RESTRICTED  
  
WT/TPR/S/348  
28 September 2016  
(16-5169) Page: 1/120 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
GUATEMALA  
This report, prepared for the third Trade Policy Review of Guatemala, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing  the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Guatemala on its trade 
policies and practices.  
 
Any technical questions arising from this report may be addressed t o Mr Angelo Silvy 
(022 739 5249) and Ms Martha Lara (022 739 6033).  
 
Document WT/TPR/G/348 contains the policy statement submitted by Guatemala.  
 
 
Note: This report is subject to restricted circulation and press embargo until the end of  the 
first session of the meeting of the Trade Policy Review Body on Guatemala. This report was drafted 
in Spanish.  WT/TPR/S/348 • Guatemala  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  7 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  12 
1.1   Production and employment  ................................ ................................ ......................... 12 
1.2   Fiscal policy  ................................ ................................ ................................ ............... 14 
1.3   Monetary and exchange rate policy  ................................ ................................ ............... 16 
1.4   Balance of payments  ................................ ................................ ................................ ...19 
1.5   Merchandise trade  ................................ ................................ ................................ ......21 
1.5.1    Composition of merchandise trade  ................................ ................................ ............. 21 
1.5.2    Geographic distribution of trade  ................................ ................................ ................. 21 
1.6   Trade in services  ................................ ................................ ................................ ........ 24 
1.7   Foreign investment  ................................ ................................ ................................ .....25 
1.8   Outlook  ................................ ................................ ................................ ..................... 25 
2   TRADE AND INVESTMENT  REGIME  ................................ ................................ ............  26 
2.1   General legal and institutional framework  ................................ ................................ ......26 
2.2   Trade pol icy objectives  ................................ ................................ ................................ 28 
2.3   Trade agreements and arrangements  ................................ ................................ ............ 29 
2.3.1    WTO ................................ ................................ ................................ ...................... 29 
2.3.2    Regional and preferential agreements  ................................ ................................ ........ 30 
2.3.2.1    Regional trade agreements  ................................ ................................ .................... 30 
2.3.2.1.1    Central American economic integration and trade relations with Panama  ................... 32 
2.3.2.1.2    Association Agreement between Central America and the European Union  ................. 33 
2.3.2.1.3    Free Trade Agreement between the Northern Triangle and Colombia  ........................ 33 
2.3.2.1.4    Free Trade Agreement between Central America and Mexico  ................................ ...33 
2.3.2.2    Other bilateral agreements and arrangements  ................................ .......................... 33 
2.4   Investment regime  ................................ ................................ ................................ .....34 
3   TRADE POLICIES AND PRACTIC ES BY MEASURE  ................................ ........................  37 
3.1   Measures directly affecting imports  ................................ ................................ ............... 37 
3.1.1    Customs procedures and requirements  ................................ ................................ .......37 
3.1.2    Customs valuation  ................................ ................................ ................................ ...40 
3.1.3    Rules of origin  ................................ ................................ ................................ ......... 40 
3.1.4    Tariffs  ................................ ................................ ................................ .................... 42 
3.1.4.1    Structure and levels  ................................ ................................ .............................. 42 
3.1.4.2    Tariff bindings  ................................ ................................ ................................ ......44 
3.1.4.3    Tariff preferences  ................................ ................................ ................................ ..45 
3.1.4.4    Tariff concessions  ................................ ................................ ................................ .45 
3.1.4.5    Tariff quotas  ................................ ................................ ................................ ......... 45 
3.1.5    Other charges affecting imports  ................................ ................................ ................. 46 
3.1.6    Import prohibitions, restrictions and licensing  ................................ ............................. 47 
3.1.7    Contingency measures  ................................ ................................ ............................. 48 WT/TPR/S/348 • Guat emala  
 
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  3.1.7.1    Anti-dumping and countervailing measures  ................................ .............................. 48 
3.1.7.2    Safeguard measures  ................................ ................................ ............................. 50 
3.1.8    Standards and technical regulations  ................................ ................................ ........... 51 
3.1.9    Sanitary and phytosanitary measures  ................................ ................................ ......... 54 
3.2   Measures directly affecting exports  ................................ ................................ ............... 57 
3.2.1    Export procedures and requirements  ................................ ................................ .......... 57 
3.2.2    Export taxes, charges and levies  ................................ ................................ ................ 58 
3.2.3    Export prohibitions, restrictions and licensing  ................................ .............................. 58 
3.2.4    Export support and pro motion, including export processing zones  ................................ ..59 
3.2.4.1    Special customs regime (maquila) programme  ................................ ......................... 59 
3.2.4.2    Free zones  ................................ ................................ ................................ ........... 59 
3.2.4.3    Industrial and trade free zone (ZOLIC)  ................................ ................................ ....60 
3.2.4.4    Amendment of the export support regime  ................................ ................................ 61 
3.2.5    Export financing, insurance and guarantees  ................................ ................................ 62 
3.3   Measures affecting production and trade  ................................ ................................ .......63 
3.3.1    Incentives  ................................ ................................ ................................ ............... 63 
3.3.2    State -owned enterprises  ................................ ................................ ........................... 64 
3.3.3    Competition policy and price controls  ................................ ................................ ......... 64 
3.3.4    Government procurement  ................................ ................................ ......................... 66 
3.3.4.1    Overview  ................................ ................................ ................................ ............. 66 
3.3.4.1.1    Regula tory framework  ................................ ................................ ........................ 66 
3.3.5    Intellectual property rights  ................................ ................................ ........................ 71 
3.3.5.1    Overview  ................................ ................................ ................................ ............. 71 
3.3.5.2    Regulatory framework  ................................ ................................ ........................... 72 
3.3.5.3    Enforcement  ................................ ................................ ................................ ......... 76 
4   TRADE POLICIES BY SE CTOR  ................................ ................................ .....................  77 
4.1   Agriculture  ................................ ................................ ................................ ................. 77 
4.1.1    Overview  ................................ ................................ ................................ ................ 77 
4.1.2    Agricultural policies  ................................ ................................ ................................ ..78 
4.1.2.1    Institutional framework ................................ ................................ .......................... 78 
4.1.2.2    Policy instruments  ................................ ................................ ................................ .79 
4.1.2. 2.1   Border measures  ................................ ................................ ................................ 79 
4.1.2.2.2    Domestic support  ................................ ................................ ............................... 79 
4.1.2.2.3    Other measures  ................................ ................................ ................................ .80 
4.2   Energy  ................................ ................................ ................................ ...................... 80 
4.2.1    Electricity  ................................ ................................ ................................ ............... 81 
4.2.2    Hydrocarbons  ................................ ................................ ................................ .......... 83 
4.3   Manufactures  ................................ ................................ ................................ ............. 86 
4.4   Services  ................................ ................................ ................................ .................... 88 
4.4.1    Overview and multilateral commitments  ................................ ................................ .....88 WT/TPR/S/348 • Guatemala  
 
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  4.4.2    Telecommunications  ................................ ................................ ................................ .89 
4.4.2.1    Overview  ................................ ................................ ................................ ............. 89 
4.4.2.2    Institutional and l egal framework  ................................ ................................ ............ 91 
4.4.3    Financial services  ................................ ................................ ................................ .....93 
4.4.3.1    Banks and other financial institutions  ................................ ................................ ......94 
4.4.3.1.1    Overview  ................................ ................................ ................................ .......... 94 
4.4.3.1.2    Institutional and legal framework  ................................ ................................ ......... 95 
4.4.3.2    Insurance  ................................ ................................ ................................ ............ 99 
4.4.3.2.1    Overview  ................................ ................................ ................................ .......... 99 
4.4.3.2.2    Legal framework  ................................ ................................ ................................ 99 
4.4.4    Transport  ................................ ................................ ................................ ..............  101 
4.4.4.1    Maritime transport and ports  ................................ ................................ ................  102 
4.4.4.2    Air transport and airports  ................................ ................................ .....................  104 
4.4.5    Tourism  ................................ ................................ ................................ ................  106 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 109  
 
CHARTS  
 
Chart 1.1 Tre nd of the equilibrium real exchange rate (ERER), 2007 -2015 ................................ 19 
Chart 1.2 Merchandise trade by main products, 2009 and 2015  ................................ ............... 22 
Chart 1.3 Merchandise trade by trading partner, 2009 and 2015  ................................ .............. 23 
Chart 1.4 Maquila and free -zone merchandise trade by main products (HS  chapter), 2015  .......... 24 
Chart 3.1 Procedures for dumping and subsidy investigationsa ................................ ................. 50 
Chart 3.2 Procedures for the preparation of technical regulations at the Central American 
level  ................................ ................................ ................................ ............................... 52 
Chart 4.1 Trend in fixed and mobile telephone lines, 2009 -2015 ................................ .............. 90 
 
TABLES  
 
Table 1.1 Basic economic indicato rs, 2009 -2015 ................................ ................................ ....12 
Table 1.2 Government finances, 2009 -2015 ................................ ................................ .......... 15 
Table 1.3 Monetary and financial indicators, 2009 -2015 ................................ .......................... 17 
Table 1.4 Balance of payments 2009 -2015a ................................ ................................ ........... 19 
Table 1.5 Balance of trade in services, 2009 -2015 ................................ ................................ .25 
Table 1.6 Foreign direct investment, 2009 -2015 ................................ ................................ ....25 
Table 2.1 Action lines of the Integrated Policy on Foreign Trade, Competitiveness and 
Investment  ................................ ................................ ................................ ....................... 29 
Table 2.2 Dispute settlement proceedings in which Guatemala acted as a complainant, 
2009-2015 ................................ ................................ ................................ ........................ 30 
Table 2.3 Regional trade agreements in force, 201 6 ................................ ............................... 31 
Table 2.4 Agreements on reciprocal promotion and protection of investments, 2016  .................. 36 
Table 3.1 Requests for review and appea ls submitted to the customs authority, 2009 -2015 ........ 38 WT/TPR/S/348 • Guat emala  
 
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  Table 3.2 Changes in relation to origin, 2009 -2015 ................................ ................................ 41 
Table 3.3 MFN tariff s tructure, 2008 and 2015  ................................ ................................ .......42 
Table 3.4 Brief analysis of MFN rates, 2015  ................................ ................................ ........... 43 
Table 3.5 Foreign trade -related tax revenue, 2009 -2015 ................................ ......................... 44 
Table 3.6 Analysis of tariffs applied to countries with which trade agreements have been 
negotiated, 2015, HS 2012  ................................ ................................ ................................ .45 
Table 3.7 WTO tariff quotas, 2015  ................................ ................................ ........................ 46 
Table 3.8 Tariff quotas under preferential agreements  ................................ ............................ 46 
Table 3.9 Taxes on locally produced and imported beverages, 2016  ................................ ......... 47 
Table 3.10 Imports for which a prior permit is required and legal basis, 2016  ............................ 48 
Table 3.11 Products  subject to special export authorization, 2015  ................................ ............ 58 
Table 3.12 Authorized users established in free zones, 2015  ................................ ................... 60 
Table 3.13 Expo rts under the maquila and free -zone regimes, 2009 -2015 ................................ 60 
Table 3.14 Amendments to the legal framework introduced by Decree No.  19-2016 ................... 62 
Table 3.15 Amounts of contracts awarded by method of procurement, 2009 -2015 ..................... 69 
Table 3.16 Appeals for non -conformity submitted through administrative channels, 
2009-2015 ................................ ................................ ................................ ........................ 70 
Table 3.17 Intellectual property treaties signed by Guatemala, 2015  ................................ ........ 72 
Table 3.18 Overview of legislation and protection afforded to int ellectual property in 
Guatemala, 2016  ................................ ................................ ................................ ............... 73 
Table 4.1 Main indicators for the agricultural sector, 2009 -2015 ................................ .............. 77 
Table 4.2 Net elect ricity trade, SNI, 2010 -2015 ................................ ................................ .....82 
Table 4.3 Trade in petroleum and petroleum products, 2010 -2015 ................................ ........... 84 
Table 4.4 Average consumer pri ces of fuels in Central America, 2014 -2015 ............................... 84 
Table 4.5 Specific tax on hydrocarbons, 2016  ................................ ................................ ........ 86 
Table 4.6 Manufacturing indicators , 2009 -2015 ................................ ................................ .....87 
Table 4.7 Principal telecommunications indicators, 2015  ................................ ......................... 90 
Table 4.8 Telecommunications prices in Central America , 2014  ................................ ................ 91 
Table 4.9 Composition of the financial system, December  2015 ................................ ............... 94 
Table 4.10 Principal laws governing the banking sector , 2015  ................................ .................. 96 
Table 4.11 Minimum amounts of paid -in initial capital for domestic insurers/reinsurers and 
branches of foreign insurers/reinsurers, 2016  ................................ ................................ ...... 100 
Table 4.12 Bilateral air transport agreements in force, 2016  ................................ ..................  105 
 WT/TPR/S/348 • Guatemala  
 
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  APPENDIX TABLES  
 
Table A1. 1 Merchandise exports by HS section, 2009 -2015 ................................ ..................  109 
Table A1. 2 Merchandise imports by HS section, 2009 -2015 ................................ ..................  110 
Table A1. 3 Merchandise exports by trading partner, 2009 -2015 ................................ ............  111 
Table A1. 4 Merchandise imports by trading partner, 2009 -2015................................ ............  112 
 
 
Table A2. 1 Notifications to  the WTO, 1  January  2009 to 15  June 2016 ................................ ... 113 
 
 
Table A3. 1 Preferential quotas by agreement, 2015 ................................ .............................  115 
Table A3. 2 Sanitary and phytosanitary measures adopted, 2009 -2015 ................................ .. 117 
 
 
Table A4. 1 Agricultural domestic support measures, 2009 -2015 ................................ ...........  119 WT/TPR/S/348 • Guat emala  
 
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  SUMMARY  
1. During the period under review, Guatemala intensified its trade liberalization and economic 
reform efforts. An important step in this process was the elimination, at the beginning of 2016, of 
the export performance requirements for prod uction under the free -zone and maquila regimes. At 
the same time, Guatemala updated its government procurement legislation to ensure greater 
transparency and efficiency, as well as its legislation governing certain aspects of intellectual 
property rights p rotection, and took steps to facilitate trade. A number of challenges remain, 
however, particularly in the competition policy area, where no legislation has yet 
been implemented.  
2. Guatemala achieved moderate but steady growth during the review period (2009 -2015), 
with an average annual GDP growth rate of 3.2 %. Inflation was kept under control at about 4 -5% 
per year, generally within the fluctuation band established by the Bank of Guatemala. In recent 
years, Guatemala has posted one of the best economic perfo rmances in Latin America, with a per 
capita GDP growth of nearly 50 % between 2009 and 2015, when it reached US$3,943. But in spite 
of this growth, poverty increased from 51 % in 2006 to 59.3 % in 2014. This was due partly to the 
rapid population growth, risi ng food prices and income inequality. A number of major hurdles still 
stand in the way of further per capita income growth and sustainable poverty reduction.  
3. Guatemala embarked on a programme of tax reforms in 2012, involving a review of the 
taxation syste m in order to boost tax revenue (which still remains low), and substantial spending 
cuts. The Tax Update Law introduced a series of reforms to the income tax law, such as a gradual 
reduction in the profit tax, and to the value  added tax (VAT) law, and intr oduced a tax on land 
motor vehicles. Rules were also introduced to contain public spending until public revenues 
attained significant levels. Guatemala's public debt has remained moderate: in 2015 it represented 
24.4% of GDP, of which approximately half wa s external debt. Meanwhile, the fiscal deficit as a 
percentage of GDP decreased from about 3.3 % in 2010 to about 1.4 % in 2015.  
4. Guatemala's balance of payments current -account deficit remained high during the review 
period, reaching US$6.9  billion in 2015, or 11 % of GDP. The considerable merchandise trade 
deficit is largely financed by remittances from workers abroad, which totalled US$6,285  million in 
2015. Remittances also play an important role in supporting domestic demand, particularly 
consumer demand. Guatemala's main trading partners are the United States, the other 
Central  American count ries, the EU, Mexico and China (for imports). Manufactured goods, 
especially textiles and made -up articles, as well as sugar, bananas, oils and fats, and fruits are th e 
country's main export products, while automobiles and machinery and equipment are the main 
imports. Merchandise trade continued to grow during the review period, with total exports 
reaching US$10,716  million in 2015, an increase of almost 50 % over 2009. Maquila exports grew 
at above -average rates, reaching US$3,582  million in 2015, 56 % higher than in 2009. Free -zone 
exports reached US$734  million in 2015, an increase of 150 % over 2009. Meanwhile, imports 
totalled US$17,639  million in 2015, 52 % above the 2 009 level.  
5. In 2012, Guatemala adopted the "Integrated Policy on Foreign Trade, Competitiveness and 
Investment" aimed at improving the country's competitiveness , broadening and diversifying the 
range of exportable products , consolidating openness and access  to international markets , and 
promoting foreign trade and foreign investment opportunities. Strengthening the Central American 
Customs Union is also a major objective.  
6. Guatemala has participated actively in the WTO, particularly in the negotiation of the Trade 
Facilitation Agreement, which it hopes to ratify at the end of 2016. During the review period, 
Guatemala participated as complainant in six dispute settlement cases, and brought its WTO 
notifications up to date.  
7. Regional trade agreements (RTAs) have become an increasingly important part of the 
country's trade policy. Guatemala is a member of the Central American Common Market (CACM) 
together with Costa Rica, El Salvador, Honduras, Nicaragua, and since 2013, Panama. It is also a 
member of the Free Trad e Agreement between the Dominican Republic, Central America and the 
United  States (CAFTA -DR) and the Association Agreement between Central America and the 
European Union. Together with the original members of the CACM, Guatemala negotiated a trade 
agreemen t with Mexico which entered into force in 2013. It also has RTAs with the Separate WT/TPR/S/348 • Guatemala  
 
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  Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) (2006), Colombia 
(2009), and Chile (2010). It is currently negotiating, jointly with the rest of Centr al America, a 
trade agreement with the Republic of Korea. In 2015, Guatemala's trade with partners with which 
it had RTAs accounted for 83.4 % of its exports and 75.3 % of its imports.  
8. Guatemala has an open investment regime which generally guarantees nation al treatment. 
Foreign investors are allowed to participate, without any quantitative limitations, in almost all 
economic activities. The only restrictions are those that are laid down by the Constitution or the 
laws regulating specific economic activities;  for example, the exploitation of forestry resources is 
reserved to Guatemalan natural or legal persons. The Foreign Investment Law authorizes the free 
transfer of remittances of profits, and provides for international arbitration. It also prohibits the 
imposition of investment -related measures that may have trade -restrictive or –distorting effects, 
and the imposition of any performance requirement as a condition for the establishment of a 
foreign investment.  
9. Guatemala adopted a number of trade facilitation  measures during the review period, 
including better utilization of risk management systems and the implementation of a computerized 
clearance process. It also has a one-stop window for exports (VUPE), and since 2014, a 
streamlined window for imports and t ransit ( VAI). At the same time, Guatemala changed its 
customs regulations with respect to tariff classification criteria, administrative offences, undeclared 
goods , auction of goods, the sale of duty -free vehicles and procedures for challenging action by  
the Customs Service . 
10. Guatemala has an open trade regime, and its applied tariffs are relatively low , with an  
average MFN applied rate in  2015 of 5.7%. All of Guatemala's tariffs are ad valorem . A zero rate is 
applied to 49.5% of its tariff lines. The rates for other lines are 5 %, 10% and 15 %, the last of 
these being the most common. The rates range from zero to 40 %. Agricultural products 
(WTO  definition) are subject to an average tariff of 9.6 %, while the average tariff on 
non-agricultural products,  excludin g petroleum, is  5%. The maximum rate is  40%, and applie s, for 
example, to imports of malt beer, vermouth and ethyl alcohol. Some 93 % of tariff lines are aligned 
to Guatemala's Central American trading partners. Guatemala has bound all of its tariff lines, 
thereby bringing predictability to its tariff regime. 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 %. 
11. In 2015, Guatemala applied tariff quotas  within  the WTO framework to imports under  
three  tariff lines corresponding to 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. In addition to  the WTO quotas, Guatemala applies 
another 42 quotas under  the different preferential agreements it has signed . 
12. Guatemala applies  a value -added tax (VAT) at a rate of 12 % on both domestic and 
imported  goods and services. VAT  on imports is paid at the border on the CIF value plus 
import  duty. Guatemala also imposes  a number of internal taxes on country -wide distribution of 
alcoholic and non -alcoholic beverages, cement, cigarettes, and petroleum -based fuels , whether 
imported or  locally  produced.  
13. 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 bituminous materials ; inorganic or organic compounds of precious metals, 
radioactive elements, rare -earth metals or isotopes; organic chemicals; rubber; plastics; 
machinery and equipment; pow der and explosives; matches; and weapons  and ammunition. 
Sanitary or phytosanitary permits are also required for a certain number of products.  
14. Guatemala did not use any  safeguard measures or anti -dumping and countervailing 
measures during the review period . 
15. The National Quality System is responsible for promoting and coordinating standardization, 
metrology, accreditation, conformity assessment and technical regulation  activities. As of 
June 2016, the relevant regulations were still pending. Guatemala submit ted 35 notifications to the WT/TPR/S/348 • Guat emala  
 
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  WTO Committee on Technical Barriers to Trade between 2009 and April  2016, most of them 
relating to draft regulations prepared  by the Ministries of the Economy, Agriculture and 
Public  Health. There is no automatic mechanism for eliminating  technical regulation s; it is done by 
means of  a government decision repealing out -of-date regulations and  replacing them, where 
appropriate, with updated regulations.  
16. Guatemalan law provides that sanitary and phytosanitary (SPS) measures are established  on 
the basis of an assessment of the actual  risks involved. SPS drafts  are drawn up by various  
authorities with competence for  the different aspects  involved. Before being put up for approval  
and unless there is  an emergency, SPS  drafts  must be no tified to the WTO. Between 2009 and 
February  2016, Guatemala notified 18 sanitary and phytosanitary measures to the WTO. The 
import of genetically modified  products is not prohibited.  
17. During most of the period under review, Guatemala had three export subsi dy 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 imports of machinery, equipme nt, parts, components and accessories 
needed for the production process. The Emerg ent Law on job protection , which repeals the 
provisions on export subsidies for the free zones and the maquila regime, entered into force on 
31 March  2016 with a view to comp lying with the requirements of Article 27.4 of the 
SCM Agreement. The authorities have said that the law applies in spite of the absence of 
regulations, and that the tax benefits linked to exports had ended  as of 31 December  2015. The 
only areas of activit y to receive  production subsidies  under the new legal framework  are textiles 
and clothing , and information and communication s technology -related service providers offering  
call centres or contact centres. The ZOLIC programme , aimed at boosting economic and  social 
development of the Department of Izabal , remains in force.  
18. In addition to the incentives provided in  the Emerg ent Law on job protection , Guate mala 
provides support for micro, small and medium -sized enterprises and for research and 
development. The main obj ective of the support for  the MSMEs  is to facilitate access to financing 
sources and business development services in order to raise their productivity and competitiveness 
in the industr ial, agro -industr ial, crafts, trade, services and tourism  sectors. 
19. 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 that area, or the authority to 
examine mergers. A draft law is currently under review, but it is not clear when it will be 
approved. For the moment, an ti-competitive practices are not investigated, and there is no 
mechanism to review mergers or other acts of economic concentration . 
20. Guatemala has a decentralized government procurement regime under  which each procur ing 
entity makes its purchases on the basis of an annual plan and of the financial resources available, 
although  the relevant general legislati on applies . In December  2015, new provisions amending the 
government procurement legislation were adopted to enhance transparency and introduce a new 
procurement method, online  auction. The law does not determine which  should be the normal 
method of procur ement, nor does it expressly promote competitive methods. The value of 
contracts awarded through  non-competitive methods account ed for an  average for 5 7% of the 
total amount of contracts awarded annually during the review period, although th e percentage ha s 
tended to diminish in recent years . The special procurement method was reorganized in the 2015 
amendments to the law, now requiring competitive proce dures and the use of online  bidding.  
21. During the review period, Guatemala strengthened its framework for p rotection of 
intellectual property rights (IPR), mainly by amending  the Industrial Property Law in 2013 . Among 
other provisions, this amendment introduced special forms of protection for geographical 
indications and appellations of origin in Guatemala. Jun e 2014 saw the entry into force of a law on 
the protection of plant varieties, but it was revoked almost immediately in the face of strong public 
opposition. Guatemalan law has provision  for international exhaustion of IPRs 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.  WT/TPR/S/348 • Guatemala  
 
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  22. The agricultural sector accounts for  about 25 % of goods exp orts, the main export products 
being sugar, coffee, bananas and cardamom. At the same time, Guatemala is a net importer 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 in respect of grain seed 
varieties, subsidization of fertilizers , and food aid for vulnerable population groups. Moreover, 
tariffs on agricultural products are higher than the average. Guatemala has undertaken a 
commitme nt in the WTO to open tariff quotas for 30 agricultural by -products. I t has also open ed 
tariff quo tas for agricultural products under  its RTAs.  
23. The manufacturing industry remains important for the country's economy, accounting for 
42% of goods exports. Clo thing continues to be the main export product. Together with other 
export -oriented  industries, the clothing industry operates within the free zone and maquila 
regimes , under which they received subsidies until 31  December  2015. Exports of manufactured 
goods from the free zones and the maquila industry represent one  third of total goods exports. 
The average MFN tariff for manufactured goods is 5.6 %; the products with above -average tariffs 
include foodstuffs , beverages and tobacco; textiles , clothing and leat her goods; and wood and 
wood products.  
24. The energy sector, above all the electricity industry, has expanded in recent years, 
supported by appreciable  investment flows and incentives for the development of renewable 
energies. Guatemala is now the leading ele ctricity exporter in Central America. Electricity prices 
are freely  determined , with the exception of tariffs for  transmission and final distribution services , 
which are regulated. Guatemala produces oil, but exports about 80 % of its production for 
process ing, mainly to  the United States. Domestic and foreign enterprises are free to participate in 
hydrocarbon -related  operations by concluding contracts with the State and paying royalties. 
The State holds an equity stake in each oil project. The resulting fin ancial resources are paid into a 
fund (FONPETROL) for the development of the production areas.  
25. Services account for 63 % of GDP, and approximately 50 % of employment. In the WTO, 
Guatemala has undertaken specific commitments in 5 of the 12 GATS services cate gories. It did 
not take part in the negotiations on financial services and did not ratify the Fourth Protocol of the 
GATS, although it adopted the majority of commitments on basic telecommunications services and 
has accepted the  WTO reference p aper. Guatem ala has continued to liberalize  its services regime 
through unilateral action and commitments undertaken in connection with  its RTAs. As a result, 
the services regime currently applied is  more liberal than the commitments undertaken in the 
context of the GATS. 
26. There were no fundamental changes in the legislative framework for telecommunications 
during the review period. There are no restrictions on foreign investment in the sector. The law 
provides for freedom of entry into the market, freedom to amalgamate , free pricing and free  use 
of technolog ies, and  interconnection contracts are freely negotiated between operators. However, 
the Law on Telecommunications has very few provisions controlling anti -competitive behaviour , 
and there seems to be room to provide  the regulatory authority with greater powers and to 
improve  effective competition, particularly in the absence of a general competition law. 
The Government is working on a National Connectivity and Broadband Plan with a view to reducing 
the digital divide  and promot ing technological development.  
27. The financial sector's soundness and solvency indicators remain reasonable. During the 
review period, further progress was made in consolidating and deepening the financial system, and 
there was a notable expansion  in banking assets and credit. At the same time, financial legislation 
was strengthened by incorporating  international standards of supervision. There are no restrictions 
on foreign investment in banking. As regards insurance, the law adopted in 2010 autho rizes the 
entry of branch es of foreign insurance and reinsurance companies  into the domestic market. 
Cross -border trade in insurance against the risks of maritime  shipment, commercial aviation and 
goods in international transit, reinsurance and retrocessio n, and services auxiliary to insurance  
is permitted . 
28. Guatemala does not have a merchant fleet, nor does it have any legislation in that respect . 
International maritime transport is conducted by foreign vessels, which are allowed to provide 
domestic cabotag e services. Seaports are State -owned  and only one of them operates under a 
private concession, although there are no restrictions on domestic and foreign investment in the 
operation of ports and the provision  of auxiliary services (except for pilotage). Po rts tend to be WT/TPR/S/348 • Guat emala  
 
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  congested,  which increases the waiting time and operating costs. For years, the authorities have 
been considering draft legislation to establish  a new port structure and authority.  
29. The State owns and operates the main airports, although ther e are no legal restrictions on 
the participation of private investment in the sector. National air transport companies can be 
100% foreign -owned, but they must have their principal  domicile in Guatemala and more than half 
of their directors and managers must be Guatemalan citizens or residents. With respect to 
international commercial air services, Guatemalan law grants all countries the third, fourth and 
fifth freedoms of the air, the remaining freedoms being subject to reciprocity, except for the ninth 
freedom,  which is not granted. Guatemala currently has twelve bilateral air transport service 
agreements  in force . There are no  restrictions on the number of providers  of computer 
reservation  systems.  
30. Tourism accounts for 14 % of the country's exports. Nation al treatment is granted to f oreign 
investors in hotels, lodging  services, tour operators, travel agencies and other tourism -related 
services, although they are required to register. Foreigners may provide tourist guide services as 
long as they are register ed, work independently and reside in the country. Only "community" 
tourist guide s must be Guatemalan nationals.  
 WT/TPR/S/348 • Guatemala  
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  1  ECONOMIC ENVIRONMENT  
1.1  Production and employment  
1.1.   Guatemala remains Central America's largest economy, generating a quarter of the gross 
domesti c product (GDP) of the Central American Common Market (CACM). In recent years, it has 
posted one of Latin America's best economic performances, with growth rates above 3% since 
2012, and over 4% in 2014 and 2015. Per capita GDP was US$3,943 in 2015, 47% hi gher than in 
2009. Nonetheless, it is one of the few countries in the region where poverty has increased in the 
last few years, with the rate rising from 51% in 2006 to 59.3% in 2014.1 This is partly the result of 
rapid demographic growth, rising food pric es and income inequality. Guatemala still faces major 
challenges in achieving further per capita income growth and sustainable poverty reduction.  
1.2.  Guatemala's real GDP grew by an average of 3.2% per year in 2009 -2015, below the 3.8% 
reported in the previous  Review covering 2001 -2007. This reduction was mainly caused by the 
effects of the global financial crisis, which intensified in 2009 and cut real GDP growth to just 
0.5%. Nonetheless, although the crisis damaged the Guatemalan economy, the effects were mo re 
moderate than in other developing countries, and there was no recession.  
1.3.  Having gathered pace in 2010 and 2011, GDP growth slowed in the following year, before 
resuming a more sustained growth path as from 2013. Real GDP grew by 4.2% and 4.1%, in 2014 
and 2015 respectively (Table 1.1), outpacing potential output growth (3.5%), driven on the 
expenditure side by the greater momentum of domestic demand, particularly private consumption. 
This is associated with an increase in household incomes, thanks to a r ise in average wages, an 
increase in foreign exchange inflows from family remittances, growth of bank lending to the 
private sector, the income effect of the fall in the international price of oil and other hydrocarbons, 
and lower inflation.2 Private consu mption accounted for 85% of GDP in 2015, whereas total 
consumption, including that of the government, represented over 95%. Gross capital formation 
has a relatively small GDP share: 13.2% in 2015 — less than at the start of the decade.  
Table 1.1 Basic economic indicators, 2009 -2015  
 2009  2010  2011  2012  2013a 2014a 2015a 
Current GDP (Q  billion)  307.97  333.09  371.01  394.72  423.10  454.05  488.33  
Current GDP (US$  million)  37,734  41,338  47,655  50,388  53,851  58,722  63,794  
GDP at 2001 constant prices (Q  billion)  193.91  199.47  207.78  213.95  221.86  231.12  240.71  
GDP at 2001 constant prices (US$  million)  23,759  24,755  26,688  27,311  28,238  29,890  31,445  
Real GDP, growth rate (%)  0.5 2.9 4.2 3.0 3.7 4.2 4.1 
Per capita GDP (US$)  2,691  2,879  3,240  3,344  3,488  3,716  3,943  
Structure of GDP (% of current GDP)         
Agriculture, forestry, hunting and fishing  11.7 11.1 11.1 10.6 10.6 10.7 10.5 
Mining and quarrying  1.6 2.0 2.8 2.2 1.8 2.2 1.8 
Manufacturing  18.6 18.6 18.6 19.1 19.1 18.8 18.5 
Electricity and water  2.2 2.4 2.0 2.2 2.3 2.3 2.4 
Construction  4.6 4.0 4.0 4.2 4.1 4.0 3.9 
Services  61.3 61.9 61.4 61.8 62.0 62.0 63.0 
Wholesale/retail trade  16.2 17.0 18.1 18.7 19.5 20.1 21.6 
Hotels and restaurants  2.5 2.4 2.2 2.3 2.3 2.3 2.3 
Transport, storage and communications  8.0 7.9 7.8 7.7 7.5 7.4 7.6 
Financial intermediation, insurance and 
auxiliary activities  3.2 3.2 3.1 3.3 3.4 3.4 3.4 
Housing rental  9.0 8.7 8.2 8.0 7.8 7.5 7.3 
Business activities and other real estate  
activities  7.0 6.9 6.6 6.5 6.4 6.3 6.1 
Public administration and defence; 
compulsory social security plans  4.2 4.3 4.1 4.2 4.4 4.3 4.2 
Education  3.1 3.2 3.3 3.2 3.2 3.3 3.4 
Social services and health  2.9 2.9 2.8 2.9 2.9 2.9 2.8 
Other community, social  and personal 
service activities  0.8 0.8 0.8 0.8 0.8 0.8 0.8 
Private households with domestic service  1.0 1.0 1.0 0.9 0.9 0.9 0.9 
                                                
1 Online information from the World Bank. Viewed at: 
http://www.bancomundial.org/es/country/guatemala . 
2 Bank of Guatemala (2016), Informe de Política Monetaria, a marzo de  2016. Viewed at: 
http://www.banguat.gob.gt/Publica/Comunica/informe_pol_mon_mar2016.pdf . WT/TPR/S/348 • Guatemala  
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   2009  2010  2011  2012  2013a 2014a 2015a 
Financial intermediation services indirectly 
measured (FISIM)  -2.9 -2.9 -2.9 -2.9 -3.0 -3.0 -2.9 
Taxes net of product subsi dies 6.2 6.3 6.3 6.1 5.9 5.8 5.6 
Structure of GDP (% annual growth at 2001 prices)  
Agriculture, forestry, hunting and fishing  3.8 -0.2 5.0 4.9 4.7 3.2 3.3 
Mining and quarrying  3.3 3.5 18.4 -19.3 3.5 46.7 8.4 
Manufacturing  -0.9 3.3 3.0 3.3 3.5 3.2 3.5 
Electricity and water  0.7 5.1 5.6 6.4 5.2 5.0 4.5 
Construction  -10.8 -11.5 2.4 0.8 1.7 4.4 3.4 
Services  1.5 4.3 4.0 3.6 3.6 3.4 4.4 
Wholesale/retail trade  -2.3 3.7 3.8 3.0 3.2 3.8 5.8 
Hotels and restaurants  1.6 3.4 3.5 2.6 3.1 3.9 5.1 
Transport, sto rage and communications  2.5 2.9 4.8 3.1 2.9 3.0 3.3 
Financial intermediation, insurance and 
auxiliary activities  4.0 3.3 5.5 12.3 11.4 9.2 14.5 
Housing rental  3.1 2.9 2.9 3.0 3.0 3.1 3.1 
Business activities and other real estate 
activities  1.9 4.2 4.9 2.3 3.2 3.5 3.7 
Public administration and defence; 
compulsory social security plans  8.8 7.5 1.3 10.0 8.4 4.3 6.5 
Education  12.0 11.1 8.0 0.4 0.6 -0.3 -1.9 
Social services and health  3.7 2.9 3.8 4.0 6.4 3.8 2.6 
Other community, social and personal 
servic e activities  -1.3 4.2 6.0 1.7 3.1 2.9 2.4 
Private households with domestic service  0.1 2.3 2.9 2.8 2.7 2.5 2.8 
Financial intermediation services indirectly 
measured (FISIM)  7.0 2.4 7.0 8.9 11.2 8.7 10.1 
Taxes net of product subsidies  -3.6 5.1 4.3 3.9 3.4 4.5 5.6 
Composition of GDP by type of expenditure (% of current GDP)  
Total final consumption  96.1 96.6 95.5 96.3 97.1 96.7 95.3 
Total final consumption of households and 
NPISH  85.9 86.1 85.3 85.9 86.5 85.8 85.0 
Final consumption of general governmen t 10.2 10.5 10.2 10.3 10.6 10.8 10.4 
Gross fixed capital formation  15.1 14.8 14.8 14.8 14.3 13.9 13.2 
Change in inventories  -2.1 -0.9 0.4 0.2 -0.2 -0.1 0.2 
Exports of goods and services  24.0 25.8 26.6 24.9 23.7 23.2 21.3 
(-) Imports of goods and servic es 33.1 36.3 37.4 36.1 34.8 33.6 30.0 
Composition of GDP by type of expenditure (% annual growth at 2001 prices)  
Total final consumption  1.0 3.9 3.7 3.4 3.9 4.1 5.2 
Total final consumption of households and 
NPISH  -0.3 3.4 3.6 3.1 3.7 3.9 5.8 
Final con sumption of general government  14.3 7.8 4.1 5.8 5.6 5.9 -0.1 
Gross fixed capital formation  -13.1 -2.1 7.1 3.6 1.5 4.4 5.5 
Change in inventories  36.9 -61.0 -150.4  -61.3 -259.8  -46.1 -256.4  
Exports of goods and services  -2.7 6.1 3.0 1.8 6.7 7.9 4.0 
(-) Imports of goods and services  -7.8 10.0 7.0 2.8 4.3 7.0 8.9 
Memorandum item         
Population (thousand)  14,017  14,362  14,714  15,073  15,438  15,807  16,176  
a Preliminary figures.  
Source:  Central Bank of Guatemala and National Institute of Statistics of Gua temala.  
1.4.   Although total GDP grew at similar rates in 2015 and 2014, domestic demand expanded 
faster in 2015, by 5.2% compared to the 4.1% recorded in the previous year. The stronger 
momentum of domestic demand reflects an acceleration in the growth rates o f private 
consumption and gross fixed capital formation, while public consumption retreated. Export demand 
in the case of goods and services grew by an estimated 4% in 2015, down from the previous 
year's 7.9%. The strongest growing components of external d emand in volume terms included 
bananas, nickel concentrates, edible fats and oils, iron and steel, fruit and sugar.3 Imports of 
goods and services were up by 8.9% in 2015, with increases in both capital goods and consumer 
goods.  
1.5.  The services sector contrib uted 63.0% of GDP in 2015, the leading component being 
wholesale and retail trade, which accounted for 21.6% of the total. Crop farming, livestock 
                                                
3 Bank of Guatemala (2016), Informe de Política Monetaria, a marzo de 2016 . Viewed at: 
http://www.banguat.gob.gt/Publica/Comunica/informe_pol_mon_mar2016.pdf . WT/TPR/S/348 • Guatemala  
- 14 - 
  breeding, hunting, forestry and fishing jointly represented 10.5% of GDP in 2015, while 
manufacturing account ed for 18.5%. The GDP shares of the two latter activities have remained 
broadly unchanged since the previous review period (Table  1.1). 
1.6.  The individual sectors that contributed positively to economic growth include financial 
intermediation, insurance and au xiliary activities; wholesale and retail trade; and mining and 
quarrying. As in earlier years, manufacturing output and crop farming, livestock breeding, hunting, 
forestry and fishing grew in line with overall GDP, posting similar growth rates.  
1.7.  Services pr ovided employment for 49.6% of the economically active population in 2015, 
while manufacturing industry employed 13.1%, agriculture 31.7% and construction 5.6%. In that 
year, 67.9% of total employment was informal.4 
1.2  Fiscal policy  
1.8.   With the aim of reducing the fiscal deficit, Guatemala launched a tax reform process in 2012, 
which led to the approval of two legislative decrees: Decree No.  4-2012 of the Congress of the 
Republic , approved on 26  January  2012, or Anti -evasion  Law II (provisions for strengthening the 
tax system and combating fraud and contraband); and Decree No.  10-2012 of the Congress of the 
Republic, approved on 16  February  2012, or Tax Update Law . Anti -evasion Law II contains 
measures to improve the control and inspection of taxes, and to combat  evasion. The law includes 
measures that amend income tax (ISR ), value -added tax  (VAT) and the road and maritime vehicle 
tax; and it introduces reforms to the Tax Code and Penal Code. In the case of the ISR, tighter 
controls were introduced for deductible expenses, which are now more clearly defined, limiting the 
deduction of interest and setting eligibility requirements for certain deductions. In the case of VAT, 
the base level for its assessment was raised, and the tax credit for small -scale taxpayer invo ices 
was eliminated.  
1.9.  The Tax Update Law introduces  a series of reforms, and contains: (i) a new ISR law; 
(ii) a new tax on the initial registration of road motor vehicles (IPRIMA); (iii) customs provisions; 
(iv) reforms to VAT; (v) reforms to the vehicle t ax; and (vi) reforms to the tax on fiscal stamps 
and official sealed paper. The ISR reforms set a tax rate of 5% for gross income (taxable income 
in the case of wage earners) for natural persons of up to Q  30,000 (US$3,947), and 7% on income 
in excess of t his amount. In the case of corporate entities, profit tax was gradually lowered from 
31% to 25%.5 A 5% tax is levied on dividends. The Law also increased the minimum exemption 
for wage earners (from Q 36,000 to Q 48,000). In the case of VAT, the law reform ed the tax on 
the secondary sale of goods; it also doubled the vehicle tax rate, although this measure was 
repealed in 2013 at the initiative of the President of the Republic. The Tax Update Law  created  the 
IPRIMA and eliminated tariffs on vehicle imports,  which were replaced by a domestic tax. The 
IPRIMA is charged at rates ranging from 5% to 20%, depending on the type of vehicle. Tourism 
vehicles for individual or family use are taxed at 20%, while collective transport vehicles, along 
with ambulances, tra ctors, and freight vehicles, pay 5%.6 
1.10.   In 2009 -2015, the government accounts continued to fluctuate within a relatively narrow 
band; government incomes have 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. Relative to GDP, both 
income and expenditure remain low compared to those of other countries in the region. As a result 
of the 2012 reform, the tax burden eased slightly during the period under review, from 10.3% of 
GDP in 2009 to 10.2% in 2015 (Table 1.2).7 The current account has been in surplus throughout 
the review period, varying between 0.7% and 1.2% of GDP.   
                                                
4 Online information from the National Institute of Statistics. Viewed at: 
https://www.ine.gob.gt/index.php/estadisticas/tema -indicadores . 
5 As a result of the reduction in profit tax, revenue in 2014 dropped by 5.6 % from the year -earlier level, 
and fell by a further 3 .2% in 2015, when it totalled Q 3,564.3  million.  
6 In addition, hybrid vehicles are taxed at 5 %, while six -to-nine seater passenger vehicles pay 15 %, as 
do four -wheel -drive vehicles. Lastly, tanker vehicles, garbage collection trucks and motorcycles are su bject to 
a 10% rate. See Chapter 4 of Decree No.  10-2012 of the Congress of the Republic. Viewed at: 
http://portal.sat.gob.gt/sitio/index.php/descargas/ doc_download/3055 -decreto -10-2012.html . 
7 The tax burden is defined as tax revenue net of VAT tax credit reimbursements to exporters and social 
security contributions.  WT/TPR/S/348 • Guatemala  
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  Table 1.2 Government finances, 2009 -2015  
(% of GDP)  
 2009a 2010a 2011a 2012a 2013a 2014b 2015b 
Total income  11.1 11.2 11.6 11.6 11.6 11.5 10.8 
Current income  11.0 11.2 11.6 11.6 11.6 11.5 10.8 
Tax revenue  10.3 10.4 10.9 10.8 11.0 10.8 10.2 
Direct taxes  3.2 3.1 3.4 3.4 3.8 3.9 3.6 
Income tax  2.3 2.3 2.7 2.7 3.0 3.1 2.8 
Otherc 0.8 0.8 0.7 0.7 0.8 0.8 0.8 
Indirect taxes  7.2 7.3 7.4 7.4 7.2 6.9 6.6 
Value -added tax  4.9 5.1 5.2 5.3 5.2 5.1 4.8 
Domestic  2.0 2.0 2.0 2.1 2.2 2.2 2.2 
Imports 2.9 3.1 3.2 3.2 3.0 2.9 2.6 
Import duties  0.7 0.7 0.7 0.6 0.5 0.5 0.4 
Distribution of oil and petroleum 
products  0.7 0.7 0.6 0.5 0.5 0.5 0.6 
Otherd 0.9 0.9 0.9 1.0 1.0 0.8 0.8 
Non-tax income and transfers  0.7 0.8 0.8 0.8 0.7 0.7 0.6 
Capital income  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Total expenditure  14.2 14.5 14.4 14.0 13.8 13.4 12.3 
Current expenditure  10.1 10.4 10.5 10.7 10.8 10.5 10.1 
Compensation of employees  3.6 3.8 3.8 3.8 4.0 4.1 4.2 
Goods and services  1.9 1.9 1.9 2.2 2.1 2.1 1.6 
Discounts and  bonuses  0.0 0.0 0.0 0.0 0.1 0.0 0.0 
Social security provisions  0.9 0.9 0.8 0.8 0.8 0.8 0.8 
Interest  1.4 1.5 1.5 1.5 1.6 1.4 1.6 
Domestic debt  0.8 0.8 0.9 1.0 1.0 1.0 1.0 
External debt  0.6 0.7 0.6 0.5 0.6 0.5 0.5 
Loans  0.4 0.4 0.4 0.4 0.4 0.3 0.3 
Bonds 0.2 0.2 0.2 0.1 0.2 0.1 0.2 
Transfers  2.3 2.3 2.3 2.3 2.2 2.0 1.9 
Rest of the public sector  1.6 1.6 1.7 1.6 1.6 1.4 1.5 
Private sector  0.7 0.7 0.6 0.6 0.6 0.6 0.4 
External sector  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Capital expenditure  4.1 4.1 4.0 3.3 3.0 2.9 2.2 
Direct real investment  1.8 1.8 1.8 1.0 0.9 0.9 0.4 
Financial investment  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Transfers  2.3 2.3 2.1 2.3 2.1 2.0 1.8 
Rest of the public sector  2.1 2.1 1.9 2.1 2.0 1.9 1.6 
Private and external sector  0.2 0.2 0.3 0.1 0.1 0.1 0.1 
Current account balance  0.9 0.8 1.2 0.9 0.9 1.0 0.7 
Budget balance  -3.1 -3.3 -2.8 -2.4 -2.1 -1.9 -1.4 
Total financing  3.1 3.3 2.8 2.4 2.1 1.9 1.4 
Net external financing  1.3 1.5 0.1 1.5 1.5 0.0 0.7 
Loans  1.3 1.5 0.8 0.1 0.8 0.0 0.7 
Disbursements  2.0 2.1 1.4 0.6 1.3 0.5 1.3 
Amortization  0.7 0.6 0.6 0.5 0.5 0.5 0.5 
Net bond trading  0.0 0.0 -0.7 1.4 0.7 0.0 0.0 
Net domestic financing  1.8 1.8 2.7 0.9 0.6 1.9 0.7 
Net bond trading  1.4 1.9 2.2 0.5 0.5 1.8 0.8 
Variation in cash (+) reduction ( -) 
increase  0.4 -0.1 0.5 0.5 0.1 0.1 -0.1 
Public debt  23.0 24.5 23.9 24.4 24.8 24.7 24.4 
External  13.1 13.5 11.8 12.5 13.1 12.0 11.7 
Domestic  9.9 11.0 12.1 11.9 11.7 12.7 12.6 
a Pursuant to the legislation in force up to 2013, the VAT revenue figures correspo nd to total receipts 
less reimbursements of the VAT tax credit to the export sector.  
b Preliminary figures.  
c Includes the taxes on real estate and other property, commercial and agricultural enterprises; the 
extraordinary and temporary tax to support the peace accords; and the solidarity tax.  
d Includes fiscal stamps; the vehicle tax; IPRIMA; oil and hydrocarbon royalties subject to revenue 
sharing; taxes on departure from the country; distribution of beverages; tobacco; cement 
distribution; and others.  
Source: Ministry of Finance and Central Bank of Guatemala.  WT/TPR/S/348 • Guatemala  
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  1.11.   Indirect taxes continue to generate a very large share of Guatemala's tax revenue, growing 
to 61% in 2015. About one third of government income comes from trade -related taxes. Among 
these, the most i mportant revenue source is VAT on imports, which accounted for 24% of total 
revenue in 2015, while tariffs generated just 3.7% of the total.  
1.12.   According to Decree No.  14-2015 of the Congress of the Republic, the budget for fiscal 2016 
amounted to Q 70,796.3  million (US$9,315  million), equivalent to 13.5% of GDP. This is the 
lowest level recorded in the last 20 years. The estimated fiscal deficit is Q  8,379.6  million (1.6% of 
GDP), which is expected to be financed mainly by issuing Treasury bonds.8 Under Gover nment 
Decision No.  57-2016 of 8  April 2016, the 2016 budget was increased by Q  250 million to 
Q 71,046.3  million, in which estimated tax revenues are equivalent to 10.4% of GDP, up by 9.7% 
from the 2015 level. The authorities believe that this target will be hard to achieve without 
measures to strengthen tax administration.9 
1.13.   To prevent public expenditure from rising, the Government issued rules to control and 
contain public spending, under which, until public revenues attain significant levels, it will be 
necessary to continue applying measures that encourage the rational use of available resources on 
a priority basis. Those regulations require the public sector to refrain from requesting new posts 
and hirings that involve additional tax costs. It must also refrain from negotiating collective 
agreements that raise wages and increase benefits for public employees, and suspend the 
procurement of transport equipment and office remodelling, and the signing of new 
rental  contracts.  
1.14.   Having deteriorated in 2015, tot al central government income grew by 2.4% in the first 
quarter of 2016, compared to the year -earlier period. Revenue from direct taxes grew by 2.3% 
while indirect tax receipts expanded by 1.1%. Tax revenues collected as of 31  March  2016 totalled 
Q 12,517.4  million, representing 96.7% of the target for that period. Public expenditure fell back 
by 8.9% in the first quarter of 2016 compared to the same period a year earlier, owing, among 
other things, to the increasing decline of tax revenue and limited access  to financing from  
international financial organiz ations, which forced the Government to maintain its expenditure 
containment policy. As a result, a small fiscal surplus was generated of Q 241.4  million, compared 
to the deficit of Q  1,360.8  million (0.3% o f GDP) recorded a year earlier.  
1.15.   The Organic Budget Law contains provisions governing the management of the public debt 
within the framework of the Constitution, which are approved annually by the Congress of the 
Republic in the State Income and Expenditure  Budget, for the corresponding fiscal year. These 
provisions set a global debt ceiling for each fiscal year. The global external public debt limit for 
2015 was Q 8,153,168,372.10 Guatemala's public debt represented 24.4% of GDP in 2015, of 
which 11.7% was e xternal and 12.6% domestic (Table 1.2). On 31  March  2016, the domestic 
public debt stock stood at Q  64,492.5  million (US$8,486  million), while the balance of the external 
public debt was US$7,410.9  million, down from the 31  December  2015 figure 
(US$7,489.9  million).  
1.16.   During its Article IV Consultation in 2016, the International Monetary Fund (IMF) stated 
that, although Guatemala's public debt was among the lowest of the region, it is moderately high 
in relation to tax revenues. It also indicated that  a broad ly neutral fiscal stance was appropriate 
from a cyclical perspective but structural needs could justify a temporarily higher deficit, if revenue 
shortfalls were to persist. In this regard, reform of the tax administration is considered a priority, 
both to raise revenue levels and to help combat corruption.11 
1.3  Monetary and exchange rate policy  
1.17.    According to the Organic Law of the Bank of Guatemala  (Decree No.  16-2002), the central 
bank's fundamental objective is to promote stability in the general price level.  Since 2005, the 
                                                
8 Bank of Guatemala (2016), Informe de Política Monetaria, a marzo de 2016 . Viewed at: 
http://www.banguat.gob.gt/Publica/Comunica/informe_pol_mon_mar2016.pdf . 
9 Bank of Guatemala (2016), Informe de Política Monetaria, a marzo de 2016 . Viewed at: 
http://www.banguat.gob.gt/Publica/Comunica/informe_pol_mon_mar2016.pdf . 
10 Decree No.  22-2014, General State Income and Expenditure Budget for Fiscal 2015.  
11 IMF (2016), Guatemala: C oncluding Statement of the 2016 Article IV Mission. Viewed at:  
http://www.imf.org/external/spanish/np/ms/2016/052916s.htm . WT/TPR/S/348 • Guatemala  
- 17 - 
  Bank of Guatemala has been implementing an explicit inflation targeting scheme, which consists in 
setting an explicit target for the variation in the consumer price index (CPI), over one or several 
time horizons, together with a flexible e xchange -rate regime. Under this framework, monetary 
policy is implemented through indirect monetary control instruments (monetary stabilization 
operations) and the use of indicative variables. In June  2011, a change was made to the explicit 
inflation targe ting scheme, by setting the interest rate on overnight deposits as the leading 
monetary policy interest rate, instead of the seven -day interest rate in force at that time. The 
authorities believe this has enabled more efficient liquidity management by the banks in the 
financial system.  
1.18.   Since 2013, the Monetary Board has been setting a medium -term inflation target of 
4.0%  +/-1 percentage point. The monetary policy interest rate in March  2016 was 3.0%. At its 
meeting in that month, the Monetary Board noted th at inflation forecasts and expectations for 
2016 and 2017 both saw inflation remaining around the central value of the target range 
(4.0%  +/-1 percentage point).12 
1.19.   Since 2012, the average rise in the CPI has remained comfortably within the established 
fluctuation band, varying between 3% and 4.5% (Table 1.3). Inflation has stayed low in both 2014 
and 2015, at a rate of 3%, which initially reflected the fall in the price of imported non -oil products 
and then, since mid -2014, in oil imports. Inflation picked u p in the early months of 2016, with the 
CPI rising by 4.26% up to March, mainly owing to higher food prices, which at that time were 
rising at an annual rate of about 11.0%.  
Table 1.3 Monetary and financial in dicators, 2009 -2015  
 2009  2010  2011  2012  2013  2014a 2015a 
Liquidity         
Currency in circulation, M1 
(Q million)  48,490  53,076  57,341  61,172  63,031  67,531  75,048  
M1 (percentage change on previous 
year)  5.7 9.5 8.0 6.7 3.0 7.1 11.1 
Means of payment, M 2 (Q million)  96,614  106,203  116,742  127,794  137,478  149,911  165,582  
M2 (percentage change on previous 
year)  7.5 9.9 9.9 9.5 7.6 9.0 10.4 
Bank credit to the private sector 
(Q million)  88,189  93,250  106,392  125,176  140,159  152,455  172,036  
Bank credit to the private sector 
(percentage change on previous 
year)  1.1 5.7 14.1 17.7 12.0 8.8 12.8 
Exchange rate         
Exchange rate (quetzal per US$, 
period average)  8.16 8.06 7.79 7.83 7.86 7.73 7.66 
Interest rates         
Interest rate in domestic currency (%)b 
Lendingc 13.6 13.3 13.5 13.5 13.7 13.6 13.1 
Depositd 5.6 5.3 5.2 5.4 5.5 5.5 5.4 
Interest rate in foreign currency (%)b 
Lendingc 8.1 7.1 6.3 6.2 6.1 6.0 5.9 
Depositd 3.9 3.1 2.7 2.8 2.9 2.9 3.0 
Inflation         
Consumer price index (end -period, 
Dec. 2010=100)  94.88  100.0  106.2  109.9  114.7  118.1  121.7e 
Variation in the consumer price 
index (end -period, Dec. 2010=100)  -0.3 5.4 6.2 3.5 4.4 3.0 3.0 
a Preliminary figures.  
b Weighted average of the banking system.  
c Revised figures, not including credi t card loans.  
d Not including demand deposits.  
e December  2015.  
Source:  Central Bank and National Institute of Statistics of Guatemala.  
                                                
12 Bank of Guatemala (2016), Informe de Política Monetaria, a marzo de 2016 . Viewed at: 
http://www.banguat.gob.gt/Publica/Comunica/informe_pol_mon_mar2016.pdf . WT/TPR/S/348 • Guatemala  
- 18 - 
  1.20.   During the period under review, the main monetary and credit aggregates trended in line 
with the economic growth forecas t and the inflation target. The year -on-year growth rate of 
currency in circulation, M1, fluctuated between 6.7% and 11%, except in 2013, whereas the 
means of payment, M2, ran slightly ahead of nominal GDP with year -on-year growth of between 
7.5% and 10.4% . Bank lending fluctuated more widely during the period under review, with 
growth ranging between 1.1% and 17.7%.  
1.21.   In the first quarter of 2016, credit to the private sector grew by 10.5%, associated with an 
increase in demand. Indicators of financial depth  have continued to grow on a sustained basis, 
with means of payment outpacing nominal GDP growth: the ratio M2/GDP, which was 31.4% in 
2009, reached a level of 33.9% of GDP in 2015. Market interest rates in domestic currency 
remained stable throughout the review period, but at a level of 13.1% in 2015. The spread 
between lending and deposit rates in domestic currency, of about eight percentage points, remains 
large and reflects the high costs of financial intermediation, and the large share of total lending  
accounted for by consumer credit, which is generally subject to higher interest rates.  
1.22.   Guatemala continues to apply a flexible exchange -rate policy, with the central bank making 
occasional forays into the market, consonant with its basic goal of price sta bility. During the review 
period, the nominal exchange rate displayed limited volatility, and the real effective exchange rate 
appreciated by 6% between 2009 and 2015. The Bank of Guatemala participates in the 
Institutional Foreign Exchange Market with the  sole aim of moderating the volatility of the nominal 
quetzal/dollar exchange rate, but without influencing its trend. The authorities consider that the 
recent behaviour of the real exchange rate is consistent with the trend of its fundamentals, and 
that e stimates of the equilibrium real exchange rate (ERER) show no significant misalignments 
(Chart 1.1).  
1.23.   In the context of the 2016 Article IV Consultation the IMF indicated that monetary policy 
was broadly appropriate but the authorities should remain vigilan t if price pressures intensified . 
Although estimates of the neutral policy interest rate indicate an accommodating monetary stance, 
underlying inflation is below the target range, and inflation expectations have been anchored 
within that range since 2012. Consequently, the Fund does not recommend an immediate 
tightening of monetary policy; but it suggests that the Bank of Guatemala should stand ready to 
raise the policy rate if inflationary pressures intensify. It also recommends completing the 
transition t o full-fledged inflation targeting, together with additional efforts to further strengthen 
the monetary transmission mechanism. On this point, it recommends, among other things: 
continuing to gradually increase exchange -rate flexibility; consider taking ad ditional measures to 
discourage credit dollarization; develop the private debt and securities market, including the 
passing of a securities market law; and further refine the framework for monetary operations , 
including liquidity management .13 
                                                
13 IMF (2016), Guatemala: Concluding Statement of the 2016 Article IV M ission. Viewed at: 
http://www.imf.org/external/spanish/np/ms/2016/052916s.htm . WT/TPR/S/348 • Guatemala  
- 19 - 
  Chart 1.1 Trend of the equilibrium real exchange rate (ERER), 2007 -2015  
-30-20-100102030
2007 2008 2009 2010 2011 2012 2013 2014 2015Over -appreciation
Over -depreciation
 
Source:  Bank of Guatemala.  
1.4  Balance of payments  
1.24.   The current account of Guatemala's balance of payments is traditionally in deficit, mainly 
owing to a  large trade gap. In 2011, the current account deficit peaked at close to US$1.6  billion, 
or 3.4% of GDP; but it has been falling since 2013. Improvements in that year and in 2014 
reflected an increase in goods exports. In 2015, a sharp contraction in impo rts, on the order of 
4%, led to a smaller trade deficit, which further reduced the current account deficit — to 
US$202  million, equivalent to 0.3% of GDP.  
Table 1.4 Balance of payments 2009 -2015a 
(US$ million)  
 2009  2010  2011  2012  2013b 2014b 2015b 
Current account  273 -563 -1,599  -1,310  -1,351  -1,230  -202 
As a percentage of GDP  0,7 -1,4 -3,4 -2,6 -2,5 -2,1 -0,3 
Goods  -3,348  -4,271  -4,963  -5,735  -6,176  -6,064  -5,549  
Exports f.o.b.  7,295  8,536  10,519  10,103  10,183  10,992  10,831  
General merchandise  7,295  8,536  10,519  10,103  10,183  10,992  10,831  
Of which procured in ports by 
carriers  73 74 118 124 158 188 151 
Of which produced in free zones 
or under Decree No.  29/89  2,293  2,653  3,352  3,040  3,069  3,481  3,593  
Imports f.o.b.  10,643  12,807  15,482  15,838  16,359  17,056  16,380  
General merchandise  10,643  12,807  15,482  15,838  16,359  17,056  16,380  
Of which procured in ports by 
carriers  2 2 3 6 7 9 7 
Of which produced under Decree 
No. 29/89  1,344  1,670  1,940  1,965  2,338 2,375  2,213  
Services  -43 -140 -278 -104 -223 -203 -310 
Transport  -709 -861 -882 -928 -919 -941 -960 
Credit  259 289 342 323 353 401 423 
Debit  968 1,150  1,225  1,251  1,272  1,342  1,382  
Travel  644 594 642 713 755 776 823 
Credit  1,359  1,378  1,350  1,419  1,479  1,564  1,580  
Debit  715 784 708 706 725 788 756 
Financial services  -100 -110 -136 -127 -163 -191 -155 WT/TPR/S/348 • Guatemala  
- 20 - 
   2009  2010  2011  2012  2013b 2014b 2015b 
Credit  10 12 11 13 11 17 15 
Debit  110 122 146 140 174 207 169 
Insurance and pension services  -136 -92 -181 -203 -272 -285 -294 
Credit  2 18 3 -4 7 3 7 
Reinsurance  2 18 3 -4 7 3 7 
Debit  139 110 185 199 278 288 301 
Direct insurance  48 42 51 72 101 106 106 
Reinsurance  91 68 134 127 178 182 195 
Other  259 330 279 441 376 438 275 
Credit  459 571 533 683 684 845 741 
Debit  200 241 253 243 307 408 466 
Primary income  -962 -1,099  -1,491  -1,115  -1,064  -1,408  -1,423  
Compensation of employees  46 64 101 87 106 112 103 
Credit  53 69 112 97 115 120 107 
Debit  7 5 11 10 9 7 4 
Income from direct investment  -893 -952 -1,389  -1,013  -899 -1,172  -1,211  
Credit  58 49 64 99 87 151 144 
Debit  951 1,001  1,454  1,112  986 1,324  1,355  
Income from portfolio investment  -86 -95 -98 -109 -149 -237 -247 
Credit  12 1 4 5 2 7 2 
Debit  97 96 102 114 152 244 249 
Other investment  -157 -199 -175 -151 -195 -181 -150 
Credit  158 159 170 175 185 206 211 
Debit  315 358 345 326 380 387 361 
Reserve assets  127 83 70 70 73 70 82 
Credit  127 83 70 70 73 70 82 
Secondary income (net)  4,626  4,946  5,134  5,645  6,113  6,445  7,079  
Personal transfers between 
resident and non -resident 
households (net remittances)  3,951  4,147  4,396  4,916  5,246  5,699  6,461  
Other (net)  674 799 738 729 867 746 618 
Capital account (net)  1 3 3 0 0 0 0 
Financial account  -205 -1,584  -2,027  -2,262  -2,620  -1,797  -1,062  
Direct investment  -574 -782 -1,009  -1,205  -1,262  -1,282 -1,116  
Abroad  26 24 17 39 34 106 93 
In Guatemala  600 806 1,026  1,244  1,295  1,389  1,209  
Equity and investment fund shares  581 908 969 1,025  880 957 1,706  
Of which reinvested earnings  488 643 770 580 672 820 1,004  
Debt instruments  19 -102 58 219 416 431 -497 
Portfolio investment  125 12 392 -722 -933 -794 52 
Assets  -23 46 143 9 -6 38 -6 
Liabilities  -148 34 -249 731 926 833 -57 
Other investment  244 -814 -1,410  -334 -426 280 2 
Assets  261 -132 649 -78 406 572 378 
Money and deposits  146 -226 122 -84 233 419 -149 
Loans  -78 33 338 86 133 109 589 
Other accounts receivable and 
payable  -2 0 2 2 -1 42 29 
Liabilities  16 682 2,059  256 831 293 376 
Money and deposits  70 -74 -13 16 -1 -51 -48 
Loans  -176 658 1,988  266 796 333 434 
Commercial credits and ad vances  -150 98 83 -26 17 43 -30 
Other accounts receivable and 
payable  271 0 0 0 19 -33 19 
Errors and omissions (net)  -6 -346 -225 -454 -567 -495 -384 
Overall balance  473 677 206 499 702 72 475 
Financing  473 677 206 499 702 72 475 
Reserve assets  473 677 206 499 702 72 475 
a According to the sixth edition of the Balance of Payments Manual, increases in assets (liabilities) 
abroad are shown with a positive sign, and decreases with a negative sign.  
b Preliminary figures.  
Source:  Bank of Guatemala.  
1.25.   The tra ditionally large trade deficit has been largely offset by high levels of transfers, which 
mainly consist of family remittances; and in 2015 these reached a level of US$6,285  million, or  
9.8% of GDP. On 31  March  2016, the level of net international reserves  (NIR) stood at  
US$7,586.1  million, down by US$165.1  million on the December  2015 figure, and equivalent WT/TPR/S/348 • Guatemala  
- 21 - 
  to 5 months of goods imports.14 The country's external public debt stood at US$7,410.9  million 
on 31 May 2016, equivalent to 11.6% of GDP.  
1.5  Merchandise t rade 
1.26.   Guatemala's merchandise trade continued to grow during the review period. Exports totalled 
US$10,726  million in 2015, compared to US$7,214  million in 2009, a 49% increase. Maquila 
exports grew at above -average rates, rising by 56% from US$2,293  millio n in 2009 to 
US$3,582  million in 2015. Free -zone exports increased by 150% from US$293  million in 2009 to 
US$734  million in 2015. It is too soon to judge the extent to which the legal amendments 
introduced in 2016, eliminating benefits for exports from the  maquila and free zones will affect 
total exports.  
1.27.   During the review period, imports (including those associated with maquila activities and 
the free zones) grew from US$11,531  million in 2009 to US$17,639  million in 2015, for an average 
annual growth rate  of 7.3%. Imports heavily outweighed exports by value throughout the period 
reviewed, giving rise to a merchandise trade deficit of US$5,549  million in 2015, if maquila activity 
and the free zones are included.  
1.5.1   Composition of merchandise trade  
1.28.   Manufactures  generated about two thirds of total exports in 2015, mainly products of the 
food industry, clothing and clothing accessories and textile products, chemicals, base metals and 
plastics (Chart 1.2 and Table A1.1). Exports of primary products accounted for on e third of the 
total in 2015. Key exports included coffee, fruit (particularly bananas), vegetables and seeds. The 
main maquila exports are clothing (one third of the total), metallic minerals, processed fruit 
products and rubber. Exports from the free zon es include fats and oils, pharmaceuticals, mineral 
fuels (refined products) and clothing (Chart 1.4).  
1.29.   The overall composition of imports underwent a number of changes during the review 
period, mainly owing to the lower value of imports of mineral products,  mostly fuels, which 
dropped from 19.7% of the total in 2009 to 14.6% in 2015. In the latter year, the manufacturing 
sector accounted for about three quarters of total imports, the main categories being machinery 
and transport equipment and chemicals. Impo rted primary products included fuels, cereals and 
dairy products, among others (Table A1.2). The lower levels of fuel imports chiefly reflected the 
lower oil prices. The main maquila imports are knitted and other fabrics for use as inputs in the 
clothing i ndustry, cotton, man -made fibres, plastics, machinery, and paper and paperboard 
(mainly for packaging). In the free zones, the main imports are gasoline, diesel fuel and 
pharmaceutical products.  
1.5.2   Geographic distribution of trade  
1.30.   Despite a degree of diversif ication in the review period, Guatemala's trade remains 
concentrated in a few destination markets, chiefly the United States and the rest of 
Central  America, which jointly absorb almost two thirds of the country's exports. The United States 
is still Guatem ala's leading market, taking 35.3% of its exports in 2015 (Chart 1.3 and 
Table  A1.3), although its share of the total has retreated from 41% in 2009. The second most 
important export market is Central America, which as a whole accounted for 29.1% of Guatem ala's 
total exports in 2015. Among the individual Central American countries, the leading market 
is El Salvador, which absorbed 11.6% in 2015, followed by Honduras, with 8.4%. The 
European  Union took 8% of Guatemala's total exports in 2015.  
                                                
14 Bank of Guatemala (2016), Informe de Política Monetaria, a marzo de 2016 . Viewed at: 
http://www.banguat.gob.gt/Publica/Comunica/informe_pol_mon_mar2016.pdf . WT/TPR/S/348 • Guatemala  
- 22 - 
  Chart 1.2 Merchandise trade by main products, 2009 and 2015  
2009 2015
(a)    Exports
Total: US$7,214 million
(b)    Imports
Total: US$11,531 million Total: US$17,639 millionTotal: US$10,726 millionMineral 
products
8.8%Other
12.8%
Textiles
17.1%Other
13.8%
Mineral 
products
19.7%Mineral 
products
11.2%Plastics
4.5%
Paper and 
paperboard
4.7%Products of 
the food 
industry
6.4%
Chemicals
13.8%
Plastics
6.5%Machinery 
and electrical 
appliances
15.4%Other
13.2%
Paper and 
paperboard
4.1%Mineral 
products
14.6%
Chemicals
14.1%
Plastics
7.1%Base metals
6.9%Machinery 
and electrical 
appliances
17.2%Other
13.6%
Base metals
5.8%
Textiles
8.8%Products of 
the food 
industry
7.3%
Textiles
7.6%Vegetable 
products
25.5%Vegetable 
products
22.7%
Products of 
the food 
industry
17.6%Products of 
the food 
industry
18.4%
Chemicals
9.8%Chemicals
10.1%Textiles
15.0%
Plastics
4.4%Base metals
4.6%Base metals
3.7%
Transport 
equipment
5.5%Transport 
equipment
7.5%
 
Source:  WTO Secretariat estimates, based on data from the Bank of Guatemala.  WT/TPR/S/348 • Guatemala  
- 23 - 
  Chart 1.3 Merchandise trade by trading  partner, 2009 and 2015  
2009 2015
(a)    Exports
Total: US$7,214 million
(b)    Imports
Total: US$11,531 million Total: US$17,639 millionTotal: US$10,726 millionHonduras
8.4%Other
5.0%
United 
States
41.0%
Nicaragua
5.2%Other 
Americas
9.7%
Costa Rica
3.9%
Mexico
10.3%Americas
79.6%United 
States
35.3%
Other 
Americas
11.3%
Costa Rica
3.9%Other
5.7%Asia
6.4%
Americas
84.2%Asia
5.2%
United 
States
36.8%
Other 
Americas
17.0%
Costa Rica
3.4% Panama
3.2%Republic 
of Korea
2.8%
China
5.3%Other 
Asia
5.6%Other
3.1%
United 
States
37.1%
Mexico
11.6%Other 
Americas
9.9%
Panama
3.4%Costa Rica
3.4%China
10.6%Other 
Asia
7.4%Other
1.0%
Americas
75.8%Americas
70.5%Europe
7.6%
Europe
8.0%Asia
13.6%Asia
20.4%Republic 
of Korea
2.5%Europe
5.6%
Europe
8.2%
Nicaragua
3.9%
Honduras
8.4%
El 
Salvador
5.1%El Salvador
11.3%El Salvador
11.6%
El 
Salvador
5.1%Mexico
5.9%
Mexico
4.0%
 
Source:  WTO Secretariat estimates, based on data from the Bank of Guatemala.  
1.31.   The United States remain Guatemala's main supplier, contributing 37.1% of its total imports 
in 2015, followed by Mexico with 11.6% in the European Union with 7.6% (Chart 1.3 and 
Table  A1.4).  WT/TPR/S/348 • Guatemala  
- 24 - 
  Chart 1.4 Maquila and free -zone merchandise trade by main products (HS  chapter), 
2015  
Exports Imports
(a)    Maquila
Total: US$3,582  million
(b)    Free zones
Total: US$734 million Total: US$1,380 millionTotal: US$2,166 million08. Edible 
fruits
7.2%Other
31.8%
40. Rubber
3.6%Other
44.1%
84. 
Machinery
7.5%
48. Paper 
and 
paperboard
7.1%
30. 
Pharmaceutical 
products
20.6%27. Mineral 
fuels
13.5%
15. Animal or 
vegetable fats 
and oils
28.3%87. Vehicles
5.3%Other
24.1%
30. 
Pharmaceutical 
products
14.3%29. 
Chemicals
2.6%Other
22.1%
52. Cotton
5.8%27. Mineral 
fuels
42.5%61. Articles of 
apparel, knitted 
or crocheted 
28.1%39. Plastics
10.6%
26. Ores, slag 
and ash
Metal ores
19.2%60. Knitted or 
crocheted 
fabrics
9.8%
52. Cotton
8.5%
55. Man -
made fibres
6.6%62. Articles 
of apparel, 
not knitted 
or crocheted
5.9%54. Man -made 
filaments
5.7%07. Edible 
vegetables
4.1%
62. Articles 
of apparel, 
not knitted 
or crocheted
8.1%87. Vehicles
2.8%
15. Animal or 
vegetable fats 
and oils
5.6%29. Chemicals
4.4%
 
Source:  WTO Secretariat estimates, based on data from the Bank of Guatemala.  
1.6  Trade in services  
1.32.   Guatemala's services trade was in deficit throughout the review period, and the gap has 
been widening since 2012 to reach US$310  million in 2015, equivalent to 0.5% of GDP. The 
deficits are largely the result of ever -larger shortfalls in the "t ransport" category (Table 1.5). Apart 
from transport, the largest deficits are in insurance and pensions and in financial services.  WT/TPR/S/348 • Guatemala  
- 25 - 
  Table 1.5 Balance of trade in services, 2009 -2015  
(US$ million)  
 2009  2010  2011 2012  2013  2014  2015  
Balance of trade in services  -43 -140 -278 -104 -223 -203 -310 
Transport  -709 -861 -882 -928 -919 -941 -960 
Credit  259 289 342 323 353 401 423 
Debit  968 1,150  1,225  1,251  1,272  1,342  1,382  
Travel  644 594 642 713 755 776 823 
Credit 1,359  1,378  1,350  1,419  1,479  1,564  1,580  
Debit  715 784 708 706 725 788 756 
Financial services  -100 -110 -136 -127 -163 -191 -155 
Credit  10 12 11 13 11 17 15 
Debit  110 122 146 140 174 207 169 
Insurance and pension services  -136 -92 -181 -203 -272 -285 -294 
Credit  2 18 3 -4 7 3 7 
Reinsurance  2 18 3 -4 7 3 7 
Debit  139 110 185 199 278 288 301 
Direct insurance  48 42 51 72 101 106 106 
Reinsurance  91 68 134 127 178 182 195 
Other  259 330 279 441 376 438 275 
Credit  459 571 533 683 684 845 741 
Debit  200 241 253 243 307 408 466 
Source:  Bank of Guatemala.  
1.7  Foreign investment  
1.33.   Guatemala is a net recipient of foreign direct investment (FDI), for which flows 
in 2009-2015 totalled US$7,606.2  million (Table 1.6). The leading investor countries in 2015 were: 
the United States (32% of the total); Colombia (12.9%); Mexico (9.4%); Spain (5.3%); 
Luxembourg (4.6%); and Canada and the Republic of Korea (4.2% each).  
Table 1.6 Foreign direct investment, 2009 -2015  
(US$ mil lion) 
2009  2010  2011  2012  2013  2014  2015  
600 805.8  1,026.1  1,244.5  1,307.7  1,411.2  1,210.9  
Source:  Bank of Guatemala.  
1.8  Outlook  
1.34.   The Bank of Guatemala is forecasting GDP growth of 3.5% in 2016. The inflation target is 
set at 4%, with a fluctuation band of o ne percentage point; and the actual rates are expected to 
be 4.15% in late 2016 and 4.18% in late 2017.15 The balance of payments current -account deficit 
is projected at US$285.9  million in 2016 (0.4% of GDP), and the fiscal deficit at 1.6% of GDP.  
1.35.   During t he 2016 Article IV Consultation, the IMF noted that the country's fiscal and 
monetary policies had helped maintain macroeconomic stability. It also predicted that growth 
would return to its trend rate of 3.75% in 2016, and rise gradually to 4% in the mediu m term. 
Inflation is expected to remain within the central bank's target range (around 4%); and the 
current -account deficit is set to widen to 1.5% of GDP in the medium term, fuelled by a gradual 
rise in oil prices and robust domestic demand. The fiscal de ficit is expected to remain stable, at 
around 1.5% of GDP in 2016, and to hover around that level in the medium term.16 
 
                                                
15 Bank of Guatemala (2016), Informe de Política Monetaria, a marzo de 2016 . Viewed at: 
http://www.banguat.gob.gt/Publica/Comunica/informe_pol_mon_mar2016.pdf . 
16 IMF (2016), Guatemala: Concluding Statement of the 2016 Article IV Mission. Viewed at:  
http://www.imf.org/external/spanish/np/ms/2016/052916s.htm . WT/TPR/S/348 • Guatemala  
- 26 - 
  2  TRADE AND INVESTMENT  REGIME  
2.1  General legal and institutional framework  
2.1.  Guatemala is a presidential republic; it is a unitary State with a decentralized administration. 
Its territory is divided into 22 departments, which are subdivided into 340 municipalities. The 
Constitution of 1985 (amended in 1993) establishes personal rights, the functional organization of 
the State, the separation of powers and the independent functioning of the executive, legislative 
and judicial branches.  
2.2.  The President of the Republic is the head of State and is elected by direct, universal suffrage 
for a non -renewable four -year term. The President heads the executiv e branch and exercises his 
functions with the support of the Ministers of State.1 There are 14 Ministries, including the Ministry 
of Social Development established in 2012.  
2.3.  The President is responsible for conducting foreign policy and international relati ons, 
including the conclusion, ratification and denunciation of treaties. The President has to submit all 
international treaties to Congress for approval where they: (i) affect current laws; (ii) affect 
national sovereignty; (iii) establish full or partial  Central American economic or political union; 
(iv) assign or transfer competencies to agencies or institutions to pursue common objectives of the 
Central  American region; (v) commit the State financially; (vi) constitute a commitment to submit 
any matter to international judicial decision or arbitration; or (vii) contain a general clause on 
arbitration or submission to international jurisdiction. Other international agreements (with the 
exception of those relating to matters of war) can be ratified by the President without the need for 
congressional approval.  
2.4.  Legislative power is vested in the single -chamber Congress of the Republic, comprising 
deputies elected by direct universal suffrage for renewable four -year terms.2 Congress discusses 
and adopts laws, certain treaties and the annual budget of the nation. The number of deputies per 
department is determined by law according to the size of its population.3 The entire membership of 
Congress was renewed in the September  2015 elections.  
2.5.  The judicial branch co nsists of the Supreme Court of Justice, the Court of Appeals and the 
ordinary courts, including some of special jurisdiction such as the Administrative Disputes 
Tribunal.4 The Supreme Court is responsible for administering judicial power and consists of 
13 judges appointed by Congress for five -year terms. There is also a Constitutional Court, with 
exclusive jurisdiction for ensuring that laws and treaties are consistent with and subordinate to the 
Constitution.5 
2.6.  The Office of the Comptroller -General is a sp ecialized decentralized institution that is 
responsible for oversight of the use of public funds and contracts for public concessions.6 Other 
major institutions established by the Constitution are the Public Prosecutor's Office, the Human 
Rights Ombudsman,  and the Attorney General's Office, which is responsible for the legal 
representation of the State of Guatemala in all legal proceedings to which it is a party.  
2.7.  Legislation may be initiated by members of Congress, the Executive, the Supreme Court of 
Justic e, the University of San Carlos7 and the Electoral Supreme Court.8 Congress has exclusive 
powers to initiate legislation relating to taxation.9 The Constitution is the highest -ranking law, 
                                                
1 The President appoints and dismisses the ministers, deputy ministers and ambassadors. Article 183 of 
the Political Constitution of the Republic of Guatemala  (PCRG).  
2 Organic Law of the  Legislative Branch, Decree No.  63-94 of 1  December  1994.  
3 PCRG Article 157.  
4 Article 58 of the Law on the Judicial Branch, Decree No.  2-89 of 28  March  1989, and amendments 
thereto . 
5 PCRG Article 268 ff.  
6 PCRG Article 232 a nd Organic Law of the  Office of the Comptroller -General, Decree No.  31-2002 of 
5 June 2002.  
7 The University of San Carlos, founded in 1676, is a public State institution. Its independence and 
budget are guaranteed by the Constitution.  
8 PCRG Article 174.  
9 PCRG Article 239.  WT/TPR/S/348 • Guatemala  
- 27 - 
  followed in order of importance by international treaties, ordinary  laws and regulations.10 Draft 
legislation must be adopted by Congress in order to become law.11 Once it has been adopted, it 
must be sent to the Executive to be signed, promulgated and published.  
2.8.  International treaties, including those dealing with trade ma tters, rank above domestic law 
but below the Constitution.12 
2.9.  In 2007, the International Commission against Impunity in Guatemala (CICIG) was 
established by agreement between the Guatemalan Government and the United Nations. Its 
purpose is the investigation and effective criminal prosecution of illicit associations in the country 
which are engaged in illegal activities and whose links with State officials have hindered the full 
consolidation of the rule of law in Guatemala. To this end, the CICIG acts as a sp ecial public 
prosecutor operating under Guatemalan law and has legal standing to file complaints as a 
co-complainant together with the Public Prosecutor's Office.13 A CICIG report on fraudulent 
customs operations published in April  2015 led to the resignati on of the incumbent President and 
Vice-President in September  2015. Following four months of interim presidency, a new elected 
President took office in January  2016.  
2.10.   The Constitution includes among the principles relating to economic matters social justice  
and the subordinate role of the State.14 The Constitution establishes a prohibition on "monopolies 
and privileges" and the obligation for the State to protect "the market economy and prevent those 
associations which tend to restrict market freedom or to ca use prejudice to consumers".15 The 
Constitution recognizes the freedom of freedom of industry, commerce and labour16 and proclaims 
the strengthening of Central American economic integration to be a duty of the authorities17. 
2.11.   Guatemala does not have a specific  law on foreign trade. Various laws, government 
decisions, decrees and other regulations govern the different aspects of foreign trade and other 
trade -related measures. The sections of this report will refer to these normative instruments and 
their amendme nt during the period under review.18 
2.12.   The Ministry of the Economy (MINECO) is the lead agency in foreign trade policy formulation 
and implementation, in coordination with other government agencies. The Ministry is responsible 
for negotiating and administerin g international trade agreements, as well as for representing 
Guatemala in the WTO and other international forums. The Law on the Executive Branch 
empowers MINECO to enforce the legal regime relating to the conduct of domestic and foreign 
trade, consumer p rotection, promotion of competition, legal repression of unfair competition, 
limitation of monopolistic enterprises, domestic and foreign investment and the promotion of 
competitiveness, among other matters. MINECO is also responsible for formulating and 
implementing tariff policy and coordinating, analysing and following up the Central American 
integration processes.19 
                                                
10 Law on the Judicial Branch, Article 9.  
11 Adoption of a law requires an absolute majority, save in the express cases of the Constitution or the 
Organic Law of  the Legislative Branch requiring a qualified two -thirds majority.  
12 Guatemal a entered a reservation to Article 27 of the 1969 Vienna Convention on the Law of Treaties, 
under which a signatory country "may not invoke the provisions of its internal law as justification for its failure 
to perform a treaty". By virtue of this reservat ion, Guatemala interprets Article 27 as applying to its ordinary 
legislation but not to its Constitution, which in its opinion prevail over any other law or international treaty.  
Online United Nations Treaty Series. Viewed at: https://treat ies.un.org . 
13 The CICIG's mandate was renewed by the United Nations at the request of Guatemala until 
September  2017. Online information from the CICIG. Viewed at: http://www.cicig.org/index.php?page=  
mandato . 
14 PCRG Article 118.  
15 PCRG Article 130.  
16 PCRG Article 43.  
17 PCRG Article 150.  
18 Some of the main laws relating to foreign trade are available on the website of the Ministry of the 
Economy at: http://www.mineco.gob.gt/leyes -acuerdos -y-decretos . 
19 Article 32 of the Law on the Executive Branch, Decree No.  114-97 of 10  December  1997.  WT/TPR/S/348 • Guatemala  
- 28 - 
  2.13.   Other government institutions involved in the framing of Guatemala's trade policy include 
the Ministry of Foreign Affairs, the Ministry of A griculture, Livestock and Food (MAGA), the Ministry 
of Finance, the Tax Administration Supervisory Authority (SAT), the Bank of Guatemala and the 
Planning and Programming Secretariat in the Office of the President of the Republic  (SEGEPLAN).  
2.14.   The private se ctor participates in the national consultations carried out in connection with 
the negotiation and administration of trade agreements through the trade committees which 
MINECO establishes for the purpose.20 The Business Commission for International Trade 
Negotiations (CENCIT) coordinates and develops the business community's position in the 
negotiation and implementation of trade agreements.  
2.15.   The National Export Promotion Council (CONAPEX) is a forum in which the public and private 
sectors participate with a view to making recommendations on the country's foreign trade policy 
and in particular coordinating and implementing export promotion policy through its technical 
body, the National Export Coordination Commission (CONACOEX).21 CONAPEX is chaired by the 
Minister for the Economy and its membership includes the Ministers for Agriculture, Livestock and 
Food, Foreign Affairs and Finance, the head of SEGEPLAN, the President of the Bank of Guatemala 
and representatives of the private -sector chambers and association s.22 
2.2   Trade policy objectives  
2.16.   During the review period, Guatemala updated its trade policy instruments. The general 
framework is set by the Integrated Policy on Foreign Trade, Competitiveness and Investment 
adopted in 2012. The objectives of this policy are : to improve the country's competitiveness in 
order to attract investment and expand trade; broaden and diversify the range of exportable 
products by raising quality and value added; consolidate openness and access to international 
markets; and promote for eign trade and investment opportunities.23 The implementation 
strategies established to achieve these objectives include: promoting a stable macroeconomic 
environment, improving the production infrastructure and business climate, promoting the 
development o f 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 American Customs Union and strengthening trade and 
investment promotion (Table 2.1). Trade policy is evaluated monthly by CONACOEX at the 
technical level and by CONAPEX at high level.  
2.17.   The National Competitivenes s Agenda (2012 -2021), adopted in 2012, is another of the 
instruments governing trade policy. The Agenda sets out various strategic guidelines, including in 
particular institutional modernization and strengthening, development of infrastructure (primarily 
in transport, energy and telecommunications) and the sustainable management of natural 
resources.24 Decree No.  16-2010 of 13  April 2010 established the National Agency for Partnerships 
for Economic Infrastructure Development (AN ADIE), a decentralized body wh ose purpose is to 
conclude and implement contracts for public -private partnerships in order to carry out 
infrastructure investment projects and improve competitiveness.  
2.18.   The National Development Plan K' atun establishes national development policy for the 
period 2016 -2032, taking account of its sociocultural, economic, territorial, environmental and 
political dimensions, and thus complements the general framework for the formulation of 
Guatemala's foreign trade policy.  
                                                
20 Private -sector participation in the consultations is governed by the provisions of the Law on the 
Executive Bran ch and Ministerial Decision No.  483-2009 of 26  June 2009.  
21 Government Decision No.  367-86 of 19  June 1986.  
22 The private sector is represented in CONAPEX by the Business Chamber of Guatemala, Chamber of 
Agriculture, Guatemalan Sugar Producers Association,  Chamber of Commerce of Guatemala, Chamber of 
Finance, Chamber of Industry, Guatemalan Exporters Association and Guatemalan  Confederation of 
Cooperative Federations.  
23 CONAPEX (2012), Política Integrada de Comercio Exterior, Competitividad e Inversiones . Viewed at: 
http://www.mineco.gob.gt/sites/default/files/politica_integrada_de_comercio_exterior.pdf . 
24 National Competitiveness Programme (PRONACOM) (201 2), Agenda Nacional de Competitividad 
2012-2021. Viewed at: http://www.segeplan.gob.gt/downloads/clearinghouse/politicas_publ icas/varias/  
Agenda_Nacional_de_Competitividad.pdf . WT/TPR/S/348 • Guatemala  
- 29 - 
  Table 2.1 Action lines of the Integrated Policy on Foreign Trade, Competitiveness and 
Investment  
Improving  
competitiveness  Broadening and 
diversifying exports  Consolidating market 
access  Promoting foreign 
trade and FDI  
Updating the National 
Competi tiveness Agenda  
 Developing an incentive 
strategy to promote 
production, productivity 
and investment  Optimizing the use of 
existing instruments  Designing, developing and 
promoting the country's 
image  
 
Improving competitiveness 
indices  Promoting the 
develo pment of sectors 
with potential  Promoting progress with 
and consolidation of the 
Central American Customs 
Union  Identifying priority 
markets for exports and 
investment  
Promoting a 
macroeconomic 
environment that boosts 
investment certainty  Developing, 
implementing and 
strengthening the 
sanitary, phytosanitary 
and food safety systems  Developing a strategy for 
Guatemala's participation 
in the WTO multilateral 
framework  Strengthening trade and 
investment promotion  
Improving production 
infrastructure (highway s, 
ports, airports)  Strengthening the micro, 
small and medium -sized 
enterprise sector  Implementing a trade 
agreement negotiating 
strategy  Developing a trade 
promotion strategy  
Facilitating access to 
logistics and transport, 
energy and 
telecommunications 
services    Developing an FDI 
promotion strategy  
Improving the general 
framework for investment 
and foreign trade     
Promoting the development 
and productivity of national 
products     
Source:  National Export Promotion Council (CONAPEX), Política Integrada  de Comercio Exterior, 
Competitividad e Inversiones de Guatemala , Guatemala, February  2012. Viewed at: 
http://www.mineco.gob.gt/sites/default/files/poli tica_integrada_de_comercio_exterior.pdf . 
2.3  Trade agreements and arrangements  
2.3.1   WTO  
2.19.   Guatemala has been a Member of the WTO since 21  July 1995, having been a Contracting 
Party to the GATT since 10  October  1991. This is its third Trade Policy Review (the previou s one 
was held in April  2009). Guatemala grants most favoured nation (MFN) treatment to all its trading 
partners.  
2.20.   In the framework of the General Agreement on Trade in Services (GATS), Guatemala 
participated in the extended negotiations on telecommunicatio ns and revised its Schedule of 
Concessions.25 However, it did not ratify the Fourth Protocol in connection with the negotiations on 
Basic Telecommunications and did not accede to the Reference Paper on Basic 
Telecommunications. Nor did it sign the Fifth Pro tocol on Financial Services.  
2.21.   Guatemala is neither a member nor an observer in the Committee on Government 
Procurement and has not acceded to the Plurilateral Agreement on Government Procurement. The 
authorities have said that they are continuing to evaluat e the desirability of joining that 
Agreement. Guatemala is party to the Information Technology Agreement. In 2015, it took part in 
the negotiations on the extension of that Agreement26; the deposit of its instrument of acceptance 
was still pending in June  2016. Guatemala is not party to the Plurilateral Agreement on Trade in 
Civil Aircraft. With respect to intellectual property, Guatemala has not yet accepted the Protocol 
amending the TRIPS Agreement.  
2.22.   Guatemala participates in the following WTO groups: Group  of Small, Vulnerable Economies 
(SVEs); Cairns Group; Tropical Products Group; the G -20 and the G -33. Guatemala is one of 
                                                
25 WTO document GATS/SC/36/Suppl.1/Rev.1 of 29  November  1999.  
26 WTO document OMC G/IT/1/Rev.54 of 5  October  2015.  WT/TPR/S/348 • Guatemala  
- 30 - 
  the 20 Members that in 2011 submitted a joint proposal for the establishment of a voluntary 
register of geographical indications for w ine and spirits.27 
2.23.   At the 10th Ministerial Conference of the WTO held in Nairobi in December  2015, Guatemala 
presented on behalf of the Small, Vulnerable Economies a proposal calling for "the priorities of 
SVEs to be duly addressed in all areas of the negot iations and regular work" of the WTO.28 On the 
same occasion, Guatemala stated that it was committed to an early conclusion to the outstanding 
negotiations, improving transparency and strengthening the dispute settlement system, and called 
for the developme nt of disciplines to achieve better access to agricultural and non -agricultural 
markets, the removal of all forms of export subsidy and the elimination of all production support 
programmes that distort international markets.29 
2.24.   Guatemala made a number of not ifications to the WTO during the review period 
(Table  A2.1). These include the notification of Category A commitments that it will adopt when the 
Trade Facilitation Agreement (TFA) enters into force.30 At the time of writing of this report, 
Guatemala had no t yet ratified the TFA; the authorities said that they expected Congress to ratify 
it by the end of 2016.31 
2.25.   Between 2009 and 2015, Guatemala took part in six dispute settlement proceedings as a 
complainant and in 25 cases as a third party. Table 2.2 indicat es Guatemala's participation as a 
complainant in dispute settlement proceedings during the review period.  
Table 2.2 Dispute settlement proceedings in which Guatemala acted as a complainant, 
2009 -2015  
Defendant  Complainant(s)  Case  Status (at February  2016)  WTO 
document 
series  
European 
Communities  Guatemala, Mexico, 
Honduras, United 
States, Ecuador 
(only in DS27)  Regime for the importation, 
sale and distribution of 
bananas  Settled or terminated 
(withdrawn, mutua lly agreed 
solution), 8  November  2012 WT/DS16  
WT/DS27  
WT/DS158  
China  Guatemala  Grants, loans and other 
incentives  In consultations, 
19 January  2009 WT/DS390  
Dominican 
Republic  Guatemala  Safeguard measures on 
imports of polypropylene 
bags and tubular fabr ic Report(s) adopted, with 
recommendation to bring 
measure(s) into conformity, 
22 February  2012 WT/DS416  
Peru Guatemala  Additional duty on imports of 
certain agricultural products  Report(s) adopted, with 
recommendation to bring 
measure(s) into conformity,  
31 July 2015 WT/DS457  
Source:  WTO Secretariat.  
2.3.2   Regional and preferential agreements  
2.3.2.1   Regional trade agreements  
2.26.   Guatemala participates actively in the Central American integration process in the 
framework of the Central American Common Market (CACM) and to gether with its Central 
American partners has concluded various regional trade agreements (RTAs) with third countries or 
groups of countries. The following RTAs entered into force during the period under review: Free 
Trade Agreement between Central America  and Panama; Free Trade Agreement between the 
Republic of Colombia and the Republics of El Salvador, Guatemala and Honduras; Free Trade 
                                                
27 WTO document TN/IP/W/10/Rev.4 of 31  March  2011.  
28 WTO document WT/MIN(15)/W/3/Rev.1 of 2 4 November  2015.  
29 Statement by H.E.  María Luisa Flores Villagrán, Vice -Minister for Integration and Foreign Trade, WTO 
document WT/MIN(15)/ST/125 of 27  January  2016.  
30 WTO document WT/PCTF/N/GTM/1 of 12  August  2014.  
31 The draft of Law No.  5049 providing f or the adoption of the WTO Trade Facilitation Agreement was 
submitted to Congress on 4  April 2016.  WT/TPR/S/348 • Guatemala  
- 31 - 
  Agreement between Chile and Central America; Free Trade Agreement between Mexico and 
Central America; and the Associatio n Agreement between Central  America and the 
European  Union. This section deals only with the agreements that entered into force during the 
review period.32 
2.27.   Some RTAs concluded during this period had not entered into force for Guatemala at the 
time of writin g of this report. In June  2015, Guatemala signed the Protocol of Accession to the RTA 
between Central America and the European Free Trade Association (EFTA), but the agreement is 
still pending submission to Congress for approval.33 The agreement will offer Guatemala duty -free 
access for 77% of agricultural products and 100% of manufactures.34 Guatemala signed an RTA 
with Peru in 2011, whose entry into force is also pending.  
2.28.   In 2009, Guatemala notified to the WTO the RTA between Central America and the 
Dominic an Republic, which has been in force since 2004. In addition, in 2011 Guatemala notified 
to the WTO a trade agreement with Chinese Taipei, which has been in force since 2006.  
2.29.   The RTAs in force for Guatemala as at June  2016 are shown in Table 2.3.  
Table 2.3 Regional trade agreements in force, 2016  
Title of agreement  Coverage  Entry into force for 
Guatemala  WTO notification  
Free Trade Agreement between the 
Dominican Republic, 
Central  America and the 
United  States  (CAFTA -DR) Goods and 
services  1 July 2006 S/C/N/372;  
WT/REG211/N/3  
Free Trade Agreement between 
Central America and Panama  Goods and 
services  20 June 2009 S/C/N/692/Rev.1; 
WT/REG336/N/1/Rev.1  
Free Trade Agreement between 
Central America and the 
Dominica n Republic  Goods and 
services  15 October  2001 S/C/N/471; 
WT/REG211/N/5  
Agreement establishing an 
Association between the 
European  Union and its member 
States, on the one hand, and 
Central America, on the other  Goods and 
services  Part 4 on trade entered in to 
force on 1  December  2013 S/C/N/680; 
WT/REG332/N/1  
Central American Common Market  Goods  15 June 1961 L/1425 (GATT)  
Free Trade Agreement between the 
Republic of Guatemala and the 
Separate Customs Territory of 
Taiwan, Penghu, Kinmen and 
Matsu (Chinese Ta ipei) Goods and 
services  1 July 2006 S/C/N/595; 
WT/REG297/N/1  
Free Trade Agreement between 
Chile and Central America  Goods and 
services  23 March  2010 S/C/N/622; 
WT/REG312/N/1  
Free Trade Agreement between the 
Republic of Colombia and the 
Republics of El S alvador, 
Guatemala and Honduras  Goods and 
services  12 November  2009 S/C/N/646; 
WT/REG316/N/1  
Free Trade Agreement between the 
United Mexican States and the 
Republics of Costa Rica, 
El Salvador, Guatemala, Honduras 
and Nicaragua  Goods and 
services  1 Septem ber 2013 S/C/N/717/Rev.1; 
WT/REG349/N/1/Rev.1  
Source:  WTO Secretariat.  
                                                
32 Information on the agreements concluded prior to the 2009 -2016 period is to be found in WTO 
(2009), Trade Policy Review of Guatemala, 2009, Geneva.  
33 The A greement has been in force since 2014 between the members of EFTA (Iceland, Liechtenstein, 
Norway and Switzerland), Costa Rica and Panama. Honduras is currently negotiating accession to the 
agreement.  
34 Online information from the European Free Trade Assoc iation (EFTA). Viewed at: 
http://www.efta.int/free -trade/free -trade-agreements/central -american -states . WT/TPR/S/348 • Guatemala  
- 32 - 
  2.30.   Guatemala's trade with partners with which the country had RTAs in force at end -2015 
represented 83.4% of its total exports and 75.3% of its total imports.  
2.31.   Guatemala also has Partial S cope Agreements with: the Bolivarian Republic of Venezuela, 
Cuba, Belize and Ecuador; the latter two entered into force during the review period, on 
4 April 2010 and 19  February  2013, respectively. Guatemala has also signed a Partial Scope 
Agreement with T rinidad and Tobago, whose ratification is still pending.  
2.3.2.1.1   Central American economic integration and trade relations with Panama  
2.32.   The process of regional economic integration began in the 1960s with the signing of the 
General Treaty on Central American Econom ic Integration (TGIEC), which created the Central 
American Common Market (CACM) between Costa Rica, El Salvador, Guatemala, Honduras and 
Nicaragua. With the creation of the CACM the member countries adopted a common tariff and 
undertook to set up a customs  union. In the CACM framework all originating products are covered 
by a free trade regime with the exception of unroasted coffee and cane sugar. There are also 
bilateral exceptions to free trade. Trade in roasted coffee between Guatemala and Costa  Rica is 
subject to tariffs.35 
2.33.   In 2007, the CACM members signed the Framework Agreement Establishing  the Central 
American Customs Union, which entered into force in 2011. In February 2015, Guatemala and 
Honduras signed a customs union agreement providing for the eli mination of internal border posts 
and a common external tariff.36 The two governments signed an enabling protocol formalizing the 
customs union in April  2015.37 As part of the initial stage, in June  2015 a pilot programme of joint 
customs was set up in the b order post at Agua Caliente (Guatemala). Once completed, the 
customs union will allow free transit of 80% of goods between the two countries and facilitate the 
movement of persons and vehicles. The exceptions provided for in Annex A to the General Treaty 
on Central American Economic Integration (TGIEC) were maintained in the Enabling Protocol, with 
a total of 38 products such as sugar, coffee and fuels being excluded.38 
2.34.   The CACM members signed a second Protocol to the Treaty on Investment and Trade in 
Servic es in 2011, in which in addition to establishing a legal framework for the liberalization of 
trade in services and foreign investment among the parties, they included provisions on electronic 
commerce. The Protocol was still pending ratification at the tim e of writing of this report.39 
2.35.   Panama adopted the TGIEC in 2013 with a view to deepening its integration with 
Central  America.40 When the TGIEC entered into force for Panama, all duties on Panamanian goods 
were eliminated immediately, with a few agreed excep tions. For some products, trade between 
Guatemala and Panama continues to be governed by the bilateral protocol to the Free Trade 
Agreement between Central America and Panama of 2002.41 
                                                
35 Annex A to the TGIEC contained in Resolution No.  06-2010 o f the Executive Committee for Economic 
Integration of 3  September  2010.  
36 Secretariat for Central American Integration/SIECA (2015), Estado de Situación de la Integración 
Económica Centroamericana . Viewed at: http://www.sieca.int/Documentos/DocumentosMostrar.aspx?  
SegmentoId=2&DocumentoId=3325 . 
37 The Enabling Protocol was adopted by the Honduran Congress on 15  December  2015 and by the 
Guatemalan Congress on  21 January  2016, and published in the Official Journal of Guatemala as Legislative 
Decree No.  03-2016 on 18  February  2016. It will enter into force eight days following the deposit of the 
instrument of ratification at the Secretariat of the Central Americ an Integration System (SICA). The deposit by 
the two  countries is pending.  
38 For further information on the operation of the customs union, see the Enabling Protocol, available at: 
http://www.mineco.gob.gt/paginaUA/documents/protocolo -habilitante.pdf . 
39 SIECA (2015), Estado de Situación de la Integración Económica Centroamericana . Viewed at: 
http://www.sieca.int/Documentos/DocumentosMostrar.aspx?SegmentoId=2&DocumentoId=3325 . 
40 Protocol Incorporating the Republic of Panama into the Economic Integration Subsystem of the 
Central American Integration System, signed at Tegucigalpa  on 29  June 2012.  
41 This Agreement has a bilateral tariff -cutting protocol for each of the countries. The protocol between 
Guatemala and Panama entered into force in 2009.  WT/TPR/S/348 • Guatemala  
- 33 - 
  2.3.2.1.2   Association Agreement between Central America and the European Union  
2.36.   In June 2012, six Central American countries (Costa Rica, El Salvador, Guatemala, 
Honduras, Nicaragua and Panama) signed an Association Agreement with the European Union.42 
The Agreement is divided into three pillars: (i) trade agreement, (ii) political dialo gue and 
(iii) cooperation. It covers both goods and services, and also includes provisions on the protection 
of competition, intellectual property and technical barriers to trade, among many others. The trade 
pillar (Part 4) of the agreement has been in fo rce for the parties since 1  December  2013. In 
Guatemala, the Association Agreement was adopted in its entirety through Decree of the Congress 
of the Republic No.  2-2013, and was notified to the WTO in 2013.43 
2.37.   The European Union bound duty -free access for Gu atemala for all products that previously 
benefited from the Generalized Scheme  of Preferences (GSP+). All in all, the EU granted 
Guatemala zero -duty entry for 91% of tariff lines immediately following the entry into force of the 
agreement. Guatemala grante d the EU immediate liberalization of 48% of tariff lines. Both parties 
will free 96% of tariff lines for agricultural products and 100% of lines for manufactures over a 
tariff-cutting period of 15 years.  
2.3.2.1.3   Free Trade Agreement between the Northern Triangle a nd Colombia  
2.38.   The Free Trade Agreement between the Northern Triangle (El Salvador, Guatemala and 
Honduras) and Colombia was signed in 2007 and entered into force between Guatemala and 
Colombia in November  2009. It consolidates and improves the Partial Scope Agreement previously 
signed between the two countries. Colombia liberalized 63.9% of its tariff lines for Guatemalan 
exports as from 2010 and will carry out gradual liberalization until reaching 76,4% of tariff lines 
when the tariff -cutting period ends in 2025. Guatemala undertook to free 54.3% of its tariff lines 
for Colombian exports upon entry into force of the agreement until reaching 73.7% of tariff lines at 
the end of the tariff -cutting period in 2029. The agreement has been notified to the WTO.44 
2.3.2.1.4   Free Trade Agreement between Central America and Mexico  
2.39.   The Free Trade Agreement between Central America (Costa Rica, El Salvador, Guatemala, 
Honduras and Nicaragua) and Mexico was signed in 2011 and entered into force between 
Guatemala and Mexico in September  2013. It replaced three former RTAs - between Mexico and 
the Northern Triangle, between Mexico and Costa Rica, and between Mexico and Nicaragua - which 
were terminated.45 The agreement confirms, consolidates and deepens the commitments of the 
earlier agree ments, and is therefore known as a "homologation agreement". It was notified to the 
WTO in 2014.46 
2.40.   Mexico raised the number of duty -free tariff lines for imports from Guatemala to 98% upon 
entry into force of the agreement (previously 58.7% of tariff lines had zero duty). Under the 
agreement, by the end of 2015 only 216 tariff lines for Mexico (1.8% of the Tariff) were to remain 
subject to duties. Guatemala liberalized 96.7% of its tariff lines for Mexico upon entry into force of 
the agreement (49.5% previou sly), with only 3.2% of Guatemala's tariff lines subject to duties at 
the end  of 2015.  
2.3.2.2   Other bilateral agreements and arrangements  
2.41.   The Free Trade Agreement between Chile and Guatemala, which is part of the RTA between 
Chile and Central America signed in 19 99, entered into force in March  2010. While the agreement 
was signed plurilaterally, it is implemented bilaterally between Chile and each Central American 
party, after the corresponding bilateral protocol has been ratified. It covers both goods and 
service s and was notified to the WTO in 2012.47 Following entry into force of the agreement, Chile 
                                                
42 Agreement establishing an Association between the European Union and its member  States, on the 
one hand, and Central America, on the other.  
43 WTO document WT/REG332/N/1 and S/C/N/680 of 27  February  2013.  
44 WTO document WT/REG316/N/1 and S/C/N/646 of 3  September  2012.  
45 The termination of the earlier agreements was notified to the WTO. W TO document WT/REG/GEN/N/7 
of 29 January  2014.  
46 WTO document WT/REG349/N/1/Rev.1 and S/C/N/717/Rev.1 of 28  January  2014.  
47 WTO document WT/REG312/N/1 and S/C/N/622 of 4  April 2012.  WT/TPR/S/348 • Guatemala  
- 34 - 
  freed 70% of its tariff lines for Guatemalan imports, a percentage which will rise to 92.5% at the 
end of the tariff -cutting period in 2024. Guatemala granted duty -free access for 53% of its tariff 
lines for imports from Chile at the time of entry into force of the agreement (previously 47.2% had 
MFN duty -free status) and at the end of the implementation period in 2029 duty -free lines will 
represent 92.6% of the total .48 
2.42.   Guatemala signed a Partial Scope Agreement with Ecuador in 2011, which entered into force 
in February  2013.49 In terms of market access, the agreement covers 614  products. It also has 
provisions on the facilitation of customs procedures, elimination of t echnical barriers to trade, rules 
of origin and settlement of trade disputes, among others. In 2006, Guatemala also concluded a 
Partial Scope Agreement with Belize, which entered into force in April  2010. The agreement has 
limited coverage, with tariff pre ferences for about 72 products and the opening of two import 
quotas; it also has provisions on rules of origin and investment protection, among others.50 
2.43.   In June  2016, Guatemala was negotiating the following trade agreements: Free Trade 
Agreement with Canad a (bilateral), Free Trade Agreement with the Republic of Korea (jointly with 
Costa Rica, El Salvador, Honduras, Nicaragua and Panama), the broadening of the Free Trade 
Agreement between the Northern Triangle and Colombia, and the broadening of the Partial Scope 
Agreements with Ecuador and Belize.  
2.4  Investment regime  
2.44.   The Constitution establishes that it is the State's duty to create suitable conditions for 
promoting domestic and foreign investment in Guatemala.51 Participation by foreign investors in 
the econom y is governed primarily by the Foreign Investment Law (LIE) (Decree No.  9-98 of 
20 February  1998), the text of which was not amended during the period under review. The LIE 
prohibits discrimination and guarantees national treatment for foreign investors, r egardless of their 
country of origin.52 
2.45.   The LIE authorizes foreign investors to engage in any lawful economic activity in Guatemala, 
and hold any proportion of the equity of companies set up under Guatemalan law, save where 
there is a specific requirement c oncerning the share capital that must be contributed by 
Guatemalan individuals or legal persons by virtue of a specific law governing a particular 
economic  activity.53 
2.46.   The LIE guarantees the right to private property, and recognizes for foreign investors fu ll 
rights to own, use  and enjoy their investment. The State may not directly or indirectly expropriate 
a foreign investor, or adopt measures equivalent to expropriation except on duly proven grounds 
of collective utility, social benefit or public interest.  Expropriation must be carried out on a 
non-discriminatory basis in compliance with the principle of legality and by means of prior and 
effective compensation, except in the cases provided for in the Constitution.  
2.47.   Other foreign investment guarantees establ ished by the LIE are: freedom of trade, including 
free importation and exportation of goods and services intended for the investment; free purchase 
or sale of foreign exchange; free transfer of remittances of profits generated in Guatemala; and 
internation al arbitration or an alternative dispute settlement mechanism. The LIE bars the State 
from imposing investment -related measures that may have trade -restrictive or -distorting effects, 
and the imposition of any performance requirement as a condition for the  installation or 
maintenance of a foreign investment, such as transfer of technology or the creation of a specified 
number of jobs.54 
                                                
48 WTO document WT/REG312/1/Rev.1 of 22  July 2013.  
49 Database of the Foreig n Trade Information System of the Organization of American States (OAS). 
Viewed at: http://www.sice.oas.org/Trade/ECU_GTM/Index_s.asp . 
50 Ibid. Viewed at: http://www.sice.oas.org/Trade/BLZ_GTM/Index_s.asp . 
51 PCRG Article 1 19(n). 
52 With the exception of the treatment that may be granted to certain types of investment stemming 
from Guatemala's obligations under trade treaties or agr eements.  
53 LIE Article 4.  
54 An exception is the obligation to hire Guatemalan employees who are not part of the senior 
management of a company, in accordance with the country's labour law.  WT/TPR/S/348 • Guatemala  
- 35 - 
  2.48.   The Guatemalan investment regime contains few exceptions to the free exercise of 
economic activities. The Constitution esta blishes that the exploitation of forestry resources is 
reserved to Guatemalan nationals or companies.55 However, this restriction does not apply to 
foreign capital enterprises constituted as public limited companies under Guatemalan law. 
Foreigners may not acquire real estate situated less than 15 km from the national frontiers, except 
in the case of property intended for residential use.56 The Constitution also requires government 
authorization for the setting up and operation of national or international tr ansport services, 
a requirement which applies to both domestic and foreign enterprises.57 Under the 
Commercial  Code, foreign enterprises may not provide professional services for which a legally 
recognized university degree is required. Guatemalan labour la w requires that at least 90% of the 
employees of a company must be Guatemalan nationals. This requirement does not apply to 
managerial  positions.  
2.49.   Incorporation as a commercial enterprise is not compulsory in Guatemala. However, 
Guatemalan law requires that  any domestic or foreign enterprise be registered in the MINECO 
Business Register and with the tax collection authority. In order to carry on their commercial 
activities, foreign investors may create a local company under Guatemalan law (as a public limite d 
company or a private limited liability company) or open a branch of a foreign company.58 Under 
the trade legislation, the only criterion for determining a company's nationality is the place of its 
incorporation. Accordingly, any enterprise set up under Gu atemalan domestic law is considered 
Guatemalan, regardless of the origin of its capital.  
2.50.   Investment policy is designed jointly with trade policy (Section 2.2). The Government thus 
aims to position Guatemala as an investment destination and a platform for t he export of products 
such as electronic goods, refrigerators, auto parts, plastics, cosmetics, pharmaceutical equipment, 
medical appliances as well as software development. The National Competitiveness Programme 
(PRONACOM) and the National Foreign Investm ent Promotion Agency ( Invest in Guatemala ), 
which are both joint public -private bodies supervised by the Ministry of the Economy, are the 
agencies responsible for promoting and facilitating foreign direct investment.  
2.51.   During the period under review, PRONACO M developed two digital platforms for the purpose 
of simplifying the procedures for setting up and registering commercial companies. The 
e-registrations Guatemala platform  (http://www.minegocio.gt ) allows users to make in a single 
operation the registratio ns for commercial activities for the MINECO Business Register, the Tax 
Administration Supervisory Authority and the Ministry of Labour, and also to apply for the 
accounting books and pay registration fees online.59 The second programme, 
e-regulations  Guatem ala (http://www.asisehace.gt ) provides a unified database on all 
administrative procedures connected with the start -up of activities as well as the regimes for 
payment of taxes and the procedures for importing goods and services associated with the 
commerc ial activity. The two projects seek to improve transparency and efficiency in the sector.  
2.52.   The Invest in Guatemala Agency provides help and support for foreign investors in 
identifying investment opportunities in the country. This includes supplying reliabl e information on 
the Guatemalan economy and legislation, in particular with respect to investment incentives and 
conditions; arranging contacts with service providers and raw material suppliers; organizing visit 
schedules in the country; and providing supp ort for investments during and following 
their establishment.  
2.53.   Guatemala is a member of the International Centre for Settlement of Investment Disputes 
(ICSID) and the Multilateral Investment Guarantee Agency (MICA). It is also party to the 
Convention on the  Recognition and Enforcement of Foreign Judgments (New York Convention). It 
is also party to 17 agreements on reciprocal promotion and protection of investments (ARPPIs) 
and has also recently negotiated agreements with the Russian Federation, Trinidad and Tobago, 
and Turkey, which are not yet in force (Table 2.4). In addition, in the framework of 
                                                
55 PCRG Article 126.  
56 PCRG Article 123.  
57 PCRG Article 131.  
58 The c onditions for each type of registration, the equity commitments and procedures to be followed in 
each case are available at: http://guatemala.eregulations.org/menu/253?l=es . 
59 In order to carry  out this procedure online it is first necessary to have the required documents 
legalized by Notary Public. Online information from the Ministry of the Economy. Viewed at: 
http://www.mineco.gob.gt/minegoci ogt. WT/TPR/S/348 • Guatemala  
- 36 - 
  Central  American integration Guatemala is a signatory to the Treaty on Investment and Trade in 
Services between the Republics of Costa Rica, El Salvador, Guatemala , Honduras and Nicaragua of 
7 December  2005.  
Table 2.4 Agreements on reciprocal promotion and protection of investments, 2016  
Counterpart  Entry into force  Counterpart  Entry into force  
Chile 13 October  2001 Sweden 1 July 2005 
France  20 October  2001 Germany  29 October  2006 
China  1 December  2001 Finland  6 January  2007 
Republic of Korea  17 August  2002 Belgium -Luxembourg 
Economic Union  1 September  2007 
Cuba 23 August  2002 Italy 3 March  2018 
Netherlands  1 Septe mber 2002 Israel  15 January  2009 
Argentina  7 December  2002 Austria  1 April 2002 
Spain  21 May 2004 Russian Federation  pending  
Czech Republic  29 April 2005 Trinidad and Tobago  pending  
Switzerland  3 May 2005 Turkey  pending  
Source:  UNCTAD, Investment Poli cy Hub , viewed at: http://unctad.org/en/Docs/diaepcb201009_en.pdf ; and 
information supplied by the Guatemalan authorities.  
2.54.   Guatemala has had to participate three times as a defendant in dispute settlement 
proceedings before the ICSID. Two of the complaints were brought under Chapter 10 of the 
CAFTA -DR. The first was settled partially in favour of the complaining investor in 2012.60 The 
decision in the second case is still pending.61 The third case consisted of a complaint for indirect 
expropriation brought under the Guatemala -Spain BIT of 2002. The case was settled in favour of 
Guatemala in 2015.62 
2.55.   In March  2015, Guatemala signed with Mexico an Agreement for the Elimination of Double 
Taxation with re gard to Income Tax and the Prevention of Tax Evasion and Avoidance. The 
Government will shortly send the agreement to Congress for information and approval. This is the 
only double taxation agreement signed by Guatemala at the time of writing of this repor t. 
 
                                                
60 Railroad Development Corporation (United States)  v. Republic of Guatemala, ICSID case 
No. ARB/07/23. Viewed at: http://www.italaw.com/cases/887 . 
61 TECO Guatemala Holdings, LLC (United States ) v. Republ ic of Guatemala, ICSID case No.  ARB/10/23. 
Viewed at: http://www.italaw.com/cases/1629 . 
62 Iberdrola Energía, S.A . (Spain) v. Republic of Guatemala , ICSID case No.  ARB/09/5. Viewed at: 
https://icsid.worldbank.org/ICSID/FrontServlet?requestType=CasesRH&actionVal=showDoc&docId=DC5374_S
p&caseId=C582 . WT/TPR/S/348 • Guatemala  
- 37 - 
  3  TRADE POLICIES AND PRACTICES BY MEA SURE  
3.1  Measures directly affecting imports  
3.1.1   Customs procedures and requirements  
3.1.  The Tax Administration Supervisory Authority (SAT) is responsible for customs 
administration, through the Customs Directorate. Customs legi slation includes the National 
Customs Law (Decree No.  14-2013); the Central American Uniform Customs Code (CAUCA IV, 
COMIECO Resolution No.  223-2008) and its implementing Regulations (RECAUCA IV, COMRIEDRE 
Resolution No.  224-2008), together with the implem enting Regulations for the International Land 
Transport Customs Regime (Annex to COMRIEDRE Resolution No.  65-2001). Guatemala's customs 
regime has followed CAUCA IV and its implementing Regulations since August  2008.  
3.2.  The 2013 National Customs Law introduce d changes to the formulation and standardization 
of customs regulations on administrative violations in order to facilitate their application. It also 
introduced additional customs procedures and provisions in respect of undeclared goods1, tariff 
classific ation criteria, auction and donation of goods, sale of duty -free vehicles, and procedures for 
challenging action by the Customs Service. The authorities have indicated that the purpose of all 
the changes introduced by the National Customs Law was to implem ent the provisions in CAUCA IV 
and its implementing Regulations, which state that these aspects are to be governed by domestic 
legislation. The Tax Update Law (Decree No.  10-2012) also contains changes regarding penalties 
and the implementation of CAUCA IV  and its implementing Regulations.  
3.3.  The SAT has also introduced a number of customs procedures based on CAUCA and RECAUCA 
and these may be viewed on its website at http://www.sat.gob.gt . SAT procedures can be divided 
into five categories: management of customs clearance (26  procedures); special procedures and 
authorizations (12); authorization and registration (9); freight management (5); and 
post-clearance management (18). Import and export requirements are specified in  the respective 
procedures.  
3.4.  The import documents required vary according to the origin of the goods. For goods coming 
from other Central American Common Market (CACM) countries, the Central American single 
customs form (FAUCA) is used and serves as both th e commercial invoice and the certificate of 
origin. Imports from other origins must be accompanied by the single customs declaration 
(DUA -GT), which is forwarded electronically to the SAT's website and has to be accompanied by 
the commercial invoice, the b ill of lading or other transport document, a declaration of the value of 
the goods and other necessary documents, for example, a certificate of origin, a phytosanitary or 
animal health certificate or an import licence.2 A DUA -GT has to be submitted for eac h commercial 
invoice, unless the invoices are issued by the same supplier, relate to the same transaction and 
the goods are covered by a single transport document.  
3.5.  Goods may be cleared under the following customs procedures: (a) definitive import; 
temporar y or suspensive import; customs transit; temporary import and re -export in the same 
state; temporary admission for inward processing; customs or in -bond warehousing; and (b) 
import exempt from duty: free zones; re -import and re -export.  
3.6.  A customs broker mus t be employed for imports whose f.o.b. value exceeds US$500, but is 
not required for imports originating from CACM countries.3 Authorization to act as a customs 
broker is given on an ad personam basis and may not be assigned. There is no charge for customs  
services. The SAT keeps a register of importers in which regular importers have to be registered.  
                                                
1 Article  41 of the National Customs L aw governs the treatment to be accorded to goods when 
undeclared goods are found in the course of the physical inspection.  
2 A DUA -GT does not have to be submitted for imports by the State, municipal authorities, international 
organizations or bodies that are exempt from payment of duties and taxes, or for goods not imported for 
commercial purposes or of little value. Information on procedures for importing goods into Guatemala may be 
obtained at: http://portal.sat.gob.gt/sitio/index.php/descargas/doc_download/6074 -pr-iad-dno-de-
01procedimientoparaelingresodemercanciasalterritorionacional05 -2015.html . 
3 The services of a customs agent are optional in the following cases: (a) definitive export; 
(b) temporary export and re-import in the same state; (c) free zones; (d) customs warehousing; 
(e) temporary export for outward processing; and (f) te mporary admission  for processing.  WT/TPR/S/348 • Guatemala  
- 38 - 
  3.7.  The SAT has a risk analysis system with two channels: immediate inspection (red channel) 
and release of goods (green channel). On the basis of the system, th e information provided in the 
customs declaration is verified at random, and this also applies to physical inspection of goods. 
Some of the products subject to stricter checks include: chicken, fish, grapes, coffee, rice, seeds, 
preparations of mixtures of  fats with added flavouring, malt extract, preparations for soups, 
preparations for use on the hair, resins, pneumatic tyres, suitcases, trade advertising material, 
cotton yarn and woven fabric, impregnated fabrics, clothing, footwear, headgear, statuettes  and 
other ornamental articles, articles of jewellery, imitation jewellery, articles of base metal, cutlery, 
mountings and fittings, nuclear reactors, boilers, machinery and mechanical appliances, 
electro -mechanical appliances, lamps, electric heaters, tel ephones, microphones, 
radio-broadcasting or television apparatus, monitors, vehicles, furniture, toys and miscellaneous 
manufactures. The authorities have indicated that the risk analysis system led to immediate 
verification in around 22.3% of the cases in  2015. The average time taken for clearance from 
submission of the customs declaration for imports is 3.5 days for products going through the 
red channel and 1.3 days for those going through the green channel.  
3.8.  In accordance with the RECAUCA, a request for review of decisions taken by the 
Customs  Directorate may be made within a period of ten days following their notification. A 
decision on the request has to be taken within 20 days following receipt of the administrative file. 
An appeal against a decision b y the customs authority may also be made to the higher authority in 
the Customs Service within 10 days following notification of the decision, and the Customs Tribunal 
must issue a ruling within 30 days. Table 3.1 provides statistics on the number of reque sts for 
review and appeals submitted over the period 2009 -2015.  
Table 3.1 Requests for review and appeals submitted to the customs authority, 
2009 -2015  
 2009  2010  2011  2012  2013  2014  2015  
Requests for review  
Total  186 279 268 258 397 332 327 
Upheld  24 32 15 74 182 106 81 
Dismissed  58 86 119 91 154 64 98 
Nullity and amendments  104 161 134 93 61 162 148 
Total  71 67 34 29 125 173 42 
Source:  Information provided by the Guatemalan authorities.  
3.9.   The customs re form process continued during the review period, the main aim being to 
standardize customs clearance procedures and action taken in customs warehouses, in -bond 
storage facilities and free zones.  
3.10.   The SAT uses a computer system called SAQB'E for digital mana gement of documents, 
workflows and a tax current account for domestic and foreign trade taxes. Registration and a 
password are required in order to use the system.4 The SAQB'E system permits operations to be 
traced, uses electronic documents and is managed  by means of workflows, which can interact with 
applications (specialized systems).  
3.11.   Guatemala has a one -stop window for exports (VUPE) and since 2014 has also had a 
streamlined window for imports and transit (VAI). At the practical level, together these fo rm a 
single window for foreign trade (VUCE), but this does not apply at the legal level as the windows 
are not legally integrated. Considerable progress has been made with the VUPE and a large 
number of institutions have already been integrated into the sy stem. For the time being, relatively 
fewer institutions are participating in the VAI and as of June  2016 they consisted solely of the 
Ministry of Public Health and the Ministry of Agriculture (MAGA). Other institutions are in the 
process of joining.  
3.12.   The Ce ntral American regional regulations contain provisions on authorized economic 
operators (AEO). These have been incorporated into Guatemalan legislation by means of SAT 
Board Decision No.  017-2013.5 Manufacturers, suppliers, exporters, carriers, logistics o perators, 
                                                
4 The system may be viewed at: https://farm3.sat.gob.gt/menu/inicio.jsp . 
5 Online information . Viewed at: http://portal.sat.gob.gt/sitio/index.php/descargas/doc_download/4344 -
ad17-2013.html . WT/TPR/S/348 • Guatemala  
- 39 - 
  customs brokers,  customs warehouses, shipping lines, ports and importers may all be approved as 
AEOs. The Customs Service is the only authority empowered to approve an AEO. By March  2016, 
there were five  AEOs: one customs warehouse (Central Almac enadora S.A. (CEALSA)), one port: 
Compañía  Bananera Independiente  de Guatemala (COBIGUA); two importers (J.I. Cohen, S.A. and 
Productos Avon de Guatemala, S.A.) and one exporter  (Productos Avon de Guatemala, S.A.).  
3.13.   Guatemala has signed several agreements w ith other countries in the region to facilitate 
land transport and customs clearance. For example, in 2001, together with other CACM member 
countries and Panama, it signed a resolution establishing a reciprocal treatment and 
non-discriminatory mechanism fo r international freight transportation by road .6 In 2004, 
Guatemala and El Salvador introduced a system to eliminate border posts between the two 
countries at the Pedro de Alvarado/La Hachadura customs and signed bilateral agreements to 
reduce bureaucracy at the border. In 2008, formalities at customs exit posts were abolished and 
those at entry posts were streamlined at all the borders between the two countries. In 2009, 
Guatemala and El Salvador signed the protocol amending the framework agreement for the  
establishment of a customs union between their countries, instituting a transitional regime which 
will conclude with the elimination of customs posts on all the borders between the two countries. 
This protocol has not yet come into force. Guatemala, toget her with Honduras and El Salvador, is 
focusing on boosting the Northern Triangle Customs Union, which would involve the establishment 
of border posts for the free movement of goods and persons among these countries.  
3.14.   On 10  April 2015, Guatemala and Hondura s 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, which has been approved by both Congresses. The two countries 
deposited this instrume nt with the SICA and it has been in force since 13  June 2016. The two 
countries have been working bilaterally under this Protocol to move towards the free transit of 
goods and natural persons between them. This is being done in technical bodies that have l ooked 
at customs procedures, the criteria for free transit of goods, sanitary procedures, harmonization of 
tariffs in respect of third countries , and exceptions to free transit. It has also been decided to set 
up a working group to examine matters relating  to convergence of the various preferential trade 
agreements to which Guatemala and Honduras belong. With the entry into force of the Enabling 
Protocol, the rules needed for the operation of the customs union will have to be adopted. It is also 
hoped to es tablish a structural fund, for which the two countries will have to earmark US$5  million. 
The customs union between Honduras and Guatemala does not exclude the possibility of extending 
it to other Central American countries, which have been invited to join  since the outset.  
3.15.   Despite these efforts, the passage of goods through some of Guatemala's major land 
customs posts still faces problems of congestion and delays, partly owing to the opening hours and 
the limited physical infrastructure at the customs. Thi s problem in fact became worse in early 
2016, with long queues at the borders. The authorities consider that there are three aspects to this 
problem: infrastructure, procedures and personnel. In connection with this Review, they have 
indicated that, under the Central American Trade Facilitation and Competitiveness Strategy, five 
short-term measures are being promoted to help resolve the problem and establish a cross -cutting 
axis between country pairs/border pairs. They have also indicated that a study is be ing prepared 
on the establishment of an integrated control centre at Pedro de Alvarado/La Hachadura.  
3.16.   Guatemala is a member of the World Customs Organization and signed the Convention 
establishing a Customs Co -operation Council in 1985, but is not a contrac ting party to the 
Customs  Convention on the A.T.A Carnet for the temporary admission of goods, the International 
Convention on the Simplification and Harmonization of Customs Procedures, or any other 
subsidiary agreement of the World Customs Organization. The authorities have indicated that, 
although it is not party to the Revised Kyoto Convention, Guatemala applies many of the good 
practices therein designed to facilitate customs procedures.  
3.17.   Guatemala played an active role in the negotiations on the WTO Ag reement on Trade 
Facilitation and chaired the Council's Preparatory Committee on Trade Facilitation. In July  2014, 
Guatemala submitted its notification of Category A commitments under the Agreement.7 In 
October  2015, the Central American Trade Facilitation  and Competitiveness Strategy was approved 
by the Council of Ministers for Economic Integration (COMIECO), as proclaimed by the SICA 
                                                
6 Resolution No.  65-2001 (COMRIEDRE ). 
7 WTO document WT/PCTF/N/GTM/1 of 12  August  2014.  WT/TPR/S/348 • Guatemala  
- 40 - 
  Presidents in the Declaration of Punta Cana in June  2014. By June  2016, Guatemala had not yet 
ratified the Agreement, which  was in the process of being approved by the Congress of the 
Republic.  
3.1.2   Customs valuation  
3.18.   Guatemala has not yet replied to the WTO checklist of issues on customs valuation . It has 
signed the Central American Regulations on Customs Valuation of Goods, Annexe s 2, 3 and 4 of 
June 2004, which came into force one month later.8 In its notification of the Regulations  to the 
WTO in 2005, Guatemala stated that, with their entry into force, it had complied with its 
commitment to implement the WTO Agreement on Customs Valuation.9 In June  2016, the 
authorities were preparing a further notification.  
3.19.   The transaction value is the principal method of valuation. The following are taken into 
account in calculating the customs value in addition to those elements indicated in Ar ticle 8.1 of 
the Customs Valuation Agreement: (a) the cost of transport of the imported goods to the port or 
place of importation; (b) loading, unloading and handling charges associated with the transport of 
the imported goods to the port or place of impor tation; and (c) the cost of insurance.  
3.20.   The question of review is regulated in the RECAUCA, which provides that a request for 
review of decisions by the customs administration may be submitted within ten days following 
their notification. The request must b e submitted to the same customs administration or to a 
higher authority, which has to take a decision within 20 days following receipt of the administrative 
file. An appeal may also be submitted against rulings partly or wholly resolving the review 
procedu re or against decisions by the higher authority. Such appeals must be made to the higher 
authority of the Customs Service within ten days following notification of the decision and the 
Customs Tribunal or the competent body must issue a ruling within 30 da ys of the day following 
receipt of the  appeal.  
3.21.   In accordance with the RECAUCA, if it is not possible to determine the value using the 
transaction value, the Customs Directorate and the importer must hold consultations in order to 
determine the value. The t ransaction value applies to some 80% of import declarations. If it does 
not prove possible to determine the customs value through these consultations, it is determined 
following the other procedures listed in the Customs Valuation Agreement.  
3.22.   The SAT has a database of values, providing updated information on prices, in order to 
facilitate determination of the value and the conduct of investigations into the values declared for 
the imported goods. In May  2015, fixed rules for verifying the declared values for  some tariff 
headings classified as sensitive for valuation purposes started to be implemented. These rules set 
values to be used as a reference by the goods inspector. As of April  2016, there were over 
180 fixed rules. An evaluation carried out in August  2015 found that the processes and procedures 
for analysing prices needed improving, as did the tools used for the purpose. The need to 
modernize the systems available to goods inspectors during immediate verification was identified 
in order to provide more  help in determining the correct customs value of the goods.  
3.23.   If there is any delay in determining the customs value, the importer may request that the 
goods be cleared subject to provision of security to cover the amount of the tariffs and other 
duties ultimately payable on the goods . 
3.1.3   Rules of origin  
3.24.   In 1998, Guatemala notified the WTO that it did not apply any non -preferential rules of 
origin.10 It applies preferential rules of origin under the various trade agreements it has signed. 
Specific rules of origi n apply to trade among CACM members, and these are detailed in the 
Central  American Regulations on the Origin of Goods. Furthermore, there are preferential rules of 
origin in the free trade agreements with the Dominican Republic, Mexico, Panama, the 
United  States and Chinese Taipei, all signed prior to 2010. Since then, Guatemala has signed trade 
agreements with Mexico (new agreement) and the European Union and applies the preferential 
                                                
8 COMIECO Resolution No.  115-2004.  
9 WTO doc ument G/VAL/N/1/GTM/1 of 30  September  2005.  
10 WTO document G/RO/N/21 of 20  July 1998.  WT/TPR/S/348 • Guatemala  
- 41 - 
  rules of origin contained therein. It has also started to apply the Cent ral American Regulations on 
the Origin of Goods to products originating in Panama.  
3.25.   Guatemala has notified the Committee on Rules of Origin of the preferential rules of origin 
in the free trade agreements (FTAs) it has signed since 2010, that is, in the FTA  between  
Costa  Rica, El  Salvador, Guatemala, Honduras, Nicaragua, Panama, the European  Union and its 
member States, the FTA between Guatemala and Panama and the FTA between Mexico and 
Costa  Rica, El  Salvador, Guatemala, Honduras and Nicaragua.  
3.26.   The prefere ntial rules of origin vary according to each agreement and also depend on the 
type of goods, but are in general based on the overriding principle of a change in tariff 
classification, sometimes with the addition of regional content value requirements. If a  heading, 
subheading or item is subject to optional specific rules of origin, it suffices to comply with one of 
them.  
3.27.   The Central American regulations on origin apply in Guatemala pursuant to Ministerial 
Decision No.  0385-2006 of 29  June 2006 and Ministeri al Decision No.  0657-2006 of 
7 December  2006. The change in tariff classification criterion applies only to non -originating 
materials. Guatemala uses the FAUCA to certify the Central American origin of goods coming from 
CACM member countries.  
3.28.   For the agree ment with the European Union, diagonal cumulation of origin is allowed for any 
product coming from the Plurilateral State of Bolivia; Colombia; Ecuador; Peru; and the Bolivarian  
Republic of Venezuela. This type of cumulation is not permitted in the agreeme nt with Panama and 
only applies to textiles (HS Chapter 62) from the United States in the agreement with Mexico.  
3.29.   Table 3.2 shows the main changes in relation to origin in the various preferential 
agreements from 2009 to 2016. These have all been implemente d in order to provide legal 
certainty for businesses importing goods into Guatemala.  
Table 3.2 Changes in relation to origin, 2009 -2015  
Regulatory aspects 
amended  Articles/clauses 
affected  Changes/improvements  in 
the measures compared to 
previously  Action taken for 
their 
implementation  
General Treaty on Central 
American Economic 
Integration  Annex on Specific Rules 
of Origin  Adaptation of the specific rules of 
origin as a result of amendments 
to the Harmonized System (HS)  COMIECO Resolution 
No. 268-2011 
Central America - Chile Annex on Specific Rules 
of Origin   Adaptation of the specific rules of 
origin as a result of amendments 
to the Harmonized System (HS)  Decision No.  30 of 
October  2013 
Northern Triangle - 
Colombia  Annex on Specific Rules 
of Origin   Adaptation of the specific rules of 
origin as a result of amendments 
to the Harmonized System (HS)  Decision No.  14 of 
26 August  2015 
Common Guidelines with 
the United States 
(CAFTA -DR) Interpretation, 
impleme ntation and 
administration of 
Chapter 4 of the 
Agreement  Compliance with the provisions 
in Article 4 -24 of the CAFTA -DR  Decision of 
27 October  2011  
Uniform Regulations 
under the Northern 
Triangle – Colombia FTA  Interpretation, 
implementation and 
admini stration of 
Chapter 4 of the 
Agreement  Interpretation, implementation 
and administration of Chapters 4 
and 5 of the Agreement  Decision No.  4 of 
23 July 2010  
Source:  Information provided by the authorities.  WT/TPR/S/348 • Guatemala  
- 42 - 
  3.1.4   Tariffs  
3.1.4.1   Structure and levels  
3.30.   Guatemala applies the Central American import tariff, which uses the Central American 
Tariff System (SAC), based on the Harmonized Commodity Description and Coding System (HS), 
for the official classification of goods. Tariff policy is defined within the framework and accor ding to 
the guidelines of the CACM. The fifth revision of the HS in 2012 was incorporated into the SAC on 
1 January  2012. The CACM's tariff structure consists of four levels: 0% for raw materials, 
semi-finished goods and capital goods not produced in the r egion; 5% for raw materials produced 
in the region; 10% for semi -finished goods and capital goods produced in the region; and 15% for 
finished products. The authorities have indicated that 93.3% of the total number of lines in the 
Central American import t ariff have been harmonized.  
3.31.   In 2015, Guatemala's customs tariff contained 6,974 eight -digit lines of the 2012 HS 
(Table  3.3) and all tariffs are ad valorem . Guatemala does not make use of specific or seasonal 
tariffs. Import duty is calculated according to  the c.i.f. value of the goods plus other costs.  
Table 3.3 MFN tariff structure, 2008 and 2015  
(%) 
  2008  
(HS07)  2015  
(HS12)  
1. Total number of tariff lines  6,561  6,974  
2. Non-ad valorem  tariffs (% of all ta riff lines)  0.0 0.0 
3. Non-ad valorem  tariffs with no AVEs (% of all tariff lines)  0.0 0.0 
4. Tariff quotas (% of all tariff lines)  0.1 0.0 
5. Duty-free tariff lines (% of all tariff lines)  47.1 49.5 
6. Average of lines exceeding zero (%)  11.2 11.2 
7. Arithmetic average  5.9 5.7 
8. Agricultural products  9.9 9.6 
9. Non-agricultural products (including petroleum)  5.3 5.0 
10. Agriculture, hunting, forestry and fishing (ISIC 1)  8.1 8.1 
11. Mining (ISIC 2)  1.8 1.7 
12. Manufacturing (ISIC 3)  5.8 5.6 
13. Raw materials  6.4 6.8 
14. Semi-finished goods  3.9 3.7 
15. Finished goods  7.1 6.6 
16. Domestic tariff "peaks" (% of all tariff lines)a 1.2 0.6 
17. International tariff "peaks" (% of all tariff lines)b 1.2 0.6 
18. Overall standard deviation of applied rates 6.4 6.4 
19. "Nuisance" applied rates (% of all tariff lines)c 0.0 0.0 
20. Bound tariff lines (% of all tariff lines)  100.0  100.0  
a Domestic tariff peaks are defined as rates exceeding three times the overall simple average applied 
rate. 
b Interna tional tariff peaks are defined as rates exceeding 15%.  
c Nuisance rates are those greater than zero, but less than or equal to 2%.  
Source:  WTO Secretariat estimates, based on data provided by the Guatemalan authorities.  
3.32.   In 2015, the average MFN applied r ate was 5.7%, slightly below the 5.9% recorded in 2008 
(Table 3.3). A zero rate applies to 49.5% of all tariff lines, compared to 47.1% in 2008. The rates 
for the other lines are 5%, 10%, and 15%, which is the most common. The rates range from zero 
to 40%.  
3.33.   An average tariff of 9.6% applies to agricultural products (WTO definition), while the 
average tariff on non -agricultural products, excluding petroleum, is 5%. The highest average duty 
by WTO category applies to alcoholic beverages, spirits and tobacco, a t 15.8%. The maximum rate 
is 40% and applies, for example, to imports of beer made from malt, vermouth and ethyl alcohol. 
The next highest rate is 30%, which applies to some vegetables and garden produce. The tariff WT/TPR/S/348 • Guatemala  
- 43 - 
  continues to show escalation from semi -processed to fully processed products, while imports of 
raw materials are subject to an average tariff above that on semi -processed products (Table 3.4).  
Table 3.4 Brief analysis of MFN rates, 2015  
Description of products  MFN Bound tariffa 
Number 
of lines  Average 
(%) Range (%)  Coefficient 
of 
variation 
(CV)  Range (%) 
Total  6,974  5.7 0 - 40 1.1 0 – 257 
HS 01 -24 1,221  10.6 0 - 40 0.6 10 – 257 
HS 25 -97 5,753  4.6 0 - 20 1.3 0 – 75 
By WTO category       
Agricult ural products  1,026  9.5 0 - 40 0.8 10 – 257 
- Animals and animal products  154 12.0 0 - 15 0.4 10 – 257 
- Dairy produce  34 13.4 0 - 15 0.3 20 – 103 
- Fruit, vegetables and garden produce  283 11.6 0 - 30 0.5 10 – 138 
- Coffee and tea  28 13.2 0 - 15 0.3 40 – 40 
- Cereals and preparations  133 8.6 0 - 23.7 0.9 10 – 135 
- Oilseeds, fats and oils and their 
products  98 5.4 0 - 15 1.1 10 – 241 
- Sugar and confectionery  21 10.2 0 - 20 0.8 40 – 160 
- Beverages, spirits and tobacco  74 15.8 0 - 40 0.7 15 – 90 
- Cotton  5 0.0 0 - 0 0.0 40 – 40 
- Other agricultural products  196 4.1 0 - 15 1.3 15 – 45 
Non-agricultural products (including 
petroleum)  5,948  5.0 0 - 20 1.2 0 – 75 
- Non-agricultural products (excluding 
petroleum)  5,920  5.0 0 - 20 1.2 0 – 75 
-- Fish and fish products  288 11.6 0 - 15 0.4 20 – 45 
-- Metals and minerals  1,093  3.6 0 - 15 1.5 10 – 50 
-- Chemicals and photographic products  1,275  2.3 0 - 15 1.9 0 – 50 
-- Wood, wood pulp, paper and furniture  459 6.5 0 - 15 0.9 10 – 55 
-- Textiles  698 8.1 0 - 15 0.6 20 – 50 
-- Clothing  236 14.8 0 - 15 0.1 45 – 45 
-- Leather, rubber, footwear and travel 
articles  211 7.6 0 - 15 0.7 20 – 50 
-- Non-electrical machinery  595 1.4 0 - 15 2.8 0 – 45 
-- Electrical machinery  339 2.6 0 - 15 2.0 0 – 50 
-- Transpo rt equipment  221 2.6 0 - 20 1.8 10 – 75 
-- Non-agricultural products n.e.s.  505 7.0 0 - 15 1.0 0 – 45 
-Petroleum  28 3.9 0 - 15 1.1 45 – 45 
By ISIC sectorb      
Agriculture and fishing  497 8.1 0 - 23.7 0.8 10 – 138 
Mining  112 1.7 0 - 15 1.9 10 – 45 
Manufacturing  6,364  5.6 0 - 40 1.1 0 – 257 
By HS section       
01  Live animals and animal products  449 11.3 0 - 15 0.4 10 – 257 
02  Vegetable products  419 8.8 0 - 30 0.8 10 – 138 
03  Fats and oils  57 7.5 0 - 15 0.9 10 – 241 
04  Prepared foodstuffs, etc . 296 12.5 0 - 40 0.6 15 – 160 
05  Mineral products  187 2.6 0 - 15 1.5 10 – 45 
06  Products of the chemical or allied 
industries  1,128  1.9 0 - 15 2.2 0 – 50 
07  Plastics and rubber  336 4.4 0 - 15 1.1 15 – 45 
08  Raw hides and skins  108 8.3 0 - 15 0.7 40 – 45 
09  Wood and articles of wood  139 8.5 0 - 15 0.6 10 – 45 
10  Pulp of wood, paper, etc.  292 5.1 0 - 15 1.1 15 – 55 
11  Textiles and textile articles  918 9.6 0 - 15 0.5 40 – 50 
12  Footwear and headgear  64 12.8 0 - 15 0.3 35 - 50 
13 Articles of stone  176 6.3 0 - 15 1.1 20 - 45 
14  Precious stones, etc.  54 6.9 0 - 15 0.8 20 - 45 
15  Base metals and articles thereof  702 3.1 0 - 15 1.6 15 - 50 
16  Machinery and appliances  980 2.1 0 - 15 2.3 0 - 50 
17  Transport equipment  234 2.6 0 - 20 1.8 10 - 75 
18  Precision instruments  234 3.8 0 - 15 1.5 0 - 45 
19  Arms and ammunition  21 15.0 15 - 15 0.0 45 - 45 
20  Miscellaneous manufactured articles  171 10.7 0 - 15 0.5 35 - 45 
21  Works of art, etc.  9 7.8 5 - 10 0.3 45 - 45 WT/TPR/S/348 • Guatemala  
- 44 - 
  Description of products  MFN Bound tariffa 
Number 
of lines  Average 
(%) Range (%)  Coefficient 
of 
variation 
(CV)  Range (%) 
      
By stage of proces sing      
First stage of processing  913 6.8 0 - 30 1.0 10 - 138 
Semi-processed products  2,358  3.7 0 - 20 1.3 0 - 160 
Fully processed products  3,703  6.6 0 - 40 1.0 0 - 257 
a The bindings are shown according to the HS 2007 classification and the rates a pplied in HS 2012; 
there may, therefore, be differences between the number of lines included in this analysis.  
b ISIC (Rev.2), excluding electricity (one line).  
Source:  WTO Secretariat estimates, based on data provided by the authorities.  
3.34.   The percentage of  import tariffs in total imports continued to fall sharply during the review 
period, declining to barely 1.5% of the value of imports in 2014. The percentage of VAT on imports 
was 10% in 2014, showing that the average indirect tax burden on imports was 11. 5% 
(Table  3.5). In 2015, the average tariff was 2.1%, taking into account the c.i.f. value of imports, 
whereas the average effective rate, i.e. the average tariff applicable to imports subject to tariffs 
exceeding zero, was 13.6%.11 
Table 3.5 Foreign trade -related tax revenue, 2009 -2015  
(Q million (current) and  % of imports)  
 VAT on imports  Tariffs  % of imports  
VAT on imports  Tariffs  Tariffs and VAT on 
imports  
2009 9,708.6  2,138.8  10.3 2.0 12.3 
2010 11,127 .3 2,367.7  10.0 2.1 12.1 
2011 12,909.6  2,532.6  10.0 2.0 12.0 
2012 13,587.1  2,310.9  10.2 1.5 11.7 
2013 13.619.0  1,965.0  9.9 1.5 11.4 
2014 14,094.4  2,043.6  10.0 1.5 11.5 
2015 13,629.8  2,527.2  11.5 2.1 13.6 
Source:  Ministry of Finance, Tax Administratio n Supervisory Authority, Tax Statistics. Viewed at: 
http://portal.sat.gob.gt/sitio/index.php/estadisticas/47 -estadicas -tributaria s/254 -estadisticas -
tributarias.html . 
3.1.4.2   Tariff bindings  
3.35.   Guatemala bound all its tariff lines during the Uruguay Round. The rates applicable to 
non-agricultural products were bound at a general level of 45%, while agricultural products were 
bound at rates ran ging from 10% to 257%. The bound rates exceeding 200% apply to meat and 
edible offal of poultry and to sunflower seed, maize, palm and soyabean oil.  
3.36.   Guatemala is party to the Information Technology Agreement (ITA) and circulated a revised 
timetable for its  commitments in 2006.12 Tariff bindings on these products, originally set at 45%, 
were gradually reduced to zero over the period 2006 -2010.  
3.37.   The Secretariat did not identify any tariff line on which the applied rate exceeded the 
corresponding bound rate.13 
                                                
11 Online information from the SAT. Viewed at: http://portal.sat.gob.gt/sitio/index.php/estadisticas/47 -
estadicas -tributarias/334 -indicadores -tributarios.html . 
12 WTO document G/MA/TAR/RS/105 of 21  February  2006.  
13 In undertaking this analysis, the Secretariat only took into account those tariff line s appearing in the 
list in Schedule LXXXVIII (HS 2007 ) that are strictly comparable to those in the HS 2012.  WT/TPR/S/348 • Guatemala  
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  3.1.4.3   Tariff preferences  
3.38.   Guatemala grants preferential tariff treatment to imports from other CACM members. 
Almost all products originating in the CACM enter duty free; in the case of Guatemala, the 
exceptions are roasted or unroasted coffee and cane sugar.  
3.39.   Guatem ala also accords preferential treatment to imports from countries with which it has 
signed an FTA or with which it has a partial scope agreement (Table 3.6). The coverage in these 
free trade and partial scope agreements is dealt with in Section 2.  
3.40.   The Unit ed States, Mexico and Panama enjoy the highest level of trade openness. The 
average preferential tariff applicable to imports from the United States, under the CAFTA -DR, is 
0.2%. The average protection for agricultural products (WTO definition) is 1.1%, wh ile 
non-agricultural products are mostly duty free. The average tariff on imports from Mexico is 0.4%: 
2.2% on agricultural products (WTO definition) and 0.1% on non -agricultural products. The 
average preferential tariff accorded to imports from Panama is 0.6%, while that on imports from 
the Dominican Republic is 1.0%. For the European Union, the average tariff is 3.9%. The 
percentage of duty -free lines varies considerably depending on the agreement, from 50.2% in the 
case of Belize to 97.9% in that of the United States (Table 3.6).  
Table 3.6 Analysis of tariffs applied to countries with which trade agreements have been 
negotiated, 2015, HS 2012  
 
No. of 
lines  Total  WTO category  
Agricultural products  Non-agricultural 
products (excluding 
petroleum)  
Average 
(%) Duty -free 
lines (%)  Average 
(%) Duty -free 
lines (%)  Average 
(%) Duty -free 
lines (%)  
MFN 6,974  5.7 49.5 9.5 27.9 5.0 53.3 
United States   6,974  0.2 97.9 1.1 85.5 0.0 100.0  
Chinese Taipei  6,974  3.2 68.1 4.7 58.8 2.9 69.6 
Mexico  6,974  0.4 96.8 2.2 84.1 0.1 99.2 
Dominican Republic  6,974  1.0 93.0 1.7 90.6 0.9 93.6 
Colombia  6,974  3.3 64.5 5.5 49.4 2.9 67.0 
Chile 6,974  2.3 69.9 5.2 51.6 1.8 73.1 
European Union (AA)  6,974  3.9 51.5 6.9 38.9 3.4 53.6 
Panama 6,974  0.6 90.1 2.4 75.6 0.3 92.6 
Cuba 6,974  5.2 53.1 8.4 34.8 4.7 56.3 
Belize  6,974  5.6 50.2 9.1 29.9 5.0 53.6 
Ecuador  6,974  4.7 56.9 8.0 38.7 4.2 60.2 
Note:  For this analysis, in cases where the preferential tariff exceeds the MFN tariff, the latt er has been 
used to calculate the average.  
Source:  WTO Secretariat estimates, based on data provided by the Guatemalan authorities.  
3.1.4.4   Tariff concessions  
3.41.    Generally speaking, all goods imported into Guatemala are subject to import duty, except 
for those speci fically declared as exempt by law or those subject to a zero rate. These exemptions 
apply to imports to be used by government and non -profit -making bodies . The Ministry of Finance 
is also empowered to grant concessions under other circumstances.  
3.42.   Imports un der export processing or drawback procedures determined in the Free Zones Law 
and the Law on the promotion and development of exporting and maquila activities also enjoy  
tariff concessions.  
3.1.4.5   Tariff quotas  
3.43.    In 2015, Guatemala applied tariff quotas within the  WTO framework to imports under 
three  tariff lines corresponding to yellow maize; white maize; and rough rice (Table  3.7). 
The authorities have indicated that in 2016 quotas still applied to these same goods.  WT/TPR/S/348 • Guatemala  
- 46 - 
  Table 3.7 WTO tariff quotas, 2015  
Product  Tariff code  Volume 
fixed 
(MT)  Volume 
imported 
(MT)  Used  
(%) In-quota 
tariff  Out-of-quota 
tariff  
Yellow maize  1005.90.20  200,000  95,200  47.0 0% 15% 
White maize  1005.90.30  50,000  44,630  89.0 0% 20% 
Rough rice  1006.10.90  17,500  15,940  91.0 0% 23.7%  
Source:  Information provided by the authorities.  
3.44.   The tariff quota fill rate varies greatly from one product to another. In 2015, it was 91% for 
rough rice, 89% for white maize but only 47% for yellow maize. In addition  to the WTO quotas, 
Guatemala applies 42 other quotas under various preferential agreements it has signed 
(Table  3.8). 
Table 3.8 Tariff quotas under preferential agreements  
Trade agreement  Number of tariff quo tas 
CAFTA -DR 10 
Association Agreement between the European Union 
and Central America  4 
Central America – Chile FTA  9 
Northern Triangle – Colombia FTA  1 
Central America – Mexico FTA  3 
Central America – Panama FTA  12 
Guatemala – Ecuador PSA  1 
Guatem ala – Belize PSA  2 
Total  42 
Source:  Information provided by the authorities.  
3.45.   Table A3.1 shows the 2016 quotas for the main products under the various preferential 
agreements.  
3.1.5   Other charges affecting imports  
3.46.   Guatemala applies value -added tax (VAT) at a ra te of 12% on both domestic and imported 
goods and services. VAT on imports is paid at the border on the c.i.f. value plus import duty. In 
2015, VAT as a whole accounted for 49.2% of all tax revenue; of this overall percentage, 
53% consisted of VAT on impor ts (26.1% of total tax revenue) and 47% was VAT on domestic 
products (23.1% of total tax revenue). Decree No.  10-2012 introduced amendments to the Law on 
value -added tax (Decree No.  27-92) as regards tax credits, especially the requirements, 
verification a nd streamlining of procedures.14 
3.47.   Guatemala imposes a number of internal taxes on countrywide distribution of a particular 
group of products, whether imported or locally produced. These are: alcoholic and non -alcoholic 
beverages, cement, cigarettes and petro leum-based fuels. The Law on the special tax on the 
distribution of cement (Decree No.  79-2000) fixed a tax of Q  1.50 per 42.5 kg. bag of cement or 
its equivalent if it is in bulk or "clinker", or in bags of different weights.15 The Law on the tax on 
the di stribution of unrefined petroleum and petroleum -based fuels (Decree No.  38-92) and 
amendments thereto, with its implementing Regulations (Government Decision No.  663-2005), 
govern the taxes applicable to such fuels. The following rates apply per gallon: pr emium gasoline 
Q 4.70; regular gasoline Q  4.60; aviation fuel Q  4.70; diesel fuel Q  1.30; kerosene, liquefied 
petroleum gas and the like Q  0.50.16 The Law on tobacco and tobacco products (Decree No.  61-77) 
                                                
14 The updated text of Decree No.  10-2012 may be viewed at : 
http://portal.sat.gob.gt/sitio/index.php/descargas/doc_download/3723 -ley-del-impuesto -al-valor-
agregado.html . 
15 The text of the Decree may be viewed on the SAT website at: 
http://portal.sat.gob.gt/sitio/index.php/descargas/doc_download/609 -decreto -79-2000.html . 
16 Both the Decree and its implementing Regulations may be viewed on the SAT website at: 
http://portal.sat.gob.gt/sitio/index.php/component/docman/doc_download/642 -decreto -38-92-del-congreso -
de-la-republica.html , and http://portal.sat.gob.gt/sitio/index.php/component/docman/doc_download/643 -
acuerdo -gubernativo -663-2005-.html, respectively.  WT/TPR/S/348 • Guatemala  
- 47 - 
  set a rate of 75% on the ex -factory price of cigare ttes and a tax based on application of this 
criterion is imposed.17 There is also an ad valorem tax on the first registration of automobiles, 
which ranges from 5% to 20% depending on the vehicle. In the case of imported automobiles, the 
tax is calculated on  the basis of the c.i.f. value (Article 113 of Decree No.  10-2012).  
3.48.   The Law on the tax on the distribution of distilled alcoholic beverages, beer and other 
fermented beverages (Decree No.  21-2004) regulates taxes on these products, whether imported 
or loca lly produced.18 Table 3.9 shows the tax rates applied in April  2016, calculated on the basis 
of the selling price to the end consumer suggested by the manufacturer or importer, excluding VAT 
and the corresponding distribution tax. The Law on the special tax  on the distribution of aerated 
beverages, isotonic or sports drinks, juices and nectars, yoghurt, concentrated preparations or 
powder for preparing beverages and bottled natural water (Decree  No. 09-2002) governs the tax 
applicable to both imported and lo cally produced non -alcoholic beverages.19 
Table 3.9 Taxes on locally produced and imported beverages, 2016  
Product  HS Code  Rate (%)  
Alcoholic beverages    
Beer and other beverages made from fermented cereals  2203.00.00  6.0 
Wine 2204 7.5 
Sparkling wine  2204.10.00  7.5 
Vermouth  2205 7.5 
Cider 2206.00.00  7.5 
Distilled alcoholic beverages  2208 8.5 
Alcoholic beverages mixed with water, whether or not carbonated, and 
bottled in any type of container  2208.90.90  7.5 
Other fermented beverages  2206.00.00  7.5 
Non-alcoholic beverages  HS Code  Rate (Q/litre)  
Natural or sweetened aerated beverages, whether or not carbonated  2201, 2202  0.18 
Syrups and/or concentrates which, when mixed, create aerated 
beverages  2106. 90.30  0.18 
Isotonic or sports drinks  2204.10.00  0.12 
Natural juices and nectars or of natural fruit and artificial and other 
juices  2009, 2202.90.90  0.10 
Any type of yoghurt drink  0403.10.00  0.10 
Bottled natural water, in containers not exceeding four  litres, except 
for bottled natural water in  containers exceeding four litres for 
domestic use  2201 0.08 
Source:  Decree No.  21-2004 and Decree No.  09-2002.  
3.1.6   Import prohibitions, restrictions and licensing  
3.49.   Guatemala imposes certain prohibitions on imports for reasons of health, security or 
public  order. In 2004, Guatemala replied to the questionnaire on import licensing procedures and 
updated its notification concerning its import licensing regime.20 In this notification Guatemala 
indicated that there are no  differences in procedures for particular trading partners and there are 
no exceptions to licensing requirements under bilateral or regional agreements. By April  2016, the 
authorities had not forwarded any new notification to the WTO. During the course of this Review, 
the authorities indicated that they were in the process of updating replies to the questionnaire on 
import licensing procedures.  
3.50.   Guatemala has notified the WTO that import licences are not required as such, but the 
import of certain products i s subject to special administrative formalities, including the granting of 
prior import permits, as laid down in various laws and regulations.21 The list of products requiring 
                                                
17 Online informati on from the Ministry of Public Health. Viewed at: http://www.mspas.gob.gt 
/menu/marco_legal/Decreto Nº 61 -77.pdf . 
18 Both the Decree and its implementing Regulations may be viewed on the SAT website at:: 
http://portal.sat.gob.gt/sitio/index.php/component/docman/doc_download/651 -decreto -21-04-del-congreso -
de-la-republica.html , and http://portal.sat.gob.gt/sitio/index.php/component/docman/doc_download/654 -
acuerdo -gubernativo -205-2004-.html, respectively.  
19 Viewed at: http://portal.sat.gob.gt/sitio/index.php/component/docman/doc_download/646 -decreto -
09-2002-del-congreso -de-la-republica -.html 
20 WTO document G/LIC/N/3/ GTM/2 of 8  September  2004.  
21 WTO document G/LIC/N/3/GTM/4 of 9  November  2007.  WT/TPR/S/348 • Guatemala  
- 48 - 
  prior import permits and the legal basis therefor are set out in Table  3.10. In o rder to import these 
products, the importer must first register with the competent administrative unit. In addition, 
sanitary or phytosanitary permits are required for a certain number of products.  
Table 3.10 Imports for which a prior permit is required and legal basis, 2016  
Administrative 
authority  Product or sector  Legal basis  
National Council for 
Protected Areas 
(CONAP)  Plants, animals and seafood 
products included in CITES and 
other products of the wild  Decree No.  4-89, Law on protected areas, 
Amendments Decrees No.  110-96 to 
No. 4-89, Law on protected areas  
Ministry of Energy and 
Mining  Mineral fuels, mineral oils and 
products of their distillation; 
bituminous materials; mineral 
waxes  Decree No.  48-97, Mining Law  
Decree No.  109-97, Hydrocarbons Marketing 
Law and its implementing Regulations, 
Government Decision No.  522-99 
Ministerial Decision No.  0453-2006, COMIECO 
Resolution No.  167-2006 
Ministry of Energy and 
Mining  Inorganic chemicals; inorganic or 
organic compounds of precious 
metals, radioactive elements, 
rare-earth metals or isotopes  Decree Law No.  11-86, Law on the control, 
use and application of radioisotopes and 
ionizing radiation, Decree No.  48-97, Mining 
Law 
Government Decision No.  55-2001, 
Regulations on safety and radiological 
protection implementing the Law on the 
control, use and application of radioisotopes 
and ionizing radiation  
Ministry of the 
Environment  Organic chemicals  Decree -Law No.  68-86, Law on the protection 
and improvement of the environment  
Ministry of the 
Environment  Rubber and rubber articles  Decree -Law No.  68-86, Law on the protection 
and improvement of the environment  
Ministry of the 
Environment  Plastics and articles thereof  Decree -Law No.  68-86, Law on the protection 
and improvement of the environment  
Ministry of the 
Environment  Machinery and electrical equipment, 
and sound or image recording 
apparatus  Decree -Law No.  68-86, Law on the protection 
and improvement of the environment  
Government Decision No.  20-2016, 
Regula tions on evaluation, control and 
monitoring of the environment  
Ministry of Defence  Powder and explosives; 
pyrotechnical articles; matches; 
pyrophoric alloys; inflammable 
materials  Congress Decree No.  15-2009, Law on arms 
and munitions  
Government Decision No. 28-2004, 
Regulations on pyrotechnical activities  
Ministry of Defence  Import of offensive weapons and 
their ammunition  Decree -Law No.  123-85, Law on regulated 
materials  
Decree No.  82-2005, Addition to the Law on 
regulated materials  
Congress Decree No.  73-2007, Amendments 
to the Law on regulated materials  
Source:  Information provided by the authorities.  
3.1.7   Contingency  measures  
3.1.7.1   Anti-dumping and countervailing measures  
3.51.   There were no changes to the legal framework for anti -dumping and countervailing 
measures during the review period and it remains based on the WTO provisions and the Central 
American Regulations on Unfair Business Practices, applied by Guatemala since 1996 and updated 
in 2007 to bring the rules previously applied into line with the relevant WTO  Agreements. There 
have, however, been two changes as regards administrative practices, namely: (a) the issue of a 
decision by the Ministry of the Economy (MINECO), in Ministerial Decision No.  592-2013, giving 
the Vice -Ministry of Integration and Foreign T rade, through the Directorate for the Administration 
of Foreign Trade, responsibility for conducting investigations into unfair trade practices; and 
(b) the issue of MINECO's new Basic Internal Regulations, in Ministerial Decision No.  170-2015, 
now in forc e, which confirms and regulates the powers of the Directorate for the Administration of 
Foreign Trade as the investigating authority for investigations relating to unfair trade practices.  WT/TPR/S/348 • Guatemala  
- 49 - 
  3.52.   Guatemala did not apply any anti -dumping or countervailing measures during the period 
under review and has regularly notified the WTO Committee on Anti -Dumping Practices that it did 
not adopt any anti -dumping measure during the relevant period. The most recent notification at 
the time of writing of this report was in Octob er 2015.22 
3.53.   Although it did not apply any measures during the period under review, Guatemala did 
initiate an anti -dumping investigation into imports of hot -dipped galvanized non -alloy steel sheet, 
plate, coil, hoop and strip from China, irrespective of the s ource country. The investigation 
concluded by deciding that there was no evidence of a positive determination of injury or a causal 
link so no anti -dumping measures were imposed.  
3.54.   Any cases of unfair trade practices that may arise in relation to goods from CACM member 
countries have to be submitted to the Executive Committee of the CACM Secretariat (SIECA) so 
that it may examine them and make relevant recommendations. If an industry in a State party 
other than that of the importer is involved, a regional pro cedure will be initiated at the request of 
the government concerned and this will be conducted through SIECA.  
3.55.   The free trade agreements signed by Guatemala (either separately or jointly with all 
or some other CACM countries) with Belize, Chile, Chinese Tai pei, Colombia, Cuba, 
the Dominican  Republic, Ecuador, Mexico, the United States and the European Union all contain 
legal provisions on anti -dumping. In order to initiate an investigation under these agreements, the 
domestic industry affected has to forward  a request to MINECO's Directorate for the Administration 
of Foreign Trade. This request must contain a description of the facts relating to the case and 
other necessary elements. MINECO has to evaluate the request within a maximum of 30 days. If it 
is acc epted, the Ministry may initiate the procedure provided in the clauses in the relevant 
agreement.  
3.56.   The general procedures for initiating and conducting dumping or subsidy investigations are 
described in Chart 3.1.  
                                                
22 WTO document G/ADP/N/272/GTM of 7  October  2015.  WT/TPR/S/348 • Guatemala  
- 50 - 
  Chart 3.1 Procedures for dumping and subsidy investigationsa 
 The domestic industry or the producers representing it request the Investigating Authority to 
initiate an investigation for the purpose of determining the existence of an unfair trade practice 
and applying  measures  
After examining the request and fulfilling the requirements laid down, the Investigating Authority notifies  the 
government of the exporting member concerned before initiating  the investigation. It then issue s a "Resolution 
initiati ng the investigation", which must be notified to interested parties reasonably known to it ; the 
corresponding public not ices must be published once the request has been received.  
 
After the "Resolution initiati ng the investigation" ha s been notified, interested parties are 
requested to return their respective questionnaires, duly completed.  
During the investigation or at any time it deems necessary, the Investigating Authority may 
request companies for authorization to conduct in situ  visits in connection with the information 
provided in the questionnaires.  
After receiving  the questionnaires and the necessary information provided by interested 
parties, the Investigating Authority reviews and evaluates this in order to issue a po sitive or 
negative "Preliminary Resolution" within a period not exceeding 60 days of the initiation of the 
investigation. The Regulations use the words "Preliminary Determination". As of the 60th day 
following initiation of the investigation, the Investiga ting Authority may issue a preliminary 
determination.  
The Notice  of Preliminary Resolution is published in the Central American Official Journal and is 
notified to parties interested in the investigation.  
The Investigating Authority continues t he investigation until its conclusion, even if a provisional 
measure has been imposed.  
To conclude the investigation, the Investigating Authority issues a final report containing its recommendation 
on whether or not to impose definitive measures, in the f orm of the "Final Resolution" of the investigation. 
Comment: the final resolution is issued by the Minister, not by the Investigating Authority.  The investigation must be concluded within 12 months of the date of its initiation, but this period 
may be ext ended by a further period of up to 6 months in special circumstances, at the initiative 
of the Investigating Authority or at the request of the interested party.  
 
a For subsidies investigations, there is provision for holding consultations before initiating an 
investigation.  
Source:  Information provided by the authorities.  
3.1.7.2   Safeguard measures  
3.57.   Guatema la did not apply any safeguards during the review period. The legal framework for 
their application remained unchanged and continues to be based on the WTO provisions and the 
Central American Regulations on Safeguard Measures, which Guatemala has been appl ying since 
1996. These were updated in 2007 to bring the rules previously applied into line with the relevant 
WTO Agreements.23 
3.58.   In March  2016, Guatemala notified the WTO Committee on Agriculture that it did not take 
either volume -based or price -based specia l safeguard actions provided in the Agreement on 
Agriculture in 2012, 2013, 2014 or 2015.24 
3.59.   Guatemala applies the Central American Regulations on Safeguard Measures to imports 
from third countries. Provisional safeguard measures may be imposed for a maximum  of 200 days 
and only in the form of tariffs. The Regulations do not specify precisely the form in which definitive 
safeguard measures should be adopted. Definitive measures may be imposed for a maximum 
period of four years, unless they are extended in con formity with the provisions in the 
WTO Agreement on Safeguards. As of June  2016, no such cases had occurred.  
                                                
23 WTO document G/ADP/N/1/GTM/2 - G/SCM/N/1/GTM/2 of 2  October  1996.  
24 WTO document G/AG/N/GTM/54 of 8  April 2016.  WT/TPR/S/348 • Guatemala  
- 51 - 
  3.60.   The free trade agreements signed by Guatemala (either separately or jointly with 
all or some other CACM countries) with Belize, Chile, Chinese Taip ei, Colombia, Cuba, 
the Dominican  Republic, Ecuador, Mexico, the United States and the European Union contain legal 
provisions on safeguards.  
3.61.   As in the case of anti -dumping investigations, in order to initiate a safeguards investigation 
under these agreeme nts the domestic industry affected has to submit a request to MINECO's 
Directorate for the Administration of Foreign Trade, describing the facts relating to the case and 
calculating the injury suffered. MINECO evaluates the request within a maximum of 30 d ays. If its 
evaluation is affirmative, the Ministry may start the process provided in the relevant agreement.  
3.1.8   Standards and technical regulations  
3.62.   The National Quality System, created by Decree No.  78-2005 (Law on the National Quality 
System) is responsible  for promoting and coordinating standardization, metrology, accreditation, 
conformity assessment and technical regulation activities. By June  2016, no regulations to 
implement the Law on the National Quality System had been issued, although the authorities  have 
indicated that a preliminary draft text is under preparation and is expected to be published shortly 
in the Official Journal.  
3.63.   The National Quality System is administered by the Directorate for the National Quality 
System. In 2004, Guatemala notified the WTO that it had accepted the Code of Good Practice for 
the Preparation, Adoption and Application of Standards, through the Foreign Trade Policy 
Directorate in the Vice -Ministry of Integration and Foreign Trade, which is the Directorate 
responsible for notifying documents deemed relevant to Guatemala's WTO commitments.25 In 
addition, the Directorate for the National Quality System participates in the Advisory Commission 
of the National Science and Technology Council (CONCYT) as an adviser on matters relat ing to 
quality, technology and competitiveness.  
3.64.   Pursuant to the relevant Law, Guatemala's National Quality System is composed of: the 
Guatemalan Standards Commission (COGUANOR), the National Metrology Centre (CENAME), the 
National Commission for Technical Regulations (CRETEC), the Guatemalan Accreditation Bureau 
(OGA) , and the Information Centre (CEINFORMA). Guatemala belongs to the International 
Organization for Standardization (ISO), within which COGUANOR participates in the Committee on 
Developing Countr y Matters. Guatemala is also a full member of the Pan  American Standards 
Commission (COPANT); CENAME is a member of the Inter -American Metrology System (SIM); and 
the OGA is a member of Inter -American Accreditation Cooperation  (IAAC).  
3.65.   COGUANOR is part of M INECO and is the national standardization body. It was created by 
Decree No.  1.523 of 1962 and its responsibilities were ratified by the Law on the National Quality 
System. It is the standardization body for all economic sectors and its goal is to boost pr oducts 
and services of quality.26 It is responsible for drafting, publishing and disseminating Guatemalan 
technical standards (NTG), compliance with which is voluntary, as are their use and application, 
pursuant to the Law on the National Quality System. NT Gs are prepared with support from all the 
sectors concerned (regulators, consumers and academia), which have a role in their examination 
and approval though technical committees. Although COGUANOR standards are voluntary, they 
can serve as the basis for pr eparation of a mandatory technical regulation on the part of a 
government authority.  
3.66.   Until 2005, COGUANOR was the body entrusted with drafting and adopting technical 
regulations and monitoring compliance. Since the Law on the National Quality System was 
published in 2005, responsibility for drawing up technical regulations has fallen on the government 
entity concerned, with assistance from CRETEC. Pursuant to the Law on the National Quality 
System, CRETEC is a consultative and advisory body for matters rela ting to technical regulations. 
The principal government authorities which draw up technical regulations are the Ministries of 
Public Health, Agriculture and Livestock, the Environment and Natural Resources, and Energy and 
Mining, inter alia . Technical regu lations must be drawn up by Ministries and government 
institutions with the knowledge of CRETEC's Technical Secretariat so as to make it easier to inform 
production sectors and meet the notification requirements laid down in the trade agreements 
                                                
25 WTO document  G/TBT/CS/N/156 of 31  August  2004.  
26 Online information from COGUANOR. Viewed at: http://www.coguanor.org/ quienes_somos.html . WT/TPR/S/348 • Guatemala  
- 52 - 
  ratified b y the Republic of Guatemala. In May  2016, preliminary  draft regulations for CRETEC were 
under preparation, although CRETEC has been operating since June  2009 and its tasks include: 
ensuring that various government authorities, institutions, organizations a nd units comply with the 
WTO Agreements on Technical Barriers to Trade and on the Application of Sanitary and 
Phytosanitary Measures; ensuring that technical regulations are prepared on the basis of the 
provisions in a national, regional or international t echnical standard; recommending the 
amendment of technical regulations or draft technical regulations to bring them into line with the 
provisions of international organizations specializing in this sector; preventing the issue of 
technical regulations whic h unnecessarily duplicate provisions relating to the same product; 
keeping up to date the register of technical regulations in effect and the list of draft regulations; 
and ensuring that the bodies composing the National Quality System take action to ensur e 
observance of technical regulations.27 
3.67.   The Regulations for the integration and performance of the functions of the National 
Standardization Council, the National Accreditation Council, the National Metrology Council and 
CRETEC were enacted by means of Gov ernment Decision No.  149-2009. By April  2016, however , 
the regulations to implement the Law on the National Quality System had not yet been issued, 
although preliminary draft regulations were under preparation. Also pending is the decision by the 
Attorney General's Office on the draft regulations for COGUANOR certification, the draft list of fees 
for COGUANOR's services and the draft text updating the fees for CENAME's services, while the 
preliminary draft of the CRETEC Regulations and Handbook also awaits preparation.  
3.68.   Since 2005, responsibility for drafting national technical regulations has lain with the 
Ministry responsible for the sector to which the measure refers and both public and private bodies 
with an interest in the matter take part in the process . Central American technical regulations are 
agreed with the other Central American countries with a view to their approval and notification. 
Before being forwarded for approval, national and Central American technical regulations and draft 
technical regul ations must be notified to the WTO by MINECO so that WTO Members may submit 
their remarks and comments within a period of 60 days. The special technical committee which 
prepared the draft technical regulation in question examines any comments received. Nat ional and 
Central American technical regulations must be published in the Official Journal within 30 days 
following approval and then enter into force eight days later.  
3.69.   Chart 3.2 outlines the procedures for the preparation of technical regulations at the 
Central  American level.  
Chart 3.2 Procedures for the preparation of technical regulations at the Central 
American level  
 
Source:  Information provided by the authorities.  
3.70.   There is no automatic mechanism for el iminating technical regulations that form part of 
mandatory Guatemalan standards (NGOs). Those that have become obsolete are abolished by 
means of a government decision repealing out -of-date regulations and replacing them, where 
appropriate, by updated reg ulations. Revision of technical regulations has to be requested by the 
interested party and they can only be eliminated by means of a government decision at the 
                                                
27 Online information from CRETEC. Viewed at: http://crete c.org.gt/funciones -de-la-cretec . 5 The regulation is discussed during regional 
negotiating rounds  7 The regulation is put up for international or 
national public consultation  
10 The regulation is implemented  9 Approval by  COMIECO  
 8 Revision of the draft in conjunction  with the 
public technical committee  6 The regulation is approved by technical panels  
2 A request is submitted for inclusion in the 
regional action plan  
4 National committees are set up  3 COMIECO approves the half -yearly action plan  1 Need to prepare a Central American technical 
regulation  WT/TPR/S/348 • Guatemala  
- 53 - 
  request of the interested party after COGUANOR has examined them, through its 
Executive  Secreta ry. 
3.71.   The OGA, established by Government Decision No.  145-2002, published on 6  May 2002, as 
amended by Decree No.  78-2005, is the entity responsible for accreditation and its administration 
in Guatemala for the purpose of formally recognizing the technical c ompetence of conformity 
assessment bodies, based on the international or national standards in effect.28 The bodies subject 
to assessment by the OGA are: testing and calibration laboratories (COGUANOR standard 
NTG ISO/IEC 17.025); clinical analysis laborato ries (COGUANOR standard NGT ISO 15.189); and 
inspection bodies (COGUANOR standard ISO/IEC  17.020). It may also assess management system 
certification bodies (ISO/IEC standard 17.021), as well as product certification bodies 
(ISO/IEC  standard 17.065) and pe rsonnel certification bodies (ISO standard 17.024). By  
March  2016, the OGA had accredited 35 organizations broken down as follows: 25 testing 
laboratories, three calibration laboratories, five clinical laboratories and two inspection bodies. By 
May 2016, n o certification body had been accredited, although the accreditation of two product 
certification bodies accredited by a European organization that had signed mutual recognition 
agreements has been recognized.  
3.72.   CENAME is composed of the National Metrology L aboratory and the Legal Metrology 
Inspection and Verification Unit. The National Metrology Laboratory provides calibration services in 
relation to mass, temperature, volume, dimension, electricity and pressure; the Legal Metrology 
Inspection and Verificati on Unit is involved in the inspection of fossil fuel dispensers nationwide in 
cooperation with the Ministry of Energy and Mining (MEM) and the Directorate of Consumer Affairs 
(DIACO). There are also the Laboratory for the Inspection of Drinking Water Meter s and the 
Laboratory for the Inspection of Electricity Meters. CENAME takes part in: COGUANOR's technical 
standardization committee in relation to the updating and national approval of metrology 
standards; the OGA's technical accreditation committee in rel ation to the definition of assessment 
criteria for calibration and testing laboratories in order to obtain international recognition for their 
conformity assessment activities; and CONCYT's quality commission to develop metrological 
quality in science and technology projects in order to raise the level of Guatemala's 
competitiveness.  
3.73.   During the period under review, CRETEC compiled an inventory of national and regional 
technical regulations: as of April  2016, this included 463 national technical regulations,  together 
with 62 Central American technical regulations. CRETEC has also prepared a Handbook of Good 
Technical Regulation Practices. Between 2009 and April  2016, Guatemala made 35  notifications to 
the WTO Committee on Technical Barriers to Trade, most of which concerned draft regulations 
prepared by the Ministries of the Economy, Agriculture and Public Health. These  35 technical 
regulations were approved.  
3.74.   During the review period, 40 Central American technical regulations were approved. As of 
March  2016, 8 63 standards and technical regulations were in effect concerning areas such as: 
standardization, metrology and social sciences; general science; medicine; materials testing; pipes 
and flanges, valves and accessories and various means for distributing fluid s and irrigation; motor 
vehicle materials; sanitary engineering; chemical industries; powders and explosives; fermentation 
industries; agricultural and food industries; fishing industries; iron and steel industry; building 
industries; architecture; agricul ture and agricultural machinery; various industries; packaging; 
documentation; petroleum products; plastics and rubber; leather, footwear and related industries; 
quality management; secure storage units; exploitation of electric power lines; information 
technology; the environment; refrigeration; ethics; leisure, recreational and active tourism 
services; geographical information; glass industry; household electrical appliances; climate change 
and energy efficiency.29 Over the review period, from 2009 to Marc h 2016, COGUANOR published 
253 technical standards. No detailed information is available on the technical regulations prepared 
by other bodies.  
3.75.   All the free trade agreements signed by Guatemala contain a chapter on technical barriers 
to trade which include  provisions on technical regulations and conformity assessment procedures, 
while the partial scope agreements, although they do not include a TBT chapter, do contain articles 
on technical regulations and conformity assessment procedures. The CAFTA -DR conta ins provisions 
                                                
28 Online information from the OGA. View ed at: http://oga.org.gt/acerca_de_la_oga.html . 
29 Information provided by the authorities.  WT/TPR/S/348 • Guatemala  
- 54 - 
  on standards, technical regulations and conformity assessment procedures. Article 7.6 thereof 
provides for acceptance of trading partners' regulations as equivalent. At the Central American 
level, the registration and approval of a large num ber of technical regulations are recognized. 
During the review period, three mutual recognition agreements were signed, through the 
Guatemalan Accreditation Bureau of the MINECO National Quality System, in the IAAC and 
International Laboratory Accreditatio n Cooperation (ILAC) context: in 2008, to accredit testing 
laboratories, including those carrying out clinical analyses; in 2012, the agreement on recognition 
was extended to calibration laboratories; and in 2013, the accreditation of inspection bodies was  
added. Under these agreements, reviews, reports or certificates issued by the laboratories and 
inspection bodies accredited by the OGA in Guatemala are recognized at the international level.  
3.76.   Guatemala has a number of labelling regulations for certain prod ucts. According to 
Government Decision No.  969-99 on food safety, all processed or packaged foods for public 
consumption must be labelled in accordance with Guatemala's technical regulations. The main 
regulation in this respect is the COGUANOR technical re gulation on the labelling of packaged food 
products for human consumption (NGO 34039). If there are no relevant national regulations, the 
Codex Alimentarius and other international standards apply. Producers and importers of processed 
foods are responsible  for ensuring that the labelling is correct. Pursuant to Article 135 of the 
Health Code (Decree No.  90-97) of 2  October  1997, the content and composition of all food 
products, as well as special health indications, must appear on the labels in Spanish. Acc ording to 
Article  36 of the Food Safety Regulations (Government Decision No.  969-99), however, 
unprocessed natural foods, raw materials and food additives are exempt from the labelling 
requirement. Guatemala currently has Central American technical regulat ions on labelling for: food 
and beverages; medicines; distilled alcoholic beverages; fermented alcoholic beverages; footwear; 
textiles and clothing; pesticides for domestic use; formulated synthetic pesticides; fertilizers and 
soil improvers for agricultur al use; cosmetics; and cleaning products.  
3.1.9   Sanitary and phytosanitary measures  
3.77.   The Health Code (Decree No.  90-97) and the Plant and Animal Health Law (Decree 
No. 36-1998) of 6  May 1998, together with its implementing Regulations (Government Decision 
No. 745-99), make up Guatemala's main legislation on sanitary and phytosanitary measures and 
were not amended during the review period.30 Both the Plant and Animal Health Law and its 
implementing Regulations provide that sanitary and phytosanitary (SPS) measures a re established 
on the basis of an assessment of the actual risks involved.  
3.78.   The principal rules at the regional level can be found in the Central American Regulations on 
Sanitary and Phytosanitary Measures and Procedures of 17  September  1999, which apply to  
imports from other CACM countries. Guatemala recognizes the SPS measures of other countries as 
equivalent provided that they meet the necessary requirements, pursuant to Article  7 of Decree 
No. 36-98. Furthermore, the MAGA may accept as equivalent the SPS  measures applied in 
accordance with bilateral, regional or multilateral agreements signed by Guatemala, provided that 
they are based on technical and scientific evidence that can be proved; the necessary 
administrative procedure is defined in each case. T he equivalence of SPS measures is not 
automatic but is recognized through a procedure designed to achieve the level of protection 
deemed satisfactory by Guatemala even though the SPS measures may be different.  
3.79.   The MAGA and the Ministry of Public Health and  Social Welfare ( MSPAS) have responsibility 
for applying the WTO Agreement on the Application of Sanitary and Phytosanitary Measures. The 
MSPAS is entrusted with: enforcing sanitary technical regulations for processed food products, 
medicines and related p roducts; granting import and export authorizations; certifying the quality 
and safety of products; and assessing compliance with the relevant regulations. It also has the 
task of conducting sanitary inspections.  The MAGA is responsible for: the regulations  on the safety 
of unprocessed natural foods; compliance with the regulations on animal and plant health; 
inspection and certification of plants and related products intended for export or 
                                                
30 Other important legal texts in this respect are: Ministerial Decision No.  617-2004 and amendments 
thereto in Ministerial Decision No.  1185-2004 establishing the regulations applicable to the import of plants , 
and products and by -products of plant origin; Government Decision No.  969-99 establishing the food safety 
regulations; and Decree No.  6-55 of 7  May 1955 r atifying the International Plant Protection Convention.  WT/TPR/S/348 • Guatemala  
- 55 - 
  domestic  consumption; and verifying whether imported products comply  with the sanitary and 
phytosanitary  regulations.31 
3.80.   In the previous Review it was indicated that all animal or plant products, irrespective of 
their origin, required an import permit. For the purposes of this Review, the authorities have 
stated that the sit uation has changed and that at present not all plant products require an import 
permit; this does not apply to those which present no risk for plant health or, because they have 
been processed, do not carry any disease for any country. Seeds do, however, n eed an import 
permit and, in addition, the importer must obtain a seed dealer's licence. The procedure takes 
place in the MAGA's Vice -Ministry of Plant and Animal Health and Regulations (VISAR).  For 
products of animal origin, COMIECO Resolution No.  338-2014 determines three categories of risk: 
high (live animals and their products), medium (processed products such as cheese), and low 
(processed products such as yoghurt, sardines, etc.)  
3.81.   An import permit is not required for low -risk products coming from other  Central American 
countries, which are simply inspected at random when entering Guatemala. For products from 
countries outside Central America, Article 24 of the Regulations implementing the Plant and Animal 
Health Law (Government Decision No.  745-99)32 applies in general terms. This means that, in 
principle, an import permit may be required for all animal or plant products, irrespective of their 
origin, although in practice this is often not the case. According to this Article, the import of plants, 
animals , their products and by -products and inputs for agricultural and animal use must have a 
phytosanitary or animal health permit, as appropriate, as well as a permit for pesticides or a 
licence for fertilizers. This has to be requested from the competent divi sion in  the MAGA and must 
show the origin of the product. VISAR examines the requests submitted and has the authority to 
lay down requirements, restrictions or prohibitions on the total or partial import indicated in the 
request, in accordance with the ana lysis of the risk of pests and diseases and scientific evidence.  
3.82.   If it is sought to import plants, animals, their products or by -products or inputs for 
agricultural or animal use coming from an area or country where there are diseases subject to 
quarantine  or there is reasonable doubt concerning their plant or animal health status, the product 
is inspected in the country of origin or source, the cost being covered by the interested party and, 
if deemed necessary, a study analysing the risk of pests or disea se will be required. Nevertheless, 
if the import or export of a product is in the national interest, the MAGA bears the cost of the risk 
analysis study.  
3.83.   The MAGA is Guatemala's national enquiry point for the purposes of the Agreement on the 
Application of Sanitary and Phytosanitary Measures. VISAR, within the MAGA, is responsible for 
forwarding all notifications to the sectors affected by sanitary and phytosanitary measures adopted 
by WTO Members. The notifications sent in by other WTO Members are circulate d for information 
to all the organized groups concerned.  
3.84.   Guatemala is a member of the Codex Alimentarius Commission; its contact point for this 
body is VISAR's Food Safety Directorate, which also represents Guatemala at the World 
Organisation for Animal He alth (OIE). Guatemala ratified the International Plant Protection 
Convention (IPPC) in 1955; its contact point is also VISAR's Food Safety Directorate.  
3.85.   The rules applicable to the safety of food imports are found in the Health Code (Decree 
No. 90-97), Gove rnment Decision No.  969-99, Government Decision No.  72-2003, Ministerial 
Decision No.  14-2013, Ministerial Decision No.  382-2014, and COMIECO Resolution No.  271-2011. 
The MAGA and the MSPAS are the competent authorities in this field. Pursuant to these Dec isions, 
products which do not comply with the required standards are rejected or, if they present a risk for 
public health, are destroyed at the cost of the importer. Moreover, the MSPAS requires a valid 
registration certificate and, where applicable, a sa nitary or phytosanitary permit issued by VISAR, 
showing that the products imported do not represent a risk for animal or plant health. The MAGA's 
decision must be based on scientific evidence. Government Decision No.  249-2002 of the MSPAS 
                                                
31 Online information from  the MAGA. Viewed at: http://web.maga.gob.gt . 
32 Amended during the period under review by Government Decision No.  343-2010, Government 
Decision No.  342-2010 and Government Decision No.  87-2011.  WT/TPR/S/348 • Guatemala  
- 56 - 
  contains the regu lations on authorization and sanitary control of facilities providing prepared foods 
and non -alcoholic beverages at markets, fairs and on the public highway.33 
3.86.   The rules on recognition of testing procedures by  the MAGA are contained in Ministerial 
Decision No. 1128-2001. This Decision is currently been evaluated internally in the light of the 
MAGA's new operational structure. The Guatemalan authorities recognize the tests carried out and 
the certificates issued by other countries.  
3.87.   As already indicated, befor e marketing any food product with a trade name, an 
authorization has to be obtained from the Ministry of Public Health, together with  sanitary 
reference registration or sanitary certification. The MSPAS keeps the Sanitary Reference Register, 
which is based  on Central American regional regulations.34 The requirements for sanitary reference 
registration are based on risk criteria. It guarantees the safety and quality of the food and 
constitutes the basic benchmark for regular control of the product on the mark et. The time needed 
for registration and the subsequent issue of a Sanitary Reference Register number to the user and 
the corresponding certification depends on the risk presented by the product: 30 days for products 
deemed to be high risk ("A") and seven days for low -risk ("B") products. The cost of the sanitary 
registration procedure is Q  1,650 per product. Sanitary registration remains valid for five years. 
Unprocessed products, raw materials and food additives are exempt from registration.  
3.88.   The Food Regu lation and Control Department (DRCA) in the MSPAS Directorate -General of 
Health Regulation, Monitoring and Control also keeps a mandatory register of products for 
packaged foods entering Guatemala. The importer has to submit a certificate of free sale issu ed by 
the country of origin. The DRCA gives a sanitary registration number after conducting laboratory 
tests on the product. This registration number is valid for five years and the time taken to issue it 
also depends on the level of risk and the type of p roduct. For products deemed to be of high risk 
such as beef or poultry meat, the time required for registration may be up to six weeks. For 
products that are deemed not to present any risk, the procedure takes around 72 hours. The 
formalities for authorizi ng food imports of may be completed through the MSPAS services 
window.35 
3.89.   Pursuant to the Plant and Animal Health Law and its implementing Regulations, imports are 
inspected at the point of entry into Guatemala. The authorities in charge of inspection have 
handbooks that define the criteria for inspection and, where necessary, the taking of samples.  
3.90.   For a country or area to be declared free of a pest or disease or one of low prevalence, a 
technical and scientific report issued by the competent authority in th e country declared free has 
to be submitted. This report must be sent to the MAGA, which then examines and reviews the 
documents in order to check that the information provided corresponds to the requisite 
documentation, or, in its absence, conducts an in situ analysis. If there is compliance with the 
international guidelines on declaring areas free or of low prevalence, the MAGA accepts the report.  
3.91.   The import of genetically modified products is not prohibited. Guatemala has legislation on 
the testing and p roduction of genetically modified seeds for export in the form of Ministerial 
Decision No.  386-2006, which lays down the requirements for their import, transport and handling 
within Guatemala, the conduct of field experiments and the production for export of live modified 
organisms for agricultural use.36 Living modified organisms must also comply with the provisions in 
Decree No.  68-86 (Law on the protection and improvement of the environment). By means of 
Decree No.  44-2003, Guatemala has ratified the Cart agena Protocol on Biosafety to the 
Convention on Biological Diversity, which governs the cross -border movement of living modified 
organisms. During the review period, a national biosafety policy 2013 -2023 for living modified 
organisms was introduced (Gover nment Decision No.  207-2014), which provides the strategic 
framework to guide action for the development, use and safe application of living modified 
                                                
33 Online information from the MSPAS. Viewed at: http://web.maga.gob.gt . 
34 The Sanitary Reference Register is based both on Central American Technical Regulatio n 216 -2007 
and on the Health Code, Decree No.  90-97. 
35 The window's website is: http://www.mspas.gob.gt/index.php/en/servicios/ventanilla -de-
servicios.html . 
36 This D ecision only governs the question of genetically modified agricultural seeds for research and 
production for export, but not their sowing or consumption in Guatemala. Seeds that are not genetically 
modified for agricultural use are dealt with by the compet ent national authorities.  WT/TPR/S/348 • Guatemala  
- 57 - 
  organisms. Its aim is to help ensure the protection of human health, the environment, biological 
diversity  and sustainable use. In June  2016, a proposal on national biosafety regulations for living 
modified organisms was under consideration.  
3.92.   SPS drafts are drawn up by various authorities with competence for the different aspects of 
the regulations. Before bein g put up for approval and unless there is an emergency, the MAGA 
notifies the WTO of SPS drafts so that WTO Members can send in their remarks and comments 
within a period of 60 days. The most important SPS measures adopted by Guatemala between 
2009 and 201 5 are shown in Table  A3.2. Over the same period and up to February  2016, 
Guatemala notified 18  sanitary and phytosanitary measures to the WTO.37 The inventory or 
register of SPS measures and the legislation in force may be viewed on the MAGA's website at: 
http://www.maga.gob.gt . 
3.93.   Guatemala has two bilateral agreements on sanitary and phytosanitary measures, one with 
the United States and another with the Central American countries. The agreement with the 
United  States is  regulated by Ministerial Decision No.  340-2006 (provisions on r ecognition of 
United States food safety measures for inspection schemes for unprocessed products of bovine, 
pig and poultry meat as equivalent). The agreement with Central America is regulated  by 
COMIECO Resolution No.  80-2001 (recognition of sanitary registration for processed foods 
produced in the Central American region).  
3.2  Measures directly affecting exports  
3.2.1   Export procedures and requirements  
3.94.   Guatemala made improvements to its export procedur es during the period under review. 
Since March  2014, the SAT has gradually been putting in place online submission of forms and 
exchange of information with customs authorities through a web portal. A first step taken at the 
Puerto Barrios customs post has  enabled users voluntarily to submit export forms online.38 
3.95.   In 2014, the SAT started to implement the "Paperless Customs" programme with the aim of 
lessening the time needed for customs clearance and improving cooperation among the 
government authorities in volved in the procedure. By mid -2015, this programme was fully under 
way for imports at all the country's customs posts and submitting forms online became 
compulsory.39 By June  2016, however, the programme had not yet been fully implemented. It is 
estimated  that, once implemented, this programme will lessen the waiting time for 
export  procedures.40 
3.96.   Most of the documents required for export can be obtained directly online through VUPE's 
SEADEX web portal. The common requirement for any export, irrespective of its destination, is to 
obtain an exporter's code. The procedure for obtaining the code must be carried out through VUPE. 
SEADEX allows the issue, completion and forwarding of the electronic documents required in order 
to obtain an exporter's code.41 
3.97.   For pro ducts whose country of origin and destination are members of the CACM, exporters 
have to complete the FAUCA. During the period under review, online transmission of FAUCA forms 
was extended to the customs dealing with imports in all the CACM's founder membe rs, thereby 
speeding up export procedures within the bloc.  
                                                
37 WTO documents G/SPS/N/GTM/45 -62 of 5  January  2009 to 29  February  2016.  
38 Online information from  the SAT. Viewed at: http://portal.sat.gob.gt/sitio/index.php/tramites -o-
gestiones/aduanas/28 -documentaci -asistencia -aduanera/8451 -aduanas -sin-papeles.html . 
39 World Bank (2015), Doing Business 2016 . Viewed at:  
http://www.doingbusiness.org/~/media/GIAWB/Doing%20Business/Documents/Annual -Reports/English/DB16 -
Full-Report.pdf . 
40 An explanatory guide to registration and consultation of online documents is available at: 
http://portal.sat.gob.gt/siti o/index.php/descargas/doc_download/5010 -in-iad-dno-de-15-guia-de-usuario -
para-el-registro -y-consulta -de-doctos -digitalizados.html . 
41 The following electronic  documents are required in order to obtain an exporter's code: an invoice in 
the name of the expor ter, a copy of the exporter's unified tax registration, a duly completed form giving details 
of the legal representative and a duly completed form with the signature and stamp of the legal representative. 
Once the procedure has been endorsed, Q  80.00 has t o be paid, also electronically . Both forms can be found 
on VUPE 's website  at: http://www.export.vupe.com.gt . WT/TPR/S/348 • Guatemala  
- 58 - 
  3.98.   In order to export products whose origin or destination is not one of the CACM member 
countries, a declaration for the registration and control of exports (DEPREX) has to be issued. A 
DUA has to be  attached to the completed forms according to origin and destination (FAUCA or 
DEPREX) declaring the goods for export. There are several types of DUA according to the 
destination of the goods, means of transport or export procedure followed. For exports co vered by 
some preferential arrangements or agreements (such as the GSP+ and CAFTA -DR), a certificate of 
origin must be issued and this is available free of charge on VUPE's website.  
3.99.   The export of some products is subject to special controls in the form of permits, licences or 
certificates issued by various government or private institutions (Table 3.11).  
Table 3.11 Products subject to special export authorization, 2015  
Type of product to be exported  Institution  responsible  Requirements/documents 
required  
Coffee  National Coffee Association 
(ANACAFÉ)  Export and shipping permit  
Wood and wood products  National Forestry Institute (INAB)  (1) Registration in the timber 
exporters' register  
(2) Certificate of legal or igin 
Medicines, chemical or pharmaceutical 
products for human consumption  Ministry of Public Health and  Social 
Welfare (MSPAS)  Certificate of free sale  
Minerals  Ministry of Energy and Mining (MEM)  Operating licence  
Products of animal origin  Ministry of Agriculture, Livestock and 
Food (MAGA)  Phytosanitary certificate  
Forest products  National Council for Protected Areas 
(CONAP)  CITES export permit and an export 
permit for flora and fauna not 
regulated by CITES  
Fishery products covered by CITES  CONAP  CITES export permit  
Fishery products not covered by 
CITES  MAGA  Animal health certificate  
Products of plant origin  MAGA  Phytosanitary certificate  
Textiles  Textiles and Clothing Commission  EXTEX document  
Source:  Information provided by the authorities.  
3.2.2   Export taxes, charges and levies  
3.100.   Pursuant to the 1969 Coffee Law (Legislative Decree No.  19-69 of 30  April 1969, as 
amended in 1985), coffee growers have to pay 1% of the f.o.b. value for each quintal of coffee 
exported. The tax is collected by the National C offee Association ( ANACAFÉ) , a non -profit -making 
public law body composed of Guatemala's coffee growers. The revenue received by ANACAFÉ 
fluctuates according to the volume of exports and coffee's market value. Some of this revenue is 
set aside for the Muni cipal Development Institute (INFOM) to support technical assistance, 
financial and administrative programmes for municipal authorities. The income accruing to the 
municipal authorities is determined solely on the basis of export volume. In 2015, ANACAFÉ 
received Q  50 million and transferred Q  1 million to the INFOM. No levies on the export of other 
products were introduced over the period 2009 -2016.  
3.2.3   Export prohibitions, restrictions and licensing  
3.101.   Guatemala does not allow the export of certain goods for reas ons of security, protection of 
the environment and conservation of the cultural heritage.  
3.102.   It is not permitted to fell trees or export wood of protected species or those at risk of 
extinction. Protected species are those determined jointly by the National F orestry Institute (INAB) 
and CONAP, as well as those listed in the Convention on International Trade in Endangered 
Species of Wild Fauna and Flora (CITES), ratified by Guatemala in 1979. Timber in logs of more 
than 11 cm. in diameter may not be exported, u nless as part of furniture or an item with value 
added or comes from sustainable plantations authorized by the INAB.42 Violation of this ban is 
punishable by a fine and a term of imprisonment.  
                                                
42 Forestry Law, Legislative Decree No.  101-96 of 2  December  1996.  WT/TPR/S/348 • Guatemala  
- 59 - 
  3.103.   The General Law on fishing and aquaculture of 2002 bans the  export of eggs, larvae, 
post-larvae, hatchlings, juvenile fish and breeding animals from the natural environment, except 
for those produced in laboratories or by artificial means duly authorized by law. The Constitution 
forbids the export of paleontological, a rchaeological, historical and artistic goods and assets that 
form part of Guatemala's national heritage.  
3.104.   Government Decision No.  1-2010 issued the provisions regulating the export of metal 
waste and scrap, setting maximum quotas in terms of tonnes for the export of such products.  
3.2.4   Export support and promotion, including export processing zones  
3.105.   One of the most important changes introduced since the previous Review in terms of trade 
policy was the elimination of export performance requirements for production u nder the free zone 
and maquila regimes in 2016. Prior to March  2016, Guatemala had three export subsidy 
programmes: (1) special customs regimes (maquila); (2) free zones; and (3) the industrial and 
trade free zone (ZOLIC).  The programmes continued to be im plemented throughout the major part 
of the review period pursuant to Article  27.4 of the Agreement on Subsidies and Countervailing 
Measures (SCM Agreement). The three regimes allowed exemption from payment of tariffs (DAI) 
and other import duties (includin g VAT) for imports of machinery, equipment, parts, components 
and accessories needed for the production process.  
3.106.   To be eligible for the exemptions gra nted under the maquila and free -zone regimes, an 
authorization from MINECO was needed. The requirements fo r obtaining an authorization to 
operate are defined in the laws relative to each regime. To be eligible for the ZOLIC regime, it was 
necessary to be established and to operate within the Santo Tomás de Castilla industrial and trade 
free zone in the departm ent of Izabal.  
3.2.4.1   Special customs regime (maquila) programme  
3.107.   The Law on the promotion and development of exporting and maquila activities 
(Maquila  Law) of 1989 granted export subsidies through tax exemptions to duly authorized 
companies.43 The regime gave tota l exemption from income tax (ISR) on income earned from the 
export of goods produced or assembled in Guatemala and subsequently exported. Exemption from 
payment of ISR was granted for a period of ten years. In addition, the regime also allowed 
exemption fr om tariffs and import duty (including VAT) on imports of machinery, equipment, parts 
or components and accessories needed for the production process.  
3.108.   In order to be eligible for the subsidies, the goods had to be exported or re -exported 
within a maximum pe riod of one year as of the import of the inputs used to produce them.44 
Exports had to be destined for any CACM country. Sale of goods entering under the maquila 
regime within Guatemala was only authorized if the corresponding tariffs and other income taxes  
were paid. Article  2 of the Maquila Law excluded the export of certain traditional products from the 
tax regime, for example: coffee in any form, cattle and bovine meat, some types of cardamom, 
crude petroleum, cane sugar and wood in various forms.  
3.109.   The nu mber of companies benefiting from the maquila regime rose during the review 
period. In October  2014, 757 companies were operating under the programme (455 in 2006).45 
According to the authorities, the benefits accorded under this programme were abolished as  of 
31 December  2015.  
3.2.4.2   Free zones  
3.110.   The 1989 Free Zones Law regulated subsidies  for the export or re -export of goods 
produced or assembled in free zones.46 The regime gave the following benefits to users established 
in free zones: (a) permanent exemption from tariffs (DAI) and VAT on imports; (b) temporary 
exemption from the ISR for five years for businesses and ten years for industries and service 
                                                
43 Legislative Decree No.  29-89 of 13 June 1989.  
44 The time limit runs from acceptance of the respective import document.  
45 Online information from MINECO. Viewed at: http://www.mineco.gob.gt/actividad -exportadora -y-de-
maquila  (figures for 2014) and WTO document G/SCM/Q4/GTM/5 of 11  October  2006 (figures for 2006).  
46 Legislative Decree No.  65-89 of 14  November  1989 and amendments thereto.  WT/TPR/S/348 • Guatemala  
- 60 - 
  companies; (c) permanent exemption from VAT on sales within the free zone or between free 
zones; and (d) permanent  exemption from import duty for exports from free zones to free zones in 
other CACM countries. Although the programme was export -oriented, it allowed companies to sell 
up to 20% of their output on the domestic market, subject to payment of the correspondin g taxes. 
These benefits were modified by Decree No.  19-2016 (see below).  
3.111.   During the review period, five new free zones were approved. The 12 free zones existing in 
2009 thus became 17 in 2015. The number of companies operating in free zones rose from 204 i n 
2006 to 282 in April  2015.47 In 2015, two of the free zones approved (Zeta La Unión and Zofracro) 
accounted for over two thirds of the total users of free zones and two (Terminal LC and Ozofra) 
showed no activity. Commercial users account for approximatel y three quarters of the total users 
of free zones (Table 3.12).  
Table 3.12 Authorized users established in free zones, 2015  
Free zone  Commercial users  Industrial users  Service users  Total  
Amatitlán  5 0 0 5 
Buenos Aires  1 1 1 3 
Ciplesa  12 2 2 16 
Consigna  2 0 0 2 
El Cacao  2 0 0 2 
Incoinsa  11 0 4 15 
Inssa  3 0 1 4 
Petapa  0 0 2 2 
Sadinsa  21 1 4 26 
Terminal LC  0 0 0 0 
Zeta La Unión  39 20 15 74 
Zofracro  106 10 4 120 
Zofracsa  5 1 1 7 
Zofrasur  1 0 0 1 
Zofratusa  1 1 0 2 
Zona Global  3 0 0 3 
Ozofra  0 0 0 0 
Total  212 36 34 282 
Source:  MINECO. Viewed at: http://www.mineco.gob.gt/reportes . 
3.112.   The share of exports under free zone and maquila regimes in Guatemala's  total exports 
remained stable throughout the period 2009 -2013 but started to increase in 2014 and reached its 
highest level (41.6%) in 2015. That year, 83% of exports under special regimes consisted of 
maquila exports and the remainder were free zone expo rts, lower than the ratio existing at the 
beginning of the review period when, in 2009, 88.7% of exports came from the maquila regime 
(Table 3.13). Overall, if compared with the situation prevailing prior to the global crisis, it is clear 
that the share of  special regimes has been declining since its peak of 47.1% in 2004.  
Table 3.13 Exports under the maquila and free -zone regimes, 2009 -2015  
 2009  2010  2011  2012  2013  2014  2015  
Total exports  7,295  8,536  10,519  10,103  10,183  10,992  10,831  
Maquila and free -zone regimes  2,586  2,989  3,776  3,463  3,603  4,168  4,316  
Maquila  2,293  2,654  3,352  3,040  3,069  3,481  3,582  
Free zone  293 335 424 423 534 687 734 
% of total  35.4 35.0 35.9 34.3 35.4 37.9 41.6 
Maquila and free zone exports of 
textiles and articles of apparel 
(Chaps. 50 -63 of the HS)  2,256  2,076  2,201  2,245  2,142  2,090  2,079  
Source: WTO Secretariat, based on information provided by the authorities.  
3.2.4.3   Industrial and trade free zone (ZOLIC)  
3.113.   The purpose of the ZOLIC  programme is to boost the economic and social development of 
the Department of Izabal, taking advantage of its strategic location as the only Guatemalan 
                                                
47 Online information from MINECO. Viewed at: http://www.mineco.gob.gt/reportes  figures for 2014) 
and WTO document G/SCM/Q4/GTM/5 of 11  October  2006 (figures for 2006).  WT/TPR/S/348 • Guatemala  
- 61 - 
  department with access to the Atlantic Ocean. It is regulated by the Organic Law of the 
Santo  Tomás de  Castilla industrial and trade free zone.48 
3.114.   The ZOLIC regime gives its users, among other benefits, total exemption from payment of 
the ISR (for ten years) and exemption from the DAI and VAT on imports of goods entering the free 
zone as raw materials, input s, intermediate goods, packaging, containers, equipment, machinery, 
spare parts or accessories for the production activities carried out in the ZOLIC.  
3.2.4.4   Amendment of the export support regime  
3.115.   Pursuant to a decision adopted by the WTO General Council on 31  July 200749, the 
Committee on Subsidies and Countervailing Measures (SCM Committee) was empowered to give 
Guatemala an extension of its export subsidy regime until 2013, with an additional gradual 
transition period of two years. Guatemala undertook to dismant le the so -called "prohibited 
subsidies" on exports by 31  December  2015 at the latest.  
3.116.   In 2010, in conformity with paragraph 1(f) of the General Council's decision, Guatemala 
presented the SCM Committee with an action plan for eliminating the subsidies. Thi s document 
describes the three special subsidy regimes implemented by Guatemala and provides a detailed list 
of the tax exemptions granted according to the nature of the tax exempt, the duration of the 
exemptions granted, the beneficiaries of exemption and  the type of transaction, goods or services 
to which they apply.50 
3.117.   From 2010 to 2014, Guatemala submitted notifications to the SCM Committee containing 
information on the progress made in implementing the timetable proposed in 2010. During this 
period, Guat emala notified that it had not increased the benefits under the programmes, in 
accordance with Article  27.4 of the SCM Agreement.  
3.118.   In 2012, Guatemala responded to the questions put by other WTO Members. In reply to 
those on the future elimination of the pro hibited subsidies, Guatemala stated that it had notified 
users by letter that the benefits granted under the special regimes would end as of 
31 December  2015. The authorities have indicated that they do not have any statistical 
information quantifying the amount of benefits under each programme or publicly available 
documents concerning the reform process. According to Guatemala, the authorizations issued by 
MINECO specify that export subsidies will not be granted after 31  December  2015. Guatemala also 
reaffirmed its objective of dismantling the prohibited subsidies before 31  December  2015.51 
3.119.   The latest notification on progress with the Action Plan was submitted to the 
SCM Committee on 11  November  2015, indicating that the proposed reform of the export subsid y 
regimes was under discussion in Parliament.  
3.120.   During the period under review, Guatemala submitted a number of legal initiatives with a 
view to complying with its WTO commitments and thus eliminating prohibited export subsidies. 
Draft proposals were drawn u p and the following initiatives were put before the Congress of the 
Republic: (a) Initiative 4644 , Law on the promotion of investment and employment, submitted on 
14 January  2013; (b) Initiative 4894, Law on the promotion of employment, 14  September  2014; 
(c) Initiative 4948, Law on economic conditions for promoting employment, 9  March  2015; 
(d) Initiative 4997, Emergent Law on job protection: Initiative amending Decrees of the Congress 
of the Republic Nos.  29-89 and  65-89 of 5  November  2015; and Initiative  5007, Emergent Law on 
job protection: Initiative amending Decrees of the Congress of the Republic Nos.  29-89 and  65-89 
of 26 November  2015.  
3.121.   Although the first four initiatives did not succeed, the last was approved by the Congress 
of the Republic by means  of Decree No.  19-2016 of 25  February  2016, which was published in the 
Official  Journal on 30  March  2016 and came into force on 31  March  2016. The Law introduces 
important amendments to Decree No.  29-89 (Law on the promotion and development of exporting 
and maquila activities), primarily aimed at eliminating export subsidies (Table 3.14).  
                                                
48 Legislative Decree No.  22-73 of 5  April 1973.  
49 WTO document WT/L/691 of 31  July 2007.  
50 WTO document G/SCM/N/211/GT M of 7  July 2010.  
51 WTO document G/SCM/Q3/GTM/16 of 19  October  2012.  WT/TPR/S/348 • Guatemala  
- 62 - 
  Table 3.14 Amendments to the legal framework introduced by Decree No.  19-2016  
Regulatory aspects 
amended  Articles/clauses 
covered  Changes  Aim of this change  Action taken for 
its implementation  
Amendments to Decree 
No. 29-89 (Law on the 
promotion and 
development of exporting 
and maquila activities) 
through Decree 
No. 19-2016 (Emergent 
Law on job protection)  Amendment of Artic les 
1, 3, 6, 12, 13, 18, 19, 
27, 33, 34, and 37.  
Repeal of Article 15.  
Addition of Articles 4 bis, 
8bis, 12bis, 36bis, 39bis 
and 43 bis  Elimination of 
prohibited 
export benefits  To comply with WTO 
commitments on 
eliminating prohibited 
export subsidies  Implementation of the 
Action Plan for the 
elimination of 
prohibited subsidies.  
Modification of the 
legal framework  
Amendments to Decree 
of the Congress of the 
Republic No.  65-89  
(Free Zones Law)  Amendment of Articles 
4, 22, 36, and 41.  
Repeal of Articles 2 3, 
24 and 26.  
Addition of transitional 
Articles 5 bis, 36bis, 28, 
29 and 30.  Elimination of 
prohibited 
export 
incentives  To comply with WTO 
commitments on 
eliminating prohibited 
export subsidies  Implementation of the 
Action Plan for the 
elimination of 
prohibited subsidies.  
Modification of the 
legal framework  
Source:  Information provided by the authorities.  
3.122.   The authorities consider that the new legal framework complies with Guatemala's WTO 
commitments to eliminate the following prohibited export subsidies: (a) total exemption from the 
ISR, income earned or derived exclusively from the export of goods which have been 
manufactured or assembled in Guatemala and exported; (b) exemption from the DAI and VAT on 
imports of machinery, equipment, parts, components an d accessories; (c) total exemption from 
regular and special export taxes; (d) total exemption from taxes, the DAI and other charges on 
imports and consumption of fuel oil, butane gas and bunker propane, strictly necessary for 
generating electric power; (e)  suspension of the DAI and VAT on sample books, engineering 
samples, instructions, templates and models needed for the production process or for 
demonstration purposes for research and instruction for a period of up to one year; and 
(f) suspension of the D AI and VAT on machinery, equipment, parts, components and accessories, 
for a period of up to one year.  
3.123.   The only activities which will receive production subsidies under the new legal framework 
are the manufacture of textiles and clothing and information an d communications 
technology -related service providers offering call centres, or contact centres. The requirements for 
businesses seeking to obtain the benefits laid down in the Emergent Law on job protection can be 
found online on MINECO's website.52 The sa me applies to businesses seeking user status in order 
to set up in free zones and obtain the benefits accorded by the Law.  
3.2.5   Export financing, insurance and guarantees  
3.124.   Guatemala did not have any official export financing, insurance or guarantee programme 
during the period under review.  
3.125.   In 2010, the Central American Bank for Economic Integration (CABEI) launched an 
international trade facilitation programme (I -FACIL) with the aim of giving support to 
Central  American exporters and importers in production secto rs with limited resources. The 
initiative comprises two action programmes: the "Anticipos I -FACIL" programme offers financing 
alternatives with terms of up to 12 months for pre -export, post -export and import transactions. 
The programme's resources are obta ined through commercial banks. The "Garantías I -FACIL" 
programme consists of guarantees issued by the CABEI in favour of a foreign bank in order to 
cover the commercial risk of trade instruments (for example, letters of credit, stand -by letters of 
credit, promissory notes and bills of exchange) issued by commercial banks in the 
Central  American region. The guarantees are given for terms of up to 12 months. The CABEI has 
signed export guarantee agreements, inter alia, with financial institutions in Argentina , the 
Russian  Federation and Spain. The disbursements made to the financial sector under this 
programme from 2010 to date amount to US$58.5  million.  
                                                
52 This information may be viewed at: http://www.mineco.gob.gt/requisitos . WT/TPR/S/348 • Guatemala  
- 63 - 
  3.3  Measures affecting production and trade  
3.3.1   Incentives  
3.126.   In addition to the incentives provided in Decree No.  006-2016, which amended the 
Free Zones Law and its implementing Regulations (Decree No.  65-89 and Government Decision 
No. 242-90), the Law on the promotion and development of exporting and maquila activities and 
its implementing Regulations (Decree No.  29-89 and Government Decision No.  533-89) and the 
Foreign Investment Law (Decree No.  9-98), Guatemala gives incentives to micro, small and 
medium -sized enterprises (MSMEs) and for research and development.  
3.127.   The authorities continue to attach considerable importan ce to the development of MSMEs. 
The general policy applicable to them is the responsibility of the National Council for the Promotion 
of Micro and Small Enterprises, created by Government Decision No.  253-94, which was amended 
by Government Decision No.  178-2001, introducing some changes concerning the functions of the 
National Council.53 MINECO's Vice -Ministry for the Development of Micro, Small and Medium -Sized 
Enterprises is responsible for formulating strategies and coordinating policies in this sphere, and 
for implementing the National Programme for the Development of Micro, Small and Medium -Sized 
Enterprises.54 The overriding principle is to facilitate access to financing sources and business 
development services in order to raise the productivity and co mpetitiveness of MSMEs in the 
industrial, agro -industrial, crafts, trade, services and tourism sectors.  
3.128.   As regards financial services, the Programme seeks to facilitate access to credit through 
financial intermediaries, which provide resources to be used e xclusively for loans to MSME -owned 
businesses.55 This is achieved using the resources of the Fund for Micro, Small and Medium -Sized 
Enterprises, which are channelled to users through eligible financial services bodies, in accordance 
with the regulations on financial transactions under the National Programme for the Development 
of Micro, Small and Medium -Sized Enterprises.56 Eligible financial services bodies may grant 
secured, trust or mortgage loans. Terms may be up to 36 months depending on the type of loan , 
which may be used for working capital, to buy machinery, equipment and/or tools, production 
infrastructure, extension and/or renovation of the company, the purchase of vehicles exclusively 
for use in production, or investment to give the company internat ional stature. The maximum 
amounts that may be sought are up to: Q  150,000 for business persons, Q  250,000 for a 
microenterprise, Q  500,000 for a small enterprise and Q  1.5 million for a medium -sized 
enterprise.57 
3.129.   As regards the promotion of research and de velopment, the National Science and 
Technology Council (CONCYT), created by the Law on the promotion of national scientific and 
technological development (Decree No.  63-91) of 18  July 1991, is the leading government 
institution in Guatemala for promoting a nd coordinating research and financing research and 
development projects carried out through the National Science and Technology Scheme 
(SINCYT).58 CONCYT is composed of nine representatives of the government, private and academic 
sectors, and is responsibl e for preparing, implementing and following up the Scientific and 
Technological Development Plan and its corresponding programme of work. The most recent plan 
is for the period 2015 -2032. Through the National Science and Technology Secretariat (SENACYT), 
CONCYT may enter into any type of financial or technical cooperation with any national or 
international body in order to implement its activities, projects and programmes, to be carried out 
by institutions belonging to the SINCYT, and to strengthen the Nati onal Science and Technology 
Fund (FONACYT). FONACYT was established by Decree No.  73-92 and is the financial mechanism 
                                                
53 The text of these Decisions may be viewed at: 
http://www.mineco.gob.gt/Presentacion/LeyesNormas.aspx . 
54 Further online information regarding business development policy in Guatemala is available  at: 
http://www.mineco.gob.gt/desarrollo -de-la-mipyme -0#sthash.xcuW1Tpl.dpuf . 
55 Online information from MINECO. Viewed at: http://www.mineco.gob.gt/servicios -
financieros#sthash.4koM1Jkt.dpuf . 
56 May be viewed online at: 
http://www.mineco.gob.gt/sites/default/files/reglamento_programa_mipyme.pd f. 
57 Online information from MINECO. Viewed at: http://www.mineco.gob.gt/servicios -
financieros#sthash.VvsymdNS.dpuf . 
58 Online information from CONCYT. Viewed at: 
http://senacyt.concyt.gob.gt/portal/index.php/nosotros/planes -e-informes/plan -nacional -de-ciencia -tecnologia -
e-innovacion -2005-2014. WT/TPR/S/348 • Guatemala  
- 64 - 
  enabling CONCYT to obtain resources for the effective guidance, coordination and financing of 
national scientific and technological devel opment. FONACYT's funds come from the State's annual 
budget, loans and grants and from bilateral and multilateral cooperation programmes. In 2016, 
Q 16.5 million were earmarked for FONACYT, of which Q  3 million were for the Science and 
Technology Support F und (FACYT) line; Q  9.3 for the Scientific and Technological Development 
Fund (FODECYT) line; Q  1.55 million for the National Science and Technology Plan Multiple Support 
Fund (MULTICYT) line; and Q  884,000 for the Technological Innovation Fund (FOINTEC) l ine.59 
3.3.2   State -owned enterprises  
3.130.   In 2012, Guatemala noti fied the Working Party on State Trading Enterprises  that it did not 
have any State trading enterprises within the meaning of the Understanding on the Interpretation 
of Article  XVII.60 The authorities have  indicated that in 2016 the same situation as that prevailing 
in 2012 still applies to State  trading enterprises.  
3.131.   As a result of the privatization programme launched in the 1990s, only a few State -owned 
enterprises remain in Guatemala. These include the mo rtgage bank Banco Crédito Hipotecario 
Nacional, the Santo Tomás de Castilla industrial and free trade zone, the two major ports 
(Puerto  Quetzal and Puerto Santo Tomás de Castilla), and La Aurora International Airport in 
Guatemala City.  
3.3.3   Competition policy a nd price controls  
3.132.   Guatemala still does not have any general competition law as such. The Constitution 
prohibits monopolies and calls on the State to intervene if abusive practices lead to the 
concentration of goods or means of production to the detriment o f the population as a whole, or to 
associations that tend to restrict the free play of market forces or prejudice consumers. 
Articles  361 to 367 of the Commercial Code reaffirm the prohibition on monopolies and contain 
provisions to protect free competitio n which define various acts that constitute unfair competition 
and are prohibited. There is, however, no legislation on the imposition of remedial measures or 
sanctions.  
3.133.   MINECO is the authority responsible for this sector, delegating the corresponding func tions 
to the Vice -Ministry of Investment and Competition and in turn the latter delegates them to the 
Competition Directorate, which has the task of monitoring competition policy in Guatemala. 
Moreover, currently, some of the regulatory bodies, in accordan ce with the ordinary law 
concerning them, monitor certain aspects of competition in their particular areas or sectors, for 
example, the National Electricity Commission (CNEE) and the Directorate -General of 
Hydrocarbons.  
3.134.   The party concerned, the competent p rofessional association or the Public Prosecutor's 
Office may bring a case for unfair competition. During the period under review, no denunciation in 
this regard was investigated by the Public Prosecutor's Office. Legal proceedings must be brought 
before t he competent court.  
3.135.   Because there is no specific legislation in this area, cartels of exporters, importers or 
producers are not prohibited under Guatemala's legislation. No authorization is required either for 
mergers. There are no marketing boards or simi lar institutions in the agricultural sector.  
3.136.   In order to fill this vacuum, in 2015 MINECO, using the services of a consultant and with 
financing from the Inter -American Development Bank (IDB), prepared a draft law on competition, 
which limits the discretio nary powers of the authority responsible for implementing the law by 
defining the conduct and acts deemed to be violations, as well as the evaluation procedures and 
criteria, thus providing legal certainty for economic operators. The draft adopts a dual ap proach 
combining resort to the practice itself (for absolute practices, i.e. those prohibited because of their 
                                                
59 National Science and Technology Secretariat (SENACYT) (2015), Plan Operativo Anual de la SENACYT 
2016 y Multianual 2016 -2018, Guatemala, December  2015. Viewed at : 
http://senacyt.concyt.gob.gt/portal/attachments/article/131/Plan%20Operativo%20Anual%20de%20la%20SE
NACYT%202016.pdf . 
60 WTO document G/STR/N/9/GTM, G/STR/N/10/GTM, G/STR/N/11/GTM, G/STR/N/12/GTM, 
G/STR/N/13/GTM, G/STR/N/14/GTM, of 11  July 2012.  WT/TPR/S/348 • Guatemala  
- 65 - 
  nature) and causation (for relative practices, only prohibited if they have negative effects). 
The following are the main elements of the draft l aw on competition61: 
 Title I contains general provisions, principles, the purpose of the law, its territorial, 
material and personal scope, and definitions.  
 Title II deals with substantive aspects concerning the defence of competition and is 
divided into th ree chapters: Chapter I concerns prohibition and punishment of absolute 
practices, Chapter  II deals with prohibition and punishment of relative practices, while 
Chapter III concerns the mechanism for authorizing mergers.  
 When examining, defining and penali zing absolute practices , the general rule is to 
examine them according to the rule of the practice as such (instead of prohibiting them 
only if they have negative effects). The authorities consider that, as a result, it is more 
effective for the competitio n authority to prove that the conduct is unlawful, which 
requires fewer resources and gives economic operators greater legal certainty.  
 For the examination, definition and penalization of relative practices , the rule of 
causation is followed. For this, cer tain concepts have to be analysed such as the market 
concerned, the actual market power and essential input. The authorities have indicated 
that the causation -based analysis is used because this type of practice can in fact lead to 
efficiency and benefits which it is worth protecting in the market, or which in some cases 
are greater than the possible restrictive effect that might ensue.  
 With regard to authorization of mergers , the goal is to implement a prior 
authorization mechanism to come into effect upon  entry into force of the law, with 
economic thresholds that allow commercial traffic to remain fluid.  
 Title III regulates the functions of the Supervisory Authority for Competition as regards 
the promotion of competition, giving an opinion, conducting stud ies, and coordination 
and cooperation with other government authorities, international organizations or foreign 
competition authorities.  
 Title IV covers the institutional aspects of the Supervisory Authority for Competition, 
namely its creation, purpose, f unctions, responsibilities and the procedure for choosing 
and appointing its authorities (Governing Board and the Supervisor), internal audit, 
budget mechanism, assets, labour aspects, liabilities, and transparency and 
accountability. The Guatemalan author ities have indicated that the idea here is to adopt 
best international practices, which recommend that the competition authority should be 
financially, operationally and technically independent in carrying out its tasks. It should 
also have autonomy vis-à-vis the government and economic authorities. The 
Guatemalan authorities have indicated that in -depth consideration was given to the 
possibility of making the fines imposed for resort to practices restricting competition part 
of the Supervisory Authority's budget, but this was finally rejected in order to avoid any 
perverse incentive to prosecute so as to generate funds for the budget. With regard to 
resource management and performance, a system of transparency and regular 
accountability vis-à-vis government  authorities is planned.  
 Title V deals with procedural aspects. As regards practices restricting competition, the 
first step is an investigation procedure, following by legal proceedings. Provision is also 
made for a prior authorization procedure for merge rs, together with special procedures 
for giving opinions and approving regulatory provisions, giving them maximum publicity. 
There is also provision for challenging decisions at the administrative stage, requests for 
review and re -examination. The draft la w also provides for a special coercive economic 
procedure and an administrative litigation procedure, also specific to the competition 
sphere, to be the responsibility of a chamber in the Administrative Disputes Tribunal 
specializing in this field.  
                                                
61 The draft law has been put before the Congress of the Republic, which may agree to it or amend it in 
accordance with its legislative procedures.  WT/TPR/S/348 • Guatemala  
- 66 - 
   Title V I determines the offences, penalties, measures and related aspects. The 
authorities have stressed the importance of ensuring that the sanctioning mechanism 
should focus on discouraging conduct by economic operators that restricts competition. 
The fear of b eing punished by a large economic fine should suffice to convince economic 
operators to seek alternatives in order to boost their market share.  
 Title VII defines the mechanism for obtaining exemptions or less severe penalties or the 
clemency programme. The  latter provides that economic operators which have violated 
the law but which collaborate with the investigating authorities may benefit from a 
reduction of, or even exemption from, the applicable penalties. It also provides for the 
possibility of reducin g fines if the economic operator concerned agrees to pay the fine 
without challenging it before the courts.  
 Title VIII concerns the classification of information and documents which the competition 
authority has obtained directly when conducting an investi gation and verification 
procedures. Depending on the circumstances, they may be considered confidential, 
restricted or public.  
 Title IX sets out the final provisions. It is provided that, instead of an extended legal 
vacuum that might prevent the entry int o force of all the provisions envisaged in the 
draft law, there should be a one -year grace period during which economic operators will 
not be liable for anti -competitive conduct. It is also provided that, during this period, the 
competition authority may n ot initiate investigation procedures or penalize economic 
operators which might resort to restrictive practices and there will be no obligation for 
them to seek prior authorization for mergers. The authorities' idea in this connection is 
that the competiti on authority will thus be able to organize itself and start to exercise its 
task of promoting competition during this year.  
3.3.4   Government procurement  
3.3.4.1   Overview  
3.137.   In 2015, the Guatemalan Government's current spending on goods and services amounted 
to 2.1% of GDP and rose to Q  7,995.8  million (some US$999.5  million), an amount considerably 
lower than that recorded in 2014 (Q  9,346  million). Total investment spending was 
Q 2,063.3  million in 2015, less than half the Q  4,280.3  million spent in 2014. This reduction is  
attributable to the general policy on reducing public spending applied by the Government in 2015.  
3.3.4.1.1   Regulatory framework  
3.138.   Guatemala has a decentralized government procurement regime under which each 
procuring entity makes its own purchases on the basis of an  annual plan and the financial 
resources available, although the relevant general legislation applies. The Government Contracting 
and Procurement Policy Directorate (DNCAE), attached to the Ministry of Finance , is in charge of 
regulating government procure ment and is the governing body for government contracting; it  also 
administers the (GUATECOMPRAS) and its electronic platform and facilitates procurement by the 
public sector in the form of open procurement contracts.  
3.139.   The Law on government procurement or L CE (Decree No.  57-92 of 21  October  1992) and 
its implementing Regulations (Government Decision No.  1.056 -92 of 24  December  1992) govern 
procurement by the public sector. All State authorities using public funds for procurement must 
comply with the LCE. Bot h instruments have been amended on a number of occasions since 
2009.62 Decree No.  27-2009 provided for the incorporation of an attestation of available funds 
before a contract could be awarded and made the bases for competition available free of charge. 
Resolution No.  30-2009 (regulations on use of the GUATECOMPRAS system) provided for a price 
quotation procedure through the GUATECOMPRAS system, incorporated the notion of 
                                                
62 The Law on government procurement was amended by Decrees No . 27-2009 of 17  September  2009, 
No. 45-2010 of 22  November  2010, No.  6-2011 of 31  May 2011 and No.  9-2015, approved on 
17 November  2015 and in force since 16  December  2015. The corresponding amendments to the implementing 
Regulations were in the form of Go vernment Decisions.  WT/TPR/S/348 • Guatemala  
- 67 - 
  non-conformity in the procedure and increased the basic amount of the price quotation. Decree 
No. 6-2011 incorporated the open contract procedure into the LCE.  
3.140.   The most important amendments were those approved by Decree No.  9-2015, which 
sought to impose stricter control and more transparency in bidding procedures. They include the 
following : 
 GUATECOMPRAS is defined as the only system authorized to undertake government 
procurement; it is given the status of a Directorate -General, with the creation of the 
Directorate -General of Government Procurement in charge of government procurement 
and the  GUATECOMPRAS information system. Its responsibilities also include 
coordinating the open contract method of procurement; deciding on use of private funds 
to strengthen, develop and modernize procurement procedures; and certifying the 
government officials responsible for procurement.  
 The form in which bidding committees should be set up is specified: they may not 
include legal representatives, managers, employees or their families, advisers, attorneys 
or experts belonging to the bidding firm or persons invo lved in preparing any stage of 
the bid.  
 Purchase of medicines: there may not be a single supplier. The MSPAS and the 
Guatemalan Social Security Institute (IGSS) may purchase medicines and other medical 
inputs directly under international agreements signed with the Pan American Health 
Organization, the WHO and other United Nations agencies.  
 In order to prevent any conflict of interest, persons financing electoral campaigns, 
government officials and employees and their families may not be government suppliers . 
 Online reverse auctions are introduced.  
 Online submission of bids for the method of procurement to be used is regulated 
(computerized procedures).  
 The general register of suppliers is established.  
 It is provided that the National Institute of Statistics shall be responsible for providing 
reference prices for the processes and procedures established in the LCE and stricter 
rules on their use are laid down.  
 Exceptions to the obligation to use a public bidding procedure are restricted and leasing, 
whether or  not with a purchase option, is made subject to public competition.  
3.141.   The LCE and its implementing Regulations apply to the purchase, sale and contracting of 
goods, supplies, works and services by government authorities, their decentralized and 
autonomous bo dies, municipal authorities and State -owned enterprises.63 Following the 
amendment of the LCE in Decree No.  9-2015, the privileges given for government funds used 
through trusts and non -governmental organizations (NGOs), which had been subject to the LCE, 
were abolished. The LCE applies on a supplementary basis to procurement covered by 
international agreements to which Guatemala is party, provided that it is not contrary to the 
provisions in these agreements (Article  1). 
3.142.   The LCE does not discriminate betwee n Guatemalan and foreign natural or legal persons as 
far as government procurement is concerned. Foreign nationals may take part in any government 
procurement procedure provided that they meet the requirements laid down and, if they are 
awarded a contract,  they must be registered in the appropriate Register. The Law does not contain 
any provisions giving preferential treatment to goods, services or works of domestic suppliers 
compared to foreign suppliers. Both domestic and foreign suppliers must pay VAT.  
                                                
63 Article 1 of Decree No.  57-92. WT/TPR/S/348 • Guatemala  
- 68 - 
  3.143.   The LCE provides for various contracting methods that are applied according to the amount 
and subject of the procurement.64 These are:  
 Public bidding (Article  17): this applies to procurement or contracts for an amount 
exceeding Q  900,000 (US$115,385), excep t in cases specified in the Law. Invitations to 
bid are published on GUATECOMPRAS and once only in the Official Journal, with no more 
than five calendar days elapsing between the publications.65 
 Price quotation regime (Article  38): this applies to contracts  for an amount of Q  90,001 
to Q 900,000 (US$11,539 to US$115,385) and entails a public competition through 
GUATECOMPRAS; a minimum number of bidders is not required.  
 Direct purchasing (Article 43): this is used for contracts of up to Q  90,000 (increased 
from Q  30,000 in 2009) under the responsibility of the contracting authority, which must 
take into account the price, quality, delivery time and other criteria beneficial to the 
State. Details showing as a minimum the goods or services contracted, the name o f the 
supplier and the amount of the contract awarded must be published on GUATECOMPRAS. 
Direct purchasing is also used if there are no bids in a public bidding procedure 
(Article  32). 
 Open contracting (Article  46): this allows contracting authorities to p rocure goods and 
services customarily and regularly used, without a bidding or price quotation procedure, 
directly from preapproved suppliers selected by means of an open contract with the 
Ministry of Finance. The DNCAE coordinates this procurement method,  for which the 
volume and standard specifications have to be taken into account. Calls for an open 
contract competition have to be published on GUATECOMPRAS and in the Official Journal 
following the same procedure as that for public bidding.66 
3.144.   Bearing in mi nd the need for efficient public spending, the amendments to the  LCE in 2015 
led to the introduction of new methods of procurement in order to streamline and catalyse 
government procurement and contracting, and also to promote transparency. This is the ca se for:  
 Purchase of small quantities (Article 43(a)): this involves direct purchase of goods, 
supplies, works or services without respecting the requirements relating to competitive 
procedures applicable to the other methods in the LCE, if the purchase is for an amount 
of up to Q  10,000; it must be published on GUATECOMPRAS once the goods, services or 
supplies have been received.  
 Reverse online auction (Article  54bis): this method for the government procurement of 
standardized or approved goods or services is proactive and operates within the 
GUATECOMPRAS system. Bids are made publicly, online and in real time on the basis of 
a reference price known to the public before the auction, which is used as the point of 
departure for the procedure. Transitional Arti cle 38 of the 2015 amendments to the LCE 
sets a time limit of 24 months from the Law's entry into force for setting up the 
electronic platform for use of the reverse online auction method.  
3.145.   The LCE provides for other ways in which government procurement can  be effected. For 
example, donations (Article  1); purchasing under international conventions and agreements 
(Article  1); negotiations between government bodies (Article  2); direct imports of goods and 
supplies (Article  5); and special procurement (Article  44). Also as a result of the amendments to 
the LCE, procurement using public financing resources under international contracts and 
agreements to which Guatemala is party may be subject to their clauses. In such cases, 
procurement always has to be through a  public competition (procedures governed by Article  54). 
3.146.   The Law does not determine what should be the usual method of procurement and does 
not expressly promote competitive methods. As can be seen from Table 3.15, the value of the 
contracts awarded throug h non -competitive methods (direct purchasing, special procurement and 
                                                
64 The thresholds in effect do not distinguish between types of contracting body (government 
organizations, municipal authorities or other bodies).  
65 Article 23 of Decree No.  57-92. 
66 Ibid., Article 46 bis. WT/TPR/S/348 • Guatemala  
- 69 - 
  procedures governed by Article  54 of the LCE) accounted for an average of 57% of the total 
amount of contracts awarded annually during the period under review, although the percentage 
has tended to diminish in recent years. The special procurement method was reorganized in the 
2015 amendments to the LCE, now requiring competitive procedures and use of online bidding.  
Table 3.15 Amounts of con tracts awarded by method of procurement, 2009 -2015  
(Q million)  
 2009  2010  2011  2012  2013  2014  2015  
Imported goods and supplies (LCE 
Article  5)  n/a 
0.0%  n/a 
0.0%  n/a 
0.0%  n/a 
0.0%  n/a 
0.0%  12.5 
0.1%  0.8 
0.0%  
Direct purchasing (LCE Article  43) 307 
4.0%  701 
5.9%  885 
6.3%  1,072  
7.0%  1,232  
7.7%  1,283  
7.7%  1,267  
11.3%  
Direct purchasing in the absence of 
bids (LCE Article  32) 45 
0.6%  52 
0.4%  59 
0.4%  45 
0.3%  71 
0.4%  71 
0.4%  48 
0.4%  
Open contract (LCE Article  46) 336 
4.3%  114 
1.0%  7.0 
0.1%  476 
3.1%  68 
0.4%  304 
1.8%  1,327  
11.8%  
International conventions and 
agreements (LCE Article  1) n/a 
0.0%  n/a 
0.0%  n/a 
0.0%  26 
0.2%  164 
1.0%  257 
1.6%  2,174  
19.3%  
Price quotation (LCE Article  38) 1,738  
22.4%  2,180  
18.2%  2,119  
15.2%  2,365  
15.5%  2,645  
16.5%  2,134  
12.9%  1,915  
17.0% 
n/a Not applicable.  
Source:  Information provided by the Guatemalan authorities.  
3.147.    There are various exceptions to the requirement to use public bidding or price quotation 
methods and these are defined in Article  44 of the LCE. They include the procuremen t needed in 
special situations caused by the suspension of public services or when such suspension is 
imminent; procurement of goods, works and services for State offices abroad; procurement of 
individual technical and professional services in general; pro curement of antiretroviral drugs, 
vaccines, pharmaceuticals, including through international organizations; contracts for the minting 
of metal coins and other necessary metals; procurement for elections and referendums. If 
negotiations are held in relation  to any of these special cases, they must be published on 
GUATECOMPRAS.  
3.148.   Pursuant to Article  5 of the LCE, government organizations and bodies subject to the Law 
may, exceptionally, import goods directly if their price does not exceed the amount determined 
using the price quotation method and the goods are not produced in Guatemala or offered for sale 
by representatives of suppliers or distributors accredited in Guatemala.  
3.149.   In order to take part in a government procurement procedure, the bidder must be 
regist ered in GUATECOMPRAS' Register of Suppliers and not have been disqualified. There is also a 
Register of Preapproved Contractors kept by the Ministry of Communications, Transport and 
Public  Works, as well as a Register of Preapproved Consultants, at the Pla nning and Programming 
Secretariat in the Office of the President. Listing in the register of preapproved contractors or 
consultants is essential in order to be able to take part in price quotation or public bidding 
procedures. Those interested may apply fo r registration at any time and must have a 
tax identification number issued by the SAT.  
3.150.   As a result of the amendments to the LCE, a General Government Procurement Register 
was created and is kept by the Ministry of Finance. Its purpose is to register Guate malan or foreign 
natural or legal persons to be approved as government contractors or suppliers and thus be able 
to take part in all forms of government procurement. This Register will replace the other registers 
of suppliers regulated under the LCE within  36 months after the LCE comes into force.  
3.151.   In addition, the Comptroller -General's Office keeps a register of contracts for control and 
inspection purposes. Since 2014, companies providing works and services have had to obtain a 
certificate from the Comptro ller-General's Office in order to be able to take part in public bidding, 
price quotation and other forms of procurement.  
3.152.   For public bidding, the time limit for submitting and receiving bids is a minimum of 
40 calendar days as of the date of publication of  the invitation to bid on GUATECOMPRAS. For price 
quotation procedures, the corresponding time limit is at least eight working days. In both public WT/TPR/S/348 • Guatemala  
- 70 - 
  bidding and price quotation procedures, the contracting authority must publish at least the 
following inform ation on GUATECOMPRAS: the bases for the bidding or quotation, technical 
specifications, evaluation criteria, questions, replies, the list of bidders, the decision on awarding 
the contract and the contracts awarded.67 Although the LCE does not provide for t he publication of 
government departments' annual procurement plans, they are published on the GUATECOMPRAS 
website.  
3.153.   The criteria for evaluating bids in public bidding and price quotation procedures are: 
quality, price, delivery time, specifications and oth er conditions defined in the bases, which must 
also determine the percentage to be assigned to each element. If the bases only mention the 
price, a decision is taken in favour of the lowest price. In the case of medicinal products and 
medical devices and e quipment procured through an open contract, once the requirements in the 
Regulations on the sanitary control of medicines and related products have been met, the lowest 
price is used as the qualification criterion, provided that it is lower than the refere nce price set by 
the National Institute of Statistics; if they are procured through a bidding or price quotation 
procedure, however, the criterion will be the price below the national private market price 
registered by the DNCAE.68 
3.154.   GUATECOMPRAS manages and publishes information on government procurement and 
contracting. The system is open to the public and contains invitations to bid or submit price 
quotations, the bases, decisions on awarding contracts, the contracts awarded, data on 
non-conformity procedur es and other information concerning government procurement and 
contracts for goods, supplies, works or services, awarded through bidding, price quotation or other 
procurement methods.69 The use of GUATECOMPRAS is mandatory for all government bodies 
(central  government, municipal authorities and State -owned enterprises), and for NGOs, trust 
funds and, in general, any private or joint body using public funds.  
3.155.   The LCE (Chapter X) provides for the possibility of submitting non -conformity appeals 
through administ rative channels. A request to overturn a decision concerns decisions taken by the 
administrative authority which has a superior officer within the same ministry or decentralized or 
autonomous entity responsible for the procurement. An appeal for reversal i s made against 
decisions taken by ministries or by administrative authorities senior to the decentralized or 
autonomous entities. Appeals must be made within ten working days following notification of the 
decision in question. Rulings on the two types of a ppeal must be given in writing, reasoned and 
based on the law, and they exhaust administrative channels. Appeals to overturn a decision or for 
reversal may be the subject of an appeal through legal channels before the Administrative 
Disputes Tribunal, whos e rulings are final and binding. Table 3.16 provides some statistics on 
appeals made between 2009 and 2015.  
Table 3.16 Appeals for non -conformity submitted through administrative channels, 
2009 -2015  
Year Exami ned Upheld  Rejected  Total  
2009 66 612 2,136  2,814  
2010 47 914 1,686  2,647  
2011 68 1,235  2,517  3,820  
2012 102 1,688  3,576  5,366  
2013 141 1,985  3,899  6,025  
2014 77 1,545  3,274  4,896  
2015 117 1,086  2,712  3,915  
Source:  Information provided by the Guate malan authorities.  
3.156.    Generally speaking, the amendments to the government procurement regime introduced 
during the period under review have focused on fostering transparency and the efficiency of the 
government procurement and contracting system, in particu lar, by making it compulsory for all 
contracting entities to publish and manage information on their procurement on GUATECOMPRAS 
and the systematic publication thereon of the annual procurement plans of contracting entities.  
                                                
67 Ibid., Articles 23 and 39.  
68 Ibid., Article 28.  
69 The GUATECOMPRAS website may be viewed at: http://www.guatecompras.gt . WT/TPR/S/348 • Guatemala  
- 71 - 
  3.157.   A recent study by the Ministry of Finance, co -sponsored by a number of international 
organizations, highlights, however, some aspects that could be improved, for example, the fact 
that there is no specialized independent body dealing with procurement to take measures against 
non-conform ity and the absence of specific authority to suspend the procurement procedure 
because of failure to comply. It also points to the fact that the LCE does not specifically declare the 
promotion of open competition to be an objective inasmuch as it does not determine which should 
be the normal method of procurement.70 In fact, according to the study, between 2009 and 2011 
an increase in the value of contracts awarded through non -competitive methods was noted (direct 
procurement, special procurement and procedu res governed by Article  54 of the LCE), which 
accounted for over 60% of the contracts awarded in 2011.71 
3.158.   Other problems reported separately include overvaluation in government procurement, 
contract splitting, abuse of the open contract method, primarily in connection with the purchase of 
medicines, and over -use of special procurement methods. Civil society's demands for more 
transparency in government procurement procedures led to revision of the LCE, with the latest 
amendments being approved in November  2015. 
3.159.   The Second Open Government National Action Plan (2014 -2016) contains measures to 
enhance the transparency and accountability of government bodies. The actions proposed include 
regulating direct procurement and special procurement for purchasing by the G overnment and 
making them more transparent. For this purpose, it is proposed to adopt standards, including but 
not limited to, use of online bidding by all contracting entities for the method chosen. According to 
the authorities, online bidding will be imp lemented gradually, in accordance with Transitional 
Article 38 of Decree of the Congress of the Republic No.  9-2015. Notwithstanding regulation of 
online bidding, in Article  24 the LCE also regulates use of closed bids submitted in writing. Other 
action in cludes improving the generation of reference prices for open contract procurement and 
reinforcing the units responsible for planning government procurement and for internal audit.72 
3.3.5   Intellectual property rights  
3.3.5.1   Overview  
3.160.   During the review period, Guatemala s trengthened its framework for protection of 
intellectual property rights (IPR), mainly by amending the Industrial Property Law (LPI) in 2013. 
Among other provisions, this amendment introduced special forms of protection for geographical 
indications (GI) an d appellations of origin (AO) in Guatemala. The existing terms of protection for 
IPRs were maintained. Copyright is protected throughout the lifetime of the author and for 
75 years after his death; protection is granted for 20  years for patents, and for tr ademarks and 
distinctive signs there is a renewable term of ten years. Guatemala did not issue any compulsory 
licences during the review period.  
3.161.   Guatemala is a member of the World Intellectual Property Organization (WIPO) and is 
party to several WIPO -admin istered international treaties (Table 3.17). In 2013, it signed the 
Treaty on Audiovisual Performances (Beijing Treaty) and in 2014 the Treaty to Facilitate Access to 
Published Works for Persons Who Are Blind, Visually Impaired, or Otherwise Print Disabled  
(Marrakesh Treaty). Both Treaties are awaiting ratification. Guatemala has started the process of 
acceding to the International Union for the Protection of New Varieties of Plants (UPOV).73 It is not 
a member of the Lisbon Agreement for the Protection of A ppellations of Origin and their 
International Registration, but takes part in meetings of the Lisbon Union as an observer.  
                                                
70 Guatemalan Ministry of Finance, EU, IBD, World Bank (2013), Informe del Desempeño de la Gestión 
de las Finanzas Públicas (PEFA) , Final report. Viewed at: 
http://www.minfin.gob.gt/archivos/pefa/2doInforme2013.pdf . 
71 Idem.  
72 Government of Guatemala, Presidential Commission on Transparency and Electronic Govern ment, 
Second Open Government National Action Plan Guatemala 2014 -2016. Viewed at: 
http://gobiernoabierto.transparencia.gob.gt . 
73 Online information from the International Union for the Protection of New Varieties of Plants (UPOV) . 
Viewed at: http://www.upov.int/export/sites/upov/members/en/pdf/status.pdf . WT/TPR/S/348 • Guatemala  
- 72 - 
  Table 3.17 Intellectual property treaties signed by Guatemala, 2015  
International trea ty Date of entry into force  
Convention Establishing the World Intellectual Property Organization (WIPO)  30 April 1983 
Copyright and related rights   
Rome Convention for the Protection of Performers, Producers of Phonograms and 
Broadcasting Organizations   14 January  1977 
Berne Convention for the Protection of Literary and Artistic Works  28 July 1997 
Convention for the Protection of Producers of Phonograms against Unauthorized Duplication 
of their Phonograms (Phonograms Convention)  1 February  1977 
WIPO Performances and Phonograms Treaty  8 January  2003 
Treaty on Audiovisual Performances (Beijing Treaty)  Pending  
WIPO Copyright Treaty (WCT)  4 February  2003 
Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually Impaired, 
or Otherwise Print Disabled (Marrakesh Treaty)  Signed on 2  June 2014 but 
not yet in force  
Trademarks and other distinctive signs   
Paris Convention for the Protection of Industrial Property  18 August  1998 
Patents, industrial designs and utility models   
Paris Convention for the Protection of Industrial Property  18 August  1998 
Patent Cooperation Treaty  14 October  2006 
Other   
Washington Treaty on Intellectual Property in Respect of Integrated Circuits  Signed on 31  May 1989 
but not yet in force  
Nairobi Treaty on the Protection of the Olympic Symbol  21 February  1983 
Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the 
Purposes of Patent Procedure  14 October  2006 
Source:  WIPO, and information provided by the authorit ies. 
3.162.   MINECO is responsible for developing and implementing Guatemala's intellectual property 
policy. The Intellectual Property Registry  (RPI), within MINECO, is in charge of ensuring 
compliance with the legal framework regulating the recognition and protec tion of IPRs. In 2008, 
Guatemala notified that the RPI is the contact point in conformity with Article  69 of the Agreement 
on Trade -Related Aspects of Intellectual Property Rights (TRIPS Agreement).74 
3.163.   The provisions of the TRIPS Agreement have been incorpor ated into Guatemala's 
legislation. IPRs are protected through a combination of national and international provisions, the 
TRIPS Agreement applying directly to those matters not expressly regulated in domestic legislation 
(Table 3.18). In some cases, for ex ample copyright and related rights, Guatemala's legislation 
gives terms of protection that exceed the minimum required by the TRIPS Agreement. The 
TRIPS  Council examined Guatemala's IPR legislation in 2001.75 Guatemala did not notify any new 
IPR legislation  during the review period.  
3.3.5.2   Regulatory framework  
3.164.   Guatemala's regulatory framework for the protection of IPRs mainly comprises the Law on 
copyright and related rights (LDA, 1998)76, the Industrial Property Law (LPI, 2000)77 and their 
respective implementing Re gulations.78 The LDA contains rules on the protection of copyright and 
related rights. The LPI regulates the protection of trademarks and other distinctive signs, GIs and 
AOs, patents, utility models, industrial designs and the protection of industrial secr ets 
(Table  3.18). In 2004, Guatemala notified the TRIPS Council of the regulations implementing 
both Laws.79 
                                                
74 WTO document IP/N/3/Rev.10/Add.5 of 19  September  2008.  
75 The questi ons put by Members and the respective replies by the Guatemalan authorities are available 
in WTO document IP/Q/GTM/1, IP/Q2/GTM/1, IP/Q3/GTM/1 and IP/Q4/GTM/1 of 11  May 2001.  
76 Decree No.  33-98 of 21  May 1998.  
77 Decree No.  57-2000 of 31  August  2000.  
78 Regulations implementing the Law on copyright and related rights, Government Decision 
No. 233-2003 of 9  April 2003, and Regulations implementing the Industrial Property Law, Government Decision 
No. 89-2002 of 18  March  2002.  
79 WTO documents IP/N/1/GTM/C/2 and IP/N/1/GTM/I/2, both of 14  April 2004.  WT/TPR/S/348 • Guatemala  
- 73 - 
  Table 3.18 Overview of legislation and protection afforded to intellectual property in 
Guatemala, 201 6 
Legislation  Term  Scope  
Copyright and related rights  
Law on copyright and related rights, 
Decree No.  33-98 of 22  June 1998 
and amendments thereto (Decrees 
Nos. 56-2000, 11 -2006 and  3-2013); 
Regulations implementing the Law on 
copyright and related right s 
(Government Decision 
No. 233-2003).  Protection is given 
throughout the lifetime of 
the author and for 75 
years after his death. 
Computer programs, 
collective and audiovisual 
works are protected for 
75 years from the date of 
first publication or 
exhibiti on. There are no 
nationality requirements.  Artistic, literary and audiovisual works and computer 
programs. The copyright owner's economic rights include 
the right to authorize or prohibit distribution to the public of 
the original or copies of the works, w hether by sale, rental, 
hire, loan or any other manner. Special provisions apply to 
computer programs and databases, audiovisual and 
three -dimensional works of art, musical compositions and 
newspaper articles. Protection is given irrespective of any 
regist ration formality.  
Patents  
Industrial Property Law, Decree 
No. 57-2000, in force since 
1 November  2000, and amendments 
thereto (Decrees Nos.  30-2005, 
11-2006 and  3-2013); Government 
Decision No.  862-2000, Industrial 
Property Fees, in effect since 
9 Januar y 2001; Regulations 
implementing the Industrial Property 
Law (Government Decision 
No. 89-2002, in force since 
1 April 2002) and amendments 
thereto (Government Decision 
No. 95-2014). Decree of the 
Congress of the Republic No.  3-2013, 
in force since 26  June 2013.  Protection gives the 
inventor or applicant 
exclusive rights for 
20 years within 
Guatemala.  Protection is granted for the invention concerned in respect 
of its reproduction, import, marketing or use. An invention 
may be patented if it is new, represe nts an inventive step 
and is susceptible of industrial application. Contractual 
licences for working a patent shall only have legal effects 
against third parties if they have been registered. Products, 
processes and methods that do not constitute invention s or 
that are excluded from patentability are indicated in 
Articles  91 and 92 of the LPI.  
Drawings, industrial designs and utility models  
The same as for patents.  Non-renewable term of 
ten years for utility 
models. Ten years for 
industrial designs 
(inclu ding drawings), 
renewable for a further 
five years.  The Law contains definitions of industrial designs and utility 
models.  
Layout -designs of integrated circuits  
There is no specific legislation.    
Trademarks  
The same as for patents, i.e. the LPI 
and amendments thereto (Title II on 
trademarks and other distinctive 
signs).  The right to exclusive use 
of a trademark and 
advertising expressions or 
signs is given for a period 
of ten years and may be 
renewed indefinitely for 
further ten -year periods.  Any si gn capable of distinguishing products or services 
produced, sold or supplied by a natural or legal person from 
other identical or similar products or services produced, sold 
or supplied by other persons. The owner of a trademark is 
entitled to oppose regis tration of an identical or similar sign, 
prevent its use and request the authorities to prohibit or 
suspend imports of products that make use of such signs. 
This protection includes advertising expressions or signs. 
Trade names are valid indefinitely.  
Geographical indications (GI)  
The same as for patents, i.e. the LPI 
and amendments thereto.   The 2013 amendment to the LPI introduced special 
provisions on GIs, which prior to this amendment were 
covered by the protection granted for trademarks. 
Provisions on the definition of GIs and AOs (Article  4), the 
inadmissibility of a new trademark which, because it is 
identical or similar to a protected GI, risks association with 
it (Article 21(g)), the exclusive right to use the IG or AO for 
persons authorized to u se it and meeting the requirements 
(Article  87) and actions available to the owner to prevent 
unlawful use of the IG or AO, inter alia . The use of a false 
GI or one liable to mislead is deemed to be an offence.  WT/TPR/S/348 • Guatemala  
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  Legislation  Term  Scope  
Undisclosed information (including test data ) 
The same as for patents.  Five years for 
pharmaceuticals and ten 
for agricultural chemicals 
(Article  177(a), (b) 
and (c)).  The submission of undisclosed information is required by 
the competent administrative authority as a condition for 
approving the m arketing of pharmaceuticals or agricultural 
chemicals that use new chemical substances. Criteria are 
laid down for the protection of such data against unfair 
commercial use and against disclosure, provided that those 
submitting the information have request ed a specific 
guarantee of confidentiality . Exceptions to the obligation 
not to disclose test data: (a) pharmaceuticals, where this is 
necessary to protect their safe use, life or health or in 
declared situations of national emergency; (b) agricultural 
chemicals, in declared situations of national emergency or 
to protect their safe use, human, animal or plant life or 
health or the environment; (c) when the holder of the 
undisclosed information or test data or sanitary or 
phytosanitary registration which may  benefit from the 
protection has given his agreement in writing with a 
legalized signature.  
New varieties of plants  
The same as for patents.   In the special case of new plant varieties, they must meet 
the criteria of novelty, distinctiveness, homogeneity  and 
stability.  
Source:  WTO Secretariat.  
3.165.    The principal amendments to the legal framework introduced since 2009 are contained in: 
Decree of the Congress of the Republic No.  3-2013, in force since 26  June 2013, which amended 
the LPI; Government Decision N o. 95-2014, which amended the Regulations implementing the LPI 
(Government Decision No.  89-2002), in force since 8  March  2014; Government Decision 
No. 48-2015, which amended Government Decision No.  862-2000, Industrial Property Fees; and 
Decree of the Cong ress of the Republic No.  7-2016 of 28  January  2016, on accession to and 
ratification of the Marrakesh Treaty. The Trademark Law Treaty and its implementing Regulations 
were approved by Decree of the Congress of the Republic No.  20-2016 of 29  March  2016, an d 
published in Central American Official Journal No.  29 of 30  March  2016. In June  2016, it was 
awaiting ratification.  
3.166.   Decree No.  3-2013 amends 36 articles in the LPI. The changes introduced mostly concern 
trademarks, GIs, AOs and include: a new definition of the concept of trademark; prohibitions on 
account of the rights of third parties, GIs, AOs and the reputation of the trademark; registration 
requirements for trademarks, reservations or annulment and country of origin; relinquishing a 
trademark because of objections; sound and olfactory marks, description and material medium; 
opposition in the case of well -known marks and judicial cessation of use of a GI; unlawful use, 
application or placing of a trademark; unprotected elements in complicated trademarks ; scope of 
GIs and AOs; registration and right to use GIs and AOs; inadmissible signs for GIs and AOs; 
homonymous GIs and AOs; applications and requirements for GIs and AOs; details of 
requirements; foreign GIs and AOs: procedure, decision and registration ; rules on the use and 
administration of GIs and AOs; protection of GIs and AOs (unlawful use) and their relation to 
trademarks (cases of inadmissibility); prior use (in good faith) of GIs and AOs; cancellation and 
nullification of a foreign GI or AO solel y in its country of origin.  
3.167.   With regard to patents, Decree No.  3-2013 introduces rules on the substantive 
examination of patent applications, especially in connection with the employment of independent 
experts or private bodies, as well as aspects on compl eting, correcting, modifying or dividing up 
patent applications. Changes were also made to the time limits for examining patent applications 
and on authorization for the marketing of pharmaceuticals within a period exceeding one year as 
of the date of fili ng the relevant application. The Decree also created the Official Bulletin of the 
Intellectual Property Regist ry (BORPI, see below).  WT/TPR/S/348 • Guatemala  
- 75 - 
  3.168.   The LDA protects all literary, scientific or artistic works, as well as computer programs. 
Protection is granted without th e need for prior registration.80 The Law gives the owner moral and 
economic rights in his work.81 Economic rights give the owner the right to assign all or some of his 
rights and to authorize or prohibit use or exploitation of the work by third parties.82 Economic 
rights are protected throughout the lifetime of the author and for 75 years after his death.83 For 
audiovisual or collective works and computer programs, the term is 75 years after their first 
performance or publication.84 The Regulations implementing the LDA were enacted in 2003 and lay 
down the administrative requirements and the fees applicable for registering copyright, the 
Intellectual Property Regist ry's functions and obligations, and the rights of applicants.  
3.169.   As indicated above, the LPI and its i mplementing Regulations were amended during the 
review period.85 The key points of the amendment of the LPI concern special forms of protection 
for GIs and AOs, as well as the procedures required for exercising these rights. The changes 
authorized the regis tration of Guatemalan and foreign GIs and AOs in Guatemala and w ere partly 
prompted by Guatemala's interest in acceding to the Association Agreement between 
Central  America and the European Union.86 The Official Bulletin of the Intellectual Property 
Regist ry (BORPI) was also created as a new publication medium solely for decisions relating to the 
initial registration of trademarks, trade names and advertising signs.87 Other notifications 
concerning IPRs are published in the Central American Official Journal ( Guatemala's Official 
Journal). The Law makes the Intellectual Property Regist ry responsible for circulating the Bulletin. 
The amendment of the Regulations implementing the LPI in 2014 adapted and harmonized its 
provisions with the amendments to the LPI its elf.88 
3.170.   The LPI protects test data for pharmaceuticals for a term of five years and for agricultural 
chemicals the term is ten years, preventing third parties from marketing them without prior 
authorization from the owner. This protection takes effect from t he date of granting the 
first marketing authorization in Guatemala.89 
3.171.   Guatemala does not have any special legislation on layout -designs of integrated circuits 
and applies the relevant provisions in the TRIPS Agreement directly. Protection is for ten years, as 
provided by Article  38.2 of the Agreement. During the examination of Guatemala's legislation by 
the TRIPS Council, the authorities indicated that the TRIPS Agreement forms part of domestic 
legislation and applies as such.90 
3.172.   Guatemala's legislation has pr ovision for international exhaustion of IPRs for trademarks 
and patents.91 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 trade mark in Guatemala.  
3.173.   The LPI provides for the issue of compulsory licences for patents for reasons of public 
interest and particularly for reasons of national emergency, public health, national security, 
non-commercial public use or to counter anti -competiti ve practices. Licences are only given in 
order to supply the domestic market and subject to remuneration paid to the owner, agreed by the 
                                                
80 Article  3 of the LDA provides: "The enjoyment and exercise of copyright and neighboring rights 
recognized in this law are not subject to the formality of registration or any other and are independent and 
compatible with each other …".  
81 LDA Article 18.  
82 LDA Article  21. 
83 LDA Article  43. 
84 LDA Articles  44 and 47.  
85 Decree No.  3-2013 of 13  June 2013.  
86 Article  244 of the Association Agreement between Central  America and the European Union states 
that the parties shall  provide for a system for the protection of geographical indications and a relevant register 
in their legislation. The text of the Agreement may be viewed at: 
http://trade.ec .europa.eu/doclib/docs/2011/march/tradoc_147664.pdf . 
87 Article  31 of Decree No.  3-2013. Since enactment of the Decree, any reference to the Official Journal 
in the LPI or its implementing Regulations means the Official Bulletin of the Intellectual Propert y Regist ry. 
88 Government Decision No.  95-2014.  
89 LPI Article  177. 
90 WTO document IP/Q/GTM/1, IP/Q2/GTM/1, IP/Q3/GTM/1 and IP/Q4/GTM/1 of 11  May 2001. 
91 LPI Articles 37 and 131.  WT/TPR/S/348 • Guatemala  
- 76 - 
  parties or, in the absence of an agreement, by the Intellectual Property Regist ry.92 As of 
June 2016, Guatemala had not  issued any compulsory licences.  
3.174.   In June  2016, Guatemala was in the process of accepting the Protocol amending the 
TRIPS  Agreement.  
3.3.5.3   Enforcement  
3.175.   The Special Prosecutor's Office for Intellectual Property Offences, part of the Public  
Prosecutor's Office, is r esponsible for prosecuting infringement of IPRs in Guatemala. In 2015, it 
investigated some 400 IPR -related cases and a further 200 between January and June  2016.  
3.176.   Both the LPI and the LDA contain provisions allowing owners to require enforcement of 
their I PRs, through either civil or judicial channels. The customs authorities are empowered to 
withhold goods at the border, either ex officio  or following a request from an interested party.93 
The LPI also gives judges the authority to impose preventive measures  during proceedings, 
including the seizure of the infringing goods and the means used to produce them, immediate 
cessation of their use and sale and a ban on their import. The LPI and the LDA refer back to the 
Criminal Code and the Code of Civil and Commer cial Procedure, which regulate the procedure and 
the exercise of action.  
3.177.   Criminal proceedings may result in terms of imprisonment of up to six years and monetary 
sanctions of Q  50,000 to Q  750,000 for infringement of copyright. The LPI provides for terms o f 
imprisonment of one to six years and fines of Q  50,000 to Q  750,000 for infringement of industrial 
property rights.  
 
                                                
92 LPI Article 136.  
93 LDA Article 129 and LPI Article 190.  WT/TPR/S/348 • Guatemala  
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  4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture  
4.1.1   Overview  
4.1.  The agricultur al sector ( agriculture , forestry, hunting and fishing) grew at an average an nual 
rate of 3.3 % between 2009 and 2015. Its share in Guatemala's GDP nonetheless contracted 
slightly during the period under review to 10.5 % in 2015 (Table 4.1). Guatemala is the 
Central  American country with the highest number of subsistence family farms  (about 1  million, 
with an average size of one hectare each).1 Some 49 % of the population live in rural areas and an 
estimated 70 % of the country's  territory is dedicated to agricultur al and forestry activities.2 The 
sector employs about one  third of the e conomically active population.3 
4.2.  Agricultural activity in Guatemala can be broken down into three subsectors: traditional crops 
(for export), non -traditional crops (also for export), and crops for domestic consumption (mainly 
staple  grains such as maize, be ans and rice). The main traditional exports are sugar, coffee, 
bananas and cardamom, account ing for about a quarter of the value of overall goods exports. The 
main non -traditional goods exports are other fresh fruit, vegetables, and honey, while beverages 
are prominent among agro -industrial products. On the import side, the main products are cereals, 
prepared foodstuffs, animal feed and dairy produce.  
Table 4.1 Main indicators for the agricultural sector, 2009 -2015  
 2009  2010  2011  2012  2013  2014  2015a 
Total agriculture, livestock farming, hunting, 
forestry and fishing sector  
(Millions of constant 2001 quetzales)  26,436  26,370  27,695  29,063  30,442  31,408  32,429  
Growth rates (% at constant 2001 prices)  3.8 -0.2 5.0 4.9 4.7 3.2 3.3 
Share of GDP (% at current prices)  11.7 11.1 11.1 10.6 10.6 10.7 10.5 
Exports (WTO definition)  
Value (US$  million)  3,259  3,604  4,410  4,528  4,607  4,722  4,768  
Five most important products, by HS Chapter (% of total goods exports)  
08 - Edible fruit and nuts; peel of citrus fruit or 
melons  8.9 6.5 6.8 7.4 8.7 8.9 10.3 
17 - Sugars and sugar confectionery  8.3 9.6 7.3 9.0 10.4 9.7 9.1 
09 - Coffee, tea, maté and spices  12.3 12.1 14.2 12.2 9.3 8.5 8.5 
15 – Animal or vegetable fats and oil s 2.3 2.4 3.2 3.6 3.6 3.5 3.4 
22 – Beverages, spirits and vinegar  2.5 2.2 1.9 3.0 3.2 3.0 2.7 
Imports (WTO definition)  
Value (US$  million)  1,637  1,878  2,267  2,335  2,417  2,534  2,577  
Five most important products, by HS Chapter (% of total goods imports)  
10 - Cereals  2.8 2.3 2.7 2.6 2.4 2.3 2.4 
21 - Miscellaneous edible preparations  1.5 1.4 1.3 1.4 1.5 1.6 1.8 
23 - Residues and waste from the food industries; 
prepared animal fodder  1.3 1.3 1.2 1.4 1.5 1.6 1.5 
19 - Preparations of cereals, flour, starc h or milk;  
pastrycooks' products  1.4 1.5 1.4 1.3 1.3 1.3 1.4 
04 - Dairy produce; birds' eggs; natural honey; edible 
products of animal origin  1.0 1.0 0.9 1.0 0.9 1.0 1.0 
Agricultural trade balance (US$  million)  1,622  1,726  2,143  2,192  2,189  2,188  2,191  
a The 2015 GDP figures are  preliminary.  
Source:  WTO Secretariat calculations, based on statistics from the Central Bank of Guatemala.  
4.3.  The performance of the agricultural sector has been impacted in recent years by weather and 
health factors as well as the falling prices of certain food commodities. The output of coffee, the 
country's leading export, has been affected by the outbreak of coffee rust, a coffee plant disease 
that adversely affects the quality of the beans and the volume of production per plant.  Coffee 
exports contracted from US$959  million in 2012 to US$664  million in 20154, owing in part to the 
coffee rust outbreak. Similarly, the drought and heat waves that struck  the Central  American 
                                                
1 ECLAC, FAO and the Inter-American Institute for Cooperation on Agriculture (IICA) (2014), The 
Outlook for Agriculture and Rural Development in the Americas. Viewed at: 
http://www.fao.org/docrep/019/i3702s/i3702s.p df. 
2 FAO (2014), Country Fact Sheet on Food and Agriculture Policy Trends – Guatemala. Viewed at: 
http://www.fao.org/3/a -i4124e.pdf . 
3 Information provided by the Guatemalan authorities.  
4 Data from the Ce ntral Bank of Guatemala. The 2015 figure is preliminary.  WT/TPR/S/348 • Guatemala  
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  region between 2013 and 2014 have also weakened  the product ion of staple  grains, which make 
up a significant part of the country's food basket.  
4.4.  The sector showed a positive trade balance during the years under review, with a surplus of 
US$2,191  million in 2015. Guatemala nonetheless remains a net importer of staple grains such as 
yellow maize and rice. In 2015, for example, maize (HS 1005) recorded a negative trade balance 
of US$209.9  million, and rice (HS 1006) a negative balance of US$33.7  million.5 Some studies 
have suggested that productivity of the staple  grain subsector could be boosted through greater 
public -private investment.6 
4.1.2   Agricultural policies  
4.1.2.1   Institutional framework  
4.5.  The Ministry of Agriculture, Livestock and Food (MAGA) is the authority  chiefly responsible for 
formulating  and implementing policies for  the agricultural sector.7 The Ministry of the Economy, 
the Ministry of Public Health and Social Welfare and the Central Bank of Guatemala also help to 
implement the sector's policies within their respective remits. During the period of this Review, the 
agriculture sector was governed by the Agricultural Policy 2011 -2015, the main planks of which 
are food and nutritional security; development of agricultural production and trade; animal and 
plant health; institution building; sustainability; the sociocultur al and human factor; 
and territoriality.  
4.6.  The priority aims of agricultural policy include: integrating indigenous rural communities into 
the market economy, providing producers with strategic information to favour their integration into 
domestic and intern ational markets, developing micro -credit lines for agricultural promotion and 
strengthening the system of food stockpiles in order to counter food vulnerability.8 
4.7.  Other important policies designed to support subsistence agriculture and food security are 
the National Policy for Comprehensive Rural Development, the Irrigation Promotion Policy 
2013-2023, the "Zero Hunger Pact" (Pacto Hambre Cero) and the Family Farming Programme for 
Strengthening the Rural Economy. In 2010, the Vice -Ministry of Plant and Anima l Health and 
Regulations was set up within the MAGA to promote productivity and competitiveness in the 
agriculture sector and to improve animal and plant health controls and the safety of unprocessed 
foods. In 2013, the Special Rural Development Office was  established as an interministerial body 
to formulate  and implement strategies for the sector, with a view to the coordinated and more 
efficient implementation of agricultural policies.9 
4.8.  Guatemala is a member of several regional bodies dedicated  to agricul tural and livestock 
development, including the Inter -American Institute of Cooperation on Agriculture (IICA), the 
Central American Agricultural Council (CAC) and the Regional Technical Support Platform for 
Territorial Rural Development (PRAT). Guatemala al so participates in the Central American 
Agricultural Policy (PACA) 2008 -2017, of which the main objectives are to contribute to the 
development of sustainable agriculture in Central America from an economic, social, 
environmental , political and institution al standpoint; to foster conditions for the development of 
                                                
5 WTO Secretariat calculations, based on data from the Central Bank of Guatemala.  
6 IICA (2014), Desempeño competitivo de productos agropecuarios de Guatemala. Viewed at: 
http://www.iica.int/sites/default/files/publications/files/2015/B3436e.pdf . 
7 Article 29 of the Law on the Executive Branch (Decree No.  114-97 of 10  December  1997) lays down 
the functions of MAG A, which include implementing the policy of agricultural and hydrobiological development 
and sustainable use of resources; applying clear and stable rules in agriculture, hydrobiology, forestry and 
plant and animal health; promoting business development am ong the organizations in the sector so as to boost 
their productivity and competitiveness; and developing mechanisms to enhance food security for the 
population. The MAGA 2015 budget was Q 1,413.5  million, representing 2.0% of the national budget and a 
considerable increase compared to 2009 (Q 644  million, or the equivalent of 1.33% of the national budget).  
8 MAGA (2011), Política Agropecuaria 2011 -2015. Viewed at: http://web.maga.gob.gt/wp -
content/uploads/pdf/home/politica_agropecuaria_2011 -15.pdf . 
9 Government Decision No.  262-2013 of 28  June 2013.  WT/TPR/S/348 • Guatemala  
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  modern, competitive, equitable and regionally coordinated Central American agriculture; and to 
develop institutional capacity so as to ensure proper  implementation of this policy.10 
4.1.2.2   Policy instrumen ts 
4.1.2.2.1   Border measures  
4.9.  The level of tariff protection for the agricultur al sector is higher than that for manufacturing. 
In 2015, the average MFN tariff on agricultural products (WTO definition) was 9.5 %, compared to 
an overall average MFN tariff of 5.7 % and a n average MFN tariff of 5 % on non-agricultural 
products (except petroleum). By product category, the highest tariffs are applied to beverages, 
spirits and tobacco (15.8 %), dairy produce (13.4 %), coffee and tea (13.2 %) and animals and 
products of animal ori gin (12%). The agricultural products with the highest tariff protection are 
malt beer (HS 2203.00.00), ethyl alcohol and other spirits, denatured, of any strength 
(HS 2207.20.00) and rum (2208.40.10), among other alcoholic beverages.  
4.10.   The schedule of WTO co mmitments signed by Guatemala contains tariff quotas for 
30 agricultural by-products.11 During the period 2008 -2013, between two and four tariff quotas 
were activated per year.12 In 2015, duty -free tariff quotas were activated for 200,000 tonnes  of 
yellow ma ize (HS 1005.90. 20), 50,000 tonnes  of white maize (1005.90.30), and 17,500 tonnes  of 
rough rice (HS  1006.10.90).13 Guatemala has also opened  tariff quotas for agricultural produc ts 
under its bilateral and regional trade agreements (Table A3.1).  
4.11.   Tariff quota s are allocated  in two ways. The Ministry of the Economy allocates  quotas on a 
"first-come, first -served" basis, until the quota is filled. This mechanism is applied under most of 
the trade agreements (with the EU, Mexico, Belize, Panama, Chile, Colombia a nd Ecuador), as well 
as for the WTO white maize quota. Under the second procedure, applicants must be entered 
beforehand in a register of importers, and quotas are allocated by specific ad hoc  commissions 
comprising the Ministry of the Economy, the Ministr y of Agriculture, Livestock and Food , the 
Ministry of Finance , the Tax Administration Supervisory Authority, and members of the  relevant 
trade association, depending on the type of product to be imported. This procedure is used for the 
quotas established u nder the CAFTA -DR and for the rough rice and yellow maize quotas under 
the WTO.  
4.12.   Pursuant to Articles 5.7 and 18.2 of the Agreement on Agriculture, Guatemala notified the 
Committee on Agriculture that it did not take either volume -based or price -based speci al safeguard 
actions  between 2009 and 2015.14 
4.1.2.2.2   Domestic support  
4.13.   Guatemala has several agricultur al sector support funds. The National Development Trust 
Fund (FONADES) was set up in 2006 and promotes projects to modernize and improve agricultural 
productivity  through technical assistance, the supply of inputs and the building of production 
infrastructure.15 In 2013, the FONADES budget was increased by Q 700  million to almost 
Q 2,400  million.16 In 2015, FONADES focused mainly on delivering fertilizers to low -income 
families so as to improve productivity in the agricultural sector. Delivery is free of cost to 
beneficiaries. The National Fund for the Revival and Modernization of Agricultural Activity 
(FONAGRO) is still operating, and had an assigned budget of Q  35.2 million in 2016 . 
4.14.   During the review period Guatemala implemented some domestic support measures for the 
agricultur al sector. The measures were notified to the WTO as belonging to the "green box" 
(Annex  2 to the Agreement on Agriculture) and are exempt from  the reduction commitment. The 
                                                
10 Central American Agricultural Council (2007), Política Agrícola Centroamericana 2008 – 2017. Viewed 
at: http://www.fao.org/forestry/13772 -0e3d01f7a6aa2707e127bf0bc4d796edb.pdf . 
11 Section 1 -B of Schedule XXXVIII, Guatemala.  
12 WTO document G/AG/N/GTM/50 of 25  September  2015, cove ring the years 2008 -2013.  
13 Information provided by the Guatemalan authorities.  
14 WTO documents G/AG/N/GTM/36 of 18  August 2010, G/AG/N/GTM/40 of 18  October  2011, 
G/AG/N/GTM/42 of 24  February  2012 and G/AG/N/GTM/54 of 8  April 2016.  
15 Online information fro m FONADES. Viewed at: http://www.fonades.gob.gt/?page_id=1307 . 
16 Government Decision No.  116-2013 of 6  March  2013.  WT/TPR/S/348 • Guatemala  
- 80 - 
  measures focused especially on research and development in respect of seeds of staple  grain 
varieties (US$3.7  million in 2015), formal basic education, agricultural guidance and technical 
training for students in rural areas (US$3.1  million in 2015) , and food aid for vulnerable population 
groups (altogether US$16  million in 2015). The numerous environmental emergencies that 
affected  the population during the period (heatwaves, drought, hurricanes) account for the 
appreciable a mounts dedicated to food aid  (Table A4.1).  
4.15.   There are currently no public institutions providing credit support for agricultur e in 
Guatemala, but the BANRURAL bank (a private financial institution with a 17 % government stake 
in equity) runs the "Crédito Ami go Productor " programme geared to the sector. The programme 
enables agricultural producers, livestock farmers and forestry workers to obtain flexible credits for 
the purchase of machinery, inputs and livestock, among other things. Loans are provided at 
market interest rates. Under the BANRURAL programme, loans can be financed by means of 
mortgages and pledges, as well as other joint guarantees.17 
4.16.   Guatemala does not practi se agricultural price controls. Nevertheless, the Planning 
Directorate (DIPLAN)  within the MAGA periodic ally monitor s some products such as black beans 
and white maize, which are important components of the basic food basket. The Government 
purchases staple  grains on a regular basis to alleviate problems of access  mainly due  to the 
financial limitations of low -income families.18 Under its food aid programme , the MAGA thus 
distributes food rations (mainly white maize, beans and a mixture of maize and soya with fortified 
sugar) to help vulnerable segments of the population. These r ations are dist ributed free of cost.19 
4.1.2.2.3   Other measures  
4.17.   Agricultural exporters receive technical and commercial assistance from various private 
associations and research centres. The Guatemalan Sugar Cane Research Centre (CENGICAÑA) 
provides training and technology transfer  services for integrated pest control, among other 
activities. The Independent Banana Producers' Association (APIB) coordinates the commercial 
strategy of the banana trade association. The National Coffee Association  (ANACAFÉ ), a private , 
public -service in stitution, represents the country's coffee growing sector, promotes Guatemalan 
coffee abroad and is the authority that issues export licen ces, subject to verification of the quality 
of the coffee.  
4.18.    Guatemala notified the WTO that it had not applied any agr icultural export subsidies 
between 2009 and 2015.20 
4.2  Energy  
4.19.   In 2015, the share of the electricity and water supply subsector in Guatemala's GDP was 
2.4%, while mining and quarrying accounted for 1.8 %. The energy sector has been expanding in 
recent years, wit h appreciable inflows of FDI mainly into electricity generation.21 This can be 
attributed to the country's natural resource endowments, the incentives for the development of 
renewable energies  and the favourable outlook for the regional market. Several powe r generation 
plants are being built to use different types of technology and will add some 1,000  MW to the 
market in the coming years, helping to lower generation costs and boost exports to the region.  
4.20.   The Ministry of Energy and Mining (MEM) is responsible  for the sector's policy. In 2012 the 
Ministry unveiled the Energy Policy  2013-2027, the main planks of which include diversifying the 
energy matrix by making greater use of renewable energy sources, securing the supply of fuels at 
                                                
17 Online information from BANRURAL. Viewed at: http://www.banrural.com.gt/banruralc/Productos -y-
Servicios/Banca -Mipymes/Cr%C3%A9ditos/Cr%C3%A9dito -Amigo -Productor . 
18 Government Decision No.  255-2013 of 26  June 2013 authorizes the Government to make public 
purchases of staple foods such as rice, maize flour, vegetable oils, beans and oats in order to combat 
malnutrition in the worst affected areas of the country.  
19 MAGA (2014), Memoria de Labores. Viewed at http://web.maga.gob.gt/download/memoria -
maga14.pdf . 
20 WTO documents G/AG/N/GTM/37 of 18  August of 2010, G/AG/N/GTM/41 of 18  October  2011, 
G/AG/N/GTM/43 of 24  February  2012, G/AG/N/GTM/44 of 21  February  2013, G/AG/N/GTM/51  of 
22 October  2015 and G/AG/N/ GTM/52 of 16  March  2016.  
21 According to the Central Bank of Guatemala, in the first half of 2015 the energy sector attracted 
US$216.3  million, or 39.4% of total FDI for that period.  WT/TPR/S/348 • Guatemala  
- 81 - 
  competitive prices, expl oring and working oil reserves and the economical and efficient use of 
energy.22 Accordingly, the MEM has launched a plan to expand the electricity transmission system 
(2012 -2021) with a view to covering the entire national territory by upgrading existing 
transmission lines, creating  new lines and substations and developing other 
necessary  infrastructure.  
4.2.1   Electricity  
4.21.   Guatemala's electricity system, the National Interconnected System (SNI), produced 
10,301.96 GWh in 2015, of which about two  thirds from renewa ble resources. The electricity came 
from the following sources: hydroelectricity (37.55 %), coal (19.08 %), the biomass (24.56 %), 
bunker fuel (13.86 %), geothermal (2.44 %), solar (1.33 %), wind (1.04 %) and diesel fuel (0.10 %). 
Energy consumption was 9,466.48 G Wh in 2015, up 5.7 % on the previous year. In 2016 the SNI's 
total installed capacity was 1,704.45 MW.23 
4.22.   The SNI is responsible for 98 % of the country's electricity generation, while the remaining 
2% comes from stand -alone systems (communal electricity netwo rks or private properties, 
photovoltaic panels and wind energy). Electricity coverage is almost 92 % of the population, though 
some rural areas are still without access to electricity.24 
4.23.   Since its reform in 1996, the electricity industry has comprised four m ain segments: 
generation, transmission, marketing and distribution. In 2015, 18.2 % of electricity from the SNI 
was generated by the Electricity Generation Company (EGEE), which belongs to the State -run 
National Electrification Institute (INDE), while the r emainder was produced by private companies. 
In the transport segment, INDE maintain s a dominant position through the Electricity Transport 
and Control Company (ETCEE ), which owns the principal electricity transmission system.25 The 
distribution companies26 as well as most of the marketing companies are privately owned.  
4.24.   The electricity subsector operates through an open wholesale market  and involves some 
1,350 operators  (generators, transporters, distributors and marketers) and large consumers.27 
They are free to buy their power and energy through a marketing company or directly from a 
generating company. Generation and marketing take place in a free and competitive  environment 
comprising a spot market and a futures contracts market. Transmission and distributio n 
are regulated.  
4.25.   Guatemala trades in electricity with the countries of Central America in the framework of the 
Regional Electricity Market (MER)28 through the Central American Electricity Interconnection 
System (SIEPAC line), and with Mexico via a binationa l interconnection. Table 4.2 shows that as of 
2013 Guatemala became a net electricity exporter, with net trade amounting to 502 GWh in 2015.  
4.26.   Recent years have witnessed a marked expansion of exports to the MER, making Guatemala 
the leading electricity expo rter in Central America, having exported over 1,000 GWh in 2014. 
Some 98 % of Guatemala's external electricity sales went to the MER in 2014 and the remaining 
2% to Mexico. In that same year, 73 % of Guatemala's electricity imports came from Mexico and 
27% from the MER.29 
                                                
22 Government Decis ion No.  80 of 2013.  
23 Wholesale Market Administrator, Preliminary Report 2015. Viewed at: http://www.amm.org.gt .  
24 Online information from the Ministry of Energy and Mining. Viewed at: 
http://www.mem.gob.gt/energia/electrificacion -rural/informacion -general -er. 
25 There is also a secondary transmission system owned by the generating companies and is the means 
of connecting them with the main system.  
26 There are three distribution companies in operation: DEOCSA, DEORSA and EEGSA. The first two 
were operated by a British holding company (Energuate) from 2011 to January  2016, when they were bought 
by a United States company. EEGSA is 80% owned by a Colombian company.  
27 Large consumers are those with an electricity demand in excess of 100 kW and they are registered as 
such with the Ministry of Energy and Mining.  
28 The MER was created by the Framework Treaty on the Central American Electricity Market signed 
between Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama. The SIEPAC Line is a regional 
transmission system completed in 2014, which interconnects the electricity systems of the member countries.  
29 Online information from the National Electri city Commission (2015), Informe estadístico de 
Mercado -2014. Viewed at http://www.cnee.gob.gt/xhtml/Informe%20estadistico%202015.pdf . WT/TPR/S/348 • Guatemala  
- 82 - 
  Table 4.2 Net electricity trade, SNI, 2010 -2015  
(GWh)  
 2010  2011  2012  2013  2014  2015  
Total electricity 
exported from the SNIa 145 193 196 583 1,027  1,087  
Total electricity 
imported into the SNI   367 526 226 267 708 585 
Net trade, SNI  -223 -332 -30 317 499 502 
a SNI: National Interconnected System.  
Note:  Total energy includes losses . Net trade equals exports less imports.  
Source:  National Electricity Commission (2015) , Informe estadístico de M ercado -2014. Viewed at: 
http://www.cnee.gob.gt/xhtml/Informe%20estadistico%202015.pdf . 
4.27.   The MEM is responsible for formulating and coordinating electricity sector policies, plans and 
programmes; the granting of permits  to set up generating plants and to provide electricity 
transmission and final distribution services, as well as the registration of wholesale market 
operators and large consumers, among other functions. The National Electricity Commission 
(CNEE) is the regulatory authority; it is tasked with determining the transmission and distribution 
tariffs that are subject to regulation, including their method of calculation; it issues technical 
regulations; monitors competition in the wholesale market; ensures fulfilment of the undertakings 
of concessionaires and successful bidders; and protects the rights of consumers.30 The CNEE 
reports to the MEM but discharges its functions independently. The operation of the SNI is the 
respon sibility of the Wholesale Market Administrator (AMM), a private body whose functions are to 
coordinate the operations of power generation companies, international interconnections and 
transmission lines; to set short -term market prices; undertake purchases  and sales on the 
wholesale market; and to ensure a safe and adequate supply of electricity in the country.  
4.28.   The regulatory framework for the electricity subsector  comprises mainly the General 
Electricity Law (LGE)31; the Regulations  implementing the LGE 32; the Regulations governing the 
Wholesale Market Administrator33; the Law on incentives for the development of renewable energy 
projects34 and its implementing Regulations.35 The passing of the LGE in 1996 laid the groundwork 
for the liberalization and reform o f the subsector  by ending the State monopoly on electricity, 
separating the subsector's various activities and allowing for private investment in all of them. The 
Law contains no provisions granting different treatment to foreign -owned companies.  
4.29.   Under the  LGE, government authorization is not required for electricity generation. The sole 
requirement is permission from the MEM to set up power  generation plants that make use of public 
property, when the plant's capacity exceeds  5 MW; the maximum period of aut horization is 
50 years. Permission is also required for the transport of electricity that entails the use of public 
property and for the final distribution of electricity. The LGE provides for free access to and use of 
transmission lines and distribution n etworks. Likewise, the Law enables  private generators to 
export energy.  
4.30.   Electricity prices are freely determined, with the exception of tariffs for transmission and 
final distribution services, which are subject to authorization. Transmission charges are regulated 
by the CNEE when there is no agreement between the parties. Prices to small consumers are 
proposed by the distributors and are subject to approval by the CNEE. Prices practi sed between 
electricity industry operators  and major consumers are set in the spot market or through contracts 
negotiated directly among them.  
4.31.   The social tariff introduced in the year 2000 to benefit low -income consumers is still in 
place.36 Its methodology was changed in 2011 and it is now applied to all users that consume up 
                                                
30 The CNEE regularly publishes information o n wholesale market activities and prices.  
31 Legislative Decree No.  93-96 of 6  October  1996.  
32 Government Decision No.  256-97 of 21  March  1997 and amendments thereto (Decision No.  68-2007).  
33 Government Decision No.  299-98 of 1  June 1998 and amendments ther eto (Decision No.  69-2007).  
34 Legislative Decree No.  52-03 of 2003.  
35 Government Decision No.  211-2005.  
36 Law on the social tariff for the supply of electricity, Executive Decree No.  96-2000.  WT/TPR/S/348 • Guatemala  
- 83 - 
  to 300 kWh per month.37 The social tariff is financed by the INDE with resources allocated by the 
State, as the LGE does not permit the use of cross -subsidization between distribution tariffs. In 
2014, the total amount provided by the INDE was Q  1,323.3  million, and the 2015 figure was 
Q 1,094.7  million.38 Between 2000 and 2015, the INDE contributed over Q  10.7 billion to the social 
tariff, which benefited 77 % of consumers. This has nevertheless impacted the capacity of the INDE 
to invest in electricity generat ion and transmission  projects. Proposals to channel support  more 
effectively  towards the neediest consumers  are currently being examined . 
4.32.   On a quarterly basis, the CNEE adjusts and publishes the electricity tariffs applied  by 
distributing companies . The ga p between social and non -social tariffs has narrowed  over recent 
quarters39, and there has generally been a marked reduction in tariffs. This is in part the outcome 
of international market conditions, declining  oil prices and changes to Guatemala's energy m atrix. 
It is hoped that this trend will continue with the forthcoming launch of new private power 
generation projects.  
4.33.   The Law on incentives for the development of renewable energy projects and its 
implementing Regulations grant fiscal, economic and admini strative incentives in order to promote 
such projects and lessen dependence on imported fuels. The fiscal incentives include: 
(a) exemption from customs duty, VAT, consular fees and charges on imports of machinery and 
equipment used exclusively for renewab le energy generation in the area where projects are 
located during the pre -investment phase and construction phase, which may not exceed ten years; 
(b) a ten-year income tax waiver as of the launch of commercial operations; this waiver is granted 
only to n atural and legal persons directly implementing projects and only for the part that 
corresponds to a given project; and (c) a ten-year waiver of the tax on commercial and 
agricultural enterprises (IEMA) as of the launch of commercial operations.  
4.34.   The incenti ves granted under the Law may have favourably impacted the composition of 
Guatemala's energy matrix. In 2015, 66.9 % of the energy generated by the SNI came from 
renewable sources, mainly hydroelectric plants, compared with less than 50 % in 2003 when the 
Law was enacted. Besides, consequent on the expiry of several electricity  generation contracts in 
2014, public tenders were held and new projects introduced into the market to generate electricity 
from renewable sources such as wind, solar and geothermal ene rgy, and these will mean further 
changes to the energy matrix. These projects include at least four major works that are either in 
construction or were recently completed, which together will add 200 MW.40 With the successive 
implementation of various plans  for the expansion of electricity generation and transmission 
systems41, it is hoped to add a further 574 km of electricity transmission lines, distributed into 
five rings that will cover the national territory, with priority being given to sectors that lac k 
this service.42 
4.2.2   Hydrocarbons  
4.35.   In 2015 Guatemala produced 3.66  million barrels of crude (16 % less than in 2010) or 
10,039 bbl/day, while the output of petroleum products added another 1.18  million barrels. The 
country's total consumption of petroleum produc ts for that year was 32.52  million barrels or an 
average of 89,116 bbl/day.43 In 2015 Guatemala's oil reserves amounted to 780  million barrels 
(petroleum originally in place).44 
                                                
37 The tariff breaks down into three bands of consumption: from 0  to 50 kWh; from 51 to 100 kWh; and 
the first 100 kWh of consumption of up to 300 kWh/month.  
38 Information provided by the INDE.  
39 For example, under the tariff adjustment for the quarter from November  2015 to January  2016, the 
social tariff applied by the  distributor EEGSA was Q 1,1421/kWh, while the non -social tariff was Q 1,1516. 
Viewed at: http://www.cnee.gob.gt/wp/?p=2107 . 
40 SIGLO21.com.gt, Cuatro proyectos nuevos generarán otros 200 MW , 10 November  2014. Viewed at 
http://www.s21.com.gt/pulso/2014/11/10/cuatro -proyectos -nuevos -generaran -otros-200-mw. 
41 Transmission Expansion Plan PET -1-2009, National Trans mission Expansion Plan PETNAC -2014, and 
2012, 2014 and 2016 Plans for the Expansion of Generation and Transmission Systems.  
42 Online information from the MEM. Viewed at http://www.mem.gob.gt/2014/07/presentan -avances -
de-la-politica -energetica -2013-2027. 
43 Ministry of Energy and Mining (2016), Informe estadístico de hidrocarburos 2015 , Guatemala , 
Guatemala City, January. Consumption of oil products includes domestic crude oil consumption.  
44 Information provided by the Guatemalan authorities.  WT/TPR/S/348 • Guatemala  
- 84 - 
  4.36.   As Guatemala lacks sufficient oil refining infrastructure, most of its crude oil  output (80 %) is 
exported for processing, mainly to the United States. In 2015, crude oil exports totalled 
3.17 million barrels. Guatemala also exports asphalt, albeit in small quantities. Guatemala is a net 
importer of petroleum products and is dependent on imports for meeting almost all of its fuel 
needs. In 2015, the country imported 36.65  million barrels of petroleum products, mainly diesel, 
premium gasoline (95 octane), liquefied petroleum gas (LPG) and regular gasoline (88 octane) 
(Table 4.3).  
Table 4.3 Trade in petroleum and petroleum products, 2010 -2015  
(Thousand  barrels)  
 2010  2011  2012  2013  2014  2015  
Exports        
Crude petroleum  3,719.36  3,529.42  3,271.14  3,223.56  2,978.23  3,179.59  
Asphalt  139.53  135.77  87.39  89.42  67.76  99.08  
Total  3,858.89  3,665.19  3,358.53  3,313.98  3,045.99  3,278.67  
Imports        
LPG 3,979.82  4,073.97  4,304.66  4,915.25  4,873.21  5,916.30  
Aviation fuel  15.37  13.80  13.79  15.31  44.23  11.53  
Premium gasoline  5,212.70  4,733.63  4,877.06  5,015.27  5,734.52  6,836.51  
Regular gasoline  3,358.39  3,268.36  3,046.59  3,585.07  4,403.11  5,435.28  
Kerosene  593.38  589.72  591.01  771.96  1,025.77  162.24  
Jet fuel  0.00 0.00 0.00 0.00 0.00 1,213.09  
Diesel fuel  9,011.13  9,219.82  9,549.88  9,599.15  10,503.24  9,846.96  
Low sulphur diesel  0.00 0.00 0.00 161.74  481.49  2,550.34  
Bunker C or fuel 
oil 3,796.03  4,179.31  3,879.27  3,167.97  3,082.86  3,494.34  
Asphalt  78.91  100.09  97.01  39.67  82.75  89.05  
Petcoke  625.38  1,184.98  1,114.50  1,154.78  1,279.41  1,101.54  
Total  26,671.15  27,363.72  27,473.82  28,426.23  31,510.63  36,657.23  
Source:  MEM (2015), Informe Estadístico de Hidrocarburos, Guatemala, January -September . Viewed at: 
http://www.mem.gob.gt/wp -content/uploads/2015/06/2015 -Revista -Hidrocarburos -03.pdf . 
4.37.   Plummeting international oil and fuel prices as of the end of 2014 have meant substantial 
savings on Guatemala's oil bill ( -33% in 2015 compared to the prior yea r) and an improved trade 
balance for the country. This has been reflected in lower fuel prices to end consumers, which, 
besides, are the most competitive prices in the Central American region.45 
Table 4.4 Avera ge consumer prices of fuels in Central America,  2014 -2015  
(January -September, US$/gallon)  
 Guatemala  El Salvador  Honduras  Nicaragua  Costa Rica  
2014  2015  2014  2015  2014  2015  2014  2015  2014  2015  
Premium  4.18 3.06 4.25 3.14 4.83 3.80 4.81 3.78 5.21 4.18 
Regular  3.99 2.87 3.94 2.89 4.48 3.49 4.55 3.54 5.02 3.98 
Diesel  3.72 2.46 3.88 2.64 4.20 3.05 4.19 3.04 4.56 3.33 
Source:  MEM (2015), Informe Estadístico de Hidrocarburos , Guatemala. Viewed at: 
http://www.mem.gob.gt/wp -content/uploads/2015/06/2015 -Revista -Hidrocarburos.pdf . 
4.38.   The hydrocarbons industry is regulated by the MEM through the Directorate -General of 
Hydrocarbons, which i s responsible for issuing licenc es for imports, exports, the opening of service 
stations, refining and processing, the opening of asphalt plants, storage and the preparation of oily 
mixtures.46 The National Petroleum Commission issues opinions on matters regarding the 
exploration and explo itation of hydrocarbons and the setting of crude oil export prices. The 
industry is also regulated by the Ministry of the Environment and Natural Resources and, where 
appropriate, by the Council for Protected Areas . 
                                                
45 MEM, Informe E stadístico de Hidrocarburos , Guatemala , January -September  2015. Viewed at: 
http://www.google.ch/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0ahUKEwilxPGIjtTJAhXHaxQKHckE
AGYQFggcMAA&url=http%3A %2F%2Fwww.mem.gob.gt%2Fwp -content%2Fuploads%2F2015%2F06%2F2015 -
Revista -Hidrocarburos -03.pdf&usg=AFQjCNE -
7Gxsx0txlci6Pzr9Bje2mk0eaQ&sig2=KQuMEroCb0QLFS1mG5KU_g&bvm=bv.109910813,bs.2,d.bGQ . 
46 The license application requirements and forms may be viewed at: 
http://www.mem.gob.gt/hidrocarburos/ventanilla -de-emision -de-licencias . WT/TPR/S/348 • Guatemala  
- 85 - 
  4.39.   According to Article 121 of the Constitu tion, the subsoil and its hydrocarbon deposits and 
minerals, together with any other organic or inorganic substances found in the subsoil, are the 
property of the State, and Article 125 requires the State to create favourable conditions for the 
exploration , exploitation and marketing of hydrocarbons, minerals and other non -renewable 
natural resources.  
4.40.   The legal framework governing the hydrocarbons industry  has not been altered since 2009. 
In addition to the provisions of the Constitution, this framework con sists essentially of the 
Hydrocarbons Law47 and its implementing Regulations48; the Invitation to bid for hydrocarbons 
exploration and exploitation contracts49 and its implementing Regulations50; the Regulations 
governing contractors and subcontractors in the petroleum sector51; the Regulations on the 
conclusion of petroleum -related service contracts with the Government52; and the Law on the 
National Economic Development  Fund (FONPETROL )53 and its implementing Regulations54, issued 
in 2009. The marketing and import ation of hydrocarbons are governed mainly by the 
Hydrocarbons Marketing Law55 and its implementing Regulations56, as well as by various rules that 
govern, inter alia,  the quality characteristics and specifications for imported petroleum products ; 
petroleum p roducts produced and marketed in the country; their transport;  and the procedures for 
obtaining import and export licen ces.57 
4.41.   Guatemala's hydrocarbons regime stands out for its relative openness. The Hydrocarbons 
Law allows private companies to participate in petroleum -related operations, including the 
extraction and marketing of hydrocarbons through contracts signed with the State. No distinction 
is made between domestic and foreign companies. In fact, the country's leading oil companies are 
part of multina tional corporations. The Law nonetheless prescribes that contractors involved in 
petroleum -related operations and services must give preference to Guatemalan goods, services 
and personnel in the conduct of their activities.  
4.42.   The year 2010 saw the amendment,  expansion and extension of the main petroleum 
exploitation contract.58 Furthermore, to encourage investment, new oilfields were put up for tender 
in 2012 (Guatemala Round 2012), leading to the award of two contracts and to another contract 
pending award.  
4.43.   During the term of their contracts, oil companies may bring into Guatemala the materials 
they need for their operations, whether as imports admitted  free of the duty and other related 
levies (including VAT and consular fees) on fungibles, machinery, equipme nt, spare parts and 
accessories destined for final use in the country or to remain in Guatemala for at least five years; 
or under the temporary relief procedure, without  surety, for foreign -owned machinery, equipment 
and accessories.  
4.44.   All companies must pay  a percentage of royalties to the State, the amount of which is set in 
accordance with the API gravities of crude oil output. In any case, the royalty may not be less 
than 5%.59 Furthermore, the State is required by law to hold an equity stake in each oil 
exploration and exploitation project, directly proportional to the number of barrels per day 
                                                
47 Legislative Decree No.  109-83 of 15  September  1983, as amended by Decree No.  161-83. 
48 Governme nt Decision No.  1034-83 of 15  December  1983, as amended by Government Decision 
No. 165-2005 of 17  May 2005.  
49 Government Decision No.  764-92 of 7  September  1992.  
50 Government Decision No.  754-92 of 7  September  1992.  
51 Government Decision No.  299-84 of 4  May 1984.  
52 Government Decision No.  167-84 of 14  March  1984.  
53 Decree No.  71-2008 of 18  November  2008.  
54 Government Decision No.  195-2009 of 13  July 2009.  
55 Legislative Decree No.  109-97 of 26  November  1997.  
56 Government Decision No.  522-99 of 14  July 1999, as amended by Government Decision 
No. 505-2007, published on 12  November  2007.  
57 All laws, regulations and standards may be viewed online at: http://www.mem.gob.gt/qui enes-
somos/marco -legal/marco -legal-hidrocarburos . 
58 The contract with Perenco. Government Decision No.  214-2010.  
59 Article 61 of the Hydrocarbons Law.  WT/TPR/S/348 • Guatemala  
- 86 - 
  produced by the enterprise. The percentage share of equity is calculated on the basis of net output 
and must be at least 30 %.60 
4.45.   Under the Hydrocarbons Marketing Law,  any natural or legal person may import or export 
petroleum products using the appropriate means of transport.61 A license must be obtained from 
the Directorate -General of Hydrocarbons for both imports and exports. For exports, further 
authorization is need ed for each operation, and it will be withheld if the exportation will cause a 
shortage in the country or distort domestic market prices.62 The Regulations implementing the 
Hydrocarbons Marketing Law do not prescribe nationality requirements for obtaining l icences, or 
any different treatment of foreign -owned companies. A single window was introduced  in 2013 for 
the proces sing of import and export licenc es for petroleum products.  
4.46.   The Hydrocarbons Marketing Law provides that persons engaged in the marketing of  
petroleum and petroleum products are free to set the prices of their products and services, though 
they must reflect domestic and international market conditions.63 The Law further provides for the 
possibility of imposing sanctions on companies engaging in  anti-competitive practices such as price 
fixing agreements and the use of discriminatory quotas and discounts among buyers.  
4.47.   Pursuant to the 2008 Law on the National Economic Development  Fund (FONPETROL) 
(FONPETROL) and its implementing Regulations (2009),  the funds accruing to the State from 
royalties and its share in hydrocarbons contracts go into the FONPETROL fund, which is supervised 
by the Ministry of Finance. The funds must go towards the development of the interior of the 
country and the study and d evelopment of new and renewable energy sources. In 2015, a total of 
Q 249.4  million went into FONPETROL, of which Q 12.4  million were allocated to the Departmental 
Development Boards, Q 49.8  million to the Departmental Development Boards in areas where 
petroleum -related operations are located (Petén and Alta Verapaz), and Q 7.4  million to the 
government bodies responsible for the oversight and recovery of protected areas.64 
4.48.   A specific tax is levied on crude oil and oil -based fuels, whether imported or locall y 
produced, that are processed and distributed in Guatemala (Table 4.5).65 This tax is waived for 
crude oil and other fuels used for electricity generation in therm al power  plants that form  part of 
the SNI. 
Table 4.5 Specific tax on hydrocarbons, 2016  
Hydrocarbon  Tax (Quetzals/gallon)a 
Premium gasoline  4.70 
Regular gasoline  4.60 
Aviation fuel 4.70 
Diesel fuel and gas oil  1.30 
Kerosene (DPK)  0.50 
Kerosene for jet engines  0.50 
Naphtha  0.50 
Liquefied petr oleum gas (propane, butane, methane 
and the like) in bulk and for filling stations  0.50 
a One US gallon equals 3.785 litres.  
Source:  Information provided by the Guatemalan authorities.  
4.3  Manufactures  
4.49.   Manufacturing (including the free zone and maquila indust ries) continue s to play an 
important role in the national economy. The sector grew at an annual average of 3.3 % between 
2009 and 2015, the most dynamic subsectors being those of machinery and equipment, plastics 
and rubber, and chemicals. The contribution of manufacturing to GDP (at current prices) 
                                                
60 Ibid., Article 66.  
61 Articles 11 and 26 of the Hydrocarbons Marketing Law.  
62 Ibid., Article 28.  
63 Ibid., Article 5.  
64 Ministry of Energy and Mining (2016), Informe estadístico de hidrocarburos 2015, Guatemala , 
Guatemala City, January.  
65 Law on the tax on the distribution of unrefined petroleum and petroleum -based fuels. Decree 
No. 38-92 of 8  June 1992 and amendments thereto.  WT/TPR/S/348 • Guatemala  
- 87 - 
  nonetheless remained practically stable at 18.5 % in 2015. Manufacturing employs some 13 % of 
the economically active population.66 
4.50.   Exports of manufactures grew at an annual average rate of 6.6 % between 2009 and 201 5, 
when they amounted to US$4,566  million. Despite this, their share in Guatemala's total exports 
contracted from 43.1 % in 2009 to 42.3 % in 2015 as a result of the relative growth of exports from 
other production sectors, especially mining.  
4.51.   The main catego ries of export manufactures are clothing, chemicals, and other 
semi-manufactures such as articles of paper, paperboard and glass for the conveyance or 
packaging of goods  (Table 4.6). Exports of manufactures produced  under the maquila and 
free-zone regimes represent approximately one  third of total merchandise exports.  
4.52.   In 2015 Guatemala imported manufactures worth US$12,156  million. The leading imports 
include machinery and transport equipment, chemicals and other semi -manufactures (paper, 
paperboard, tyres,  etc.).  
Table 4.6 Manufacturing i ndicators, 2009 -2015  
 2009  2010  2011  2012  2013  2014  2015a 
Total manufacturing sector  
(Q million, at 2001 constant prices)  34,863  36,030  37,123  38,339  39,663  40,913  42,325  
Growth rate (%)  -0.9 3.3 3.0 3.3 3.5 3.2 3.5 
% of total GDP (at current prices)  18.6 18.6 18.6 19.1 19.1 18.8 18.5 
Exportsb 
Total (US$  million)  3,107  3,607  3,987  4,104  4,153  4,264  4,566  
 (% of exports)  
Articles of apparel and clothing 
accessories  14.5 14.0 12.4 12.1 13.1 12.2 12.7 
Chemicals  12.1 11.4 10.6 11.9 12.0 11.3 11.9 
Other semi -manufacturesC 4.6 4.8 4.8 5.1 5.0 5.0 5.5 
Other consumer goodsd 3.9 3.9 3.7 4.2 4.1 3.9 4.1 
Iron and steel  2.2 2.1 2.4 2.2 1.9 2.2 3.0 
Importsb 
Total (US$  million)  7,419 9,120  10,624  10,914  11,376  11,748  12,156  
 (% of imports)  
Machinery and transport equipment  20.5 21.8 21.4 22.5 22.3 22.4 24.3 
Chemicals  17.3 17.4 16.9 17.1 17.4 17.1 18.3 
Other semi -manufacturese 8.6 8.4 8.1 8.3 8.5 8.4 9.1 
Other consumer goodsf 7.1 6.8 6.2 6.5 6.6 6.9 7.0 
Textiles  6.9 6.8 6.4 5.8 5.8 5.0 5.5 
a Preliminary figures . 
b By product group according to the Standard International Trade Classification (SITC Rev.3) system.  
c The main ones include: cartons, boxes, cases, bags and other pa cking containers, of paper, 
paperboard ; tanks, casks, drums, cans, of iron, steel or aluminium, of a capacity not exceeding 300 
litres; and containers, of glass, of a kind used for the conveyance or packing of goods . 
d The main ones include: articles for t he conveyance or packing of goods, of plastics; floor coverings 
of plastics , household and toilet articles of plastics; printed matter, n.e.s.  
e The main ones include: kraft paper and paperboard, uncoated, n.e.s., in rolls or sheets; articles of 
paper pulp , paper, paperboard or cellulose wadding, n.e.s. ; and tyres, pneumatic, new, of a kind 
used on buses or lorries . 
f The main ones include: articles for the conveyance or packing of goods, of plastics; and articles , 
n.e.s, of plastics.  
Source:  WTO Secretari at calculations , based on information provided by the Guatemalan authorities, and the 
UNSD Comtrade database . 
4.53.   In 2015, the average MFN tariff for the manufacturing sector (according to the International 
Standard Industrial Classification  (ISIC Rev.3 )) was 5.6%, which was marginally lower than the 
overall average MFN tariff. Categories of manufactures with an above -average level of tariff 
protection are: manufactured foodstuffs , beverages and tobacco (average MFN tariff of 11.5 %); 
textiles, clothing and leat her goods (10 %); wood and wood products (9.8 %); the item "other 
                                                
66 Information provided by the Guatemalan authorities.  WT/TPR/S/348 • Guatemala  
- 88 - 
  manufacturing industries" (9.2 %); and non -metallic mineral products, except petroleum and coal 
products (6.2 %).67 
4.54.   Until late 2015, manufacturing activity benefited under the maquila and free -zone regimes, 
which contain some export subsidy elements . New regulations in the form of the Emergent Law on 
job protection (Decree No.  19-2016), adopted on 25  February  2016, introduced important changes 
in this regard (Section 3.2.4).  
4.55.   In 2015, the Ministry of the Economy and the Chamber of Industry of Guatemala tabled a n 
"Industrial Policy Proposal based on Competitiveness and Innovation for Guatemala 2016-2044".68 
It aims to expand job opportunities and boost the incomes of Guatemalan workers by creating a 
new production structure and exponentially increasing national value  added. The strategies laid out 
in the proposal include: attracting light manufacturing enterprises to the country's urban centres; 
strengthening value chains for manufactured goods; genera ting effective technology transfer 
through backward manufacturing linkages; expanding transport infrastructure; developing the 
financial and capital market; improving quality system infrastructure; investing in research and 
development; developing R&D capa bilities; promoting market intelligence; simplifying formalities; 
and creating a new institutional framework for the sector, thereby enhancing its autonomy and 
technical capabilities.  
4.56.   The proposed industrial policy aims, by 2044, to: (a) raise the share of  the manufacturing 
sector to 40 % of Guatemala's GDP; (b) increase formal employment in the manufacturing industry 
to 20 % of the economically active population; (c) place at least ten manufactures among the 
15 principal export products; and (d) triple the a verage wage of workers in the sector. Among the 
light manufacturing activities for which Guatemala wishes to attract investment and position itself 
as an export platform are electronic products, refrigerators, automotive parts, plastics, cosmetics, 
softwar e development, pharmaceutical equipment and medical devices.  
4.4  Services  
4.4.1   Overview and multilateral commitments  
4.57.   In Guatemala, the services sector accounts for 63% of GDP and employs around 50% of the 
economically active population (2015).69 The most important s ubsectors in terms of their 
participation in the economy are: trade; transport, storage and communications; housing rental; 
and business activities and other real estate activities (Table 1.1).  
4.58.   Between 2009 and 2015, Guatemala's services sector grew at an average annual rate of 
3.9%, with growth being especially rapid in the financial intermediation, insurance and auxiliary 
activities (average annual growth of 9.3% over the period) and public administration, defence and 
social security (6.3%) subsectors. Gu atemala is still a net importer of services and during the 
review period it ran a balance of services deficit, which amounted to US$310  million in 2015 
(Table  1.4). 
4.59.   Under the General Agreement on Trade in Services (GATS), Guatemala has undertaken 
specific commitments in only five of the 12 GATS services categories, namely: business services; 
communications services; tourism services; transport services; and financial services.70 In the 
case of transport, Guatemala has only adopted commitments under air trans port, specifically in 
repair and maintenance services, sale or marketing of transport services, and computer 
reservation services. The commitments assumed under financial services are limited to the 
reinsurance of insurance policies, the supply and transfe r of financial information and financial 
advisory services. In the tourism sector, Guatemala's commitments relate to hotel and lodging 
services (four and five star), restaurant services, and tourist marina operator services.  
                                                
67 ISIC Rev.2 (2 digits).  
68 The industrial policy proposal was officially presented to the Government that took office in 
January  2016. The proposal may be viewed at: http://www.mineco.gob.gt/sites/default/files/pdfs/  
folleto_politica_industrial.pdf . 
69 Information on employment provided by the Guatemalan authorities.  
70 WTO document GATS/S C/36 of 15  April 1994.  WT/TPR/S/348 • Guatemala  
- 89 - 
  4.60.   In its horizontal commitments, under both market access and national treatment, 
Guatemala bound only the presence of natural persons for higher -level and specialized personnel 
in connection with a commercial presence which must contribute to the training of Guatemalan 
personnel. It also  specified minimum percentages for the Guatemalan workers that a company 
must employ and for their share of total wages; these percentages may be reduced at the 
discretion of the Ministry of Labour.  
4.61.   In its Schedule of Specific Commitments, Guatemala entere d exemptions from 
MFN treatment for the sectors covered by the CACM agreements. In addition, it exempted from 
MFN treatment the Convention on Investment Guarantees with the United States (1962) and its 
implementing Regulations; the Trade and Investment Agr eement between Central America and 
Colombia and Venezuela (1993); and the Tuxtla Gutiérrez Agreements between the 
Central  American countries and Mexico (1991).71 
4.62.   Guatemala participated in the negotiations on basic telecommunications and then expanded 
its Sc hedule of Specific Commitments in that sector.72 However, due to changes made in its 
General Telecommunications Law, Guatemala has not been able to ratify the Fourth Protocol on 
Basic Telecommunications annexed to the GATS. The only limitation on market acc ess that 
Guatemala has stipulated in its revised Schedule of Commitments in telecommunications is the 
requirement that international traffic be routed through the facilities of an enterprise with a 
frequency user's title and/or telecommunications registrat ion certificate issued by the Supervisory 
Authority for Telecommunications. There are no limitations on national treatment. Guatemala has 
accepted the WTO reference paper on telecommunications. Guatemala has not participated in the 
extended negotiations on  financial services.  
4.63.   Since the conclusion of the Uruguay Round, Guatemala has further liberalized its services 
regime by adopting autonomous measures, as well as through commitments undertaken in 
connection with the RTAs in which it participates. Consequen tly, the services regime currently 
applied is considerably more liberal than the commitments undertaken within the context of 
the GATS.  
4.4.2   Telecommunications  
4.4.2.1   Overview  
4.64.   Guatemala's telecommunications market is the largest in Central America, with an 
estimated i ncome of US$2.9  billion in 2014.73 Taken together with transport and storage, 
communications represents 7.6% of the country's GDP. Since it was privatized and opened up in 
1996, the Guatemalan telecommunications market has experienced strong growth, driven by 
increasing competition and the gradual introduction of new technologies.  
4.65.   During the review period, with the exception of the years 2013 and 2014, mobile telephony 
grew steadily, increasingly serving as an alternative to fixed -line telecommunications ser vices.74 
For its part, fixed telephony has stagnated in recent years, reflecting the global trend (Chart 4.1). 
Guatemala has one of the highest mobile telephony penetration rates in Latin America, with 
112 lines per 100 inhabitants, 95% of which correspond to prepayment plans. By contrast, fixed 
telephony has one of the lowest penetration rates in the region, partly due to inadequate public 
investment in telecommunications infrastructure. This, in its turn, has restricted the use of fixed 
broadband and the n umber of households with Internet access is still relatively low (15%), 
especially in rural areas. With the advent of new technologies, mobile broadband subscriptions 
have gradually increased, but the penetration rate is only 9.4 per 100 inhabitants (Table  4.7). 
                                                
71 WTO document GATS/EL/36 of 15  April 1994.  
72 WTO document GATS/SC/36/Suppl.1/Rev.1 of 29  November  1999.  
73 Krishna, S., "Telecom Services market in Guatemala is the largest in Central America", online article, 
viewed at: https://www.linkedin.com/pulse/telecom -services -market -guatemala -largest -central -america . 
74 The reduction in the number of mobile terminals in 2013 and 2014 was pa rtly due to the impact of 
Decree -Law No.  20-2014 (repealed in September  2015) which imposed a tax of Q 5 per mobile line.  WT/TPR/S/348 • Guatemala  
- 90 - 
  Chart 4.1 Trend in fixed and mobile telephone lines, 2009 -2015  
Million lines  
1.41 1.50 1.63 1.75 1.86 1.72 1.7217.3118.0719.4820.7921.72
16.9118.12
0510152025
2009 2010 2011 2012 2013 2014 2015
Fixed lines Mobile lines
 
Source:  Online information from the Supervisory Authority for Telecommunications. Viewed at: 
http://www.sit.gob.gt . 
Table 4.7 Principal telecommunications indicators, 2015  
Indicator  2015 
Fixed lines per 100 inhabitants  11.0 
Mobile lines per 100 inhabitants  112.0  
Fixed broadband subscriptio ns per 100 inhabitants  2.4 
Mobile broadband subscriptions per 100 inhabitants  9.4 
Households with a computer (%)  19.7 
Households with Internet access (%)  15.0 
Persons using the Internet (%)  23.0 
Source:  Information provided by the Supervisory Authorit y for Telecommunications.  
4.66.   The reform of telecommunications in 1996 put an end to the monopoly of the State -owned 
company GUATEL, which was later privatized, and opened up the sector to competition. In the 
following years, around 20 operators entered the ma rket; however, their number has declined as a 
result of mergers, amalgamations, and buying and selling between these operators.  
4.67.   According to data provided by the Supervisory Authority for Telecommunications, at the end 
of 2015, the mobile line market was m ade up as follows: the operator TIGO (formerly Comcel) had 
8.6 million users or 51% of the market, followed by TELGUA (Claro), which belongs to the 
international operator América Móvil, with 5.1  million users (31% of the market), and Movistar of 
Guatemala,  which belongs to the international operator Telefónica, with 2.9  million users and a 
market share of 18%.  
4.68.   In the fixed telephony segment, at the end of 2015, the market was shared out as follows: 
TELGUA was the main operator with 75.6% of fixed lines, whi le the remaining 24.4% was divided WT/TPR/S/348 • Guatemala  
- 91 - 
  up among a dozen other operators. In the Internet access segment, there were around 20 service 
providers (ISPs), including 11 international port operators.75 
4.69.   The prices of telecommunications services in Guatemala are still  relatively high, including at 
regional level. For example, according to data from the International Telecommunication Union 
(ITU), in 2014 mobile telephony prices in Guatemala accounted for 7.89% of per capita Gross 
National Income (GNI), well above the p ercentages recorded in Costa Rica, Panama and, to a 
lesser extent, El Salvador (Table 4.8). In the same year, Guatemala recorded one of the highest 
fixed broadband prices in Latin America (exceeded only by the prices in Honduras, Nicaragua, 
Cuba and Haiti)  and ranked 118th out of 181 countries. For its part, the price of mobile broadband 
(under a post -payment contract for cellular) was equivalent to 6.93% of per capita GNI and 
Guatemala ranked 126th out of 164 countries. In general, the average price of the  "basket" of 
telecommunications (ICT) services offered in Guatemala accounted for 5.7% of per capita GNI 
in 2014.  
Table 4.8 Telecommunications prices in Central America, 2014  
(% of per capita Gross National In come (GNI))  
 Costa Rica  El Salvador  Guatemala  Honduras  Nicaragua  Panama  
Fixed telephony  1.06 2.92 2.23 3.61 4.57 1.81 
Mobile telephony  0.48 4.76 7.89 8.63 20.54  1.41 
Fixed broadband  1.82 5.83 6.93 12.12  16.10  1.80 
Mobile broadband, 
post-payment  1.52 4.84 6.93 19.01  7.71 1.68 
Basket of ICTsa 1.1 4.5 5.7 8.1 13.7 1.7 
a Information and communications technologies (ICT) include: fixed telephony, mobile telephony and 
fixed broadband.  
Source:  International Telecommunication Union (ITU) (2015), Measuring the  Information Society Report . 
Viewed at: http://www.itu.int/en/ITU -D/Statistics/Pages/publications/mis2015.aspx . 
4.4.2.2   Institutional and legal framework  
4.70.   The Ministry of Communic ations, Infrastructure and Housing (MCIV) is responsible for 
formulating policy, drafting legislation and supervision in the telecommunications sector. The 
Supervisory Authority for Telecommunications (SIT), a primarily technical arm of the MCIV, was 
set u p in 1996 to regulate the sector and implement the General Telecommunications Law. The 
functions of the SIT include administering and supervising the use of the radio -frequency 
spectrum; administering the Telecommunications Register; settling disputes betw een operators 
relating to access to essential resources; drawing up and administering the National Numbering 
Plan; applying the sanctions for which the law provides; and representing Guatemala as a 
technical body at meetings of the international telecommun ications organizations and in 
negotiations concerning international telecommunications treaties and conventions.76 
4.71.   The sector's legal framework consists mainly of: the General Telecommunications Law/LGT 
(Decree No.  94-96 of 17  October  1996) and amendments t hereto77; the Radio Communications 
Law (Decree -Law No.  433 of March  1966); the Regulations on the provision of the international 
telephone service (Government Decision No.  408-99 of 25  June 1999); and the Regulations for the 
exploitation of satellite system s in Guatemala (Government Decision No.  574-98 of 
2 September  1998).  
4.72.   During the review period, the main changes in the legal framework for the 
telecommunications sector were as follows: the enactment of Decree Law No.  34-2012, which 
extended the period of beneficial use of radiofrequencies by a further five years to give a total of 
20 years, renewable; the approval of Decree No.  08-2013 (Law on mobile terminal equipment), 
with a view to reducing the theft of such equipment by establishing a negative databas e; and the 
issuing of Decree -Law No.  12-2014 on the strengthening of the data transmission infrastructure, 
                                                
75 These were: TELGUA, UNITEL, COMCEL, TELENORSA, OPTEL, TELEFÓNICA, BNA, ATEL, GUATEL, 
Teledistribución Guatemala and Columbus Network s. 
76 Online information from the SIT. Viewed at: http://www.sit.gob.gt/index.php/2014 -05-28-20-40-03. 
77 Amendments introduced by Decrees Nos. 115 -97, 47 -2002, 82 -2002 and 11 -2006. The lates t 
amendment was approved on 20  November  2012.  WT/TPR/S/348 • Guatemala  
- 92 - 
  the purpose of which is to facilitate authorizations for the installation of telecommunications 
infrastructure in the country. To this end, an Infras tructure Unit was set up within the SIT.78 
4.73.   The LGT establishes a legislative framework for promoting investment and competition in 
the telecommunications sector, protecting the rights of users and providers of these services, and 
supporting the rational and  efficient use of the radiofrequency spectrum. The Law applies to all 
telecommunications services and the companies that market them, whether domestic of foreign, 
private, State -owned or semi -public. The Law provides for freedom of entry into the market, 
freedom to amalgamate, free pricing and the free use of technologies. The first step in the process 
of entering the telecommunications market is to register as a commercial network operator (CNO); 
this is a simple procedure and open to any interested party that meets the requirements. Internet 
service providers also operate under the CNO system.  
4.74.   The frequencies of the radiofrequency spectrum are classified as: (a) bands for amateur 
radio enthusiasts, for which there is no need to obtain user rights; (b) band s reserved for the use 
of State agencies; and (c) regulated bands, i.e. bands which do not fall within either of the 
previous two categories and may only be used if user rights are acquired.79 The SIT is responsible 
for allocating user rights for regulated bands through public auctions in which both Guatemalans 
and foreigners may participate. There are no specific requirements for the allocation of these 
rights; the interested party evaluates the frequencies available and files an application with the 
SIT, i ndicating the frequency bands in which it is interested. If there is more than one interested 
party, a public auction is held. The SIT can only reject an application if: on account of 
technological advances, the band is impossible to define under the condi tions requested; its 
acceptance would violate international agreements; or it relates to frequency bands previously 
allocated to others, reserved bands or bands for amateur radio enthusiasts.80 User rights are 
granted for a term of 20 years, renewable for e qual periods of time at the request of the holder.81 
The rights are registered and may be leased or sold, in whole or in part.  
4.75.   In conformity with the LGT and the Regulations on the provision of the international 
telephone service, all commercial telecommuni cations network operators, holders of user rights, 
users of bands reserved for the State, and amateur radio enthusiasts must be enrolled in the SIT's 
Telecommunications Register before commencing operations.  
4.76.   According to Article 28 of the LGT, operators th at own fixed networks must allow the 
interconnection of other operators. The Law states that the contractual conditions for the 
interconnection of commercial telecommunications networks may be freely negotiated between 
operators.82 Interconnection contracts  are not subject to SIT approval, but must be recorded in the 
Telecommunications Register. Other provisions of the LGT require commercial network operators 
to offer, at cost -related prices and on reasonable terms: leased circuits, unbundled access to fixed  
network elements, the co -siting of equipment necessary for connection, and the resale of public 
telecommunications services. These provisions and others relating to access to essential resources 
and additional resources were incorporated in the LGT in 200 683, as part of the legislative changes 
necessary to implement the CAFTA -DR. 
4.77.   There is free pricing for telecommunications services, except in the case of access to 
essential resources. In accordance with the LGT, the contractual conditions and prices for th e 
provision of any kind of commercial telecommunications services are freely agreed between the 
parties and are not subject to State regulation or approval, except where access to essential 
resources is concerned, in which case they are subject to a disput e settlement procedure.84 
4.78.   The LGT requires commercial telecommunications network operators to provide access to 
essential resources for any operator that so requests, subject to the appropriate payment. The 
prices and conditions are agreed by the parties an d the applicant is entitled to contractual 
                                                
78 In 2014 and 2015, the Infrastructure Unit dealt with 280 files and authorized the installation of 
50,958 items of infrastructure.  
79 LGT Article 51.  
80 The public auction procedure for the allocation of regulat ed frequencies is governed by LGT Article 61.  
81 The amendment of the LGT approved in November  2012 resulted in the period being increased from 
15 to 20 years.  
82 LGT Article 26.  
83 Decree No.  11-2006 of 18  May 2006.  
84 LGT Article 22.  WT/TPR/S/348 • Guatemala  
- 93 - 
  conditions similar to those that the operator granting the resource maintains with other operators 
in similar circumstances. If the parties are unable to reach an agreement, the SIT may be called 
upon to settle th e dispute, in which case it must seek the opinion of an expert, based on economic 
and technical criteria.  
4.79.   The Law also provides for the free choice of network operator. Commercial network 
operators with more than 10,000 access lines must allow users connec ted to their network to 
choose and use the services of other operators, by means of a selection code in conformity with 
the numbering plan prepared by the SIT and free of charge.85 Moreover, local network operators 
must ensure that their users have access t o international telephone services.  
4.80.   Although the LGT established the basis for opening up competition in the 
telecommunications sector, it contains few provisions for monitoring restrictive behaviour. The Law 
(Article 22) only stipulates that commercial te lecommunications network operators must refrain 
from engaging in anti -competitive practices. Some independent studies have concluded that there 
is room for more effective competition and point, in particular, to the lack of mechanisms or 
regulations that w ould make it possible to punish abuses of dominant position, cartels and other 
anti-competitive practices. They therefore suggest that the SIT be given greater powers to protect 
free competition and the interests of consumers.86 
4.81.   The General Budget for 2015,  approved by Congress, introduced a Q 5 tax on every mobile 
line. As a result, the mobile telephony operators returned six  million inactive lines to the SIT and 
brought actions to have the measure declared unconstitutional. The tax was definitively suspend ed 
by the Constitutional Court in September  2015.  
4.82.   The LGT does not stipulate the provision of a universal service; however, it created the 
Telephony Development Fund (FONDETEL) as a mechanism for promoting the development of such 
a service in rural and low -income urban areas. The Fund is financed from the proceeds of 
auctioning radiofrequency spectrum user rights (70%) and from the interest generated by the 
resources deposited in the Fund, government transfers and grants (remaining 30%). Operators 
seeking a id from FONDETEL must submit specific projects to the Ministry, for assessment on the 
basis of economic and social criteria. Qualifying projects are awarded by public auction.  
4.83.   The authorities have noted that they are close to launching the National Connect ivity and 
Broadband Plan, known as " Nación Digital ", with a view to gradually reducing the digital divide and 
promoting sustainable technological development in Guatemala. The Plan is aimed at increasing 
broadband speed, expanding the telecommunications in frastructure and providing products and 
services focused on the needs of the population in four main areas: education, health, safety and 
emergencies. Among other strategies, it is planned to establish partnerships between the public 
and private sectors to  support the implementation of the plan and to conduct campaigns to 
promote a technology -friendly culture among the various segments of the population.  
4.4.3   Financial services  
4.84.   The financial sector (including financial intermediation, insurance and auxiliary act ivities) is 
one of the most dynamic in the Guatemalan economy, as reflected in an average annual growth 
rate of 9.3% between 2009 and 2015. In 2015, the sector's share of GDP was 3.4% (Table 1.1).  
4.85.   The Guatemalan financial sector escaped the worst effects o f the global financial crisis 
(2008 -2009), thanks to its limited exposure to the sources of the crisis, and is currently in a sound 
position. During the review period, the process of consolidation of the supervised financial system 
continued, with an incre ase in financial depth and a notable expansion of the sector's assets. At 
                                                
85 Article 48 of the LGT.  
86 National Economic Research Centre (2016), DesarrollApps, una propuesta para el desarrollo de 
Guatemala, Infraestructura . Viewed at: 
http://centrala mericadata.com/es/article/home/Para_mejorar_la_infraestructura_de_Guatemala ; UNCTAD 
(2005), Strengthening Institutions and Capacities in the Area of Competition and Consumer Protection Policies 
in Latin America: Cases of Bolivia, Costa Rica, El Salvador, Honduras, Guatemala, Nicaragua and Peru, 
UNCTAD/DITC/CLP/2004/3, Geneva; Urízar C. (2007), Competencia y regulación de las telecomunicaciones: el 
caso de Guatemala , International Trade and Industry Unit, Studies and Perspectives Series No.  75, ECLAC 
Subreg ional Headquarters, Mexico City.  WT/TPR/S/348 • Guatemala  
- 94 - 
  the same time, the legal framework of the sector was strengthened by incorporating better 
practices and international standards of supervision. Particularly noteworthy is the approva l of the 
new Insurance Activity Law (2010) and the authorization of the entry of branches of foreign 
insurance and reinsurance companies into the domestic market.  
4.86.   As of 31  December  2015, the Guatemalan financial system supervised by the Banking 
Supervisory  Authority (SIB) consisted of 103 entities which together held assets amounting to 
Q 317,770.3  million (US$41,634.5  million), equivalent to some 64.9% of GDP (as compared with 
56.4% in 2008). The banks continue to hold a major share, accounting for 83.3% o f financial 
sector assets, followed by the offshore entities, the finance companies and the insurance 
companies (Table 4.9). At the end of 2015, ten financial groups or conglomerates were authorized 
to operate in Guatemala.  
Table 4.9 Composition of the financial system, December  2015  
Type of 
institution  Number of 
entities  Structure by 
assets  (Q million)  
Assets  Liabilities  Capital  Result  
Banking systema 17 83.3% 264,623.8  240,121.7  24,502.1  4,002.7  
Offshor e entities  6 8.0% 25,423.2  22,876.5  2,546.7  305.1 
Finance 
companiesb 14 2.9% 9,306.4  8,189.7  1,116.7  176.1 
Insurance 
companies  28 2.7% 8,685.6  5,618.9  3,066.7  664.6 
Businesses 
specialized in 
financial servicesc 9 2.1% 6,523.8  4,338.5  2,185.3  862.3 
Officially 
authorized 
warehousesd 14 0.1% 245.8 52.1 193.7 39.1 
Other entitiese 15 0.9% 2,961.7  2,135.5  826.2 126.2 
Total  103 100.0% 317,770.3  283,332.9  34,437.4  6,176.1  
a The Monetary Board authorized the takeover of Banco Reformador S.A. by Banco de Améri ca 
Central  S.A. in Resolution No.  JM-77-2015 of 26  August  2015.  
b Includes 13 private finance companies and the National Finance Corporation (CORFINA).  
c Includes six credit card issuing companies, two leasing companies and one factoring company.  
d These a re auxiliary credit institutions, established as public limited companies, whose purpose is the 
storage, preservation, custody, management, distribution, purchase and sale for the account of a 
third party of domestic or foreign goods and the issuing of doc uments that protect the value of 
the goods.  
e Includes three foreign exchange companies, ten brokerage firms, the Institute for the Promotion of 
Insured Mortgages (FHA) and the Pawnbroking Department of the National Mortgage Credit Bank of 
Guatemala.  
Sourc e: SIB, Informe del Superintendente de Bancos ante la Honorable Junta Monetaria (Report of the 
Superintendent of Banks to the Honourable Monetary Board), 31  December  2015. Viewed at: 
http://ww w.sib.gob.gt/web/sib/informacion_sistema_financiero/informe -
trimestral?p_p_id=110_INSTANCE_n1HH&p_p_action=0&p_p_state=maximized&p_p_mode=view&p
_p_col_id=column -
3&p_p_col_pos=2&p_p_col_count=3&_110_INSTANCE_n1HH_struts_action=%2Fdocument_library_
display%2F view&_110_INSTANCE_n1HH_folderId=2521241 . 
4.87.   Article 92 of the Tax Update Law (Decree No.  10-2012) stipulates that the rate for capital 
gains tax is 10%. Article 180 of the same decree repealed the former Law on the financial products 
tax (Decree No.  26-95). 
4.4.3.1   Banks and other financial institutions  
4.4.3.1.1   Overview  
4.88.   As of December  2015, there were 17 private banks active in Guatemala, of which 16  had 
been established as domestic banks and one was a branch of a foreign bank. There were also 
14 finance companies, generall y associated with the principal financial groups and specializing in 
investment banking operations, as well as six offshore entities. Foreign participation in 
Guatemalan banking accounted for around 26% of the banking system's capital on 
31 December  2015.  WT/TPR/S/348 • Guatemala  
- 95 - 
  4.89.   During the review period, banking system assets expanded rapidly, at an average annual 
rate of 10.6%, and at the end of 2015 totalled Q 264,623.8  million. There was an increase in 
foreign -currency assets, which accounted for almost 30% of the total in 2015 . In structural terms, 
the loan portfolio and investments made up more than 80% of bank assets. Liabilities, for their 
part, grew at an average rate of 10.6% during the period and foreign -currency liabilities were also 
observed to increase, with a share th at stood at 31% in 2015. Deposits are the main source of 
funding (over 80% of liabilities), followed by foreign lines of credit (16%).87 
4.90.   As with other countries in the region, the Guatemalan banking sector is highly concentrated, 
mainly due to the merger -related process of consolidation observed during the last 20 years. The 
three largest banks hold 66.5% of banking assets and the five largest 81.9%.88 On the other hand, 
there is little State presence in the banking system. The National Mortgage Credit Bank i s the only 
bank to be 100% State -owned and has a 1.9% share of the banking system. The State has a 17% 
stake in the Rural Development Bank (BANRURAL), which has a market share of 20.1%.89 
4.91.   Guatemala's banks have satisfactory financial soundness and solvency indicators. In  
December  2015, the capital adequacy ratio for all the banks taken together was 14.1% (10% is 
the minimum required by law) and the past -due portfolio represented 1.3% of the total portfolio 
(2.7% in December  2009). The immediate liquidity ind icator has fallen in recent years, to 18.9% 
in December  2015 as compared with 21.6% in December  2009. The Guatemalan banks make high 
profits; the return on equity (ROE) was 16.3% in December  2015 (15.7% in 2009).90 
4.92.   The increase in banking system assets in r ecent years is mainly due to the dynamism of the 
loan portfolio, which has maintained positive rates of growth, in some cases higher than those for 
GDP. In December  2015, the bank loan portfolio recorded a year -on-year increase of 14%. As in 
previous years , this trend chiefly reflects the growth of the foreign -currency portfolio, the 
national -currency portfolio having remained stable. In December  2015, the foreign -currency 
portfolio grew by 18.3% year -on-year and accounted for some 40% of the total loan por tfolio, 
while the national -currency portfolio's year -on-year growth rate was 11.2%.91 The IMF  considers 
that, although the expansion of credit is desirable, its continuous growth at excessive rates over a 
long period could gradually undermine financial stab ility.92 
4.4.3.1.2   Institutional and legal framework  
4.93.   The Monetary Board is Guatemala's highest monetary authority and responsible for 
determining monetary, foreign -exchange and credit policy and for overseeing the liquidity and 
solvency of the national banking system , by ensuring strong and stable savings. The Bank of 
Guatemala, which operates under the general direction of the Monetary Board, is the State's 
financial agent and the only entity authorized to issue money. Under its Organic Law, the principal 
objective o f the Bank of Guatemala is to maintain a stable general level of prices. Its functions 
include ensuring that the banking system maintains an adequate level of liquidity and that the 
system of payments functions properly, as well as taking custody of the ba nk reserves and legal 
deposits referred to in its Organic Law. Under that same Law, the Bank of Guatemala also acts as 
lender of last resort.  
                                                
87 Information provided by the Guatemalan authorities.  
88 Banking Supervisory Authority, Boletín Mensual de Estadísticas del Sistema Financiero , 
December  2015. Viewed at: http://www.sib.gob.gt/web/sib/i nformacion_sistema_financiero/entidades -
supervisadas?p_p_id=3&p_p_action=0&p_p_state=maximized&p_p_mode=view&p_p_col_id=&p_p_col_pos=0
&p_p_col_count=0&_3_struts_action=%2Fsearch%2Fsearch&_3_keywords=encaje&_3_andOperator=true&cur
0=31 . 
89 Information provid ed by the Guatemalan authorities.  
90 Informe del Superintendente de Bancos ante la Honorable Junta Monetaria , 31 December  2015. 
Viewed at: http://www.sib.gob.gt/web/sib/informacion_sistema_fina nciero/informe -
trimestral?p_p_id=110_INSTANCE_n1HH&p_p_action=0&p_p_state=maximized&p_p_mode=view&p_p_col_id
=column -
3&p_p_col_pos=2&p_p_col_count=3&_110_INSTANCE_n1HH_struts_action=%2Fdocument_library_display%2
Fview&_110_INSTANCE_n1HH_folderId=2521241 . 
91 Informe del Superintendente de Bancos ante la Honorable Junta Monetaria , 31 December  2015.  
92 IMF, Guatemala: Concluding Statement of the 2014 Article IV Mission, 7  July 2014. Viewed at: 
https://www.imf.org/external/spanish/np/ms/2014/070714s.htm . WT/TPR/S/348 • Guatemala  
- 96 - 
  4.94.   The Banking Supervisory Authority (SIB) is a technical body responsible for overseeing and 
monitoring the financia l sector, which includes the Bank of Guatemala, as well as the commercial 
banks, finance companies, offshore entities, insurance companies, businesses specialized in 
financial services, officially authorized warehouses, foreign -exchange companies, brokerag e firms, 
financial groups and financial group holding companies. The SIB acts under the direction of the 
Monetary Board, but enjoys operational independence in achieving its aims. Its main objective is 
to promote and maintain stability and confidence in th e financial system and the supervised 
entities, by ensuring that they remain solvent and sufficiently liquid to fulfil their obligations, meet 
their statutory requirements and provide their services properly through sound and 
efficient  management.  
4.95.   Table 4. 10 lists the principal laws that currently govern the banking sector. To these should 
be added the regulations issued by the Monetary Board, the decisions and resolutions of the SIB, 
the circular letters of the Superintendent of Banks, and other provisions  that deal in greater detail 
with various aspects of banking institutions and activities.93 
Table 4.10 Principal laws governing the banking sector, 2015  
Name of law  Instrument 
Organic Law of the Bank of Guatem ala Decree No.  16-2002 
Monetary Law  Decree No.  17-2002 
Law on financial supervision  Decree No.  18-2002 
Law on banks and financial groups  Decree No.  19-2002 
Law on private finance companies  Decree -Law No.  208-1964 
Law on free trading in currencies  Decree No.  94-2000 
Law against the laundering of money and other assets  Decree No.  67-2001 
Law to prevent and repress the financing of terrorism  Decree No.  58-2005 
Amendments to the Law on banks and financial groups and the Organic Law of the 
Bank of Guatem ala Decree No.  26-2012 
Law on credit cards  Decree No.  7-2015 
Law on microfinance entities and non -profit microfinance organizations  Decree No.  25-2016 
Source:  Banking Supervisory Authority. Viewed at: http://infpb.sib.gob.gt/Leyes/#!compendios . 
4.96.   The Law on banks and financial groups governs the establishment, organization, merger, 
activities, operations, functioning, suspension of operations and liquidation of banks and financial 
groups94, as w ell as the establishment and closing of subsidiaries, branches and representative 
offices of foreign banks. The Monetary Law guarantees the free movement of capital and the free 
external convertibility of the national currency. The Law on financial supervi sion authorizes the SIB 
to supervise the banks and empowers it to impose sanctions; moreover, the SIB is authorized to 
carry out the consolidated supervision of financial groups in order that risks assumed by the 
members of a group which could affect the g roup's bank are properly assessed and controlled. The 
Law on free trading in currencies authorizes credit institutions to possess and operate in any 
currency; it also allows natural and legal persons, whether Guatemalan or foreign, to make 
deposits or take  out loans with foreign banking entities, whether directly abroad or in Guatemala 
through representative offices registered in the country.  
4.97.   During the review period, important amendments were made to the Law on banks and 
financial groups (13 Articles modif ied and eight added) for the purpose of strengthening the 
authorization and operating regime for the entities concerned, improving prudential aspects, 
reinforcing the bank resolution mechanisms, and promoting market discipline. The principal 
amendments inc luded the following: banks, finance companies and offshore entities were required 
to have an official risk rating; the financing limits that banks, finance companies and offshore 
entities can offer their shareholders or related enterprises were regulated; the SIB was authorized 
to limit the distribution of dividends by banks, finance companies and offshore entities where 
necessary to strengthen their liquidity or solvency; a minimum was established for the opening of 
accounts and the average monthly balance  in offshore entities (US$10,000) and their deposits 
were excluded from the coverage of the Fund for the Protection of Savings (FOPA); the 
contributions to the FOPA made by the banks were raised; the disposal of banking portfolios was 
exempted from the pay ment of VAT and stamp duty; the bank resolution mechanisms were 
                                                
93 All these may be viewed on the SIB website at: http://infpb.sib.gob.gt/Leyes/#!compendios . 
94 A financial group is understood to mean a grouping of two or more legal persons which engage in 
activities of a financial nature and one of which is a bank (Article 27 of the Law on banks and financial groups).  WT/TPR/S/348 • Guatemala  
- 97 - 
  expanded and wider powers were granted to the Assets and Liabilities Exclusion Boards in 
connection with banking operation suspension processes. Several regulations approved by the 
Monetary Bo ard were issued between 2012 and 2013 to facilitate the implementation of the 
reforms contained in Decree No.  26-2012.  
4.98.   The Organic Law of the Bank of Guatemala (Article 48) was amended by Decree 
No. 26-2012, which entered into force on 1  April 2013. The am endment gave the Central Bank a 
more active role in the provision of financial assistance for institutions with liquidity problems; the 
limit, type of guarantees and term of the loan were extended, without exposing the Central Bank 
to additional risks.  
4.99.   The Law on credit cards (Decree No.  7-2015), approved on 4  December  2015, governs 
credit operations and buying and selling transactions carried out by means of credit cards, as well 
as the relations between issuers, operators, cardholders and affiliates. The Law entered into force 
on 8 March  2016 and was the subject of several actions for unconstitutionality. The Constitutional 
Court provisionally suspended its implementation at the end of March  2016. On 13  April 2016, the 
Law on microfinance entities and non -profit microfinance organizations was approved, by Decree 
No. 25-2016, with a view to facilitating financial deepening and inclusion for the direct benefit of 
micro, small and medium -sized enterprises.  
4.100.   Under the Law on banks and financial groups, the estab lishment of banks is subject to 
authorization by the Monetary Board, on the advice of the SIB. Domestic private banks must be 
set up as public limited companies. Foreign banks may establish branches or register 
representative offices solely for the purpose  of promoting business and providing financing on 
Guatemalan territory, in which case they must appoint a legal representative who must then be 
enrolled in the SIB register.95 Foreign banks may also be set up in Guatemala as subsidiaries that 
have their own  legal personality and are independent of the parent bank, in which case they must 
comply with the same requirements and procedures as Guatemalan banks. The Regulations for the 
incorporation of domestic private banks and the establishment of branches of fo reign banks 
(Resolution No.  JM-78-2003) specify the requirements, procedures and time limits for processing 
the corresponding authorizations. In assessing an application to establish a branch of a foreign 
bank consideration should be given, among other asp ects, to whether the country of the parent 
bank exercises supervision based on international standards; whether the body that supervises the 
parent bank has consented to the establishment of the branch in Guatemala; and whether 
institutional information ca n be exchanged between the supervisory authorities in the 
two countries.  
4.101.   The SIB is responsible for annually fixing and reviewing the minimum amount of initial 
paid-in capital of banks and branches of foreign banks incorporated or established in Guatemala.  
At the beginning of 2016, this amount was fixed at Q 109  million.96 The paid -in capital of branches 
of foreign banks must actually enter Guatemala and be invested and kept there and may not be 
withdrawn without the prior express authorization of the Moneta ry Board. The Law on banks and 
financial groups (Article 64) requires banks to maintain a minimum capital adequacy ratio of 10% 
of assets and contingencies, both risk -weighted. During the review period (2009 -2015), the ratio 
was maintained comfortably abov e the percentage required. Since 2009 the banking institutions 
have had to maintain, as a minimum, generic and specific reserves totalling 100% of the 
past-due portfolio.97 
4.102.   Domestic banks and branches of foreign banks authorized to operate in Guatemala may 
carry out all the operations permitted by Article 47 of the Law on banks and financial groups. In 
addition, Resolution No.  JM-142-2011 authorized the banks in the system to provide insurance 
mass-marketing services, provided that they comply with the Regul ations on the mass marketing 
of insurance (Resolution No.  JM-1-2011 of 5  January  2011). The banks may agree freely with the 
users on the interest rates, commissions and other charges for the operations and services that 
they provide. There are no provision s that require banks to allocate part of their resources to 
specific economic activities.  
                                                
95 Article 6 of the Law on banks and financial groups.  
96 SIB Resolution No.  66-2016 of 21  January  2016.  
97 Monetary Board Resolution No.  JM-167-2008 of 5  January  2009.  WT/TPR/S/348 • Guatemala  
- 98 - 
  4.103.   Both domestic banks and branches of foreign banks may invest in the shares of companies 
that carry out operations of a financial nature, subject to the approval of th e Monetary Board, 
acting on the advice of the SIB. On the other hand, banks are prohibited from investing, directly or 
indirectly, in companies dedicated to commercial, agricultural, industrial or mining activities or 
other activities incompatible with the ir status as a bank. The investment concentration provisions 
of the Law on banks stipulate that financing operations, whether direct or indirect, carried out by 
banks, finance companies and offshore entities may not exceed: 15% of the computable net worth 
for a single natural or private legal person or single State enterprise or entity; or 30% of the 
computable net worth in the case of two or more related or linked persons. Decree No.  26-2012, 
which amended the Law on banks and financial groups, introduced some flexibility into these 
percentages.98 The limits do not apply to financial operations with the Bank of Guatemala and the 
Ministry of Finance.  
4.104.   The purpose of the Fund for the Protection of Savings (FOPA), created by the Law on 
banks and financial groups , is to guarantee that depositors in the banking system will be able to 
recover their deposits. The FOPA covers amounts up to Q 20,000 or its equivalent in foreign 
currency, per natural or legal person with deposits in a domestic private bank or a branch o f a 
foreign bank. The Fund's resources mainly consist of the compulsory contributions made by 
domestic banks and branches of foreign funds. The contributions are made up of a fixed 
component and a variable component. The 2012 amendment of the Law increased  the fixed 
component to 1/12 of 1.5 per  thousand of the deposits of each bank during the first nine months 
of operation of the amended law and 2 per  thousand starting from the tenth month. The 
amendment also stipulated that accounts amounting to less than Q 1,000 (some US$130), inactive 
for ten years should be made over to the FOPA, except for those contractually or judicially locked 
up. The Bank of Guatemala is responsible for the management of the Fund, subject to supervision 
by the SIB. On 31  December  2015, the FOPA had assets of Q 3,155.8  million (US$413  million).99 
4.105.   During the review period, Guatemala pursued its efforts to strengthen its financial 
legislation as demonstrated by the amendments to the Law on banks and financial groups of 2012 
and the regul ations issued in order to implement those amendments. Where prudential regulation 
is concerned, the work of the SIB is oriented towards compliance with the Core Principles for 
Effective Banking Supervision of the Basel Committee on Banking Supervision. The  advances made 
during the review period include, in particular, the continuous improvement of the risk -based 
approach to supervision by means of the preventive ( ex ante ) assessment of the risks assumed. 
Moreover, considering the growing participation of lo cal groups in financial activity in Central 
America and Panama, as well as the increased foreign participation in Guatemalan banking and the 
recent opening up of the insurance market, the SIB has developed and implemented a 
consolidated and cross -border su pervision methodology as part of the risk -based approach to 
supervision. On the basis of a self -assessment, the SIB considers that progress has been made 
with the consolidation of the framework for the supervision of risk and the gradual implementation 
of the Regulations for integrated risk management (Resolution No.  JM-56-2011), which requires 
the institutions and entities that form part of a financial group to establish a unit whose functions 
include risk management, the timely identification of risks, th e consolidation of risk analysis at 
group level and the assessment of capital adequacy in terms of the risks assumed.100 
4.106.   The IMF recommends strengthening consolidated supervision and supervision of financial 
entities that pose material risks to conglomerates , as well as tightening definitions of related 
parties, in order to mitigate risks of overestimating capital levels. The Fund also considers that a 
phased move to Basel III standards appears to be the right course of action.101 
                                                
98 There are exemptions from the 15% limit for a single person for transitory operational interbank 
deposits and for deposits and investments made by a financial group in its bank; the 30% limit is fixed for the 
investments of offshore entities in non -Guatemalan sovereign debt; a 100% limit is established for investments 
in the sovereign debt securities of countries with the highest risk rating; the limit for related ent erprises is 
increased from 30% to 50% if the excess (20%) consists of credit assets supported by certificates of deposit or 
notes issued by the institution itself (Article 47 of the Law on banks and financial groups).  
99 Information provided by the Guatemal an authorities.  
100 SIB, Memoria de Labores , 2012 -2013. Viewed at: http://www.sib.gob.gt/web/sib/superintendiencia/  
memoria -de-labores . 
101 IMF, "Guatemala: Findings and Prelim inary Recommendations of the 2014 Article IV Mission", 
7 July 2014. Viewed at: https://www.imf.org/external/spanish/np/ms/2014/070714s.htm . WT/TPR/S/348 • Guatemala  
- 99 - 
  4.4.3.2   Insurance  
4.4.3.2.1   Overview  
4.107.   At the end of 2015 there were 28 insurance companies operating in Guatemala, of which 
two were State -owned102, six were more than 50% foreign -owned and ten belonged to financial 
groups. Of these 28 insurance companies, ten were exclusively devoted to surety bond insura nce. 
It should be mentioned that the change in the number of insurance companies currently 
participating in the market as compared with that reported in the 2009 Review is mainly due to the 
fact that with the entry into force of a new insurance law at the beginning of 2011, the firms that 
were previously operating as bonding companies acquired the status of an insurance company.  
4.108.   On 31  December  2015, the assets of the insurance companies amounted to 
Q 8,685.6  million (US$1,137.9  million), i.e. 10.1% greater than in December  2014, and accounted 
for 2.7% of the total assets of the financial system subject to SIB supervision. On the same date, 
the three main insurance companies held 45.1% of insurance sector assets and the first 
five companies held 60.6% of the total.103 
4.109.   At the end of 2015, total insurance company net premiums amounted to Q  6,156.6  million 
(US$806.6  million), an increase of 6.3% over the level recorded in 2014, which can be mainly 
attributed to the increase under the health and hospitalization and casualty (motor vehicle) 
headings. At the end of 2015, net premiums could be broken down as follows: casualty 51.6%; 
accident and sickness 25.2%; life (mainly group plans) 19.4%; and surety bond insurance 3.8%. 
Net premiums ceded amounted to 35.1% of total  net premiums and net premiums retained 
to 64.9%.104 
4.4.3.2.2   Legal framework  
4.110.   The legal framework for the insurance market underwent substantial changes with the 
enactment of the Insurance Activity Law/LAA (Decree No.  25-2010 of 11  August  2010), which 
entered into fo rce on 1  January  2011, replacing the former Insurance Law (Decree -Law No.  473 
of 1966), and the issuing of its implementing Regulations.  
4.111.   The LAA seeks to modernize the insurance market, improve its efficiency and strengthen 
its supervision in accordance wi th international standards; moreover, it forms part of the 
legislative reforms adopted to facilitate the implementation of the CAFTA -DR. The principal reforms 
introduced by the Law include the opening -up of the Guatemalan market to foreign insurance 
compan ies; an increase in the minimum paid -in initial capital for insurance companies depending 
on the different kinds of insurance they offer; and the regulation of various aspects of insurance 
company management previously unregulated. Moreover, the Law regula tes reinsurance activities, 
among other things by introducing minimum paid -in initial capital requirements for reinsurance 
companies; allows domestic insurers and reinsurers to establish branches and invest abroad; 
requires companies to obtain an annual of ficial risk rating; strengthens the sanctions regime 
(from  US$500 to US$40,000); and regulates the exit regime, among other changes.  
4.112.   Under the LAA, authorizing the incorporation of insurance and reinsurance companies and 
the establishment of branches of fo reign insurers and reinsurers is the responsibility of the 
Monetary Board (previously the Ministry of the Economy), subject to the favourable opinion of the 
SIB. Private insurers and reinsurers, irrespective of the origin of their capital, must be incorpor ated 
as public limited companies and have their domicile in Guatemala and a board of directors. The 
authorization of the SIB is required in order to acquire insurance company shares, if the value of 
those shares is equal to or greater than 5% of the paid -in capital.  
4.113.   Foreign insurers and reinsurers may establish branches (not previously permitted) with the 
authorization of the Monetary Board and are not required to have a board of directors, but must 
have one or more senior executives domiciled in Guatemala.105 In assessing an application to 
                                                
102 The Insurance and Pensions Department a nd the Surety Bonds Department, both belonging to the 
National Mortgage Credit Bank of Guatemala, a State -owned banking institution.  
103 Information provided by the Banking Supervisory Authority.  
104 Informe del Superintendente de Bancos ante la Honorable Junt a Monetaria , 31 December  2015.  
105 LAA Articles 6, 21 and 27.  WT/TPR/S/348 • Guatemala  
- 100 - 
  establish a branch of a foreign insurer consideration is given to, among other factors, whether in 
the country of the parent insurer or reinsurer supervision is exercised in accordance with 
international standards, whether the supervisor has consented to the establishment of the branch 
in Guatemala and whether information can be exchanged between the supervisors in the 
two countries. The Regulations for the incorporation of domestic insurers and reinsurers and the 
establishm ent of branches of foreign insurers and reinsurers (Resolution No.  JM-87-2010 of 
20 September  2010) lays down the requirements, procedures and time limits for processing the 
corresponding authorizations.106 Domestic insurers and reinsurers may also establish  branches 
abroad (previously unregulated), subject to authorization of the management by the SIB and 
provided that the host country ensures supervision in accordance with the international standards 
for exercising consolidated supervision and the superviso ry body agrees to exchange information.  
4.114.   The LAA increased the minimum amount of paid -in initial capital for the different kinds of 
activities of insurers and reinsurers incorporating in Guatemala and the branches of foreign 
insurers and reinsurers establis hing themselves in the country; the capital required from the latter 
must actually enter, be invested and kept in Guatemala and may not be withdrawn without the 
authorization of the Monetary Board. The minimum amounts of capital are reviewed and fixed 
annually by the SIB (Table 4.11).  
Table 4.11 Minimum amounts of paid -in initial capital for domestic insurers/reinsurers 
and branches of foreign insurers/reinsurers, 2016  
Activity  Q 
Life or personal insurance  5,000,000  
Casualty insurance  8,000,000  
Surety bond insurance  3,000,000  
All branches of insurance  13,000,000  
Exclusively reinsurance  26,000,000  
Source:  Article 17 of the Insurance Activity Law. Viewed at: http://infpb.sib.gob.gt/Leyes/#!compendios . 
4.115.   The LAA also requires insurers and reinsurers to hold different kinds of reserves depending 
on the insurance that they offer, in addition to provisions for catastrophic risks and other 
eventualities,  as well as to maintain a level of technical equity that guarantees their solvency.107 
They are prohibited from acquiring financing to cover their own technical reserves, something not 
regulated by the previous law. On 31  December  2015, the global technical equity of the authorized 
insurers amounted to Q 3,058.7  million, while the solvency margin was Q 965.7  million, giving an 
asset position of Q 2,093  million.108 
4.116.   Insurance companies authorized to operate in Guatemala must have as their exclusive 
purpose that o f acting as an insurer or reinsurer.109 They may operate in any branch of insurance, 
provided that they pay in the minimum capital required for each branch. Moreover, they may form 
part of a financial conglomerate in accordance with the Law on banks and fina ncial groups. 
Authorized insurers and reinsurers are free to agree insurance premiums, interest rates, 
commissions and other charges for their services with users; however, they must submit their 
insurance policies (texts, general conditions, riders, etc.)  for registration with the SIB, prior to use. 
The SIB is authorized to grant or refuse registration. The offering of insurance policies not 
registered with the SIB is prohibited.  
4.117.   As a general rule, any person not authorized in accordance with the LAA is pr ohibited from 
marketing or selling insurance or carrying out any other active insurance operation on Guatemalan 
territory. This prohibition does not apply to the provisions of international agreements and treaties 
                                                
106 There is also a Procedures Manual for the Incorporation of Domestic Insurers and Reinsurers and a 
Procedures Manual for the Establishment of Branches of Foreign Insurers and Reinsurers. Viewed a t: 
http://www.sib.gob.gt/web/sib/normativa/procedimientos?p_p_id=86&p_p_action=1&p_p_stat e=normal&p_p_
mode=view&p_p_col_id=&p_p_col_pos=1&p_p_col_count=4& . 
107 Titles V (Technical Reserves) and VII (Solvency Margin) of the LAA.  
108 Informe del Superintendente de Bancos ante la Honorable Junta Monetaria , 31 December  2015. 
Viewed at: http://www.sib.gob.gt/web/sib/informacion_sistema_financiero/informe -trimestral?p_p_id=110_  
INSTANCE_n1HH&p_p_action=0&p_p_state=maximized&p_p_mode=view&p_p_col_id=column -3&p_p_col_  
pos=2&p_p_col_count=3 &_110_INSTANCE_n1HH_struts_action=%2Fdocument_library_display%2Fview&_110
_INSTANCE_n1HH_folderId=2521241 . 
109 LAA Article 6(b).  WT/TPR/S/348 • Guatemala  
- 101 - 
  relating to the supply of or cross -border trade in the following services: (a) insurance against the 
risks of maritime shipment, commercial aviation, space launches and goods in international 
transit; (b) reinsurance and retrocession; (c) insurance intermediation solely for the services 
indicated in (a) and (b); and (d) services auxiliary to insurance.  
4.118.   Insurers and reinsurers may only contract for reinsurance coverage with insurers or 
reinsurers registered with the SIB, for which purpose foreign reinsurers or insurers must comply 
with the requireme nts laid down in the Regulations issued by the Monetary Board (Resolution 
No. JM-6-2011 of 11  January  2011).  
4.119.   Under the LAA, insurers and reinsurers must keep their reserves and technical equity 
permanently invested in accordance with the investment require ments (liquidity, security, 
profitability and diversification) laid down in the Law and in the regulations contained in Resolution 
No. JM-3-2011 of 11  January  2011. Insurance and reinsurance companies are now authorized to 
invest abroad up to 30% of their technical reserves, which was not permitted under the previous 
law. On 31  December  2015, the investments underpinning the technical reserves of all the 
insurance companies taken together amounted to Q 5,342.9  million.110 
4.120.   Another requirement introduced by the  LAA obliges insurers and reinsurers to submit to 
the SIB an annual report on their rating, issued by an internationally recognized rating agency 
registered with the SIB. The rules for registering were published in Resolution No.  JM-41-2013 of 
19 April 2013. 
4.121.   Where supervision of the insurance sector is concerned, the SIB takes a risk -based 
approach and is guided by the Insurance Core Principles (2011) of the International Association of 
Insurance Supervisors (IAIS). From the self -assessment carried out in 2 013 the SIB concluded 
that the entry into force of the LAA and the subsequent issuing of prudential regulations had made 
it possible to progress with the application of these principles in the following areas: conditions 
necessary for the effective supervi sion of insurance companies; changes in share control and 
portfolio disposals; and compliance and sanctions.111 Other subsequent advances include the 
implementation of risk -based insurance supervision and the issuing of regulations to strengthen 
the insuranc e market, including the Group Insurance Regulations and the Regulations on the mass 
marketing of insurance. A road map is currently being prepared for adopting a scheme equivalent 
to Solvency II.  
4.4.4   Transport  
4.122.   Transport services, together with storage and comm unications, contributed 7.6% of GDP in 
2015. The Ministry of Communications, Infrastructure and Housing (MCIV) oversees the transport 
sector and is responsible for regulation and for formulating and implementing policy in the various 
subsectors. Decentrali zed units of the MCIV deal with aspects relating to maritime, air and land 
transport and highway administration, respectively.  
4.123.   According to Article 131 of the Constitution, the installation and operation of any national 
or international transport service r equires government authorization and land terminals, airports 
and seaports are considered to be property for public use.  
4.124.   During the review period, sectoral policies were governed by the National Transport Master 
Plan (1996 -2015), which established the foll owing as priority tasks: the preparation of a road 
development plan; the constitution of a maritime -port authority; the privatization of services and 
the reform of the tariff regime; the modernization of La Aurora International Airport112; the 
construction o f a new international airport; and the restructuring of the aviation administration 
system. The measures carried out in this context include the preparation of the Road Development 
Plan, which entered into force in December  2007, the start of a new highway  project called the 
Southern Alternative Route (headed by a private company), work on preventing highway collapse 
and various improvements to La Aurora International Airport. Within the context of the National 
Competitiveness Programme (PRONACOM), steps we re taken to push ahead with the Multimodal 
                                                
110 Informe del Superintendente de Bancos ante la Honorable Junta Monetaria , 31 December  2015.  
111 SIB, Memoria de Labores , 2012 -2013. Viewed at: http://www.sib.gob.gt/web/sib/superintendiencia/  
memoria -de-labores . 
112 Work began in 2007 but was suspended until March  2015.  WT/TPR/S/348 • Guatemala  
- 102 - 
  Plan for Transport Infrastructure Works (PMOIT, 2008), which proposed infrastructure projects for 
the port, logistical, airport, rail and road subsystems. The authorities have indicated that the 
progress made invo lved the preparation of a National Logistics Plan (which replaced the PMOIT) 
and the strengthening of the maritime -port cluster.  
4.4.4.1   Maritime transport and ports  
4.125.   Guatemala has coastlines on the Atlantic and Pacific Oceans and moves through its ports 
around 18%  of the cargo handled by the Central American countries, which puts it in second place 
after Panama (60%). In terms of weight, 81% of Guatemala's foreign trade is transported by sea 
(63.4% in terms of value).113 
4.126.   The national port system (SPN) consists mainly  of four ports: Puerto Quetzal and the 
Boyas de San José terminals (on the Pacific coast) and Puerto Santo Tomás de Castilla and Puerto 
Barrios (on the Atlantic). The ports are all State -owned, but have different management models. 
Puerto Quetzal and Puert o Santo Tomás are managed by decentralized and semi -autonomous 
State -owned enterprises with their own legal capacity. Puerto Barrios has been put out on 
concession for 25 years to a private company under a beneficial use contract with Ferrocarriles de 
Guatemala. The Boyas de San José group of terminals is run by hydrocarbon and molasses 
marketing companies, which use the terminals for servicing vessels outside the coastal fringe. Out 
of the 26.1  million tonnes (loading and unloading) handled by the SPN in 2 015, 36% corresponded 
to containerized cargo; 36% to solid bulk; 22% to liquid bulk; and 6% to general cargo. In 2015, 
the SPN moved 1,351,273 TEUs.114 
4.127.   The maritime cargo moved by Guatemalan ports has increased rapidly in recent years: in 
the first half of 2 015 alone it increased by 14% relative to the same period in 2014, a year in 
which a year -on-year increase of 17% was recorded. The current port infrastructure appears not 
to be sufficient to absorb this increase and major investment projects for the ports  of Quetzal and 
Santo Tomás have recently been announced. According to a 2015 study, Guatemala's seaports 
have high operating costs, which are making its exports more expensive. More specifically, the 
study notes that there is congestion in the approaches to the ports and within the port 
installations, while the growth of the infrastructure is insufficient to meet the present and future 
demand, a situation further complicated by long waiting times in customs.115 According to 
representatives of the Guatemalan Exporters Association, in Puerto Quetzal, a green -light 
container can wait for between five and ten days on average to be released, while a red -light 
container may take up to two weeks to be cleared.116 In 2015, there was a considerable increase 
in port char ges, which had remained fixed for 20 years.  
4.128.   Guatemala does not have a national merchant fleet. Guatemalan legislation does not 
contain specific provisions on the participation of foreign vessels in domestic cabotage services; 
however, in practice, they are  authorized to provide these services. There are no restrictions on 
the participation of foreigners in the operation of ports put out on concession; nor are there any 
restrictions on the provision of auxiliary port services such as towing, handling and sto rage, except 
as regards pilotage.117 
4.129.   Guatemala does not have a law that deals specifically with maritime transport and ports. 
The subsector is governed by Article 131 of the Constitution and by Book III of the Commercial 
Code (Government Decree No.  2946 of 1 942), which regulates maritime trade, as well as by other 
laws such as the Law on the protection and improvement of the environment, the Law on fishing 
and aquaculture and the Law on protected areas. For several years consideration has been given 
to the po ssibility of formulating a maritime transport law, but such a law has still to see the light of 
day; Book III of the Commercial Code is currently under review. It is also necessary to develop a 
                                                
113 Information provided by the Gua temalan authorities.  
114 Online information from the National Port Commission. Viewed at: http://www.cpn.gob.gt . 
115 National Economic Research Centre (2016), DesarrollApps, una propuesta para el desarrollo de 
Guatemala, I nfraestructura . Viewed at: http://centralamericadata.com/es/article/home/Para_mejorar_la_  
infraestructura_de_Guatemala . 
116 Cited in El Periódico , "Dos meses para completar proceso de revisión en Puerto Quetzal", 
3 November  2015. Viewed at: http://elperiodico.com.gt/2015/11/03/econ omia/dos -meses -para-completar -
proceso -de-revision -en-puerto -quetzal . 
117 Regulations on the exercise of the profession of pilot in the waters of the Republic of Guatemala 
(1940).  WT/TPR/S/348 • Guatemala  
- 103 - 
  new maritime policy, since the National Maritime Port Policy o f 2006 has been left behind. In 
February  2016, the President of Guatemala entrusted the port authorities with the development of 
a policy to improve the handling of international maritime transport by establishing strategic 
partnerships to create infrastru cture and train human resources.118 
4.130.   The MCIV is responsible for formulating general maritime transport and port policies and is 
required by law to serve as the port authority through the Vice -Ministry of Ports and Airports.119 
The National Port Commission (CPN ), which reports to the Executive Branch, is a technical 
advisory body that provides support for the national port system. The CPN is composed of 
representatives of several Ministries120, the main State -owned port enterprises and the private 
sector. Its func tions include carrying out studies with a view to establishing a national port 
development policy and proposing regulations concerning port terminal traffic and tariffs.121 
4.131.   Preliminary draft laws for establishing a new port structure and authority were drawn  up 
several years ago, but have not progressed beyond that stage. In March  2016, a committee was 
set up to review the latest draft, which dates from 2012, and to produce a new bill for submission 
to Congress.  
4.132.   Every port and State -owned port enterprise is g overned by its own law and has a Board of 
Directors in which representatives of the Ministries of State, including the MCIV, participate. The 
ports assess and determine their charges in accordance with their organic laws and submit them to 
their respective  Boards for approval. In the case of Puerto Quetzal, the charges approved by the 
Board are transmitted to the MCIV for publication in the Official Journal by Ministerial Decision.  
4.133.   In March  2015, the National Maritime Administration Commission (CONAMAR) was  set up 
under the direct authority of the President of the Republic.122 CONAMAR has the task of 
coordinating the activities of the various institutions involved in maritime administration and is 
composed of the Vice -Minister for Navy Affairs  (Ministry of Def ence), the Vice -Minister for Plant 
and Animal Health and Regulations (Ministry of Agriculture, Livestock and Food), the Vice -Minister 
for the Environment (Ministry of the Environment and Natural Resources), the Vice -Minister for 
Communications, Infrastruct ure and Housing (MCIV), the Vice -Minister for Integration and Foreign 
Trade (Ministry of the Economy), the Vice -Minister for Energy and Mining, the Vice -Minister for 
Foreign Affairs and the Executive Secretary of the National Council for Protected Areas. C ONAMAR 
has a 25 -year term. It is responsible for recommending maritime policies, together with plans, 
programmes and strategies for promoting national maritime development. The measures it has 
taken since being set up include drawing up a Maritime Safety P olicy, starting work on developing 
a national maritime policy and revising Book III of the Commercial Code.  
4.134.   The authorities have indicated that an Interinstitutional Agreement on Joint Inspection will 
shortly be signed for the purpose of instructing the bo rder authorities, specifically the MAGA, the 
Ministry of the Interior and Customs to carry out joint physical inspections of cargo selected for the 
red channel. This Agreement is expected to become operational in the course of 2016.  
4.135.   At regional level, Guat emala forms part of the Central American Maritime Transport 
Commission (COCATRAM), whose function is to advise member governments on the adoption of 
policies to promote the maritime and port development of Central America.123 The members of 
COCATRAM have app roved a Regional Maritime and Port Strategy to facilitate foreign trade and 
speed up port operations. The strategy embraces four areas of action: (i) maritime transport: the 
intention is to modernize and harmonize the regional maritime legal framework; pro mote the 
establishment of a regional short -haul maritime transport service; and guarantee the safety of 
navigation for Central American routes and areas; (ii) ports: to promote investment in port 
physical infrastructure to meet present and future demand, w hile observing the rules for the 
preservation of the marine environment and security; (iii) community maritime policy: to establish 
                                                
118 Agencia Guatemalteca de Noticias (AGN), "Presidente Jimmy Morales modernizar á sistema portuario 
de Guatemala", 22  February  2016. Viewed at: 
https://civmonitoreodemedios.wordpress.com/2016/02/22/presidente -modernizara -sistema-portuario . 
119 Article 30(i) of the Law on the Executive Branch.  
120 The Ministries of: Communications, Infrastructure and Housing; Finance; and the Economy.  
121 Government Decision (unnumbered) of 10  March  1972.  
122 Government Decision No.  58-2015 of 4  March  2015.  
123 The following are members of COCATRAM: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, 
and Panama.  WT/TPR/S/348 • Guatemala  
- 104 - 
  a maritime and port skills development and training system; and (iv) marine and coastal zones: to 
ensure the protection, con servation and sustainable exploitation of the coastal zones and maritime 
areas and the natural resources of the sea.  
4.136.   Short -Distance Maritime Transport  (TMCD) is a COCATRAM -led project aimed at promoting 
the growth of intraregional trade, through the establ ishment of short -distance maritime transport 
routes in the region, thereby offering new alternatives to land transport. The TMCD is aimed at 
reducing transport times, formalities and costs; improving safety; increasing cargo volumes; 
making cargo handling more efficient; creating jobs; and promoting trade with other regions of the 
world. A feasibility study carried out for this purpose covers four main areas: trade patterns in the 
Mesoamerican area; potential TMCD routes in Mesoamerica; an institutional des ign and 
management model for TMCD; and analysis of the port facilities in the region.124 In 
November  2013, the study concluded that it was feasible to develop TMCD. In March  2015 
activities were carried out to spread news of the project among the maritime pl ayers of the region.  
4.137.   Guatemala is a member of the International Maritime Organization and a signatory to 
various international conventions on maritime transport, including the United Nations Convention 
on the Law of the Sea, the International Convention fo r the Prevention of Pollution from Ships, the 
International Convention for the Safety of Life at Sea, the International Convention on Load Lines 
and the Convention on Facilitation of International Maritime Traffic. In June  2013, Guatemala 
acceded to the La tin American Agreement on Port State Control of Vessels (Viña del Mar, 1992). 
Guatemala has not concluded cargo -sharing arrangements with other countries and neither is it a 
party to the UNCTAD Liner Code.  
4.4.4.2   Air transport and airports  
4.138.   According to the data f or 2015, some 10% by value of Guatemala's foreign trade (imports 
and exports) is transported by air (0.2% in terms of volume).  
4.139.   Guatemala has 17 airfields; two of these are international airports: La Aurora International 
Airport near Guatemala City and Mund o Maya Airport in Santa Elena, in the Petén Department in 
the north of the country. La Aurora International Airport is the busiest and in 2014 handled 
101,522 flights, 2.2  million passengers and 59.4  million tonnes of freight. Mundo Maya Airport is 
mainly focused on tourism and in the same year handled 7,585 flights and 109,490 passengers.125 
4.140.   Although there are no legal restrictions on the participation of private investment in the 
airports, Guatemala's main airports are in the hands of the State, as are thei r management and 
operation. To promote the development of international trade and tourism, during the review 
period Guatemala continued to work on modernizing its airport infrastructure, mainly at La Aurora 
International Airport, which received investment for its expansion and refurbishment, including the 
expansion of the facilities for handling air freight. Moreover, there are projects to develop the 
airports of Retalhuleu and Puerto Barrios to handle tourist traffic; to renovate Mundo Maya Airport; 
and to  develop the airport of San José to serve as an alternative to La Aurora. These projects are 
in the economic analysis phase. The authorities are trying to facilitate the participation of private 
investment in the infrastructure, through the National Agency  for Partnerships for Economic 
Infrastructure Development (ANADIE), created in 2013.  
4.141.   There are no State -owned enterprises that provide air transport services.  
4.142.   The air transport sector in Guatemala is governed mainly by the Civil Aviation Law (Decree 
No. 93-2000 of 18  December  2000) and its implementing Regulations (Government Decree 
No. 384-2001). No fundamental changes were made in this legal framework during the review 
period, although the authorities did issue or amend some civil aviation regulations on aspects such 
as airfield certification, operation and surveillance; operational safety; and the regulation of 
unmanned aircraft.  
                                                
124 The study may be viewed on the official website of the Mesoamerican Project at: 
http://www.proyectomesoamerica.org/joomla/index.php?option=com_content&view=article&id  
=620&Itemid=234 . 
125 Online information from the Directorate -General of Civil Aviation. Viewed at: http://www.dgac.gob.  
gt/index.php/estadisticas -2015. WT/TPR/S/348 • Guatemala  
- 105 - 
  4.143.   Under the Law on the Executive Branch, it is for the Vice -Ministry of Ports and Airports of 
the MCIV to serve as the airport au thority. The Directorate -General of Civil Aviation (DGAC), which 
comes under this Vice -Ministry, is responsible for issuing, overseeing, monitoring and 
administering, on the basis of the Civil Aviation Law, regulations and other supplementary rules, 
airpor t services, air traffic support services, air transport and telecommunications services and, in 
general, all civil aviation activities.126 The DGAC is also authorized to supervise airfield construction 
and operation.  
4.144.   Under the Civil Aviation Law, the written  authorization of the DGAC is required to provide 
commercial passenger, freight and/or mail air transport services and combined services. Such 
authorization must be granted within a maximum of 30 days from the date of conclusion of the air 
operating certif icate proceedings and fulfilment of all the corresponding requirements. It is the 
responsibility of the Air Transport Department of the DGAC to administer the operating certificates 
for scheduled and non -scheduled air transport companies.  
4.145.   Authorized air tr ansport operators must be enrolled in the National Aviation Register 
administered by the DGAC. Any aircraft enrolled in the Register is considered to be Guatemalan. 
Foreign -registered aircraft can obtain Guatemalan registration, subject to cancellation of the 
previous registration. A Guatemalan company can lease foreign -owned aircraft for use inside or 
outside the country and enrol them in the National Aviation Register for the duration of the lease, 
thereby obtaining provisional Guatemalan registration for  them without having to pay 
import  taxes.  
4.146.   Since January  2004 it has been possible for companies providing domestic air transport 
services (cabotage) to be 100% foreign -owned. These companies must have their principal 
domicile in Guatemala and at least one half plus one of their directors and managers must be 
Guatemalan or reside permanently in the country.127 
4.147.   There are no legal restrictions placed on the ownership of international air transport 
companies. However, companies authorized to provide international  air transport services must 
appoint a legal representative permanently domiciled in Guatemala. The operating permit for 
foreign operators is issued on the basis of the international agreements signed by Guatemala and 
in conformity with the provisions of t he Convention on International Civil Aviation (Article 33).  
4.148.    Under the Civil Aviation Law, the tariffs and charges for domestic and international air 
transport services are freely fixed by the airlines in accordance with market conditions and the 
criteria of supply and demand. In the case of international transport services covered by 
international agreements signed by Guatemala, the tariffs are fixed in accordance with those 
agreements. By way of exception and for reasons of national interest or public nec essity, the Law 
allows the State to fix minimum and maximum domestic and international air transport tariffs. This 
situation has not arisen in practice.  
4.149.   The Civil Aviation Law establishes an "open skies policy". Thus, Guatemala grants the 
third, fourth and  fifth freedoms to all countries with respect to scheduled and non -scheduled 
international commercial air services.128 The sixth, seventh and eighth freedoms are subject to 
reciprocity, while the ninth freedom is not granted. Guatemala currently has 12 bilat eral air 
transport services agreements in force, all concluded prior to the review period (Table 4.12).  
Table 4.12 Bilateral air transport agreements in force, 2016  
Interlocutor  Decree  Date of ratification  Freedoms granted  Cabotage  
Y/N 
Germany  No. 5-70 23 February  1970 3rd, 4th,  N 
Belgium  No. 22-70 24 June 1970 3rd, 4th 5th,…  N 
Chile No. 2-2005 1 March  2005 3rd, 4th 5th,…  N 
Ecuador  No. 4-93 18 February  1994 3rd, 4th 5th,…  N 
Spain  No. 68-71 10 November  1971 3rd, 4th 5th,…  N 
United States  No. 41-98 11 July 2001 3rd, 4th 5th,…  N 
France  No. 32-70 23 June 1970 3rd, 4th 5th,…  N 
                                                
126 Articles 6 and 7 of the Civil Aviation Law.  
127 Article 71 of the Civil Aviation Law.  
128 Article 66 of the Civil Aviation Law.  WT/TPR/S/348 • Guatemala  
- 106 - 
  Interlocutor  Decree  Date of ratification  Freedoms granted  Cabotage  
Y/N 
Mexico  No. 12-2001 29 May 2001 3rd, 4th 5th,…  N 
Netherlands  No. 26-79 21 May 1979 3rd, 4th 5th,…  N 
Panama  No. 12-2001 29 May 2001 3rd, 4th 5th,…  N 
Switzerland  No. 9-75 24 March  1975 3rd, 4th 5th,…  N 
Chinese Taipei  No. 18-2007 9 May 2007 3rd, 4th 5th,…  N 
…. Additional freedoms subject to the principle of reciprocity.  
Source:  Information provided by the Guatemalan authorities.  
4.150.   Guatem alan-registered aircraft may be maintained in workshops located outside the 
country. Under the Foreign Investment Law, private and foreign participation in air transport 
operations is allowed and there are no restrictions on the number of providers of comp uter 
reservation systems or on the number of travel agencies which the providers of these systems can 
service. Computer reservation system providers do not have to be established in Guatemala to 
supply their services.  
4.4.5   Tourism  
4.151.   Tourism is a sector of increas ing importance for the Guatemalan economy, particularly in 
terms of foreign currency generation. In 2015, the tourism industry accounted for 14% of 
Guatemala's exports.129 
4.152.   Between 2009 and 2015, the "restaurants and hotels" subsector grew at an average 
annua l rate of 3.6% and accounted for 2.3% of national GDP (2015).130 The income earned from 
international tourism increased from US$1,359  million in 2009 to US$1,580  million in 2015 
(Table  1.4). The number of international visitors to the country increased from 1.2 million to 
1.7 million during the same period.131 However, this was not reflected in an increase in the hotel 
occupancy rate, which stood at 54% in 2015.132 The main markets of origin are El Salvador, the 
United States, Honduras and Mexico133; and the princi pal mode of entry is by land (seven out of 
every ten visitors).  
4.153.   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 en terprises; and 18 marinas.134 
4.154.   The Guatemalan Institute of Tourism (INGUAT), a decentralized State entity, is the 
governing body and responsible for the design and implementation of sectoral plans and policies. 
INGUAT coordinates and encourages partnership be tween the public and private sectors for the 
purpose of promoting the development of tourism. Its terms of reference and functions are laid 
down in the Organic Law of the Guatemalan Institute of Tourism of 1967 (LOIGT).135 The 
institutional framework is comp leted by the Guatemalan Chamber of Tourism (CAMTUR), the 
Guatemalan Exporters Association (AGEXPORT) and other private associations, as well as by the 
municipal governments and the tourism committees of the Urban and Rural Development Councils.  
4.155.   INGUAT's Or ganic Law establishes the general legislative framework for the tourism sector. 
The guidelines for the sector are laid down in the National Policy for Sustainable Tourism 
Development in Guatemala 2012 -2022 (PNDTS), approved by Government Decision No.  98-2012 
of 25  May 2012. Its main objectives include: improving the country's competitiveness in the 
tourism sector; diversifying and enriching the supply of tourist destinations and products; 
professionalizing the industry's human resources; strengthening touri st information and assistance 
programmes; and placing sustainability at the heart of national tourism development.  
                                                
129 Data provided by t he Guatemalan authorities.  
130 Statistics of the Central Bank of Guatemala. Viewed at: http://www.banguat.gob.gt . 
131 Information provided by INGUAT.  
132 Research and Social Studies Association (2015), Hacia un turismo m oderno y desconcentrado. 
Viewed at : http://www.asies.org.gt/hacia -un-turismo -moderno -y-desconcentrado -2. 
133 World Tourism Organization (2015), UNWTO Tourism Highlights . View ed at: http://www.e -
unwto.org/doi/pdf/10.18111/9789284416875  (preliminary figures).  
134 Information provided by INGUAT.  
135 Decree No.  1071 of 8  September  1967.  WT/TPR/S/348 • Guatemala  
- 107 - 
  4.156.   In 2015, the Guatemalan Sustainable Tourism Master Plan 2015 -2025, drawn up by 
INGUAT as part of the programme to achieve the objectives of t he PNDTS, was published. The 
purpose of the Master Plan is to develop tourism in a sustainable way, at the environmental, 
economic, social and cultural levels. To this end, it provides for the implementation of a new 
system of land use planning for the var ious areas of the country with tourist attractions, 
establishing priority measures, programmes and lead times. INGUAT is responsible for following 
up, monitoring and assessing the Plan.  
4.157.   Guatemala has reoriented its country brand strategy towards the promot ion of its main 
comparative advantages as a tourist destination. Thus, the 2015 Master Plan places the emphasis, 
among other things, on cultural and nature tourism as a mainstay of the sector. Guatemala can 
count on its Mayan heritage and its wealth of eth nic and archaeological resources. The country is a 
member of the Mundo Maya Organization, whose mission is the preservation and touristic 
development of this cultural legacy. Where nature tourism is concerned, the Master Plan seeks to 
exploit Guatemala's p osition as one of the countries with the greatest biodiversity in terms of 
flora and fauna.  
4.158.   For several years, the sectoral authorities have been working to adopt and implement the 
Tourism Satellite Account, the standardized methodological framework used b y the United Nations 
to harvest tourism statistics. The authorities have indicated that they are expecting the basic 
information needed to start applying the Satellite Account to have been organized by June  2017. 
In 2012, the Sectoral Coordinating Office f or Tourism Statistics, coordinated by the National 
Institute of Statistics, was set up to facilitate the consolidation and standardization of 
tourism -related statistics. Some observers have drawn attention to the need to use the Satellite 
Account to improv e the collection and reliability of the sector's statistics.136 
4.159.   Work has also been done on improving tourist safety. In 2014, the Ministerio Público  and 
INGUAT signed a cooperation agreement to establish institutional cooperation mechanisms in order 
to provi de care and protection for tourists and prosecute anyone who commits an offence against 
foreign visitors.  
4.160.   The LOIGT establishes a boarding tax or fee to be paid by everyone, Guatemalan or 
foreign, leaving the country by air or sea. The tax is US$30 for jou rneys made by air and US$10 
for those made by sea. Departures by land are not subject to the tax. The funds obtained from the 
payment of the tax are used to finance the budgets of INGUAT and the National Council for 
Protected Areas (CONAP), among other ins titutions. In 2010, an amendment to the LOIGT 
abolished the payment of the tax by international cruise ship passengers deemed to be in transit, 
whose stay in the country does not exceed 72 hours.137 
4.161.   Foreign investment in the tourism sector is governed by the  Foreign Investment Law of 
1998. There are no nationality limitations on investment in the sector. National treatment is 
granted to foreign investment in hotels, lodging services, tour operators and travel agencies.138 It 
is necessary to register with INGUAT  in order to provide the following tourist services: hotels and 
guesthouses, travel agencies, schools for teaching Spanish as a second language, Spanish 
teachers, tourist transport, tourist guides, tourist marinas, tourist information offices and 
time-sharing properties for tourists.  
4.162.   Foreigners wishing to provide tourist guide services must apply to register with INGUAT, 
and submit a sworn statement to the effect that they are resident in Guatemala and are not 
providing their tourist guide services in a rel ation of dependence on Guatemalan entities (that is to 
say, they are working on their own account). Otherwise they must submit a work permit issued by 
the Ministry of Labour and Social Security.139 Only in the case of "community" tourist guides is it a 
                                                
136 Research and Social Studies Association (2015), Hacia un turismo moderno y desconcentrado. 
Viewed at : http://www.asies.org.gt/hacia -un-turismo -moderno -y-desconcentrado -2. 
137 Legislative Decree No.  41-2010 of 12  October  2010.  
138 Only hotels and lodging services in the four and five star categories.  
139 Article 9 of the Regulations on the registration and operation of tourist guides, Decision 
No. 187-2007-D of 7  May 2007.  WT/TPR/S/348 • Guatemala  
- 108 - 
  requirement to be Guatemalan and to come from the community in which the services 
are provided.140 
4.163.   In accordance with the commitments undertaken by Guatemala within the context of the 
GATS, under the supply mode "presence of natural persons", the presence of fore ign personnel is 
permitted only if it is specialized and required for the purpose of training Guatemalan personnel.141 
4.164.   Guatemala is not currently offering any tax incentives for investment in tourism activities 
or infrastructure. The provisions of the Nation al Tourism Promotion Law and the LOIGT which 
granted tax exemptions for hotel infrastructure have been repealed.142 
 
                                                
140 Ibid., Article 7, paragraph 1.  
141 WTO document GATS/SC/36 of 15  April 1994.  
142 Article 10 of the National Tourism Promotion Law and LOIGT Article 30 were repealed by Decree of 
the Congress of the Republic No.  117-97. WT/TPR/S/348 • Guatemala  
- 109 - 
  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by HS section, 2009 -2015  
(US$ million and  %) 
Description  2009  2010 2011  2012  2013  2014  2015a 
 (US$  million)  
General exports  7,214  8,463  10,401  9,979  10,025  10,803  10,726  
of which:         
Exports under Legislative Decree No.  29-89 2,293  2,654  3,352  3,040  3,069  3,481  3,582  
Free zone exports  293 335 424 423 534 687 734 
 (% of general exports)  
1 - Live animals; animal products  1.1 0.9 0.9 1.0 0.9 0.9 0.7 
03 - Fish and crustaceans, molluscs and other 
aquatic invertebrates  0.8 0.6 0.6 0.6 0.7 0.7 0.5 
2 - Vegetable products  25.5 22.3 24.4 23.3 22.1 21.2 22.7 
08 - Edible fruit and nuts; peel of citrus fruit or 
melons  8.9 6.5 6.8 7.4 8.7 8.9 10.3 
09 - Coffee, tea, maté and spices  12.3 12.1 14.2 12.2 9.3 8.5 8.5 
07 - Edible vegetables and certain roots and tubers  2.5 2.0 2.0 2.2 2.3 2.3 2.3 
12 - Oil seeds and oleagin ous fruits; miscellaneous 
grains, seeds and fruit; industrial plants, etc.  0.7 0.7 0.5 0.6 0.9 0.7 0.7 
06 - Live trees and other plants; bulbs, roots and the 
like; cut flowers and ornamental foliage  0.7 0.6 0.6 0.6 0.6 0.6 0.6 
3 - Animal or vegetable fat s and oils  2.3 2.4 3.2 3.6 3.6 3.5 3.4 
4 - Prepared foodstuffs;  
beverages, spirits and vinegar; tobacco  17.6 18.1 14.9 18.5 20.3 19.2 18.4 
17 - Sugars and sugar confectionery  8.3 9.6 7.3 9.0 10.4 9.7 9.1 
22 - Beverages, spirits and vinegar  2.5 2.2 1.9 3.0 3.2 3.0 2.7 
21 - Miscellaneous edible preparations  1.7 1.6 1.5 1.7 1.6 1.6 1.7 
19 - Preparations of cereals, flour, starch or milk; 
pastry cooks' products  2.0 1.5 1.3 1.4 1.5 1.5 1.7 
20 - Preparations of vegetables, fruit, etc.  0.9 1.0 0.9 1.1 1.1 1.0 1.1 
5 - Mineral products  8.8 10.6 13.9 10.0 10.0 14.6 11.2 
26 - Ores, slag and ash  4.7 5.9 8.8 5.8 5.1 7.8 6.8 
27 - Mineral fuels, mineral oils and products of their 
distillation  4.0 4.5 5.0 4.0 4.6 6.6 4.1 
6 - Products of the chemical or allied indu stries  10.1 9.7 8.7 9.5 9.3 8.8 9.8 
30 - Pharmaceutical products  2.3 2.1 2.0 2.2 2.4 2.4 2.9 
38 - Miscellaneous chemical products  1.7 1.7 1.4 1.7 1.8 1.7 1.8 
34 - Soap, organic surface -active agents, washing 
preparations, lubricating preparations  2.0 1.9 1.7 2.0 2.0 1.7 1.7 
33 - Essential oils; perfumery preparations  1.8 1.8 1.7 1.7 1.4 1.3 1.6 
7 - Plastics and articles thereof  4.4 5.5 6.4 6.0 5.4 4.7 4.5 
39 - Plastics and articles thereof  2.3 2.5 2.4 2.8 2.8 2.8 2.9 
40 - Rubber and articles thereof  2.2 3.0 4.0 3.2 2.6 1.9 1.6 
8 - Raw hides and skins, leather, fur skins and articles  
thereof; saddlery and harness  0.4 0.4 0.4 0.4 0.4 0.4 0.4 
9 - Wood and articles of wood; wood charcoal  0.7 0.6 0.6 0.6 0.7 0.6 0.8 
10 - Pulp of wood or of other fibrous  cellulosic 
material; paper or paperboard , etc. 2.2 2.3 2.3 2.4 2.4 2.3 2.5 
48 - Paper and paperboard; articles of paper pulp, of 
paper or of paperboard  1.8 1.9 1.8 2.0 2.0 1.9 2.1 
11 - Textiles and textile articles  17.1 16.7 14.4 14.4 15.3 14.3 15.0 
61 - Articles of apparel and clothing accessories, 
knitted or crocheted  11.2 10.7 9.1 9.2 10.1 9.4 9.8 
62 - Articles of apparel and clothing accessories, not 
knitted or crocheted  2.9 2.9 2.6 2.7 2.6 2.4 2.6 
60 - Knitted or crocheted fabrics  1.1 1.2 1.0 0.8 0.9 0.9 1.1 
12 - Footwear, headgear, umbrellas, sun umbrellas,  
walking -sticks, seat -sticks, whips , etc.  0.5 0.5 0.4 0.4 0.4 0.4 0.4 
13 - Articles of stone, plaster, cement, asbestos, mica; 
ceramic products; glass  1.0 1.1 1.1 1.0 1.0 1.0 1.2 
70 - Glass  and glassware  0.5 0.6 0.6 0.5 0.5 0.5 0.6 
14 - Natural or cultured pearls, precious or 
semi-precious stones, precious metals  0.7 0.7 0.5 0.7 0.5 0.4 0.3 
15 - Base metals and articles of base metal  3.7 3.8 4.1 3.9 3.5 4.0 4.6 
72 - Iron and steel  1.7 1.7 2.0 1.6 1.3 1.6 2.3 
73 - Articles of iron or steel  1.1 1.0 1.1 1.3 1.2 1.2 1.3 
16 - Machinery and mechanical appliances;  
electrical equipment; parts thereof  2.4 2.9 2.1 2.2 2.2 1.8 2.2 
84 - Nuclear reactors, boilers, machinery  1.3 1.4 1.3 1.2 1.3 1.0 1.3 
85 - Electrical machinery and equipment  1.2 1.5 0.8 1.0 0.9 0.8 0.9 
17 - Vehicles, aircraft, vessels and associated  
transport equipment  0.6 0.5 0.6 0.7 0.6 0.5 0.7 
18 - Optical, photographic or cinematographic 
instruments and apparatus , etc. 0.3 0.2 0.2 0.2 0.3 0.3 0.3 
20 - Miscellaneous manufactured articles  0.7 0.8 0.8 0.9 1.0 1.0 1.0 
94 - Furniture; bedding, mattresses, mattress 
supports, cushions, etc.  0.4 0.5 0.5 0.5 0.6 0.5 0.6 
a Preliminary figures.  
Source:  WTO Secretariat estimates.  WT/TPR/S/348 • Guatemala  
- 110 - 
  Table A1. 2 Merchandise imports by HS section, 2009 -2015  
(US$ million and  %) 
 2009  2010  2011  2012  2013  2014  2015a 
General imports  11,531  13,838  16,613  16,994  17,518  18,282  17,639  
of which:         
Imports under Legislative Decree No . 29-89 1,450  1,797  2,077  2,114  2,458  2,375  2,166  
Free zone imports  706 868 1,075  1,025  1,321  1,724  1,380  
 (% of total imports)  
1 - Live animals; animal products  2.0 2.1 1.9 2.2 2.2 2.5 2.5 
02 - Meat and edible meat offal  0.6 0.6 0.6 0.7 0.7 0.8 1.0 
04 - Dairy produce; birds' eggs; natural honey; edible 
products of animal origin  1.0 1.0 0.9 1.0 0.9 1.0 1.0 
2 - Vegetable products  4.5 3.8 4.3 4.2 4.0 4.0 4.1 
10 – Cereals  2.8 2.3 2.7 2.6 2.4 2.3 2.4 
11 - Products of the milling industry; malt; starches , 
etc. 0.6 0.5 0.6 0.5 0.6 0.5 0.5 
3 - Animal or vegetable fats and oils  1.3 1.5 1.4 1.2 1.2 0.9 0.9 
4 - Prepared foodstuffs;  
beverages, spirits and vinegar; tobacco  
and manufactured tobacco substitutes  6.4 6.2 5.9 6.2 6.5 6.8 7.3 
21 - Miscellaneous edi ble preparations  1.5 1.4 1.3 1.4 1.5 1.6 1.8 
23 - Residues and waste from the food industries; 
prepared animal fodder  1.3 1.3 1.2 1.4 1.5 1.6 1.5 
19 - Preparations of cereals, flour, starch or milk; 
pastry cooks' products  1.4 1.5 1.4 1.3 1.3 1.3 1.4 
22 - Beverages, spirits and vinegar  0.6 0.5 0.5 0.6 0.6 0.7 0.8 
5 - Mineral products  19.7 18.5 20.3 20.0 19.3 19.8 14.6 
27 - Mineral fuels, mineral oils and products of their 
distillation; bituminous substances, etc.  19.3 18.1 20.0 19.7 19.1 19.5 14.2 
6 - Products of the chemical or allied industries  13.8 13.6 13.0 13.4 13.4 12.9 14.1 
30 - Pharmaceutical products  3.4 2.9 2.7 2.8 3.2 3.2 3.8 
33 - Essential oils and resinoids; perfumery, cosmetic 
or toilet preparations  2.3 2.1 2.0 2.0 1.9 1.9 2.1 
29 - Organic chemicals  1.9 2.0 1.9 1.9 1.8 1.7 1.8 
31 - Fertilisers  1.2 1.8 1.9 2.0 1.8 1.6 1.7 
38 - Miscellaneous chemical products  1.7 1.7 1.4 1.5 1.7 1.6 1.6 
32 - Tanning or dyeing extracts; tannins and their 
derivatives; dyes, pigments; paints and varnishes,  etc.  1.0 1.0 1.0 1.0 0.9 0.9 1.0 
7 - Plastics and articles thereof  6.5 6.8 6.8 6.5 6.8 7.0 7.1 
39 - Plastics and articles thereof  5.4 5.6 5.6 5.3 5.6 5.8 5.9 
40 - Rubber and articles thereof  1.1 1.2 1.2 1.2 1.2 1.2 1.3 
8 - Raw hides and skins, leathe r, fur skins and articles 
thereof; saddlery and harness  0.3 0.3 0.3 0.3 0.3 0.3 0.4 
9 - Wood and articles of wood; wood charcoal  0.3 0.3 0.3 0.4 0.3 0.3 0.4 
10 - Pulp of wood or of other fibrous cellulosic material;  
paper and paperboard and articles ther eof 4.7 4.5 4.4 3.9 3.9 3.9 4.1 
48 - Paper and paperboard and articles thereof  3.9 3.8 3.7 3.2 3.3 3.2 3.4 
11 - Textiles and textile articles  8.8 8.8 8.3 7.6 7.6 6.8 7.6 
52 - Cotton  2.7 2.8 2.6 2.0 2.0 1.5 1.6 
60 - Knitted or crocheted fabrics  1.6 1.3 1.2 1.0 1.1 1.1 1.2 
55 - Man-made staple fibres  1.1 1.2 1.2 1.1 1.1 1.1 1.1 
54 - Man-made filaments  1.1 1.1 1.1 1.2 1.1 0.9 1.0 
12 - Footwear, headgear, umbrellas, sun umbrellas,  
walking -sticks, seat -sticks, whips, riding -crops , etc. 0.8 0.8 0.8 0.8 0.8 0.8 1.0 
64 - Footwear, gaiters and the like; parts of such 
articles  0.7 0.7 0.7 0.8 0.8 0.8 0.9 
13 - Articles of stone, plaster, cement, asbestos; ceramic 
products; glass , etc. 1.0 0.9 0.8 1.0 0.9 0.9 0.9 
70 - Glass and glassware  0.4 0.4 0.4 0.4 0.4 0.4 0.4 
69 - Ceramic products  0.3 0.3 0.3 0.4 0.3 0.3 0.3 
14 - Natural or cultured pearls, precious or semi -precious 
stones, precious metals  0.4 0.3 0.2 0.3 0.2 0.2 0.2 
15 - Base metals and articles of base metal  5.8 6.6 7.1 6.3 6.6 6.7 6.9 
72 - Iron and  steel 2.5 3.3 3.7 2.9 3.0 3.1 3.0 
73 - Articles of iron or steel  1.3 1.3 1.3 1.4 1.5 1.5 1.6 
76 - Aluminium and articles thereof  0.9 0.8 0.9 0.9 1.0 1.0 1.1 
83 - Miscellaneous articles of base metal  0.6 0.6 0.5 0.6 0.6 0.6 0.6 
16 - Machinery and mecha nical appliances;  
electrical equipment; parts thereof  15.4 16.2 15.7 16.3 16.8 17.0 17.2 
84 - Nuclear reactors, boilers, machinery and 
mechanical appliances, etc.  7.8 7.5 8.1 8.6 8.7 8.6 8.7 
85 - Electrical machinery and equipment and parts 
thereof; reco rders and reproducers, etc.  7.6 8.7 7.6 7.7 8.1 8.4 8.5 
17 - Vehicles, aircraft, vessels and associated  
transport equipment  5.5 6.2 6.0 6.6 6.0 6.1 7.5 
87 - Vehicles other than railway or tramway 
rolling -stock 5.3 6.1 5.9 6.5 5.8 6.0 7.4 
18 - Optical an d photographic instruments and 
apparatus, etc.  1.2 1.0 1.0 1.0 1.1 1.1 1.2 
19 - Arms and ammunition; parts and accessories thereof  0.1 0.1 0.0 0.0 0.0 0.1 0.1 
20 - Miscellaneous manufactured articles  1.5 1.5 1.4 1.8 1.7 1.9 2.1 
Source:  WTO Secretariat e stimates.  WT/TPR/S/348 • Guatemala  
- 111 - 
  Table A1. 3 Merchandise exports by trading partner, 2009 -2015  
(US$ million and  %) 
Description  2009  2010  2011  2012  2013  2014  2015a 
 (US$ million)  
Exports  7,214  8,463  10,401  9,979  10,025  10,803  10,726  
 (% of exports)  
America  84.2 83.8 83.9 84.3 80.8 79.1 79.6 
USA 41.0 38.9 41.7 40.2 38.2 35.7 35.3 
Other America  43.2 44.9 42.1 44.1 42.6 43.4 44.3 
El Salvador  11.3 11.8 10.9 11.1 11.1 11.7 11.6 
Honduras  8.4 8.3 7.8 8.0 7.9 8.2 8.4 
Nicaragua  3.9 4.2 4.4 4.7 4.9 4.8 5.2 
Mexico  5.9 5.3 4.9 5.5 4.7 4.0 4.0 
Costa Rica  3.9 4.1 3.9 4.3 4.0 3.9 3.9 
Panama  2.5 2.6 2.4 2.5 2.4 2.6 2.4 
Canada  1.5 1.6 1.5 1.5 1.6 2.2 2.2 
Dominican Republic  1.5 1.6 1.2 1.2 1.3 1.3 1.4 
Chile 1.3 1.1 1.3 1.3 1.1 1.0 1.0 
Belize  0.7 0.6 0.5 0.5 0.7 0.9 0.8 
Venezuela, Bolivarian Republic of  0.2 0.8 0.7 0.7 0.9 0.7 0.7 
Europe  5.6 5.8 6.6 6.4 6.7 7.6 8.2 
EU(28)  5.5 5.6 6.4 6.2 6.5 7.5 7.9 
Netherlands  1.6 1.3 1.3 1.7 2.6 2.5 2.7 
Belgium -Luxembourg  0.6 0.6 1.1 0.8 0.6 0.9 1.1 
Italy 0.8 0.8 1.0 0.8 0.6 0.7 1.0 
United Kingdom  0.4 0.6 0.4 0.4 0.5 0.5 0.8 
Germany  1.0 1.1 1.4 1.2 0.9 1.1 0.8 
Spain  0.7 0.8 0.8 1.0 0.8 0.9 0.6 
EFTA 0.1 0.2 0.2 0.2 0.1 0.1 0.1 
Norway  0.1 0.2 0.2 0.2 0.1 0.1 0.1 
Other Europe  0.0 0.0 0.0 0.0 0.1 0.1 0.2 
Commonwea lth of Independent 
States (CIS)b 0.1 0.4 0.4 0.2 0.4 1.8 1.5 
Kazakhstan  0.0 0.0 0.0 0.0 0.0 1.2 0.9 
Ukraine  0.0 0.1 0.0 0.0 0.1 0.5 0.5 
Africa  0.1 0.2 0.3 1.0 1.4 1.9 2.0 
Ghana  0.0 0.0 0.0 0.7 0.5 0.6 0.8 
Congo, Democratic Republic of the  0.0 0.0 0.0 0.0 0.0 0.1 0.2 
Tunisia  0.0 0.0 0.3 0.2 0.6 0.6 0.2 
Middle East  2.8 2.6 2.0 2.1 2.3 2.4 1.7 
United Arab Emirates  0.6 0.6 0.4 0.5 0.5 0.6 0.7 
Saudi Arabia, Kingdom of  1.2 1.4 1.0 0.9 0.7 0.7 0.7 
Syrian Arab Republic  0.5 0.3 0.3 0.4 0.7 0.9 0.1 
Asia 5.2 5.0 4.8 4.1 6.4 5.8 6.4 
China  0.4 0.4 0.3 0.3 1.7 0.4 1.9 
Japan  1.5 1.7 2.0 1.8 1.9 1.5 1.7 
Other Asia  3.3 2.9 2.5 2.0 2.8 3.9 2.8 
Korea, Republic of  0.9 0.9 1.2 0.5 1.5 2.7 1.0 
Malaysia  0.4 0.0 0.2 0.0 0.0 0.1 0.5 
Chinese Taipei  0.4 0.5 0.4 0.5 0.6 0.6 0.4 
Australia  0.1 0.0 0.1 0.1 0.1 0.1 0.2 
Other  2.0 2.2 2.0 1.9 2.0 1.4 0.6 
a Preliminary figures.  
b The Commonwealth of Independent States (CIS) includes Armenia, Azerbaijan, Belarus, Georgia, 
Kazakhstan, Kyrgyzstan, Republic of Moldova, Russian Federation, Tajikistan, Turkmenistan, 
Ukraine, and Uzbekistan.  
Source:  WTO Secretariat estimates.  WT/TPR/S/348 • Guatemala  
- 112 - 
  Table A1. 4 Merchandise imports by trading partner, 2009 -2015  
(US$ million and  %) 
Description  2009  2010  2011  2012  2013  2014  2015a 
 (US$ million)  
Total imports  11,531  13,838  16,613  16,994  17,518  18,282  17,639  
 (% of imports)  
America  75.8 72.8 74.3 73.4 73.1 72.7 70.5 
USA 36.8 37.0 39.2 38.0 37.2 40.3 37.1 
Other America  39.0 35.7 35.1 35.4 35.9 32.4 33.4 
Mexico  10.3 11.1 11.2 11.3 10.6 10.7 11.6 
El Salvador  5.1 4.9 4.9 4.6 4.7 4.5 5.1 
Panama  3.2 3.2 2.9 3.2 3.3 3.7 3.4 
Costa Rica  3.4 3.1 2.7 2.8 3.0 2.9 3.4 
Colombia  2.8 2.8 3.6 3.2 4.4 2.1 2.1 
Honduras  2.3 2.2 2.1 2.2 2.3 2.3 2.1 
Brazil  2.0 1.7 1.7 1.5 1.4 1.1 1.3 
Nicarag ua 0.6 0.6 0.5 0.6 0.6 0.7 0.7 
Chile 1.2 0.7 0.8 0.8 0.7 0.7 0.6 
Peru 0.7 0.5 0.6 0.7 0.5 1.1 0.6 
Uruguay  0.5 0.4 0.4 0.4 0.4 0.4 0.5 
Europe  7.6 7.4 7.4 7.3 7.7 7.4 8.0 
EU(28)  7.1 6.5 6.3 6.1 6.7 7.1 7.6 
Germany  1.5 1.8 1.5 1.6 1.7 1.5 1.6 
Spain  1.2 1.1 1.0 1.1 1.3 1.7 1.5 
Belgium -Luxembourg  0.8 0.7 1.0 0.9 0.7 0.7 1.0 
Netherlands  0.8 0.6 0.6 0.6 0.6 0.6 0.7 
Italy 0.7 0.6 0.6 0.7 0.7 0.8 0.7 
EFTA 0.4 0.8 0.9 1.0 0.9 0.2 0.2 
Switzerland and Liechtenstein  0.2 0.3 0.3 0.2 0.2 0.1 0.1 
Other Europe  0.1 0.1 0.1 0.2 0.2 0.1 0.1 
Commonwealth of 
Independent States (CIS )b 0.4 0.6 0.6 0.6 0.6 0.2 0.3 
Russian Federation  0.3 0.5 0.5 0.5 0.4 0.2 0.3 
Africa  0.0 0.0 0.0 0.1 0.1 0.1 0.0 
Middle East  0.3 0.4 0.3 0.4 0.4 0.5 0.6 
Saudi Arabia, Kingdom of  0.1 0.1 0.2 0.1 0.2 0.3 0.3 
Israel  0.2 0.2 0.2 0.2 0.2 0.2 0.2 
Asia 13.6 16.3 15.6 16.7 16.8 18.9 20.4 
China  5.3 7.1 6.9 7.4 8.2 9.8 10.6 
Japan  1.5 2.0 1.8 1.6 1.5 1.4 1.6 
Other Asia  6.8 7.1 6.9 7.6 7.2 7.6 8.2 
Korea, Republic of  2.8 2.8 2.2 2.5 2.3 2.4 2.5 
India 0.8 1.0 1.0 1.4 1.4 1.3 1.5 
Hong Kong, China  1.2 1.0 1.0 1.1 1.1 1.4 1.4 
Thailand  0.5 0.7 0.7 0.8 0.7 0.9 1.0 
Chinese Taipei  0.7 0.7 0.7 0.8 0.7 0.7 0.8 
Indonesia  0.1 0.1 0.1 0.2 0.2 0.2 0.2 
Singapore  0.1 0.2 0.5 0.2 0.2 0.3 0.2 
Malaysia  0.2 0.2 0.2 0.2 0.2 0.2 0.2 
Other  2.4 2.6 1.8 1.6 1.3 0.2 0.1 
a Preliminary figures.  
b The Commonwealth of Independent States (CIS) includes Armenia, Azerbaijan, Belarus, Georgia, 
Kazakhstan, Kyrgyzstan, Republic of Moldova, Russian Federation, Tajikistan,  Turkmenistan, 
Ukraine, and Uzbekistan.  
Source:  WTO Secretariat estimates.  
 WT/TPR/S/348 • Guatemala  
- 113 - 
  Table A2. 1 Notifications to the WTO, 1  January  2009 to 15  June  2016  
Agreement and 
Article  Requirement  Frequency  Document (most 
recent only if 
submitte d regularly)  Date  
Agreement on Trade Facilitation  
Article 15, Section 
II Category A commitments  
 Once only  WT/PCTF/N/GTM/1  12/08/2014  
Agreement on Agriculture  
Articles 10 and 
18.2, ES:1  Export subsidies  On an annual 
basis G/AG/N/GTM/52  16/03/2016  
Article 18.2, DS:1  Domestic support  On an annual 
basis G/AG/N/GTM/53  17/03/2016  
Article 18.2, DS:2  Domestic support  On an annual 
basis G/AG/N/GTM/49  28/05/2015  
Article 18.2, MA:1  Tariff quotas  On an annual 
basis G/AG/N/GTM/38  18/01/2011  
Article 18.2, MA:2  Tariff quotas  On an annual 
basis G/AG/N/GTM/55  24/05/2016  
Article 18.2, MA:5  Special safeguard  On an annual 
basis G/AG/N/GTM/54  08/04/2016  
General Agreement on Trade in Services  
Article V:7(a)  Notification of a regional trade 
agreement  Ad hoc  S/C/N/47 1/Rev.1  28/01/2014  
S/C/N/692/Rev.1  26/04/2013  
S/C/N/680  27/02/2013  
S/C/N/646  03/09/2012  
S/C/N/622  04/04/2012  
S/C/N/614  09/01/2012  
S/C/N/595  12/07/2011  
S/C/N/471  21/01/2009  
Agreement on Implementation of Article VI of the GATT 1 994 (anti -dumping)  
Article 16.4  Anti-dumping actions (taken during 
the preceding six months)  Semi-annual  G/ADP/N/272/GTM  07/10/2015  
GATT 1994  
Article XXVIII:5  Modification of schedules 
(reservation of the right to modify 
schedules for a 3 -year period)  Ad hoc  G/MA/311  10/12/2014  
G/MA/259  27/10/2011  
Article XVII:4(a)  State -trading activities  On an annual 
basis G/STR/N/14/GTM  11/07/2012  
Article XXIV:7(a)  Formation of a free -trade area  Ad hoc  WT/REG349/N/1/Rev.1  28/01/2014  
WT/REG336/N/1/Rev.1  26/04/2013  
WT/REG332/N/1  27/02/2013  
WT/REG316/N/1  03/09/2012  
WT/REG312/N/1  04/04/2012  
WT/REG305/N/1  09/01/2012  
WT/REG297/N/1  17/07/2011  
WT/REG211/N/5  21/01/2009  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7, Annex B  Sanitary/phytosanitary regulations  Ad hoc  G/SPS/N/GTM/63 – 
G/SPS/N/GTM/45  24/05/2016
05/01/2009  
Agreement on Rules of Origin  
Article 5 and Annex 
II, paragraph 4  Changes in preferential rules 
of origin; new preferential rules 
of origin  Ad hoc  G/RO/N/114  02/04/2014  
G/RO/N/95  16/05/2013  
G/RO/N/93  09/04/2013  
Agreement on Technical Barriers to Trade  
Article 2.9  Technical regulations  Ad hoc  G/TBT/N/GTM/89 - 
G/TBT/N/GTM/62  08/02/2016 
- 
09/04/2009  WT/TPR/S/348 • Guatemala  
- 114 - 
  Agreement and 
Article  Requirement  Frequency  Document (most 
recent only if 
submitte d regularly)  Date  
Agreement on Subsidies and Countervailing Measures  
Article 25.1  Any subsidy as defined in Article  1.1 
of the Agreement, which is specific 
within the meaning of Article 2 of the 
Agreement, as well as any other 
subsidy which causes increased 
exports or decreased imports within 
the meaning of Articl e XVI:1 of the 
GATT  1994 On a triennial 
basis G/SCM/N/253/GTM  22/07/2013  
Article 25.11  Countervailing measures (adopted 
during the preceding six  months)  Semi-annual  G/SCM/N/250  20/12/2012  
Article 27.4  Extension of the transition period for 
the eliminatio n of export subsidies  On an annual 
basis G/SCM/N/GTM/290  11/11/2015  
Source:  WTO Secretariat.  
 WT/TPR/S/348 • Guatemala  
- 115 - 
  Table A3. 1 Preferential quotas by agreement, 2015  
Quota  Tariff heading  Quantity (MT)  In-quota tariff 
(%) Out-of-quota 
tariff (%)  
CAFTA -DR 
Meat of bovine animals  0201.20.00B  
0201.30.00B  
0202.20.00B  
0202.30.00B  1,660  0 5 
Cheese  0406.10.00 
0406.10.10  
0406.10.90  
0406.20.20  
0406.20.90  
0406.30.00  
0406.90.10  
0406.90.20  
0406.90.90  733 0 15 
Milk powder  0402.10.00  
0402.21.11  
0402.21.12  
0402.21.21  
0402.21.22  
0402.29.00  
0403.90.10  
0403.90.90  652 0 15 
Butter  0405.10.00  
0405.20.00  
0405.90.90  
0401.40.00  
0401.50.00  163 0 15 
Ice cream  2105.00.00  261 0 15 
Meat of swine  0203.11.00  
0203.12.00  
0203.19.00  
0203.21.00  
0203.22.00  
0203.29.00  6,123  0 5 
White maize  1005.90.30  24,400  0 20 
Rice in the husk  1006.10.90  80,600  0 29.2 
Pounded rice  1006.20.00  
1006.30.10  
1006.30.90  
1006.40.00  15,500  0 29.2 
Poultry cuts  0207.13.99B  
0207.14.99B  
1602.32.90A  9,970  0 15 
Panama  
Meat of bovine animals  0201.10.00 
0201.20.00 
0201.30.00 
0202.10.00 
0202.20.00 
0202.30.00  723 0 4.5 
Meat of swine  0203.11.00 
0203.12.00 
0203.19.00 
0203.21.00 
0203.22.00 
0203.29.00  142 0 9 
Long-life (UHT) milk  0401.10.00AA 
0401.20.00AA 
0401.40.00AA 
0401.50.00AA  200,000 (litres)  0 4.5 
Process ed cheese  0406.30.00  50 0 4.5 
Mozzarella cheese  0406.90.10  
0406.20.20  84 0 4.5 
Potatoes  0701.90.00  216 0 15 
White onions  0703.10.12  351 0 15 
Refined soya -bean oil  1507.90.00  200 0 15 
Refined sunflower -seed oil  1512.19.00  200 0 15 
Crude palm oil  1511. 10.00  250 0 15 
Wings of fowls of the species Gallus 
domesticus  1602.32.90BB  12 0 15 
Other tomato sauces  2103.20.00  143.75  0 15 
Colombia  
Dog or cat food, put up for retail sale (other 
than food put up in airtight containers)  2309.10.00  1,344  0 15 WT/TPR/S/348 • Guatemala  
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  Quota  Tariff heading  Quantity (MT)  In-quota tariff 
(%) Out-of-quota 
tariff (%)  
Beliz e 
Yellow maize  1005.90.20  23,000  0 15 
Black beans  0713.33.10  1,006.50  0 20 
Chile  
Milk powder  0402.10.00  
0402.21.12  
0402.21.22  
 
0402.21.21  230 
 
 
 
402.50  0 
 
 
 
0 15 
 
 
 
15 
Condensed milk  0402.99.10  625 0 10 
Concentrated milk, cream  0403.90.10  
0403.90.90  
0404.90.00  115 0 15 
Butter  0405.10.00  115 0 15 
Mature goat cheese, mature sheep cheese  0406.90.90  250 0 15 
Cow's milk cheese (Gouda)  0406.90.90  63.3 0 15 
Caramel, fudge  1901.90.90  46 0 15 
Other prepared or preserved tomatoes  2002.90.90  40 0 15 
Mexico  
Yellow maize  1005.90.20  150,000  0 15 
Tuna 1604.14.10AA  
1604.19.00AA  500 0 15 
Cheese  0406.10  
0406.90  460 0 15 
European Union  
Preserved hams and bellies (streaky)  0210.11.00  
0210.12.00  
0210.19.00  1,035  0 15 
Prepared or preserved meat of swine  1602.41. 00 
1602.42.00  
1602.49.90  1,035  0 15 
Milk powder  0402.10.00 
0402.21.11 
0402.21.12 
0402.21.21  
0402.21.22  
0402.29.00  460 0 15 
Cheese  0406.20.90 
0406.30.00 
0406.90.10 
0406.90.20  
0406.90.90  990 0 15 
Source:  Information provided by the authorities.  
 
 WT/TPR/S/348 • Guatemala  
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  Table A 3. 2 Sanitary and phytosanitary measures adopted, 2009 -2015  
Instrument  Purpose or scope of the measure  
Animal health   
Ministerial Decision No.  456-2009 Establishes requirements for obtaining certification declaring a poultry p roduction unit to 
be free of avian influenza with or without vaccination.  
Ministerial Decision No.  440-2009 Amendment to Article 4 of Ministerial Decision No.  1090-2001.  
Ministerial Decision No.  439-2009 Officially declares the Republic of Guatemala to b e free of classical swine fever.  
Ministerial Decision No.  102-2009 Prohibits the import, manufacture and marketing of the classical swine fever vaccine.  
Ministerial Decision No.  394-2009 Biosafety manual and technical inspection data sheet for swine prod uction units.  
Ministerial Decision No.  456-2009 Requirements for obtaining certification declaring a poultry production unit to be free of 
avian influenza with or without vaccination.  
Ministerial Decision No.  95-2010 Provisions relating to the removal, h andling and transport of inorganic solid waste from 
vessels that poses a risk to plant and animal health.  
Ministerial Decision No.  191-2010 Amendment to Article 10 of Ministerial Decision No. 390-2006.  
Government Decision  No. 338-2010 Basic Internal Regu lations of the Ministry of Agriculture, Livestock and Food (MAGA).  
Ministerial Decision No.  129-2011 Manual on biosafety procedures for poultry production units.  
Ministerial Decision No.  72-2012 Amendment to Ministerial Decision No.  390-2006 of 21  July 2006, which establishes 
requirements for the registration of natural and legal persons interested in carrying out 
activities relating to inputs for animal use, and for the registration, renewal of 
registration, import, export and return of inputs for animal s. 
Ministerial Decision No.  166-2012 Amendments to Ministerial Decision No.  225-2008.  
Ministerial Decision No.  167-2012 Amendments to Ministerial Decision No.  592-99. 
Ministerial Decision No.  105-2012 Declares a states of emergency throughout national t erritory following an outbreak of 
highly pathogenic avian influenza H7N3 in Jalisco, Mexico.  
Ministerial Decision No.  119-2012 Prohibits the vaccination of poultry against highly pathogenic avian influenza H7N3.  
Ministerial Decision No.  110-2012 Establis hes the national health programme for the prevention, control and eradication of 
bovine spongiform encephalopathy (BSE).  
Ministerial Decision No.  254-2012 Amendments to Ministerial Decision No. 592-99 establishing the National Poultry 
Farming Council.  
Ministerial Decision No.  253-2012 Amendments to Ministerial Decision No.  225-2008 establishing the National Poultry 
Farming Technical Commission.  
Ministerial Decision No.  218-2013 Decision on emergency temporary preventive (prophylactic) vaccination against  highly 
pathogenic avian influenza H7N3 and other health measures.  
Ministerial Decision No.  228-2013 Amendment to Article 3(a) of Ministerial Decision No.  105-2012.  
Ministerial Decision No.  182-2013 Amendment to Article 4 of Ministerial Decision No.  105-2012.  
Ministerial Decision No.  655-2014 Technical provisions allowing the country to be declared free of classical swine fever 
without vaccination.  
Ministerial Decision No.  24-2014 Establishes the national livestock traceability system.  
Ministerial Deci sion No.  350-2015 Establishes the national swine health programme "PRONASPORC"  (G/SPS/N/GTM/62 of 
29 February  2016).  
Ministerial Decision No.  444-2015 Approves the national bovine health programme "PROSABO".  
Plant health   
Decree No.  5-2010 Law on the r egistration of agrochemical products.  
Ministerial Decision No.  50-2010 Establishes requirements governing the import and return of inputs for agricultural use.  
Ministerial Decision No.  95-2010 Issues provisions relating to the removal, handling and trans port of inorganic solid 
waste from vessels that poses a risk to plant and animal health.  
Government Decision No.  342-2010 Regulation on the registration of fertilizers and soil amendments and substances related 
thereto with the Ministry of Agriculture, Li vestock and Food.  
Ministerial Decision No.  343-2010 Implementing Regulation of the Law on the registration of agrochemical products.  
Ministerial Decision No.  283-2011 Establishes, within the Plant Health Directorate of the Ministry of Agriculture, Livest ock 
and Food, the MOSCAFRUT programme, which promotes the productivity and 
competitiveness of national and regional fruit production.  
Ministerial Decision No.  126-2010 Declares a phytosanitary state of emergency in areas where huanglongbing (HLB) is 
prese nt, namely the municipalities of Poptún, Dolores, Sayaxché, San José, San Luis 
and Melchor de Mencos in the department of Petén; the municipalities of Livingston and 
Puerto Barrios in the department of Izabal; and the municipality of Fray Bartolomé de 
las Casas in the department of Alta Verapaz. These municipalities are considered to 
form an "area under phytosanitary control", which may be geographically extended or 
reduced at national level, in accordance with phytosanitary sampling and diagnostic 
results.  
Government Decision No.  84-2011 Declares various municipalities in the departments of Totonicapán, Quetzaltenango and 
Sololá in the Republic of Guatemala (71,000 hectares in total) to be areas free of 
Mediterranean fruit fly ( Ceratitis capitata  Wied) and  other fruit flies of the genera 
Anastrepha  spp., Dacus spp. and Bactrocera  spp. 
Ministerial Decision No.  11-2011 Establishes conditions governing the registration and renewal of registration of natural 
or legal persons interested in importing, exporting,  manufacturing, producing, 
processing, blending, formulating, packaging, repackaging, packing, storing and 
marketing technical grade active ingredients or formulated agrochemical products.  
Ministerial Decision No.  07-2012 Establishes requirements for auth orizing the importation of tomato seeds originating in 
or coming from countries which have reported the presence of the bacteria Clavibacter 
michiganensis subsp. Michiganensis . 
Ministerial Decision No.  13-2012 Establishes the national plant health program me for the prevention, control and 
eradication of pests associated with the growing of citrus fruits and related pests hosted 
by other plant species (PRONAFICIT). The programme falls under the responsibility of 
the Plant Health Directorate.  WT/TPR/S/348 • Guatemala  
- 118 - 
  Instrument  Purpose or scope of the measure  
Ministerial De cision No.  14-2012 Establishes the national plant health programme for the prevention, control and 
eradication of pests associated with plants of the botanical family Solanaceae 
(PRONAFISOL). The programme falls under the responsibility of the Plant Health  
Directorate.  
Ministerial Decision No.  11-2013 Declares a state of emergency due to the increased incidence of coffee rust.  
Ministerial Decision No.  614-2013 Provisions relating to the prevention of the introduction of the pest fusarium oxysporum 
(Foc) r ace 4, which is absent from national territory and causes what is known as 
"Panama disease" (G/SPS/N/GTM/60 of 10  October  2014).  
Resolution No.  314-2013 Central American Technical Regulation (RTCA) No.  65.05.54:09: Fertilizers and soil 
conditioners for ag ricultural use  (G/SPS/N/GTM/46 of 21  April 2009).  
Ministerial Decision No.  03-2014 Provisions on wood packaging material used in international trade.  
Ministerial Decision No.  491-2015 Establishes an updated list of regulated pests and provisions governin g the 
establishment of phytosanitary import requirements applicable to consignments of 
products of plant origin imported into national territory for the first time 
(G/SPS/N/GTM/61 of 9  February  2016).  
Safety   
Ministerial Decision No.  026-2009 Establishes , within the Standards and Regulations Unit of the Ministry of Agriculture, 
Livestock and Food, the programme for the control and monitoring of the physical 
characteristics of, and the microbiological contaminants and chemical substances in, 
water that is to be used in hydrobiological product establishments.  
Ministerial Decision No.  435-2009 Approves the manual of procedures for food safety inspections in establishments 
producing hydrobiological products.  
Ministerial Decision No.  0063-2010 Manual of proce dures to follow in the event of an alert relating to the safety of food of 
hydrobiological origin.  
Ministerial Decision No.  214-2010 Amends Ministerial Decision No.  427-2005, "Rules on obtaining sanitary permits for the 
operation of milking parlours, coll ection centres and modes of transport for raw milk".  
Ministerial Decision No.  07-2011 Establishes the provisions applicable to the organoleptic testing of tuna and shrimp.  
Ministerial Decision No.  06-2011 Approves the procedure for the hygiene and sanita ry inspection of fishing and freezer 
vessels. Repeals Ministerial Decision No.  171-2008.  
Ministerial Decision No.  03-2011 Establishes hygiene and sanitary requirements for fishery products in fishing and freezer 
vessels. Repeals Ministerial Decision No.  327-2007 and Ministerial Decision 
No. 653-2007.  
Ministerial Decision No.  0271-2010 Amends Ministerial Agreement No.  74-2007, which establishes the national monitoring 
programme for detecting histamines in the flesh of tuna and sea bream destined for the 
European Union market in processing facilities.  
Ministerial Decision No.  13-2011 Updates the national monitoring programme for detecting heavy metals in the flesh of 
tuna destined for the European Union market.  
Ministerial Decision No.  02-2012 Approves the  conceptual framework for the national monitoring programme for 
detecting substances and residues harmful to human health in farmed shrimp.  
Ministerial Decision No.  69-2012 Establishes the provisions applicable to all persons engaged in the production, 
collection, processing, packaging, storage and marketing of apiculture products in 
national territory.  
Ministerial Decision No.  07-2013 Establishes the national monitoring programme for heavy metals and dioxins in 
wild-caught shrimp.  
Ministerial Decision N o. 08-2013 Establishes the national monitoring programme for metabisulfite in shrimp in processing 
plants.  
Ministerial Decision No.  14-2013 Establishes the provisions applicable to the importation of products of hydrobiological 
origin that are to be proce ssed in Guatemala and exported to the European Union.  
Ministerial Decision No.  15-2013 Establishes the national monitoring programme for dioxins and similar substances in 
tuna and sea bream.  
Ministerial Decision No.  382-2014 Regulations on conducting hyg iene and sanitary inspections in countries of origin in 
establishments engaged in the production, processing or storage of unprocessed foods 
of animal and plant origin that are interested in exporting these products to Guatemala.  
Plant and animal husbandr y  
Ministerial Decision No.  12-2010 Establishes requirements for registering plant varieties.  
Ministerial Decision No.  52-2010 Issues provisions on certification in the production and marketing of peach ( Prunus 
persica  L.) seeds, plant parts and plants.  
Ministerial Decision No.  58-2010 Establishes requirements applicable to the production, import, export, re -export and 
marketing of certified citrus seeds, plant parts and plants.  
Ministerial Decision No.  415-2013 Establishes the register for foals born f ollowing the transfer of embryos and use of 
surrogate mares of the Peruvian Paso breed.  
Ministerial Decision No.  528-2013 Establishes requirements for the flock book registration and certification of sheep.  
Source:  Information provided by the authorities .   
  WT/TPR/S/348 • Guatemala  
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Table A4. 1 Agricultural domestic support measures, 2009 -2015  
Type of measure with reference 
to criteria in Annex 2 of the 
Agreement on Agriculture  Institutional axis / Description of measure  Cost of measure (US$  thousand)  
2009  2010  2011  2012  2013  2014  2015  
Measures exempt from the reduction commitment - "Green Box"  
General services  
- Agricultural research services 
(Annex 2, paragraph 2(a))  Institute of Agricultural Science and Technology  
- Research and development of see d varieties.  1,026.3  1,065.3  1,065.3  3,448.2  3,727.7  3,423.1  3,785.9  
- Pest and disease control  
(Annex 2, paragraph 2 (b))  Integrated pest and transfer management  
- Integrated pest management.  311.1  276.5  --- --- --- --- --- 
- Extension and training  
(Annex 2, paragraph 2 (c))  Agricultural training schools (EFAS)  
- Agriculture -oriented basic formal education and technical training 
for students in rural areas.  1,957.0  2,369.9  2,369.9  2,567.5  2,738.1  2,923.6  3,194.5  
Fruit -growing and Agroindustry Developme nt Project  
- Support for fruit -growing and agroindustry development in the form 
of training and technical assistance for producers.  864.9  597.1  597.1  --- --- --- --- 
Maya Center agri -food services  
- Technical assistance and training for small and medium -size 
producers in agriculture -, livestock -, agro -industrial development - 
and gender -related matters.  244.5  323.4  --- --- --- --- --- 
Watershed conservation  1,013.8  934.2  934.2  --- --- --- --- 
Rural Development Programme, Phase One: The Western 
Region  
- Implementation of production projects.  --- 2,389.3  2,389.3  --- --- --- --- 
Support for rural economies  
- Training and technical assistance to galvanize the rural economy.  --- 383.2  --- --- --- --- --- 
PROBOTEN  
- Technical assistance in managing and ma intaining forest 
plantations.  --- 297.63  --- --- --- --- --- 
- Infrastructural services  
(Annex 2, paragraph 2 (g))  Post-harvest management  
- Training for silo manufacturers and delivery of silos to rural families.  1,188.8  959.5  --- --- --- --- --- 
Domest ic food aid  
Domestic food aid  
(Annex 2, paragraph 4)  Food security support  
- Food aid for vulnerable segments of the population.  3,259.6  403.3  14,626.7  5,874.7  10,979.5  9,753.4  5,185.4  
"Supertortillas" for enhanced nutrition  
Provision of enriched flour  --- --- --- 1,915.7  --- --- --- 
Assistance for persons affected by the heat -wave  
Distribution of food rations on a monthly basis, during a six -month 
period, to families affected by the extended heat -wave of 2014.  --- --- --- --- --- 44,066  10,893  
Payment s for relief from natural 
disasters  
- Aid 
(Annex 2, paragraph 8)  Government Decree No.  15-2010  
- Support for the population affected by Tropical Storm Agatha. Food 
aid. --- 10,394.8  --- --- --- --- --- 
Government Decree No.  15-2010  
- Support for the agri cultural and livestock sector affected by Tropical 
Storm Agatha.  --- 3,574.1  --- --- --- --- ---   
  WT/TPR/S/348 • Guatemala  
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Type of measure with reference 
to criteria in Annex 2 of the 
Agreement on Agriculture  Institutional axis / Description of measure  Cost of measure (US$  thousand)  
2009  2010  2011  2012  2013  2014  2015  
 
 
Structural adjustment assistance 
provided through investment 
aids 
- Assistance  
(Annex 2, paragraph 11)  PLAMAR/DIAPRYD  
- Credit support for irrigation system s in agricultural areas affected by 
seasonal water deficit.  1,235.9  --- --- --- --- --- --- 
PLAMAR  
- Credit support for irrigation systems in agricultural areas affected by 
seasonal water deficit.  --- 1,780.2  --- --- --- --- --- 
Irrigation  
Credit suppo rt for irrigation systems in agricultural areas affected by 
seasonal water deficit (due to restructuring pursuant to Government 
Decision No.  338-2010, now the Irrigation Department in the 
Vice-Ministry of Rural Economic Development).  --- --- --- 555.2  --- --- --- 
Payments under environmental 
programmes  
- Environmental programmes  
(Annex 2, paragraph 12)  Forests and Water Trust Fund for Concord  
Guatemalan Government -initiated project for the reforestation of 
municipally owned areas and/or areas without fores t cover, with 
financial incentives for former civil patrol members to restock an 
anticipated 25,000 hectares of deforested soil.  --- 12,547  6,426.7  12,263.1  12,543.3  12,201.3  5,014  
Source:  Notifications submitted by Guatemala to the WTO Committee on Agric ulture.  
 
__________