knows, Guatemala is a 
Member which is quite committed to strengthening the multilateral trading system and an 
advocate of a more transparent and, above all, development -centred Organization. In this context, 
as I mentioned at the outset, Guatema la leads the SVEs Group and participates actively in the 
Cairns Group, the Tropical Products Group, the G -20 and the G -33. Guatemala is one of the 
20 Members which in 2011 submitted a joint proposal for the establishment of a voluntary register 
of geograph ical indications for wines and spirits.  
3.21.   Similarly, during the review period, Guatemala took part in six dispute settlement 
proceedings as a complainant and in 25 cases as a third party.  WT/TPR/M/34 8 • Guatemal a 
 
- 11 - 
 
  3.22.   Guatemala's strong presence in WTO is not an isolated occurrence, but rather a 
consequence of a soundly formulated and executed trade policy driven by the "Integrated Policy on 
Foreign Trade, Competitiveness and Investment", adopted in 2012, with the following prime goals:  
 to improve the country's competitiveness in order to  attract investment and expand trade;  
 to broaden and diversify the range of exportable products by raising quality and 
value  added;  
 to consolidate openness and access to international markets;  
 to promote foreign trade and investment opportunities.  
3.23.   The impl ementation strategies established to achieve these objectives include: promoting a 
stable macroeconomic environment, improving the production infrastructure and business climate, 
promoting the development of sectors with potential (agriculture, livestock, forestry, 
hydro -biological, agro -industry, manufacturing, extractive industry and services), strengthening 
the sanitary and phytosanitary systems, promoting SMEs and developing chains; optimizing the 
use of trade agreements; consolidating the Central Ameri can Customs Union and strengthening 
trade and investment promotion. This trade policy is evaluated monthly at the technical level by 
the National Export Coordination Commission and at a higher level by the National Council for 
Export Promotion . 
3.24.   It is also worth mentioning that Guatemala has quite an open trade regime: all of its tariff 
lines are bound, and the rates applicable to non -agricultural products were bound at a general 
level of 45%, while agricultural products were bound at rates ranging from 10% to 257%. 
However, Guatemala applies an average MFN applied tariff rate of 5.7%. Half of the tariff lines 
enjoy a 0% tariff. Agricultural products are subject to an average tariff of 9.6%, while the average 
tariff on non -agricultural products, excluding pet roleum, is 5%.  
3.25.   In 2015, Guatemala applied tariff quotas within the WTO framework to imports under 
three  tariff lines corresponding to rough rice, yellow maize and white maize. The tariff quota fill 
rate varied greatly from one product to another. In 2015, it was 91% for rough rice, 89% for white 
maize, but only 47% for yellow maize. Apart from the WTO quotas, Guatemala applies another 
42 quotas under the different preferential agreements it has signed . 
3.26.   Guatemala has notified the WTO that it does not have an  import licensing system as such, 
but the import of certain products is subject to special administrative formalities, including the 
granting of prior import permits, as laid down in various laws and regulations. These products 
include: fuels and bituminou s materials; inorganic or organic compounds of precious metals, 
radioactive elements, rare -earth metals or isotopes; organic chemicals; rubber; plastics; 
machinery and equipment; powder and explosives; matches; and weapons and ammunition. 
Sanitary or phyto sanitary permits are also required for a certain number of products. In the review 
period, Guatemala submitted 35 notifications to the WTO Committee on Technical Barriers to 
Trade, and 18 SPS measures . 
3.27.   During most of the period under review, Guatemala main tained three export subsidy 
programmes: (1) special customs regimes ("maquila"); (2) free zones; and (3) the Industrial and 
Free Trade Zone (ZOLIC). The three regimes allowed exemption from payment of tariffs and other 
import duties (including VAT) on impo rts of machinery, equipment, parts, components and 
accessories needed for the production process . 
3.28.   In this connection, it is worth mentioning that the Emergent Law on Job Protection, which 
repeals the provisions on export subsidies for the free zones and th e maquila regime, entered into 
force on 31  March  2016 with a view to complying with the requirements of Article 27.4 of the 
Agreement on Subsidies and Countervailing Measures (SCM). The only areas of activity that will 
receive production subsidies under th e new legal framework are clothing and textiles, and 
information and communications technology -related service providers offering call centres or 
contact centres . WT/TPR/M/34 8 • Guatemala  
 
- 12 - 
 
  3.29.   Furthermore, the Industrial Property Law was amended so as to strengthen the framework 
for pr otection of intellectual property rights (IPR), primarily introducing special forms of protection 
for geographical indications and appellations of origin in Guatemala, among other provisions . 
3.30.   Guatemalan law has provision for international exhaustion of IPR s for trademarks and 
patents. The owner of such rights in Guatemala may not prevent the import of products lawfully 
marketed and purchased in another country simply because they are protected by a patent or 
trademark in Guatemala.  
3.31.   Guatemala is a net import er of staple grains (yellow maize and rice). Agriculture receives a 
moderate level of government support in the form of technical training, funds for research and 
development on grain seed varieties, subsidization of fertilizers, and food aid for vulnerabl e 
population groups. In addition, tariffs on agricultural products are higher than the average. 
Guatemala has undertaken a commitment in the WTO to open tariff quotas 
for 30 agricultural  by-products . 
3.32.   Lastly, it is worth pointing out that Guatemala particip ates in various Regional Trade 
Agreements: it is a member of the Central American Common Market (CACM), of the Free Trade 
Agreement between the Dominican Republic, Central America and the United States (CAFTA -DR) 
and of the Association Agreement between Ce ntral America and the European Union. Together 
with the founder members of the CACM, Guatemala negotiated a trade agreement with Mexico, 
which entered into force in 2013. It also maintains a Free Trade Agreement with Taiwan, Colombia 
and Chile. In 2015, Gu atemala's trade with all these partners accounted for 83.4% of its exports 
and 75.3% of its imports.  
CHALLENGES  
3.33.   Notwithstanding the favourable scenario described so far, the Government of Guatemala 
still faces major challenges going forward. For instance, Guatemala is the only country in 
Central  America that still has neither competition policy legislation nor a competition authority. 
Sectoral laws do not include any provisions on competition, and sector regulators do not have any 
power of enforcement in th at area, or the authority to examine mergers. For the moment, 
anti-competitive practices are not investigated, and there is no mechanism to review mergers or 
other acts of economic concentration . 
3.34.   Similarly, the government procurement legislation does not d etermine which should be the 
normal method of procurement, nor does it expressly promote competitive methods. The value of 
contracts awarded through non -competitive methods accounted for an average of 57% of the total 
amount of contracts awarded annually d uring the review period.  
3.35.   In the same vein, trade in agriculture is still faces high tariffs and they are subject to 
various quotas.  
3.36.   These and other aspects were mentioned by the Membership in the near to 150 questions 
received for this review. Specific iss ues referred to by the Members are:  
 Application of customs procedures for the release of goods and the system used to value 
certain products in customs, and other measures related to trade facilitation.  
 Reasons for the high level of bindings for agricultur al products and questions on the 
assignment of tariff quotas.  
 Products which require import permits despite being notified as licences.  
 Consideration of international standards when formulating national technical standards and 
regulations and sanitary and phytosanitary measures, and the need to establish a procedure 
enabling WTO Members to formulate comments on the standards, measures or regulations.  
 Likewise, a large number of questions were raised concerning trade -related intellectual 
property rights, esp ecially with reference to patents, copyright and the like, geographical 
indications and appellations of origin, and primarily compliance mechanisms.  WT/TPR/M/34 8 • Guatemal a 
 
- 13 - 
 
  3.37.   I would not wish to conclude this section without referring to what is a core issue for the 
Governments of the Latin American countries in general and of Guatemala in particular, 
namely  combating poverty. Regrettably, Guatemala is one of the few countries in the region 
where  poverty has risen in the last few years, with the poverty rate climbing from 51% in 200 6 
to 59.3% in 2014. In the latest Human Development Report (2015), Guatemala ranks 128th out of 
188 countries, a position which reveals the enormous task facing the country. In this 
regard,  according to World Bank estimates, if Guatemala grows 5% per year from 2014 to 2016 
and this growth is not achieved at the expense of the poor, the poverty rate would be cut by 
one additional percentage point by end 2016, which would lift more than 160,000 people out of 
poverty. I am convinced that Guatemala can achieve this. It must be remembered that 20 years 
ago Guatemala succeeded in signing the peace agreements, after many years of war and violence, 
and is continuing and will continue to build its democracy and its inclusive society as an essential 
step on the road t o achieving well -being for all its citizens. It is interesting to hear, in the 
Minister's presentation, about the establishment of the Ministry of Social Development. These are 
vitally important steps towards reducing poverty.  
CONCLUSIONS AND RECOMMENDATIO NS 
3.38.   I should like to close by highlighting that Guatemala's economy has great potential for 
expansion, to which end it must invigorate and add value to its productive structure, by 
stimulating new investment and diversifying markets and products in order to  reduce its reliance 
on its export base; for example on maquila, on the United States and on other members of the 
Central American Common Market (CACM), which account for almost 90% of exports.  
3.39.   By virtue of its strategic geographic location, Guatemala can moreover become a key 
provider of services in Central America, and the efforts being deployed by the Government to train 
the workforce and bolster innovation and enterprise are fundamental to this process. Equally, I 
salute the emphasis given to the polici es recently implemented in regard to gender, which seek to 
boost the participation of women in the economy and in international trade.  
3.40.   The prompt ratification of the Trade Facilitation Agreement and the implementation of 
measures in this regard will enable  the country to increase its competitiveness and exploit its 
comparative advantages for its regional and extra -regional exports.  
3.41.   Even though some obstacles still remain, I consider that Guatemala is on the right track 
with the reforms undertaken and intend ed to be expanded in the country, such as economic 
diversification, cutting red tape, better access to financing, improved access to cheaper energy, 
modernization of physical infrastructure, and legal security.  
3.42.   In this respect, I should like to highlight t he recent launch of the 
Economic  Policy  2016-2021: Inclusive and Sustainable Economic Growth, which focuses on 
integrated development of individuals and sets a roadmap for achieving highly positive growth up 
to 2021.  
3.43.   I hope that the observations and sugges tions I have made will be useful in the present 
review. This concludes my presentation. Thank you for your attention.  WT/TPR/M/34 8 • Guatemala  
 
- 14 - 
 
  4  STATEMENTS BY MEMBER S 
MEXICO 
4.1.  I should like to echo the Discussant in acknowledging the noteworthy efforts Guatemala has 
made, as describe d this morning, which have enabled it to attain an annual growth rate of 3.2%; 
keep inflation below 5%; record a level of public debt of less than 25%, one of the lowest in the 
Latin American region; and double per capita GDP during the review period (2009 -2015). As the 
Discussant has stated, we also see that despite these admirable advances, it is worrying that the 
proportion of the population living in poverty rose from 51% to 59% in the last ten years. We thus 
welcome the programme of measures and reform s outlined today by the Minister, Mr  Morales. We 
are hopeful that these measures will play a positive and meaningful role in meeting the challenges 
that this situation entails.  
4.2.  During the previous review conducted in 2009, the Mexican delegation urged Guat emala to 
adopt an economic competition law in order to eliminate unfair practices such as monopolies, 
oligopolies and cartels. Accordingly, Mexico wishes at this juncture to reiterate this 
recommendation, in so far as today Guatemala is the only country in  Central America that still has 
neither competition policy legislation nor a competition authority. Last year, its Ministry of the 
Economy drew up a draft law on this subject, and we believe that the application of these 
economic competition provisions cou ld constitute a means of generating greater opportunities for 
small and medium -sized enterprises and improving the distribution of wealth in the country.  
Bilateral relations  
4.3.  Mexico and Guatemala have a significant economic and trade relationship, as highli ghted by 
our Discussant. Mexico is one of its five main suppliers of goods and the third biggest foreign 
investor in Guatemala.  
4.4.  The ties which unite our countries go back many centuries, throughout which we have always 
maintained extremely close relations.  Recently, these have been strengthened even further 
through the Mexico -Central America Free Trade Agreement, to which the Ambassador of Paraguay 
also made reference. This Agreement has deepened the integration of our economies, resulting in 
a 24% increase  in the value of Mexico's exports to Guatemala between 2008 and 2015, which 
means that Mexico currently accounts for almost 12% of its imports.  
Open trade  
4.5.  Guatemala's economy is quite open, as indicated by our Discussant. We commend this, and 
also applaud the fact that, during the review period, Guatemala:  
 refrained from having recourse to safeguard measures, or to anti -dumping or 
countervailing  measures;  
 did not restrict foreign investment in various key sectors for the economy such as 
telecommunications, banking, the operation of ports and the provision of auxiliary services 
(except for pilotage).  
4.6.  In this and other sectors, such as tourism, this openness has already borne fruit; in many 
others, however, it seems to us that there is a need to step up effort s, above all in cross -cutting 
areas such as fulfilment of contracts, protection of minority investors, dealing with insolvency, and 
building permits. My delegation would recommend Guatemala to continue improving the 
implementation of existing trade legisla tion in order to further strengthen its economy.  
Trade facilitation  
4.7.  In line with what the Discussant indicated, we would appeal to Guatemala to ratify the Trade 
Facilitation Agreement. We should like here to take note of the role which the distinguished 
Ambassador of Guatemala, Mr  Eduardo Sperisen, played in chairing and moving forward the 
negotiation of this Agreement. During the negotiation period we note that Guatemala undertook WT/TPR/M/34 8 • Guatemal a 
 
- 15 - 
 
  laudable improvements to its trade facilitation regime, which suggests to us  that Guatemala should 
be ready to implement the Agreement, a development which we would warmly welcome.  
Legal reforms  
4.8.  Lastly, I wish to acknowledge the legal reforms undertaken by Guatemala in various areas 
such as intellectual property, public procuremen t and the emergent law for job protection to 
support micro, small and medium -sized enterprises.  
Conclusion  
4.9.  To conclude, I thank Guatemala for its replies to my delegation's questions and to a few 
follow -up questions on trade remedies that we expect to be s ubmitting today. We wish the 
Guatemalan delegation every success in its review.  
REPUBLIC  OF KOREA  
4.10.   Korea and Guatemala have developed a strong bilateral economic relationship. The bilateral 
trade reached US$546 million in 2015. Korea was the 7th largest exp orter to the Guatemalan 
market. Korean companies and business people have been one of the leading foreign investors in 
Guatemala. In particular, Korea and Guatemala are currently negotiating a Central America Free 
Trade Agreement with other five Central Am erican countries. We believe that the FTA will be a 
huge stepping stone to the further progress of the economic partnership between our two 
countries. In this regard, it is our hope that the negotiation will be concluded soon in a mutually 
beneficial way.  
4.11.   Guatemala has participated actively in the WTO. In particular, Guatemala has been one of 
the active members in the negotiation of the Trade Facilitation Agreement. In this regard, we hope 
that Guatemala will soon ratify it before the end of 2016. Also, Ko rea highly appreciates that, as 
the Secretariat report says, Guatemala did not use any trade remedy measures, particularly 
safeguard measures during the review period, despite the recent drastic increase in the number of 
trade remedy measures taken by many  members.  
4.12.   It is clear that Guatemala has achieved many things in regard with trade policy. Despite 
those achievements, Korea has several concerns of the trade policies of Guatemala, about which 
we submitted advanced questions. I very much appreciate Guatem ala's response to our advanced 
written questions and requests. In this regard, please allow me  to take this opportunity to 
re-emphasize our main concerns about some of its trade measures and encourage Guatemala to 
address them.  
4.13.   First, many Korean companies  face difficulties when they enter the Guatemalan market due 
to customs administration and procedures. The difficulties include the high frequency of immediate 
verification, seriously delayed customs process due to frequent breakdowns of computer system 
for customs declaration, among others.  
4.14.   Second, many Korean business people and investors suffer from unexpected changes of law 
related to Free Zones, which has been taken without any proper considerations for the protection 
of the legitimate rights of the e xisting businesses. While Korea highly appreciates Guatemala 's 
continuing effort to comply with WTO commitments on eliminating prohibited export subsidies and 
Guatemala 's answer to our related questions, we would like to reiterate this issue, since it is 
directly related to maintaining a stable and predictable investment environment.  
4.15.   Korea has also concerns regarding more transparent government procure market, delayed 
reimbursement of VATs in the Free Zones and an ad valorem  tax on the first registration of  
automobiles, about which we submitted advanced questions and Guatemala has answered to 
them. We will carefully review Guatemala 's answers and would like to keep discussing with 
Guatemala to resolve the remaining issues, if any.  WT/TPR/M/34 8 • Guatemala  
 
- 16 - 
 
  ARGENTINA  
4.16.   The Argentine Re public is most interested to observe Guatemala's economic and trade 
development over the last review period. In this regard, we value Guatemala's approach to trade 
liberalization and economic reforms, with practical measures towards trade facilitation. Wit hout 
doubt, these policies have had an impact on its economic development, as indicated by the fact 
that annual GDP growth rose from 0.5% in 2009 to 4.1% in 2015.  
4.17.   Nevertheless, translating this growth or the estimated per capita GDP growth of nearly 50% 
between 2009 and 2015 into social advances has proven difficult for Guatemala, given that its 
poverty indices have also risen in recent years. This is a challenge which we see Guatemala is 
addressing, through practical policies geared to progressively buildi ng an open economy and 
creating a stable legal framework to promote and develop investment in the country.  
4.18.   It is noteworthy that Guatemala, in tandem with the strategies geared to consolidating 
economic liberalization, is driving a series of programmes to achieve inclusive, sustainable, 
innovative growth across the board, for example through the establishment of the Ministry of 
Social Development, the Food Security and Nutrition Secretariat, or programmes such as the 
K'atun National Development Plan - Our G uatemala 2032. We expect Guatemala to achieve the 
social welfare goals it has set for the next 20 years under this programme.  
4.19.   Our country considers as highly positive Guatemala's efforts in favour of trade facilitation, 
such as publication of the National Customs Law, posting of customs procedures online, or the 
process of shaping a Single Window for Foreign Trade (VUCE). These efforts to modernize its 
legislation and bring greater transparency, which are goals we work towards within the WTO, will 
certainly  have a positive impact in attracting greater foreign investment, as Guatemala intends. 
This is of great importance if one takes into account that Guatemala's economy is currently 
oriented towards the services sector, and there are therefore many opportuni ties for further 
economic expansion in sectors such as crop farming, livestock breeding, hunting, forestry and 
fishing, as well as the manufacturing industry.  
4.20.   Argentina highlights Guatemala's goal of promoting innovation, enterprise and technology 
transfer  as a driver of development.  
4.21.   Under this trade policy review, Argentina has submitted questions to Guatemala in relation 
to its customs integration agreement with Honduras and the process for harmonizing, for example, 
sanitary standards and procedures. We a re interested to see the levels of harmonization or 
centralization on which they are working and the type of provisions that will be used to achieve 
them. We are grateful for the reply provided by the Government of Guatemala, which we will be 
analysing in detail.  
4.22.   Argentina wishes to continue working together with Guatemala to deepen our bilateral ties, 
so as to accompany it on the path to providing better living conditions for its people, and Argentina 
is willing to strive to expand relations between the tw o countries in the areas of agriculture, 
science, technology and health.  
EUROPEAN  UNION  
4.23.   Before entering into the substance of this review, I would like to commend Guatemala for its 
decision to use the alternative timelines for this TPR that has allowed the  EU to better prepare for 
today 's meeting and limit its follow -up questions.  
4.24.   The EU would like to start highlighting some of the positive elements that have emerged 
during this review.  
4.25.   First, Guatemala has experienced stable economic growth - an average an nual GDP growth 
rate of 3.2%. This result has also been possible thanks to the open trade and investment regime 
maintained by Guatemala.  
4.26.   Indeed, during the review period, Guatemala has continued encouraging its trade 
liberalization and economic reform eff orts - notably by adopting various trade facilitation WT/TPR/M/34 8 • Guatemal a 
 
- 17 - 
 
  measures. In this regard, the EU is following with interest the implementation of Guatemala 's 
National Competitiveness Agenda 2012 -2021: these reforms are a step in the right direction.  
4.27.   Secondly, the E U appreciates that Guatemala met its commitment taken at the last review 
to reform its tax system. Guatemala since 2012 has embarked on a programme of tax reforms 
culminating with the elimination, at the beginning of this year, of the export subsidies incl uded in 
its free zone regimes. The EU welcomes this reform as it has allowed Guatemala to bring its 
subsidy programmes into line with its WTO commitments.  
4.28.   Thirdly, while having notified already in July 2014 its Category A commitments under the 
WTO Agreemen t on Trade Facilitation, Guatemala has not yet submitted its letter of acceptance of 
the Trade Facilitation Agreement. The EU calls on Guatemala to complete its internal legislative 
process for securing prompt approval and ratification and entry into force  of this instrument.  
4.29.   Beside Guatemala 's participation in the WTO, regional trade agreements (RTAs) have 
become an increasingly important part of the country 's trade policy; the EU follows with interest 
the shaping of a custom union between Guatemala and Ho nduras which constitutes a milestone 
towards a closer and deeper economic integration. In this respect, the EU would like to encourage 
Guatemala to pursue this bilateral process hand in hand with a deepening of the Central American 
regional economic integr ation.  
4.30.   Talking about RTAs, a word on our bilateral relationship. Guatemala is an important market 
for many European companies. The EU is the third largest trading partner of Guatemala globally 
and one of the major investors in the region. The trade relati ons between Guatemala and the EU 
take place in the framework of the comprehensive EU -Central America Association Agreement 
signed in 2012 and which includes political dialogue, development cooperation and trade.  
4.31.   Trade policy needs to be flanked by appropr iate domestic policies. Here, the Secretariat 
reports that poverty increased from 51% in 2006 to 59.3% in 2014 and a number of major hurdles 
still stand in the way of further per capita income growth and sustainable poverty reduction. 
Corruption combined w ith a low level of public revenue remains a major concern in Guatemala.  
4.32.   The EU would also encourage Guatemala to increase its efforts in implementing core labour 
standards and to improve the respect of the human rights. Guatemala can count on the continuo us 
support of the EU to tackle these challenges.  
4.33.   Guatemala benefits from EU support for development cooperation, both at bilateral and 
regional level. Bilateral EU cooperation for the period 2014 –2020 provides an allocation of 
€235 million concentrating on food security, employment and rule of law as main sectors. During 
the same period, Guatemala will have access to the EU sub -regional cooperation p rogramme for 
Central America (€ 120 million).  
4.34.   The EU would like now to raise three concerns.  
4.35.   First, the EU encourages Guatemala to further pursue the reinforcement of its institutions to 
ensure a fair, transparent and predictable legal environment which is crucial to attract FDI.  
4.36.   Second, Guatemala is still i n process of finalising its competition law and is still lacking a 
competition authority empowered to implement a well -developed competition policy. In today 's 
world economy, effective and efficient competition authorities have become essential to guarante e 
a level playing field for businesses and traders; therefore, the EU calls on Guatemala to do the 
necessary efforts in this respect.  
4.37.   Third, Guatemala recently introduced changes to its IPR legislation, in particular as regards 
geographical indications. T he EU welcomes such a move but calls Guatemala to further develop its 
policy in this area, notably regarding the evidence taken into consideration by Guatemalan 
authorities to assess the genericness of a term.  
4.38.   The EU is confident that this exercise will h elp Guatemala in carrying out its economic 
reforms in compliance with its international commitments in this forum.  WT/TPR/M/34 8 • Guatemala  
 
- 18 - 
 
  4.39.   On behalf of the EU, I look forward to a constructive exchange of views during this review. I 
wish the Guatemalan delegation the utmost succ ess during its Trade Policy Review.   
BRAZ IL 
4.40.   The delegation of Brazil has listened attentively to the presentations on the current status of 
Guatemala's economy and its trade policy strategy. Brazil is participating in this review process 
with great intere st. 
4.41.   Brazil wishes to underline the moderate yet constant growth Guatemala has achieved in the 
review period, with an average annual GDP growth rate of 3.2%. It is also important to emphasize 
and acknowledge as a positive feature that a cautious monetary po licy has enabled Guatemala to 
keep its inflation rate under control, at around 4% -5% per year.  
4.42.   Nevertheless, despite the fiscal reform efforts and the reduction of the tax deficit, 
Guatemala is still facing economic challenges, such as a persistently high balance -of-payments 
current account deficit of US$6.9  billion, or 11% of GDP, which remains largely financed by 
remittances from workers abroad.  
4.43.   Brazil congratulates Guatemala on its commitment to opening up trade and its ongoing 
support for the multilater al trading system. We also applaud Guatemala for its leadership as 
coordinator of the Group of Small Economies, and in particular Ambassador Eduardo Sperisen and 
his team in Geneva.  
4.44.   Bilateral ties between Brazil and Guatemala have intensified in various ar eas, most notably 
technical cooperation, collaboration in the field of digital television and agreement in various 
multilateral contexts.  
4.45.   Despite this stimulus, trade between Brazil and Guatemala has yet to fulfil its full potential. 
While bilateral trade progressed significantly in the early years of this century, in recent years the 
flow of trade has not expanded.  
4.46.   In 2015, total bilateral trade came to US$252.8  million. Up to September of this year, it 
stood at US$177.5  million, with a 5.31% fall in Brazi lian exports and a 40% growth in Guatemalan 
exports to Brazil. One positive aspect that should be spotlighted is the increasing share of 
manufactured goods in this trade: 36.8% of our imports from Guatemala, for example.  
4.47.   We wish to convey our appreciation to the delegation of Guatemala for its replies to the 
questions we have raised, which will be transmitted to our experts back home.  
PARAGUAY  
4.48.   Paraguay underlines the important steps taken by Guatemala in respect of trade 
liberalization and economic reform. One example is the elimination of the export performance 
requirements for production under the free -zone and maquila regimes. We are sure that the 
per capita GDP growth of nearly 50% between 2009 and 2015, which makes Guatemala one of the 
countries with th e best economic performances in Latin America, is a result of this policy.  
4.49.   We must also highlight its programme of tax reforms undertaken in 2012. The success of 
this tax reform will enable Guatemala to achieve a better redistribution of wealth and combat the 
increased poverty recorded.  
4.50.   In the area of trade policy, Paraguay points to Guatemala's commitment to strengthening 
the multilateral trading system, especially through the work of the Small and Vulnerable 
Economies Group and the Cairns Group, among oth ers. This commitment is also reflected in its 
active participation in the dispute settlement mechanism, both as a complainant and as a 
third party.  
4.51.   Equally noteworthy is the adoption of the "Integrated Policy on Foreign Trade, 
Competitiveness and Investmen t", approved in 2012, which seeks to improve the country's WT/TPR/M/34 8 • Guatemal a 
 
- 19 - 
 
  competitiveness, broaden and diversify the range of exportable products, enhance openness and 
access to international markets, and consolidate the Central American Customs Union.  
4.52.   We further highlig ht the national intellectual property strategy, especially the dissemination 
efforts for MSNEs with the aim of improving their competitiveness. We are sure that greater 
knowledge in this area will enable Guatemala's rich biodiversity and cultural and natur al heritage 
to be harnessed for inclusive development.  
4.53.   The reports reveal that, despite the major progress made, Guatemala still has various 
challenges to confront.  
4.54.   Whereas Guatemala has quite an open trade regime, tariffs for agricultural products were 
bound at rates of up to 257%. We are particularly concerned about the high tariffs and various 
tariff quotas in respect of trade in agriculture.  
4.55.   Although Guatemala facilitates access to its markets through high -standard and 
comprehensive free trade agreement s (FTAs) that cover goods, services and investment, the 
import of certain products is subject to special administrative formalities, including the granting of 
prior import permits, as laid down in various laws and regulations.  
4.56.   Elsewhere, I wish to undersco re my country's excellent bilateral relations with Guatemala, 
not only at the economic level, but also at the political, social and cultural levels.  
4.57.   Yet we are obliged to acknowledge that our bilateral trade relationship falls far short of its 
potential. G uatemala's leading export goods to Paraguay are fertilizers, plastics and plastic 
articles, while the main products imported by Guatemala from Paraguay include pharmaceutical 
products and leathers.  
4.58.   Paraguay and Guatemala share the same vision for the futur e of the multilateral trading 
system, advocating a dynamic, transparent and development -oriented WTO.  
EL SALVADOR  
4.59.   It is an honour for El Salvador to participate in this exercise in transparency. We are 
indisputably delighted with the efforts deployed by th e Guatemalan Government to improve the 
living conditions of its citizens. El Salvador identifies with the challenges that our neighbour and 
brother nation faces in terms of food security, social issues, education, health and safety, among 
others.  
4.60.   The Centr al American region is constantly affected by a range of factors which act as 
obstacles to sustainable and economic development.  
4.61.   Within the WTO, we very often lose perspective and forget that the public policies pursued 
by our Governments are geared to atte nding to the needs which our men, women and children 
encounter on a daily basis in their struggle to get by.  
4.62.   When Guatemala, in its capacity as coordinator of the Group of Small and Vulnerable 
Economies, makes an appeal for "special and differentiated trea tment", it does so on the basis of 
some of the situations of poverty described in the Secretariat's report, which are in fact a reality 
for the majority of the WTO Member countries but incomprehensible for a few who are far 
removed from such problems.  
4.63.   No country wishes to remain stuck with low levels of development. Quite the opposite: for 
countries like Guatemala or El Salvador, the paramount objective of any public policy, including 
trade policy, is to serve as a tool to help reduce poverty.  
4.64.   We are hugely  grateful to Ambassador Sperisen and all his team in Geneva for the 
coordination work carried out in defending the interests of the SVEs Group.  
4.65.   Turning to the matter at hand, in the economic area it should be recognized that Guatemala 
has achieved moderate  but steady growth during the review period, with an annual GDP growth WT/TPR/M/34 8 • Guatemala  
 
- 20 - 
 
  rate of 3.2%. In addition, it has posted one of the best economic performances in Latin America, 
with a per capita GDP growth of nearly 50% between 2009 and 2015.  
4.66.   As the Secretariat's r eport indicates, Guatemala remains Central America's largest economy, 
accounting for a quarter of the GDP of the Central American Common Market (CACM).  
4.67.   According to the Guatemalan Government's forecasts, the Central Bank's revised estimates 
indicate that t he economy is expected to grow by between 3.1% and 3.9% in 2016 in spite of the 
slowdown in world economic growth.  
4.68.   Guatemala is El Salvador's main intra -regional trading partner, and strengthening our trade 
relations remains a priority for my country. Our exporters and investors find in Guatemala an 
open and stable trade regime. El Salvador was the recipient of 11.6% of Guatemala's total exports 
in 2015.  
4.69.   It is worth noting the trade facilitation measures adopted during the review period, including 
in partic ular better utilization of risk -management systems and the implementation of a 
computerized clearance process. Guatemala also has a One -Stop Window for Exports (VUPE) and, 
since 2014, a Streamlined Window for Imports and Transit (VAI).  
4.70.   In regard to intelle ctual property, Guatemala strengthened its framework for protection of 
intellectual property rights (IPR), mainly by amending the Industrial Property Law in 2013.  
4.71.   Last but not least, it should be highlighted that Guatemala is up to date in respect of 
its WTO notification commitments.  
COLOMBIA  
4.72.   First of all, allow us to state that Guatemala is a country of great importance for Colombia in 
terms of trade. In recent years, our bilateral trade relations have become stronger, and today 
enterprises in both countri es are taking advantage of the favourable business, trade and 
investment climate which was ushered in by the entry into force of the Free Trade Agreement 
between Colombia and the Northern Triangle in November  2009.  
4.73.   Guatemala's economic performance during t he review period was remarkable. It managed 
to maintain a positive economic growth, with an average annual growth rate of 3.2%, keep 
inflation under control at below 5%, and increase per capital GDP by nearly 50%.  
4.74.   Nevertheless, the report also points to th e challenges stemming from an increase in the 
level of poverty. We understand that the Guatemalan Government is already taking the necessary 
corrective measures with the establishment in 2012 of the Ministry of Social Development and the 
launch of a sustai nable development policy under the K'atun Plan (Guatemala 2016 -2032).  
4.75.   We share the concern of combating poverty, and are keen to see these projects carried 
forward in order to ensure their sustainability and outcomes in the medium and long term.  
4.76.   As regards  the trade and investment regime, Guatemala continues to promote openness, 
remove barriers and streamline procedures, a vision which to our mind helps to explain its good 
economic performance.  
4.77.   We should like to underline the determination that Guatemala ha s shown in its collaboration 
with the multilateral system. During the review period it constantly updated its WTO notifications, 
including the Category  A commitments which it will adopt under the Trade Facilitation Agreement. 
It also made 35 notifications to the WTO Committee on Technical Barriers to Trade (TBT) and 
brought in several trade agreements. In addition, it participated in six dispute settlement cases.  
4.78.   Similarly, Guatemala adjusted its "Maquila" and "Free Zones" programmes to bring them 
into line  with the Agreement on Subsidies and Countervailing Measures (SCM). It is of great 
importance for us that these changes be evaluated and put into regulatory practice.  WT/TPR/M/34 8 • Guatemal a 
 
- 21 - 
 
  4.79.   The Secretariat's report also points out that Guatemala places very few limitations on 
foreign investment, the only restrictions being those derived from the Constitution. Colombia 
highlights Guatemala's open investment policy and expresses its interest in continuing to expand 
relations in this area, particularly in the financial sector.  
4.80.   Elsew here, we note with appreciation the roll -out of programmes geared to remedying 
shortcomings in regard to customs procedures and logistics. We believe it is important to underline 
the approval in 2015 of the "Central American Strategy for Trade Facilitation  and Competitiveness" 
aimed at improving overland trade, and the process of implementation of the "Quetzal Container 
Terminal" (TCQ) for maritime trade. We understand that there are difficulties to be overcome for 
the implementation of these programmes and  that some land customs posts are still congested 
and afflicted by delays on account of the operating hours and physical infrastructure. We trust that 
this situation can soon be improved.  
4.81.   We wish to throw the spotlight on three issues reported in the Secre tariat's document that 
warrant our attention and follow -up. The first is insufficient clarity in regard to import licences for 
some products, particularly organic chemical products, where there is thus some leeway for 
strengthening the licensing system. Th e second is the need to bring in a competition policy and 
establish a competition authority, which is extremely important for promoting trade in services and 
foreign investment. The third has to do with the public procurement system and the need to 
improve  tendering processes through methods that encourage competition.  
4.82.   To conclude, we take the opportunity to wish Guatemala every success in its Trade Policy 
Review and encourage Ambassador Sperisen and his Mission to continue their hard and fruitful 
work in t he multilateral trading system.  
DOMINICAN  REPUBLIC  
4.83.   The report highlights the excellent performance of Guatemala's economy, which grew at an 
average rate of 4% in five of the seven years in the period 2009 -2015, which was a very difficult 
time characterized  by major crises and plummeting growth rates in the economy and 
trade  worldwide. Guatemala's growth was even more striking in the last two years, when it 
exceeded 4%, while the regional growth rate for Latin America and the Caribbean dropped to 
negative va lues. Likewise, the inflation rate was consistent with the inflation targets set by the 
monetary authorities, increasing by less than 4%. Nonetheless, the level of poverty, the high 
rates of which should have improved with the dynamic growth in GDP and low  inflation rates, rose 
from 51% to 59%, which shows that government policies are not proving effective in the social 
domain, so as to pass on the benefits of the effective performance of economic policy to the 
population at large, and the authorities must thus focus on this crucial aspect in order to carry on 
defeating poverty and expanding the consumer market by developing the middle class.  
4.84.   Guatemala essentially has a service economy: services already represent 63% of GDP and 
are growing faster than GDP. T his structure – services being where most informal activity in 
developing economies is concentrated – may perhaps explain the low level of the tax burden in 
Guatemala, which stands at around 10% of GDP; and the resulting shortfall in tax revenues may in 
turn be hampering the authorities' efforts to effectively roll out proactive poverty -reduction policies 
underpinned by capital expenditure on physical and social (education and health) infrastructure 
which could raise employment and salary levels. Guatemala could look at two possible options: 
namely, vigorously combating tax evasion, and using the cushion offered by the low level of 
external debt to finance investment programmes for these infrastructures through multilateral 
funding sources.  
4.85.   In the banking se ctor, we consider that the high cost of financial intermediation constitutes 
a severe obstacle to expanding productive activities and enhancing business competitiveness.  
4.86.   In the external sector, Guatemala substantially reduced its current account deficit 
from 3.4% of GDP in 2011 to only 0.3% in 2015, thanks to two factors: a 3% increase in exports 
of goods and a 50% increase in the share of net remittances, far outweighing the 6% growth in 
imports of goods. This strong inflow of currency remittances with the  recovery of the 
North  American economy and a flexible exchange -rate policy have led to an appreciation in the 
nominal and real effective exchange rate, the latter by 6%, which, while helping to anchor low WT/TPR/M/34 8 • Guatemala  
 
- 22 - 
 
  inflation rates, also dents export growth by makin g exports less competitive, all the more so if on 
the contrary peer countries in the region pursue proactive exchange -rate policies. This is another 
factor that has to be assessed by the authorities, since a proactive exchange -rate policy to 
maintain compe titive rates will boost exports of goods and create formal employment. We note 
with satisfaction that Guatemala has diversified its export markets, thus reducing its vulnerability 
to external shocks, and it should also continue further diversifying its ran ge of export goods.  
4.87.   With regard to trade policy, we are pleased to see that Guatemala has quite an open trade 
regime. We note with satisfaction that its applied tariffs are low, with an average MFN applied rate 
in 2015 of 5.7%. All of Guatemala's tariffs a re ad valorem , and a zero rate is applied to 49.5% of 
all tariff lines.  
4.88.   We welcome the efforts deployed in the area of trade facilitation, the Guatemalan 
authorities having worked on important trade facilitation measures at national and regional levels 
during the review period. In October  2015, the Council of Ministers for Economic Integration 
(COMIECO) approved the Central American Strategy for Trade Facilitation and Competitiveness in 
conformity with the provisions of the Declaration of Punta Cana made in  2014 by the Presidents of 
the Member countries of the Central American Integration System (SICA). A new Customs Law 
incorporating important reforms was published in 2013, and the Streamlined Window for Imports 
and Transit (VAI) was launched in 2014.  
4.89.   In th e area of intellectual property, the Guatemalan authorities have strengthened the 
regulatory framework governing the protection of international property rights (IPRs), chiefly 
through amendments to the Industrial Property Law (LPI), which entered into for ce in June  2013, 
and included provisions on, inter alia , a specific procedure concerning geographical indications and 
appellations of origin. We congratulate the Guatemalan authorities on this progress.  
4.90.   Elsewhere, we urge the Guatemalan authorities to work  on the formulation and 
implementation of a competition policy law, which will bring predictability and protection for 
economic operators and consumers alike.  
4.91.   Finally, we have submitted questions to Guatemala, relating among other things to its 
foreign inv estment policy and the administration of tariff quotas. We appreciate the 
replies  provided, and it only remains for us to wish Guatemala much success in this review and for 
the future.  
PERU  
4.92.   Peru is pleased with the solid economic results posted by Guatemal a in recent years, in spite 
of the adverse and uncertain world economic climate. Specifically, Guatemala's GDP has displayed 
positive real growth rates during the review period, even outstripping population growth. Equally 
noteworthy is the positive role o f the country's international trade promotion policies, Guatemala 
having adopted jointly with other Central American countries a Central American Strategy on 
Trade Facilitation within SIECA in 2015; maintained active participation in the WTO; and promoted 
the signing of regional trade agreements with various trading partners. Regrettably, this progress 
has not translated into a reduction in poverty. According to the report, poverty levels have risen in 
recent years from 51% to 59%, i.e. by no fewer than eig ht percentage points. Peru hopes that this 
trend will be reversed, for the benefit of our sister nation Guatemala.  
4.93.   Peru has formulated a number of questions on the basis of the content of the reports drawn 
up for this review. Our questions addressed Guatem ala's competition protection system, in view of 
the lack of a specific law protecting free competition and of specific sanctions in local law in the 
event of infringements of this economic principle. In particular, Peru is interested in the competent 
courts, inspection activities and the current status of the draft law under preparation to fill this 
gap. 
4.94.   Peru thanks Guatemala in anticipation for its replies, which will be carefully analysed. 
We also wish Guatemala every success in its third Trade Policy Rev iew. WT/TPR/M/34 8 • Guatemal a 
 
- 23 - 
 
  SINGAPORE  
4.95.   Guatemala and Singapore share several similarities. Both societies are multi -ethnic, 
multicultural; and both our economies are small, open and dependent on international trade. We 
welcome trade facilitative measures which Guatemala has put in place during the review period. 
These include the establishment of a one -stop window for exports (VUPE), a streamlined window 
for imports and transit (VAI) and a computerised clearance process. We look forward to 
Guatemala 's ratification of the TFA by t he end of this year.  
4.96.   Guatemala has a relatively low average applied MFN rate of 5.7%. We applaud Guatemala 
for binding all its tariff lines at the WTO, thereby ensuring predictability to its tariff regime. Despite 
a low average applied MFN rate, Guatemala  has comparatively high average bound rate of 41.3%, 
with the average bound rate for agricu ltural products ranging from 10 –257%; and non -agricultural 
products bound at an average rate of 45%. We encourage Guatemala to consider taking unilateral 
steps towar ds reducing the gap between its bound and applied tariffs. This would further enhance 
predictability of Guatemala 's tariff regime. We also hope to see Guatemala 's implementation of the 
ITA Expansion by 1 Jan uary next year.  
4.97.   We strongly encourage Guatemala to consider putting in place a competition policy 
legislation and establishing a competition authority. Clear competition policies and laws contribute 
to the attractiveness of Guatemala as a place for business. With regard to government 
procurement, we not e that Guatemala introduced new provisions in Dec last year to enhance 
transparency in its government procurement process. We welcome Guatemala 's independent and 
incremental improvements made to its government procurement regime. We encourage 
Guatemala to consider being Observers to the Government Procurement Agreement (GPA), with a 
view towards acceding to the GPA.  
4.98.   At the WTO, we applaud Guatemala for keeping its notifications up to date. We encourage 
Guatemala to swiftly accept the Protocol amending the TRIPS Agreement.  
4.99.   There is potential for Guatemala and Singapore to deepen our bilateral economic 
engagement, given our common pro -trade orientation. We hope to see Guatemala companies in 
Singapore; and likewise, Singapore companies in Guatemala, in the ve ry near future.  
4.100.   The Singapore delegation enjoys warm working relations with Ambassador Eduardo 
Sperisen and his able team in Geneva. We look forward to continuing this excellent working 
relationship towards our common goal of upholding the multilateral tr ading system. We wish 
Guatemala every success in its third Trade Policy Review.  
ECUADOR  
4.101.   This Trade Policy Review is of considerable interest to our country, since this year marks 
the third anniversary of the entry into force of the Partial Scope Agreement  between Ecuador and 
Guatemala.  
4.102.   This Agreement has helped ensure economic and production complementarity of the 
respective economies, with harmonized trade rules that serve to reduce transaction costs, promote 
investment, eliminate non -tariff barriers and set tariff preferences, as well as improving the quality 
and diversity of product supply and demand in both directions.  
4.103.   It should be mentioned that the third Meeting of the Political Consultation Mechanism 
between Guatemala and Ecuador was recently held in  Quito, where we had the honour to welcome 
the Vice -Minister for Foreign Affairs of Guatemala, Ambassador Carlos Ramiro Martínez.  
4.104.   On that occasion, Ecuador's Vice -Chancellor highlighted the excellent relations that prevail 
between the two countries, and es pecially the growth in bilateral trade recorded between 2013 
and 2015, the aim of which is to contribute to the development of fair and more inclusive societies 
founded on solidarity.  
4.105.   We underline the national Government's decision to expand the Economic C omplementarity 
Agreement with a view to ensuring smoother exchange of information in order to combat the illicit WT/TPR/M/34 8 • Guatemala  
 
- 24 - 
 
  drug trade and human trafficking, and to identifying new areas of South -South cooperation that 
will help to revitalize the bi -national programm e in this area.  
4.106.   For Ecuador, it is of pivotal importance to enhance mutual trade relations, along with the 
creation of trade associations for entrepreneurs in Guatemala and Ecuador, as developed last April 
in Antigua, which would contribute to economic com plementarity.  
4.107.   From the report submitted by the Secretariat, we note Guatemala's economic reforms such 
as updating of its legislation governing public procurement, protection of intellectual property 
rights and competition policy.  
4.108.   We also note that Guatemal a's moderate but steady growth in GDP has enabled it to post 
one of the best economic performances in Latin America, as well as being Central America's 
leading energy exporter.  
4.109.   At the same time, we acknowledge the challenges that Guatemala faces in order t o achieve 
higher per capita growth and sustainably reduce poverty, given that it is running a substantial 
balance -of-payments current account deficit.  
4.110.   We acknowledge the work being carried out by the Guatemalan Government to improve 
competitiveness, divers ify the range of exports, foster openness and access to international 
markets, promote external trade opportunities, broaden participation in regional trade agreements 
and bind all of its tariff lines.  
4.111.   It is important to point out that the financial sector  is stable and solvent and 
that Guatemala has strengthened its financial legislation as well as incorporating international 
oversight standards.  
4.112.   Another aspect which stands out is access to sources of funding for micro, small 
and medium -sized enterprises t o develop their businesses, increase productivity and become 
more competitive.  
4.113.   We acknowledge Guatemala's active participation in the WTO, especially in the Trade 
Facilitation Agreement negotiations.  
4.114.   To conclude, we thank the Guatemalan delegation in advan ce for its replies to our 
questions on certain aspects of the country's trade policy, which will provide valuable input for 
strengthening bilateral foreign trade relations.  
CANADA  
4.115.   We would like to commend Guatemala for its choice to use the alternative tim elines for its 
review. ‎As we have discussed extensively in the context of the 6th appraisal for the TPRM, the use 
of alternative timelines can contribute to enhancing transparency and to a more productive and 
substantive trade policy review of the Member concerned. We would lik e to thank Guatemala for 
their timely responses to our written questions and look forward to a constructive exchange of 
views in this TPR.  
4.116.   We share the concerns raised in the written questions of several delegations regarding 
issues such as standards and technical regulations, government procurement, and tariff 
harmonization at the Central American level, a topic for which we will submit a follow up question 
in writing over the course of today.  
4.117.   As a friend and partner of Guatemala, Canada welcomes the Gov ernment of Guatemala 's 
latest policy initiatives included in the new Government 's anticorruption agenda. This agenda aims 
to reform the tax and customs agency, strengthen the government procurement process, improve 
the accountability of Congress, enhance t he independence of the judiciary and increase the 
transparency of funding to political parties. As mentioned in the IMF report of April 2016 on 
transitions and risks, this will further support the rule of law, improve the business climate, and 
enhance the medium -term growth prospects of the country. As one of the top donors to WT/TPR/M/34 8 • Guatemal a 
 
- 25 - 
 
  Guatemala 's Commission Against Impunity (CICIG), Canada has been actively supporting 
Guatemala 's important work to limit corruption.  
4.118.   Canada also recognizes Guatemala 's active partici pation in the multilateral trading system, 
particularly in the negotiation of the Trade Facilitation Agreement. In particular I would like to 
underline Ambassador Speri sen-Yurt's important role as chair of the Negotiating Group on Trade 
Facilitation.  
4.119.   Furthermore, Guatemala has actively worked toward greater openness of regional and 
bilateral trade, with trade agreements with Mexico and Europe.  
4.120.   However, we note two areas of concern.  
4.121.   First, we are concerned about the increasing insecurity in the Northern T riangle region of 
Central America, including Guatemala. Fear for personal safety, organiz ed transnational crime and 
the lack of faith in local institutions to combat these and other challenges will continue to limit 
economic growth and development in the r egion.  
4.122.   Second, there is still a lack of competition policy legislation and competition authority in 
Guatemala. Although we welcome the reorganization of the special procurement following the 
amendments to the law on government procurement in 2015, now req uiring competitive 
procedures and the use of online bidding, there is still room for improvement. We also hope for 
greater investigations of the anti -competitive practices and acts of economic concentration.  
4.123.   Finally, allow me to say a few words about Cana da and Guatemala 's bilateral relationship.  
4.124.   Canada and Guatemala enjoy a longstanding, positive relationship, and 2016 marks the 
40th anniversary of development cooperation with Guatemala. Currently, our development 
programming in Guatemala promotes human rights and democracy; sustainable green economic 
growth; and maternal, newborn and child health, including sexual and reproductive rights.  
4.125.   Guatemala is Canada 's largest bilateral trade partner in the region, and our bilateral trade 
grew by almost 14% in 20 15.  
4.126.   Canada 's Minister of Foreign Affairs Stéphane Dion visited Guatemala on 13 October to 
discuss ways to expand our bilateral relationship. He had the opportunity to meet with his 
counterpart Minister Carlos Raul Morales and with President Jimmy Morales,  with whom he signed 
a memorandum of understanding to institutionalize a mechanism for regular bilateral 
consultations. Minister Dion also met with Guatemala 's human rights defenders and visited the 
legal clinic operated by Dr. Edgar Pérez with the support  of Lawyers Without Borders Canada.  
4.127.   We remain committed  to working with Guatemala, both as a bilateral trading partner and a 
partner in development, and to supporting the Government and people of Guatemala in pursuing 
sustainable economic growth and combat ting the challenges it faces domestically and regionally.  
CHILE  
4.128.   For this third review, Chile has formulated six questions, pertaining, inter alia , to the 
investment regime, multilateral commitments, transport and bilateral arrangements.  
4.129.   From a foreign trad e perspective, Guatemala constitutes an important benchmark for Chile 
in Central America with which we share common positions on global issues, and this opens up an 
interesting space for cooperation in the multilateral sphere.  
4.130.   In the economic and trade dom ain, bilateral relations have been following an upward 
trajectory, bearing the imprint of the FTA with Central America, of which the section with 
Guatemala entered into force on 23  March  2010. The signing of such agreements has yielded 
extremely satisfacto ry results, as proven by an average annual increase in total trade between the 
two countries of 4.1% between 2010 and 2015.  WT/TPR/M/34 8 • Guatemala  
 
- 26 - 
 
  4.131.   Thanks to this positive trade relationship, the Agreement has been gradually refined. The 
third Chile -Guatemala Free -Trade Commissio n meeting took place in December  2014, and 
underscored the importance of increasing both countries' range of exports. On that occasion, Chile 
reiterated its interest in expanding the tariff reduction programme, as some key products 
remained outside the Agr eement. Guatemala, for its part, expressed it desire to concentrate on 
seizing existing opportunities, seeking means of diversifying its exportable supply and promoting 
mutual investment.  
4.132.   We also note that Guatemala has been a Candidate Observer State of t he Pacific Alliance 
(PA) since 2013, and is currently taking steps to become a full Member.  
4.133.   Another area of particular relevance in our bilateral relationship is technical cooperation. 
The current Chile -Guatemala Cooperation Programme has focused on direct ly supporting two 
strategic lines of action identified by the Government of Guatemala: the Zero Hunger Pact (aimed 
at reducing chronic malnutrition) and the Security, Justice and Peace Pact (aimed at reducing 
levels of crime). Within this framework, progra mmes of cooperation from Chile have been defined 
in areas such as food security, public security, modernization of the State and trade promotion, as 
well as training and bursaries.  
4.134.   Turning to the core matter of this TPR, we note with satisfaction that duri ng the review 
period (2009 -2015) Guatemala has intensified its trade liberalization and economic reform 
process. The recent elimination of the export performance requirements for production under the 
free-zone and maquila regimes together with the updating  of its legislation on public procurement, 
the improvements made in some aspects of the protection of international property rights and the 
measures taken to facilitate trade constitute without doubt important steps towards making its 
trade structure more transparent and efficient.  
4.135.   We also acknowledge that over the same period Guatemala has achieved moderate 
but steady economic growth, with an average annual GDP growth rate of 3.2%. Indeed, 
as the Secretariat's report states, in recent years Guatemala has p osted one of the best 
economic  performances in Latin America, resulting in a notable per capita GDP growth of 
nearly  50% between 2009 and 2015, to US$3,943.  
4.136.   In the same period, inflation was kept stable, although the inflation rate of 4% to 5% is 
high and should be methodically reduced.  
4.137.   In the area of regional trade agreements, we note with great interest and satisfaction the 
importance which Guatemala attaches in its trade policy to its active participation in the Central 
American Common Market (CACM). We deem regional integration to be a major structural asset 
which provides not only a space for further developing trade but also a fertile terrain for 
cooperation between CACM Members and, ultimately, an opportunity for better understanding 
between the peopl es of the region.  
4.138.   In sum, we would highlight that Guatemala has an open trade regime, and its applied 
tariffs are relatively low, with an average MFN applied rate in 2015 of 5.7%. It has an open 
investment regime which generally guarantees national treatme nt. In addition, a number of trade 
facilitation measures have been adopted during the review period.  
4.139.   Notwithstanding the satisfactory performance described, some difficulties and challenges 
remain in terms of its trade policy to which we wish to draw atten tion. As indicated in the 
Secretariat's technical report, Guatemala is the only country in Central America that still has 
neither competition policy legislation nor a competition authority. Although a draft law is currently 
being examined, it is not clear when it might be approved. In these circumstances, we urge the 
Guatemalan authorities to strengthen their internal inspection systems so as to be able to properly 
investigate and sanction anticompetitive practices and review mergers or other acts of econom ic 
concentration. Such measures will be extremely beneficial to Guatemala in developing a modern 
and transparent trade structure that will ultimately benefit its population.  
4.140.   Furthermore, we point out that despite the increase in GDP per capita achieved in recent 
years, poverty rose from 51% in 2006 to 59.3% in 2014. While we understand the impact of 
changing demographics, we make an appeal not to neglect inequalities in income distribution, WT/TPR/M/34 8 • Guatemal a 
 
- 27 - 
 
  which is a prevalent issue in our region. Expanding global trade an d thereby creating wealth is 
only meaningful if its benefits actually reach the whole population, especially those most in need.  
4.141.   We would like to take this opportunity to highlight the efforts Guatemala is making in 
improving its trading standards and in i ts active participation in WTO. Likewise, we appreciate the 
transparency it demonstrates in subjecting itself to the scrutiny of its peers. This decision will 
without doubt contribute to strengthening the system.  
PANAMA  
4.142.   Panama and Guatemala maintain sound diplomatic, economic and trade relations. These 
have been strengthened in recent years, in particular through the Bilateral Protocol to the Free 
Trade Agreement with Central America of 20  June 2009. This is a tool that fosters market access 
and trade in go ods and services, while promoting trade facilitation, investment and financial 
services, among other things.  
4.143.   Total trade between our countries stands at US$194  million, and our main export products 
to Guatemala are shrimp and prawns, fish powder and pellet s, preserved salmon, milk and 
sugar -free cream.  
4.144.   The report submitted by the Secretariat shows Guatemala's fine economic performance, as 
reflected in the increase in its Gross Domestic Product, which registered a growth rate of 3.2% in 
the period to 2015. T he report highlights trade reforms undertaken to stimulate productivity and 
improve Guatemala's international competitiveness, specifically the Integrated Policy on Foreign 
Trade and the National Competitiveness Agenda, as well as policies designed, inter alia, to 
increase transparency and enhance the efficiency of public administration. These have without 
doubt consolidated openness and access to international markets.  
4.145.   Guatemala has implemented measures to promote and diversify exports of goods and 
service s by fostering investment. Investments by P anama in Guatemala exceeded US$ 170 million 
in 2015.  
4.146.   The Guatemalan Government's efforts are significant and the economic outlook is positive. 
Guatemala's economy harbours good potential for expansion. It will be i mportant for Guatemala to 
overcome the challenges identified in the Secretariat's and its own reports, above all in the 
agriculture sector where it needs to limit the use of tariff quotas. Reforms also need to be 
instigated in the area of competition polic y and in the telecommunication sector.  
4.147.   Panama takes note of the initiatives undertaken and carried out to liberalize Guatemala's 
services regime. These include strengthening legislation on insurance and reinsurance, as well as 
measures to facilitate land t ransport, with the establishment of a reciprocal treatment and 
non-discriminatory mechanism. In the same vein, we urge Guatemala to ratify the WTO Trade 
Facilitation Agreement, in the establishment of which Ambassador Sperisen played a stellar role.  
4.148.   We con gratulate Guatemala for its commitment to and participation in the multilateral 
trading system and its role in the trade negotiations, as evidenced by the excellent work of its 
Permanent Mission to the WTO and the leadership and hard work they put in as co ordinators of the 
Small and Vulnerable Economies group.  
HONDURAS  
4.149.   It emerges from the Secretariat's report that Guatemala has achieved moderate but steady 
growth, with an average annual GDP growth rate of 3.2%. Meanwhile, inflation was regularly kept 
within  the fluctuation band set by the competent authority, at a rate of 4% -5%. 
4.150.   In recent years Guatemala has posted one of Latin America's best economic performances, 
resulting in a per capita GDP growth of nearly 50% between 2009 and 2015, and Guatemala's 
trade in goods continued to increase during the review period, yielding an increase of almost 50% 
by 2015 in relation to 2009.  WT/TPR/M/34 8 • Guatemala  
 
- 28 - 
 
  4.151.   We see that Guatemala has made changes to its customs regulations with respect to tariff 
classification criteria, administrative offe nces, undeclared goods, auction of goods, the sale of 
duty-free vehicles, and procedures for challenging action by the Customs Service.  
4.152.   Furthermore, we note that new provisions have been adopted amending public 
procurement legislation so as to enhance tran sparency and introduce a new procurement method, 
online auction; and that the framework for the protection of intellectual property rights (IPR) has 
been reinforced, mainly by amending the Industrial Property Law in 2013 so as to institute special 
forms of  protection for geographical indications and appellations of origin in Guatemala.  
4.153.   It is important to mention that Guatemala is currently the biggest exporter of electrical 
energy in Central America.  
4.154.   At the same time, we emphasize, as indicated in the repor t, that Guatemala's second 
largest export market is Central America, which as a whole accounted for 29.1% of Guatemala's 
total exports in 2015, and that, among the Central American countries, its leading market is 
El Salvador, followed by our country, with  8.4%.  
4.155.   At the bilateral level, Honduras exported to Guatemala more than US$236  million worth of 
soap, organic surface -active agents, washing preparations, preparations of cereals, flour, starch or 
milk, among others; and imported from Guatemala more than U S$862  million worth of plastics 
and articles thereof, preparations of cereals, flour, starch or milk, pastrycooks' products, 
beverages, alcoholic liquids and vinegar.  
4.156.   We not only share a border with Guatemala, but also many common public policy 
objectives at the national, regional and multilateral levels. Multilaterally, we have participated in 
various groups and held similar positions within the WTO and in other agencies. Regionally, for 
over 60 years we have worked together on formulating and managing the  Central American 
integration process, including the Central American Common Market (CACM). This has enabled us, 
together with our other partners in the region, to conclude various regional trade 
agreements  (RTAs) with third countries or groups of countrie s as well as defining common regional 
public policies.  
4.157.   As we reported in our own recent Trade Policy Review, in February  2015 Guatemala and 
Honduras signed a Customs Union agreement providing for the elimination of internal border posts 
and a common extern al tariff. Subsequently, in April  2015, we signed the Enabling Protocol which 
officialized this deep integration process, which we hope will serve to facilitate the movement of 
persons and vehicles in a consolidated customs territory that constitutes an at tractive market for 
local, regional and foreign investors.  
UNITED  STATES  
4.158.   There have been many developments since Guatemala 's last review in 2009, as the 
Government has continued to place a high priority on trade liberalization as the core of its national 
development strategy. Guatemala 's report provided us with valuable background information, a 
useful perspective a nd framework to understand the G overnment 's trad e policy regime and 
practices. We look forward to learning more about Guatemala 's trade policies  and it s engagement 
through this TPR. We would also like to thank the discussant, Ambassador Esteban Aguirre, for his 
meaningful contributions to this review.  
4.159.   The United States and Guatemala continue to enjoy a strong trade an d economic 
relationship. The U nited States is Guatemala 's leading partner in both exports and imports. Our 
bilateral trade in goods was US$9.9 billion in total (two -way) goods trade in 2015. Trade and 
economic integration between the United States and Guatemala is an important element of our 
bilateral relations and generates important benefits for both countries and the region.   
4.160.   The United States and Guatemala are partners under a regional free trade ag reement, the 
Dominican Republic –Central America –United States Free Trade Agreement ( CAFTA -DR), among 
the Dominican Republic, the United States, and five Central Ame rican countries (Costa Rica, 
El Salvador, Guatem ala, Honduras, and Nicaragua). Over the last ten years, since implementation WT/TPR/M/34 8 • Guatemal a 
 
- 29 - 
 
  of the CAFTA -DR, our trade relationship with Guatem ala has transitioned to one based on 
reciprocal free trade.  
4.161.   The United States commends Guatemala on its path towards trade liberalization, including 
the adoption of unilateral, regional and multilateral measures aimed at achieving this objective. 
Both the reports from Guatemala and the Secretariat indicate that Guatemala is pursuing a 
strategy of trade liberalization in various contexts. Unilaterally, Guatemala has pursued economic 
reforms, such as eliminating export performance requirements for production under the free-zone 
and maquila regimes. The United States encourages Guatemala to develop and consult clear and 
transparent regulations in this area.   
4.162.   On the multilateral front, we appreciate Guatemala 's active engagement in the WTO, 
particularly in the negotiation of the Trad e Facilitation Agreement (TFA).  The United States 
encourages Guatemala to join its neighbours , including Honduras, El Salvador, Panama, Nicaragua, 
and Belize, in ratifying the TFA, and, as Guatemala has stated, "redouble its efforts " to complete 
its domestic process and accept the TFA by the end of this calendar year.  
4.163.   The United States commends Guatemala for work to date and progress in customs 
modern ization and trade facilitation.  With technical assistance from the United States and  other 
countries, Guatemala and its Central American neighbours  continue to focus on reform initiatives 
to promote free movement of goods and trade facilitation; regulatory modernization and 
convergence; and institution al development.  Strengthening intra -regional trade and safely 
streamlining customs procedures is key to furthering the economic development of Guatemala and 
other countries in the Central American region.  
4.164.   It is clear that Guatemala 's trade with its neighbours  has also been an important area o f 
development in terms of trade liberalization and economic integration, including the Central 
American Common Market, which grew in 201 3 with the addition of Panama. Several other 
agreements concluded between 2009 and 2016 have entered into force, includi ng the agreements: 
between Central America and Panama (2009); between the European Union and Central America 
(2013); between Chile and Central America (2010); and between the United Mexican States and 
the Republics of Costa Rica, El Salvador, Guatemala and  Honduras (2013).   
4.165.   Negotiations on a Customs Union with Honduras are also addressing movement of goods 
and natural persons. The United States would appreciate further explanation about the Customs 
Union approach, any plans for expanding that to the rest o f Central America and how Guatemala 's' 
Customs Union approach differs from its other regional trade agreements.  
4.166.   In intellectual property (IP) rights, the United States applauds Guatemalan reforms during 
this review period to s trengthen its legal framework . The Secretariat 's report recognizes broad 
efforts to build capacity to  protect and enforce IP rights.  The Secretariat further notes the 
enactment in 2014 of a law to protect plant varieties and its subsequent withd rawal.  The United 
States would appreciat e more details on the status of legislation to provide these protections in 
Guatemala, specific plans for accession to the International Convention for the Protection of N ew 
Varieties of Plants (UPOV), and if Guatemala is in compliance with UPOV 1991.  
4.167.   In closing, we would like to reiterate our appreciation for Guatemala 's active participation 
in the work of the WTO and its commitment to prioritizing the commitments under the TFA 
including accepting that Agreement by end of 2016.  We would also like to emph asize that we 
continue to value our close work with the Guatemalan government and our WTO partners to 
strengthen and build on the WTO 's rules -based and cooperative foundation.   
4.168.   We thank the delegation of Guatemala for its willingness to consider these poi nts and 
welcome the opportunity to engage with Guatemala and other delegations in a discussion of 
Guatemala 's trade policy regime.   
COSTA  RICA 
4.169.   Our two countries are united by extremely strong historical and commercial ties, helped by 
the high degree of tr ade integration achieved within the Central American Common Market. Almost 
a quarter (24%) of Costa Rica's exports to Central America go to the Guatemalan market, and a WT/TPR/M/34 8 • Guatemala  
 
- 30 - 
 
  third (33%) of our imports from the region come from Guatemala. It is one of our major trading 
partners and in 2015 was the fourth biggest destination for Costa Rican exports and the fourth 
largest source of its imports. Total bilateral trade exceeded US$939  million in 2015.1 
4.170.   The Guatemalan economy posted one of the best performances in Lati n America, achieving 
very significant growth in per capita GDP over the review period from 2009 -2015, and registered 
constant growth at an annual average rate of 3.2%, with inflation under control. In spite of this, 
poverty reduction remains one of the mos t important challenges faced. Costa Rica 
encourages  Guatemala to continue working on this objective, towards which trade can act as a key 
tool, in  particular through the inclusion of micro, small and medium -sized enterprises in the 
global  economy.  
4.171.   In terms  of trade -related measures, Costa Rica encourages Guatemala to continue 
pursuing its efforts to amplify its trade liberalization and economic reform process, and in the area 
of trade facilitation, such as the promulgation of a new National Customs Law, imp lementation of 
the "Paperless Customs" project, the Streamlined Window for Import and Transit, and the 
development of a Single Window for Foreign Trade, among other actions.  
4.172.   We hope that Guatemala will be able to conclude soon the procedures for ratificati on of the 
Trade Facilitation Agreement, something to which Costa Rica is also committed. It is likewise 
important that it complete the procedures to equip itself with legislation governing competition, so 
as to ensure that all its citizens reap the benefit s of an open trade regime.  
4.173.   Before concluding, we should also like to highlight the joint work being conducted to 
deepen the economic integration of Central America, including in areas such as e -commerce, 
investment and trade in services; the Central Americ an Strategy for Trade Facilitation and 
Competitiveness; and the joint negotiation of a Free Trade Agreement with the Republic of Korea, 
to add to other free trade agreements to which both countries are party.  
SRI LANKA  
4.174.   Going through the reports by both the  Guatemal a Government as well as the WTO 
Secretariat, we noted with interest the recent changes in the economy made by the Guatemalan 
Government intensifying its trade liberalization and economic reforms efforts. We appreciate the 
remarkable growth in the GDP per capita income during the recent years which have recorded 
nearly 50% growth between 2009 and 2015. We also acknowledge that poverty; income inequality 
and rising food prices are  the challenges the Guatemalan G overnment will have to deal with in 
achieving su stainable development. We believe that sound, effective and consistent economic 
policies by the Guatemalan government and proper implementation strategies will contribute 
towards the positive developments in the economy.   
4.175.   Sri Lanka and Guatemala share similar sentiments as Small and Vulnerable Economies and 
Net Food Importing countries. Bilateral trade between the two countries stays at a moderate level. 
Sri Lanka is the main supplier of Ceylon Cinnamon to Guatemala and Sri Lanka 's major importing  
product from Guatemala is cane sugar.  
4.176.   My delegation welcomes Guatemala 's continued commitment to the multilateral trading 
system. We welcome the arrangements to ra tify the TFA by the Guatemalan G overnment and look 
forward its ratification at the end of th e year 2016, as indicated. My delegation highly appreciates 
Guatemala 's much valued contribution to the multilateral trading system and its active 
engagement in the negotiations in the WTO. My delegation appreciates the valuable functions 
carried out by th e Guatemalan delegation in Geneva as the coordinator of the SVE group. The 
dynamic role played by Ambassador Eduardo Ernesto and his team in Geneva in proactively 
engaging in ongoing activities of the WTO is highly commendable.  
                                                
1 Source: Ministry of Foreign Trade (COMEX), on the basis of figures from the Costa Rica Foreign Trade 
Promotion Agency (PROCOMER) and the Central Bank of Costa Rica (BCCR), as at February  2016.  WT/TPR/M/34 8 • Guatemal a 
 
- 31 - 
 
  INDIA  
4.177.   The Secretariat r eport mentions that Guatemala 's real GDP grew at an average rate of 
3.2% per year since the last rev iew from the period 2009 -2015. We have also noted that the 
challenges for Guatemala include addressing poverty, rapid population growth, rising food prices 
and income in equality. The balance of payments current acco unt deficit also remains high. We 
commend the Government of Guatemala for the measures it has taken in recent years to address 
these challenges which  include adopting an "Integrated policy on foreign trade,  competitiveness 
and Investment ", programme of tax reforms an d steps to promote investment. As a result, 
Guatemala has posted one of the best economic performances in Latin America with a per capita 
GDP growth of nearly 50% between 2009 and 2015.  
4.178.   India and Guatemala have shared close and friendly relations.  India opened its miss ion in 
Guatemala City in 2009. In recent years , there have been regular exchange of visits between both 
countries. Under Development Cooperation partnership India has been off ering slots to 
professionals from Guatemala under the Indian Technical and E conomic Cooperation programme. 
An IT Centre in San Carlos University has also been  set up with Indian assistance.  
4.179.   Bilateral trade, though modest, has cont inued to grow steadily fro m US$152 million in 
2010-11 to US$268.52 million in 2015 -16. The number of Indian companies represented in 
Guatemala is also growing steadily. Several trade and economic delegations from India from the 
areas of textiles, pharmaceuticals, chemicals, enginee ring goods and spices have visited 
Guatemala. There is considerable potential to promote trade and investment between both 
countries in the areas of auto mobiles, iron and steel, metals, information technology, chemicals, 
plastic and rubbe r products and ot her sectors.   
4.180.   To conclude, we look forward to working with the authorities of Guatemala in further 
expanding our trade and inves tment ties for mutual benefit. We wish the delegation of Guatemala 
a productive and successful TPR.  
THE SEPARATE  CUSTOMS  TERRIT ORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.181.   Through prudent macroeconomic management, Guatemala has become one of the 
strongest economic performers in Latin America in recent years. Average annual GDP growth over 
the review period, (2009 to 2015) was 3.2%. Lat est projections for 2016 suggest growth of up to 
3.6% this year. Also, inflation has been under control at 4 to 5% per year, and Guatemala 's per 
capita GDP over the past 6 years has grown by nearly 50%, r eaching a current average of 
US$3,943.  
4.182.   In recent yea rs, Guatemala has made concentrated efforts to liberalize trade and boost the 
economy through the establishment of free -zones and the so -called maquila regimes, through 
updating its government procurement legislation, embarking on a programme of tax reform , 
strengthening its framework for the protection of intellectual property rights (IPR), and by 
adopting an "Integrated Policy on Foreign Trade, Competitiveness and Investment. " Its excellent 
economic performance over the last 6 years is a result of the com bination of all these efforts.  
4.183.   At the same time, in an attempt to attract more Foreign Direct Investment (FDI), 
Guatemala has introduced "The Law on Foreign Investment ". It has also signed 19 reciprocal 
investment and protection agreements with other count ries, which help provide a stable and 
predictable business environment for foreign investors. According to its Central Bank, Guatemala 's 
FDI has increased by more than 100% over the review period, from US$600 million in 2009 to 
US$1,208 million in 2015.  
4.184.   Guatemala and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
have for long enjoyed very strong economic and trade ties. The Free -Trade Agreement between us 
actually came into force as long ago as July 2006. I am pleased to say that bilat eral trade has 
increased by 263% since then, to the point where we are now one of Guatemala 's most important 
export destinations in Asia. In 2015, two -way trade totalled US$240 million, and our consumers 
increasingly enjoy the coffee and sugar coming in fr om Guatemala.  WT/TPR/M/34 8 • Guatemala  
 
- 32 - 
 
  4.185.   In the FTA between us, one Chapter is specifically devoted to investment, so I am also 
pleased to say that we are now one of Guatemala 's largest foreign investors. Since 2006, the total 
cumulative amount of investment by our private sectors has reached about US$400 million, and 
created some 3,000 new jobs.  
4.186.   All-in-all, therefore, economic and trade relations between us are strong and thriving. We 
would simply encourage Guatemala to maintain its open trade and investment regimes, and 
continue to develop its related policies. We welcome, too, its recent law enforcement actions to 
maintain domestic security, which can support economic growth, reduce inequality and poverty 
and benefit the welfare of the people.  
4.187.   Finally, I would also like to take this opportunity to congratulate Ambassador Eduardo 
Sperisen -Yurt and his team on their excellent contributions to the multilateral trading system here 
in Geneva.  
NICARAGUA  
4.188.   Guatemala is a relatively open economy resolutely geared to exports of goods and 
services. In terms of its trade policy, it gives equal importance to the multilateral system and to 
regional and bilateral integration processes, with a view to improving access for its products and 
services, promoting greater legal certainty and economic st ability, and creating a stable legal 
framework for the promotion and development of investment. Also noteworthy for Nicaragua is the 
priority Guatemala gives both to the WTO negotiations and to Central American integration in 
the CACM framework, the latter  being indeed a priority for the countries of Central America, which 
share a common policy of international integration founded on "open regionalism".  
4.189.   It is worth highlighting the sustained progression and growth of the Guatemalan economy, 
in spite of the global crisis in recent years, as shown by a 4.1% growth in its Gross Domestic 
Product (GDP) in 2015. This is to a large degree a result of its domestic policies and strategies, 
stand -out aspects of which include its scheme of public -private dialogue for i mplementation of 
the "K'atun - Our Guatemala 2032" National Development Plan, through inclusive development 
policies for the rural sector; public policies geared to improving the welfare of vulnerable 
individuals and groups; food and nutritional security p rogrammes; and its policy focusing on the 
promotion of tourism and foreign investment in the tourism sector, not to mention its 
energy  policy aimed at contributing to the development of sustainable energy and respect for 
the environment.  
4.190.   Further noteworthy  are its legislative reforms in the areas of customs, taxation, public 
procurement, and intellectual property, among others, which help to ensure a better business 
climate and economic stability for the country. We nonetheless hope that legislation will be  
forthcoming in the area of competition, along with the establishment of a corresponding regulator. 
We also hope that Guatemala will soon ratify the WTO Trade Facilitation Agreement, which 
represents a major objective and commitment for our region.  
4.191.   Among t he countries of the Central American region, Guatemala is our fourth largest 
trading partner, with exports from Nicaragua to Guatemala climbing to the equivalent 
of US$111.6  million in 2015. Our main exports to Guatemala are, among others: bovine meat, 
powdered milk, cattle, infant food preparations, instant coffee, mineral water and aerated water, 
and shrimps. As regards imports, in the same year, Guatemala ranked as the second largest 
provider of goods to our country, to the tune of US$407.4  million. The main products imported 
include: medicines for human use, paints and varnishes, edible oil, products for baking, 
pastry -making and biscuit -making, pulp -, juice - or milk -based beverages, bottles, cans and similar 
plastic containers.  
4.192.   Guatemala is the source o f 14.7% of our direct foreign investment, corresponding 
to US$250.9  million of investment flows to Nicaragua during the period 2010 -2015.  
4.193.   Lastly, my delegation wishes to acknowledge the work and endeavour of the Guatemalan 
delegation in Geneva, especially in coordinating the Group of Small and Vulnerable Economies, a 
task in which it has demonstrated outstanding leadership. We wish Guatemala success in the 
presentation of its third Trade Policy Review.  WT/TPR/M/34 8 • Guatemal a 
 
- 33 - 
 
  MAURITIUS  
4.194.   We wish to commend the Government of Guatemal a for the trade, fiscal and economic 
policies aimed at boosting competitiveness, consolidating its market access, attracting FDI and 
removing  barriers.  
4.195.   Guatemala and Mauritius attach great importance to the services sector which account for 
more than 60% o f our respective GDP and employment likewise.  
4.196.   We equally share the same importance of boosting intraregional trade and improve  trade 
facilitation measures to enable further trade between our respective countries in our respective 
regions.  We share the sam e perspective on trade facilitation which we believe will be really 
beneficial.  
4.197.   We would also wish to commend the leadership and advocacy role played by the delegation 
of Guatemala in Geneva  by sharing the SEV  Group for the past three years. This leadershi p has 
shown the significant importance of the SEV Group and we commend the initiatives taken to 
synthesize the WTO membership to focus discussions on many issues, for example on integrating 
the global value chains, reducing trade costs  as well as the marit ime transport and logistic areas. 
We are hopeful that many other focused discussions in several area s will continue.  
4.198.   Finally, we look forward to working closely with the delegation of Guatemala as we discuss 
possible outcomes for MC11 with the overall obje ctive of a fair development and balanced 
outcomes.  WT/TPR/M/34 8 • Guatemala  
 
- 34 - 
 
  5  REPLIES BY THE REPRE SENTATIVE OF GUATEMALA  AND ADDITIONAL COMME NTS 
AMBASSADOR  SPERISEN  
5.1.  First of all, I wish to express the regrets of H.E.  Mr Ruben Morales Monroy, Minister of 
Economy of Guatemala, for no t being able to be with us today at this final session of Guatemala's 
Trade Policy Review. Regrettably, unforeseen circumstances of force majeure  obliged him to return 
early to Guatemala.  
5.2.  However, he has asked me to express heartfelt appreciation on behalf  of the Government of 
Guatemala, to:  
 the Chair, Ms  Irene Young, Permanent Representative of Hong Kong, China, for leading our 
meetings and for her introductory remarks on Wednesday and today;  
 our much -esteemed friend, Ambassador Juan Esteban Aguirre, Perma nent Representative of 
Paraguay to the WTO, for his valuable comments as Discussant for this review;  
 the WTO Secretariat, and especially the technical staff responsible for preparing this review, 
for their commitment, dedication and above all the quality o f the report they have drawn up;  
 the team from Guatemala's mission to the WTO for their commitment and devotion in the 
work accomplished;  
 last, but not least, the delegations who showed great interest through the more than 
150 questions we received, and fo r the statements made during the first session of the 
review.  
5.3.  Guatemala is committed to and has confidence in the multilateral trading system. This is 
reflected in Guatemala's active participation in various coalitions, negotiating groups and standing 
bodies, as well as its recurrent recourse to the dispute settlement system.  
5.4.  This Trade Policy Review has been no exception. For Guatemala, it is of extreme importance 
to obtain an objective assessment of its trade policies. This allows us to determine whether the 
actions we have taken during the review period are going in the right direction, and also provides 
us with an objective view of the challenges facing the country in the short, medium and long term. 
Guatemala takes very seriously every comment and quest ion raised by the  Members.  
5.5.  Indeed, Guatemala is satisfied with the feedback received during the review. In particular, we 
have taken note of the remarks regarding Guatemala's sound economic performance in the period 
analysed, and the positive observations on our economic, fiscal and monetary policies  
5.6.  We have also taken note of the references made to the significant progress accomplished in 
terms of economic growth, expanding supply and Guatemala's openness to trade, as well as the 
various measures adopted t o strengthen the legal and institutional framework for the sake of 
transparency, poverty reduction and fostering development.  
5.7.  Besides this, we are grateful to the Members that acknowledged the difficult measures we 
have had to take during the review period  in order to comply with our obligations under the 
WTO Agreements. One such measure, for example, was the approval of legislation to bring export 
subsidy schemes into line with the Agreement on Subsidies and Countervailing Measures.  
5.8.  In addition, it emerges  very clearly from this review that we face considerable challenges. 
One of these is poverty reduction, a goal towards which the Government of Guatemala is working 
indefatigably through the implementation of coordinated policies cutting across the differen t State 
agencies concerned.  
5.9.  We are convinced that the Economic Policy 2016 -2021 launched recently will be instrumental 
in this effort and sincerely hope to improve the poverty indicators in the very short term, by 
stimulating sustainable and inclusive econ omic growth; promoting the participation of all segments 
of the population; and opening up national and international markets to young entrepreneurs, WT/TPR/M/34 8 • Guatemal a 
 
- 35 - 
 
  cooperatives and groups of producers from micro, small and medium -sized enterprises. All this at 
the same as promoting rational utilization of resources, respect for the rights of communities, 
environmental conservation, and the development of value chains.  
5.10.   Additionally, the Minister of the Economy has requested us to reiterate in this forum his 
political dete rmination to continue the necessary advocacy efforts before the distinguished 
Congress of the Republic of Guatemala with a view to ensuring speedy approval of the Law on 
Competition; the Trade Facilitation Agreement; the Amendment to the TRIPS Agreement; a nd 
national law consistent with Guatemala's commitments under the UPOV Convention.  
5.11.   As far as the additional questions are concerned, we shall act to reply to them in the course 
of the coming week, thereby completing the review phase of Guatemala's trade po licies under this 
TPR. Nevertheless, we remain at the disposal of interested Members to continue bilateral 
discussions on topics that may require more explanation, and are committed to continue 
addressing any concern that may remain outstanding.  
5.12.   Indeed, we  have requested the WTO Secretariat for its support for the holding of a 
workshop in Guatemala in the first few months of next year. The purpose of this workshop is to 
put the outcomes of this review to good use and foster a national debate on the path to follow, 
with all key local players, in order to pursue the reform process that will enable us to take up the 
challenges and opportunities identified in this review. I hope soon to be able to coordinate the 
details of this event with the Secretariat.  
5.13.   For ou r part, it only remains for us to reassert our firm commitment to the multilateral 
trading system and our decision to follow up on the questions raised during this review, with the 
aim of using trade as a tool to reduce poverty and promote development. Man y thanks for your 
attention.  
DISCUSSANT  
5.14.   Thank you, Madam Chair, Mr  Ambassador, my dear friend Eduardo, and many thanks also 
to the distinguished colleagues present here and the staff of the Secretariat as well as our 
esteemed interpreters.  
5.15.   Following such a n interesting session as the one we had on Wednesday, at which both the 
Minister and the 20 delegations which took the floor highlighted the efforts accomplished by the 
Government of Guatemala to improve its trade policy and business environment during the  review 
period, my impression is that we had a fruitful day and that this exercise has met the objectives 
for which it was created.  
5.16.   Indeed, trade policy reviews are a good combination of factual presentation, impact analysis 
and above all scrutiny of speci fic and sensitive areas which, on the one hand, reveal institutional 
commitments, structural reforms and changes in society and in trade patterns and, on the other, 
bring to light incomplete efforts, weaknesses in the system and above all a clear map of ch allenges 
for the future.  
5.17.   Through this exercise, Guatemala has subjected itself to a comprehensive peer assessment 
and shown the ability to accept constructive criticisms, in the firm conviction that there is much to 
be done and it is on the right track.  
5.18.   That said, I wish to thank the delegation of Guatemala for its hard work and application in 
responding to the various questions received, and I consider in this regard that the statement just 
made by Ambassador Sperisen goes a long way to satisfying the conc erns and suggestions raised 
by Members.  
5.19.   Accordingly, and in order to offer a balanced conclusion to this review, I should like first to 
highlight the positives, before going on to flag the challenges which remain ahead. We have heard 
about the following:  
 Guatemala's openness to trade and its flexibility in regard to foreign trade, which has 
strengthened during the review period.  WT/TPR/M/34 8 • Guatemala  
 
- 36 - 
 
   The growth in exports of manufactured goods, which diversifies the range of exports and 
also has an effect on employment.  
 The impl ementation of trade facilitation measures, which it is hoped will be reinforced with 
the ratification and future implementation of the Trade Facilitation Agreement.  
 An increasingly dynamic services sector, primarily in the tourism sector, where the major 
investments made are apparent.  
 The tax reforms launched in 2012, which have proved to be a very important tool in making 
the economy more formal.  
 The recent launch of the Economic Policy 2016 -2021, entitled Inclusive and Sustainable 
Economic Growth, focusin g on comprehensive development of individuals and setting forth a 
roadmap to combat poverty head -on, which is a major step forward.  
 The country's high degree of commitment to the multilateral trading system, as reflected by 
its active participation in the various WTO bodies and in ongoing negotiations.  
5.20.   On the other hand, Members have also pointed to a number of issues that should be 
addressed in Guatemala's trade policy and which will help underpin the efforts cited above. 
These  may be summarized as follows : 
 Need for a Competition Law to enable more transparent operation of the economy.  
 An appeal to strengthen domestic mechanisms in relation to public procurement.  
 Need to streamline customs procedures for the clearance and release of goods.  
 Provide greater c larity in the procedures for the granting of import licences.  
 Pursue efforts to formulate and implement policies that seek to reduce inequality 
and poverty.  
5.21.   On the basis of these interventions and with the political and institutional will that its 
authorit ies have demonstrated to us, we are confident that Guatemala is on the right track. With 
the reforms implemented and to be undertaken, combined with its commitment to rule -based free 
trade, we are confident that the country will continue addressing existin g challenges and any new 
ones that lie ahead in order to advance on its path to development.  
5.22.   I also take the liberty of encouraging Guatemala to continue playing its role in this 
Organization. Its constructive spirit and unfailingly optimistic attitude are  appreciated by the whole 
Membership. I believe that the Mission in Geneva, led by Ambassador Sperisen, is an important 
contributor for a stronger WTO in its constant quest to achieve a balance between trade growth 
and its impact on development. Thank you for your attention.  
EUROPEAN  UNION  
5.23.   Let me first express the appreciation of the European Union to the delegation of Guatemala 
for the very timely or even early  replies they have provided to our advance questions and also for 
the presentation on Wednesday a nd this morning.  
5.24.   The EU notes that this review has been very useful for better understanding the trade policy 
of Guatemala and hopes that Guatemala will duly take into account some of the few concerns 
highlighted by Members during this review, in particula r with reference to the need to enforce its 
institutions, to ensure fair, transparent and predictable legal environment which is crucial to 
attract FDI.  
5.25.   The EU has submitted only one follow -up question to further clarify certain aspects of the 
protection o f geographical indications and we look forward to the reply in due course.  WT/TPR/M/34 8 • Guatemal a 
 
- 37 - 
 
  5.26.   In conclusion, we thank you again for your constructive participation in this exercise.  
UNITED  STATES  
5.27.   We thank the entire delegation of Guatemala. We k now how much work goes into th ese 
Trade Policy Review s and we sincerely appreciate your constructive efforts.  
5.28.   We also greatly value Ambassador  Aguirre 's insights and we appreciate the expertise from 
the Secretariat. We also appreciate the summary of day 1 discussion and the responses r eceived 
from Guatemala to our questions. We have no follow -up questions.  
5.29.   The United States notes  that issues of importance were raised during the discussion by 
other Members, in particular the continued efforts towards increased economic growth and 
reforms , strengthening its legal framework on intellectual properties and trade liberalization , as 
well as concerns about property and tax issues. We look forward to Guatemala 's ratification of the 
TFA, and also to the success of the Economic Policy 2016 -2021.  
5.30.   Finally, we would like to congratulate the team on a successful TPR. We look forward to 
continue the cooperation with a valued partner and to Guatemala 's continued active engagement 
in the lights of the WTO . We wish a safe travel to those going  back to Capit al. WT/TPR/M/34 8 • Guatemala  
 
- 38 - 
 
  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  This third Trade Policy Review of Guatemala has provided us with the opportunity to better 
understand Guatemala 's trade and investment policies, as well as the changes introduced to them 
since the last Review in 2 009. I would like to thank Minister Morales , Ambassador Sperisen and the 
rest of the Guatemalan delegation for their constructive engagement throughout this exercise. I 
would also like to thank our discussant, Ambassador Aguirre, fo r his comprehensive and 
thought -provoking remarks, as well as the 23 delegations which have taken the floor, for their 
active participation.  
6.2.  Members commended Guatemala for continuing on the path of trade liberalization and 
economic reform, and welcomed the adoption of its Integr ated Policy on Foreign Trade, 
Competitiveness and Investment, as well as other measures and programmes aimed at achieving 
inclusive and sustainable economic growth. Members congratulated Guatemala for achieving 
sustained growth during the review period, wh ile maintaining a relatively low level of inflation. 
They noted, however, that poverty had increased. They urged Guatemala to continue on the 
reform path so as to reduce poverty, strengthen institutions and increase social welfare. The 
representative of Gu atemala explained that, to address the various challenges, a new Economic 
Policy 2016 -2021 had been launched, which included policies to reduce poverty, create better 
employment opportunities, develop infrastructure and investment opportunities, and protec t the 
environment. Meanwhile, measures to reduce the fiscal deficit and external debt, diversify the 
economic structure, and boost productivity had already been taken.  
6.3.  Members acknowledged Guatemala 's strong commitment to the multilateral trading system 
and its active participation in the WTO. In particular, they praised its leadership among Small and 
Vulnerable Economies and its valuable contribution to the negotiation of the Trade Facilitation 
Agreement (TFA). Noting that the TFA had already been submitte d to the legislature for approval, 
Members urged Guatemala to ratify it as soon as possible.  
6.4.  Guatemala 's participation in regional trade agreements and its efforts to deepen economic 
integration with Central American countries were noted. Members encourag ed Guatemala to 
further deepen this integration process. There was discussion on how the customs union between 
Guatemala and Honduras worked; how that would impact on the overall integration process in 
Central America; and how technical regulations and san itary and phytosan itary measures would be 
harmoniz ed at the regional level.  
6.5.  Regarding domestic trade policies, Members appreciated that Guatemala had an open trade 
regime. Noting that the applied average MFN tariff of 5.7% was relatively low, they invited 
Guatemala to reduce the gap between applied and bound rates. Guatemala was also commended 
for not using trade remedies. Members, however, hoped that Guatemala could simplify its customs 
procedures and ensure that they were implemented effectively. Members also noted that, although 
Guatemala had notified to the WTO that it did not have an import licensing regime, import permits 
were still required for a number of products. Clarification was sought with respect to how these 
permits were granted and administer ed. 
6.6.  Noting the lack of competition policy legislation and a lack of a competition authority, many 
Members called for Guate mala to adopt legislation in this  area as soon as possible, and were 
informed that a draft law had already been submitted to the Congr ess. 
6.7.  Members congratulated Guatemala for having eliminated export subsidies in free zones and in 
the maquila programme, in order to comply with its WTO commitments. Guatemala was 
encouraged to develop clear and transparent regulations in this regard . 
6.8.  Regar ding government procurement, Members acknowledged the legislative changes 
introduced by Guatemala to enhance control and transparency. They noted, however, that no 
express requirement to use competitive methods had been included in the new legislation. Som e 
Members encouraged Guatemala to join the Government Procurement Agreement.  
6.9.  Members had several queries with respect to the protection of  intellectual property rights, 
mainly related to  the status of legislation for the protection of plant varieties and Guatemala 's 
accession to UPOV, and with respect to evidence to assess that a term was generic.  WT/TPR/M/34 8 • Guatemal a 
 
- 39 - 
 
  6.10.   In relation to trade in services, Members commended Guatemala for maintaining an open 
services regime, with virtually no restriction on foreign investment. Guat emala 's adoption of a law 
authorizing the entry of branches of foreign insurance companies into the domestic market was a 
welcome development. In the telecommunications sector, concerns were expressed about market 
concentration and, again, the lack of lega l means for addressing anticompetitive behaviour. While 
measures taken to facilitate cross -border land transport were commended, some Members 
expressed concerns about congestion and long delays at border posts due to limited operation 
schedules and infrast ructure. Recognizing the importance of the tourism sector to the Guatemalan 
economy, Members were keen to learn more about the implementation of Guatemala 's Sustainable 
Tourism Ma ster Plan. They also noted the G overnment 's plan to promote exports in areas such as 
software and call -centre services.  
6.11.   By now, Guatemala has provided answers to all advance written questions raised by 
Members, as well as to most additional questions that came after. This TPR will be successfully 
concluded once Guatemala has replie d to all outstanding questions in a month 's time. But that 's 
not the end of it. There will, as Ambassador Sperisen has mentioned, also be a follow -up seminar 
of this TPR in Guatemala early next year, so that we can reap the full benefits of this exercise. I 
believe Members will feel encouraged by the reforms undertaken and the future action plans 
outlined in Guatemala 's presentation, and I hope that the discussion will prove useful and 
constructive to Guatemala in the implement ation of current economic and trade reforms and in its 
pursuit of policies to achieve sustainable growth and reduce po verty. We look forward to analys ing 
these further accomplishments in Guatemala 's next Trade Policy Review.  
__________