RESTRICTED  
  
WT/TPR/G/348  
28 September  2016 
(16-5167) Page: 1/15 
Trade Policy Review Body  Original:  Spanish  
 
  TRADE POLICY REVIEW  
REPORT BY  
GUATEMALA  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex  3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by 
Guatemala is attached.  
 
 
NB: 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.  WT/TPR/G/348  
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  Table of Contents  
1  INTRODUCTION  ................................ ................................ ................................ ...........  3 
2  DEVELOPMENTS IN THE ECONOMIC AND FOREIGN TRADE ENVIRONMENT  ..................  3 
3  DOMESTIC TRADE POLICY DEVELOPMENTS  ................................ ................................ .. 6 
3.1  Trade facilitation  ................................ ................................ ................................ ..........  6 
3.2  Reforms to the Law on gov ernment procurement  ................................ .............................  7 
3.3  Tax reforms  ................................ ................................ ................................ .................  7 
3.4  Other relevant reforms and sector -strengthening measures introduced during the 
review period  ................................ ................................ ................................ .....................  8 
3.4.1   Financial system  ................................ ................................ ................................ ........  8 
3.4.2   Maritime transport and ports  ................................ ................................ .......................  8 
3.4.3   Telecommunications  ................................ ................................ ................................ ... 8 
3.4.4   Energy  ................................ ................................ ................................ .....................  9 
3.4.5   Intellectual property  ................................ ................................ ................................ ... 9 
3.4.6   Tourism  ................................ ................................ ................................ ..................  10 
4  FOREIGN TRADE POLICY DEVELOPMENTS  ................................ ................................ .. 10 
4.1.2   Integrated foreign trade policy  ................................ ................................ ..................  11 
4.1.3   Trade agreements in force or under negotiation  ................................ ...........................  11 
4.1.3.1   Trade agreements in force  ................................ ................................ .....................  11 
4.1.3.2   Trade agreements currently being negotiated  ................................ ...........................  12 
4.1.4   WTO ................................ ................................ ................................ ......................  12 
4.1.5   Central American Custo ms Union  ................................ ................................ ...............  13 
4.1.6   Trade promotion  ................................ ................................ ................................ ...... 13 
5  PROMOTING COMPETITIVENESS AND ATTRACTING INVESTMENT  .............................  13 
5.1  Promoting competitiveness  ................................ ................................ ..........................  13 
5.2  Measures to improve competitiveness and the business climate  ................................ ....... 14 
5.3  Attracting investment ................................ ................................ ................................ .. 15 
 
 WT/TPR/G/348  
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  1  INTRODUCTION  
1.1.  During the review period, Guatemala 's trade policy has continued to encourage trade 
liberalization through the conclusion of international trade agreements and the adoption of various 
trade facilitation measures.  
1.2.  The actions taken by Guatemala as part of the trade liberalization process seek to achieve the 
following objectives : (a) stimulat e economic and social development by consolidating economic 
liberalization ; (b) advance  in the construction of an open economy ; (c) create a stable legal 
framework for the promotion and development of investment ; (d) introduce mechanisms to 
prevent the app lication of unilateral and discretionary measures that affect trade flows ; and 
(e) foster cooperation between countries, inter alia  through the implementation of specific projects 
in priority development  areas. 
1.3.  There are four sections to this report : the first deals with Guatemala 's economic 
environment ; the second with developments in domestic trade policy ; the third with developments 
in foreign trade policy ; and the fourth with the promotion of competitiveness and attracting 
investment.  
2  DEVELOPMENTS IN TH E ECONOMIC AND FOREIGN TRADE ENVIRONMENT  
2.1.  Macroeconomic indicators in Guatemala have improved  markedly  since the last trade policy 
review . After achieving a growth rate of 3.3 % in 2008, the national economy slowed down 
somewhat in 2009 owing to the low pric e of certain export products, the rise in oil prices and the 
global crisis more generally . However, even with an unfavourable world picture the Guatemalan 
economy recorded 0.5 % growth that year  and, thanks to a combination of favourable external 
conditions , monetary and fiscal discipline, and a positive reaction from economic operators, 
showed steady growth between 2010 and  2015.  
2.2.   Annual GDP  growth  in real terms rose fr om 0.5 % in 2009 to 4.1 % in 2015, and  significant ly, 
for the sixth consecutive year  it exceeded annual population growth ( 2.5%). For the first quarter 
of 2016 , economic activity in terms of  estimate d real GDP increased  by 2.8 %. This trend  was 
driven by the positive performance of privat e consumer spending and buoyant  gross fixed capital 
formati on. 
2.3.   According to the Central Bank 's revised estimates , the economy is expected to grow by 
between 3.1 % and 3.9 % in 2016 in spite of the slowdown in world economic growth.  
2.4.  Over the past few years the economy has shifted  towards the services sector . In real  terms, 
between 2009 and 2015 the value of services grew at an average annual rate of 3.2 %, with the 
result that the sector 's share in GDP has continued to be around 15 %, making it one of the best 
performing sectors during that period.  
2.5.  Meanwhile, a gricultu re, cattle -farming, hunting, forestry and fisheries recorde d average 
annual growth of 3.5 %, so that this sector 's share of GDP remained steady at  13.6% in 2009 
and 13.5% in 2015 . Manufacturing grew slightly over th is period , with an average rate of 2.7 % 
annually, fluctuating from -0.91% in 2009 to 3.5 % in 2015 , with  rises in the intervening years.  
2.6.  As regards investment, gross fixed capital information fell by  13.1% in 2009,  and then  rose 
by 7.1 % and 3.6 % in 2011 and 2012 respectively . That upward trend cont inued until 2015 when it 
stood at 5.5 %. Average growth was 0.9 % 
2.7.  From 2009 to 2015, the annual rate of inflation fluctuated between -0.28% in 2009 and  6.2% 
in 2011 . In 2015 it was 3.07 %. During the period under review infla tion averaged  3.6%. The fall in 
inflation from 2012 reflected in particular the lower  international prices of oil and raw materials.  
2.8.   The Central Bank 's key macroeconomic policy  objective is to help create and maintain an 
environment  that is  conducive to the orderly development of the nati onal economy, which means 
favouring monetary, exchange and credit conditions that promote general price stability.  WT/TPR/G/348  
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  2.9.  Accordingly, monetary policy has been implemented in line with  a system of explicit inflation 
targets , based on the selection of the inflatio n target as the policy 's nominal anchor and backed up 
by a flexible nominal exchange rate regime, using indirect monetary control instruments 
(monetary stabilization operations , giving priority to  market decisions), as well as greater 
transparency in Centr al Bank activities.  
2.10.   Over the past few years, the growth in economic activity has essentially relied on the 
maintenance of macroeconomic  stability and the implementation of a prudent monetary policy 
backed by a policy of fiscal discipline, helping to create  an environment of confidence for economic 
operators.  
2.11.   Guatemala has adopted a flexible exchange -rate system consistent with a monetary model 
involving explicit inflation targets . Intervention by the Bank of Guatemala in the exchange rate 
market is based on  rules that are explicit, transparent and comprehensible to the markets, thus 
putting an end to the discretionary nature of such interventions and minimizing the volatility and 
uncertainty surrounding exchange rate developments.  
2.12.   As regards foreign trade, o ver the past seven years total exports accounted on average 
for 19.3% of GDP, of which a significant share was represented  by Guatemala 's main export 
products including articles of clothing, sugar, bananas,  and coffee , which together made up 5.6 % 
of export  earnings in 2015 . The share of total imports in GDP in 2015 stood at  32%, headed by 
consumer goods , raw materials and intermediate products , and capital goods , which together 
accounted for  23.1% of the total.  
2.13.   The total value of exports between 2009 and 20 15 grew at an annual average rate of 7.2 %. 
Agricultural exports registered an average annual increase of 5.2 %; m anufactured 
products,  6.9%; and minerals, 17.4 %, the latter stimulated by exports of precious metals, sales of 
which performed well chiefly betw een 2010 and 2012, and exports of lead, iron and steel in the 
last three years.  
2.14.   In December  2015, the value of exports reached a total of US$10,677.2  million, 
i.e. US$126.3  million ( -1.2%) less than the value reached dur ing the same period in 2014 
and 6.5% higher than the value for 2013 . The decisive  factor in  the 2015 results was the 
performance of sugar, banana, coffee, cardamom, and oil exports  which, taken together, fell 
by 6.8%. Exports to the Central American Common Market grew by 1.1 % and non -traditi onal 
products increased by 0.8 %. 
2.15.   The destination for 29.2 % of these exports in 2015 was the Central American Common 
Market, which consolidated its position as one of the main engines of growth in Guatemala 's 
foreign trade . Sales to other countries in the r egion grew fro m US$3,081.5  million in 2014 
to US$3,115.6  million in 2015, an increase of US$34.1  million (1.1 %). With the exception of  
propane gas, electricity, and edible fats and oils, the other main export categories recorded 
significant growth . The mos t important export categories were vehicles and transport equipment  
(30.6%); paints, varnishes and dyes (25.8%); textile materials (woven and other fabrics) 
(17.7%); pharmaceutical products (17.6%); other base metal manufactures (13.6%); kerosene 
(12.6%); preparations of meat, fish, crustaceans and molluscs (10.8%); gasoline (10.5%); and 
manufactures of paper and card (9.1%). 
2.16.   Exports of non -traditional products reached US$8,078.2  million  in 2015 , an increase 
of 0.8% over the previous year . This category of goods comprised mainly articles of clothing and 
textiles, which accounted for 12 %, and non -traditional products at 16.4 %. The products where 
growth was greatest were iron and steel (up 56%); various products of the chemical industry 
(up 23.9%); pharmaceuti cal products (17.6%); machinery and mechanical equipment (12.2%); 
cereal-based preparations (10.1%), dried or frozen fresh fruit (9.9%); textile materials (woven 
and other fabrics) (8.2%); and paper and cardboard products  (6.6%). 
2.17.   Over the last seven years  there have been some changes in the composition of the country 's 
export structure . In 2009, exports of agricultural products accounted for 28 % of the total, while 
manufactured goods represented 61.3 % and minerals 10.7 %. In 2015, agricultural exports 
accoun ted for 24.1 % of the total, manufactured goods for 61.4 %, and minerals for the 
remaining  14.4%. WT/TPR/G/348  
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  2.18.   In 2015 the main export products (sugar, banana s, coffee, cardamom and oil) accounted 
for 24.3% of total exports, as against  25.8% in 2014 . During 2014 the "articles of clothing " 
category accounted for 11.8 % of the total whereas in 2015 it was 12.4 %. Sales to the Central 
American Common Market rose from 28.5 % in 2014 to 29.2 % in 2015 . In 2015 exports of 
non-traditional products accounted for 75.7 % of the total , compared to 74.2 % in 2014.  
2.19.   Between 2009 and 2015  imports  grew at an annual average rate of 7.7 %. Agricultural 
imports registered an average annual increase of 6.6 %, manufacture d products, 8.9 %, and 
minerals, 4.7 %. Minerals  were adversely affected by the glo bal oversupply crisis that hit the fuels 
and lubricants market in the second half of 2014 and continued through 2015.  
2.20.   Exports of services grew at an average annual rate of 4.9 %. Among the main sectors were 
tourism, transport, insurance, and other business services . In 2015, exports of serv ices 
reached  US$2,764.5  million while  imports totall ed US$3,074  million , resulting in a deficit on the 
services trade balance.  
2.21.   During 2015, the value of imports reached US$17,640.2  million, down by 3.5 % on the 
previous yea r. The main agricultural imports (4 % of the total) were maize  (corn)  and wheat, which 
together accounted for 54.6 %. Among  imports of manufactured goods (77.4 % of the total value), 
the most significant categories were : machinery and mechanical equipment (US $1,561.7  million) ; 
vehicles and transport equipment (US$1,460.6  million) ; plastic materials and articles thereof 
(US$1,055.1  million) ; various products of the chemical industry (US$736.7  million) ; 
pharmaceutical products (US$726.7  million) ; textiles and fa brics (US$673.3  million) ; and 
transmitters and receivers (US$589.3  million) . As regards mining products (18.6 % of the total 
value of imports) the main categories were fuels and lubricants (US$2,482.9  million) , iron and 
steel (US$461.6  million) , and alumini um (US$181.7  million).  
2.22.   The trade balance in 201 5 showed a deficit of US$6,963 million , a fall of US$515.3  million 
(-6.9%) on the previous year . The balance of trade in goods with the different partners, according 
to type of trade relations hip or economic i nfluence, was as follows : (a) countries with which 
Guatemala has concluded free trade agreements, a deficit of US$5,570.5  million ; (b) Central 
America, a surplus of US$1,114.3  million ; (c) countries with which Guatemala has partial scope 
agreements, a  surplus of US$119 million ; (d) countries with which free trade agreements are 
currently being negotiated or are under review by the Legislature, a deficit of US$51.5  million ; 
(e) countries of Asia (China ; Hong Kong, China ; Japan; Indonesia ; Malaysia ; Republic of Korea ; 
Singapore ; and Thailand), a deficit of US$2,527.3  million ; (f) CARICOM (except Belize), a surplus 
of US$52.6  million ; and (g) the rest of the world, a deficit of US$99.6  million . The balance of 
payments current account balance fell by 174.2 % from a surplus of US$272.8  million in 2009 to a 
deficit of US$202.5  million in 2015.  
2.23.   Economic liberalization and globalization have brought significant changes to Guatemala 's 
external sector, particularly in the structure of its foreign trade, and specifically  its exports.  
2.24.   Guatemala has a variety of export destinations . Data for 2015  show that  Guatemalan 
products were shipped to more than 148 countries . However, outward trade flows continue to 
focus on the United States (34.5 %) and Central America (29.2 %), foll owed by the euro zone 
(6.8%), Mexico (4 %) and others (25.5 %). 
2.25.    Regarding the fight against poverty, the Living Stan dard Measurement Survey 
(ENCOVI  2014) revealed  that poverty stood at 59 %, higher than  the 51 % observed in 2006 . The 
rise is probably  due esse ntially to high food prices, the rise in fuel prices during the early years of 
the review period, and the global financial crisis . In the aim of reversing the increase and reducing 
levels of poverty, the Guatemalan authorities are promoting a series of pro grammes to achieve 
inclusive, sustainable, innovative growth across the board.  
2.26.   In 2014 the National Urban and Rural Development Council (CONADUR) launched the 
National Development Plan  K'atun, Our Guatemala 2032 , which  aims to organize and coordinate 
the activities of the  public administration , through the formulation of development policies, plans 
and fiscal programmes . The strategy was drawn up following  wide-ranging public -private 
consultation  and is based on five priority areas : urban and rural Guatemal a; the welfare  of the 
people ; prosperity  for all men and women ; natural resources today and in the future ; and the WT/TPR/G/348  
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  State as guarantor of human rights and the driver of development . The plan has 80  targets , which 
are to be achieved within a period of 20  years. 
2.27.   Another important effort in this regard was the establishment in 2012 of the Ministry of 
Social Development, the body responsible for formulating, defining and delivering public policies to 
improve the welfare of vulnerable individuals and groups . The Ministry is the conduit for assistance 
programmes such as conditional cash transfers for education and health, food cards, educational 
bursaries and employment.  
2.28.   At the beginning of 2016 the Food Security and Nutrition S ecretariat at the Office 
of the President of the Republic (SESAN) launched the Chronic M alnutrition Prevention 
Strategy  2016-2020. The strategy is based on four programmes that seek in the first instance to 
address urgent needs, then gradually bring about changes in behaviour and consolidate tools to 
bolster the family economy . It is planned to  provide assistance to more than 135  municipalities 
in seven  departments . The SESAN report published in July 2016 stated that in the first half of the 
year over 300  Municipal Food and Nutrition Committee s had already started work and more 
than 199,000 families in rural areas had received food aid.  
2.29.   It is expected that coordinated implementation of these programmes will help to achieve 
sustainable poverty reduction by generating more and better opportunitie s for all Guatemalans.  
3  DOMESTIC TRADE POLICY DEVELOPMENTS  
3.1  Trade facilitation  
3.1.  In July 2014 Guatemala notified its  Category  A commitments u nder the WTO Ag reement on 
Trade Facilitation, and in late  March  2016 the Executive forwarded the text of the Agreement to 
Congress for approval . The Executive is currently conducting follow -up actions in the Legislature , 
within its legal remit, to raise awareness of the importance of securing prompt approval of this 
instrument.  
3.2.  During the review period the Guatemalan autho rities worked on important trade facilitation 
measures at national and regional levels . In Octo ber 2015 the Council of Ministers for Economic 
Integration (COMIECO) approved the Central American Strategy for Trade Facilitation and 
Competitiveness in conform ity with the provisions of the Declaration of Punta  Cana made in 2014 
by the Presidents of the member countries of the Central American Integration System (SICA) . 
The private sector was also involved in designing the strategy through the Consultative Counc il for 
Economic Integration, thus making it possible to address that sector's concerns and needs.  
3.3.  In order to make the most efficient use of the existing logistics infrastructure, the Central 
American trade facilitation strategy is based on the following p riority measures : bolstering of the 
system for advance declarations ; streamlining and coordination of immigration controls ; 
introduction of electronic plant and animal health certificates ; logging of transport movements 
using radio frequency devices (RFID) ; and use of camera systems at border crossings.  
3.4.  Implement ation of  this strategy will  make it  possible to introduce  both a regional mechanism 
to exchange information between border control institutions and an integrated system to identify, 
analyse and mana ge risk . The strategy will also strengthen coordination and mechanisms for 
cooperation between the Central American border control institutions and  will improve interaction 
between the public and private sectors  – a very important aspect where trade f acilitation 
is concerned.  
3.5.  In 2013 the new National Customs Law was published pursuant to Decree No. 14-2013. The 
new law introduced important reforms such as standardization of customs rules on administrative 
offences in the aim of streamlining their enforcemen t. Also included among its provisions were  
mechanisms to prevent the use of discretion in the interpretation of the law, and on the imposition 
of penalties and their legal basis.  
3.6.  The Tax Administration Supervisory Authority (SAT), the body responsible for the 
administration of the tax regime and the customs system , has worked hard to collate customs WT/TPR/G/348  
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  procedures and publish them on -line in accordance with the Central American Uniform Customs 
Code (CAUCA) and its Regulations . The procedures can be viewed on th e SAT website.  
3.7.  In 2014 the SAT launched the Paperless Customs project in order to reduce customs 
clearance times and maximize cooperation between the State bodies involved in the process . The 
project is currently being implemented . When complete, the time-frames for export procedures are 
expected to shorten . 
3.8.  The Streamlined Window for Imports and Transits (VAI)  was launched in 2014 . Legal 
procedures are currently under way to merge  it with the Single Window for Exports (VUPE) thus 
forming  a Single Window fo r Foreign Trade (VUCE).  
3.9.  Pursuant to Decision No. 17-2013, Guatemala incorporated regulations on authorized 
economic operators (AEOs) into its domestic law . In conformity with that Decision , manufacturers, 
exporters, carriers, logistics operators, customs a gents, customs warehouses, shippers, ports and 
importers may become AEOs.  
3.2  Reforms to the Law on government procurement  
3.10.   The reforms to the Law on government procurement  contained in Decree No. 9-2015 involve 
significant changes to increase control and trans parency in all State procurement processes . As 
part of the reforms, a new Directorate -General of Government Procurement was created to 
accommodate the Government Procurement and Contracting System (GUATECOMPRAS) and was 
designated the body with responsibil ity for government procurement  
3.11.   Other changes included measures to strengthen controls on  the composition of the 
approvals and tender committees ; controls on purchases and financial flows of trusts ; the 
assessment of bids under the reverse auction system ; and the introduction of a Single Register of 
Suppliers (RUP).  
3.12.   The actions taken in this field clearly illustrate the work done by the Guatemalan authorities 
to provide greater certainty, predictability and transparency in all Government procurement 
processe s. 
3.3  Tax reforms  
3.13.   In 2012 Guatemala instigated an important process of tax reform when it promulgated two 
legislative decrees to reduce the fiscal deficit and increase the efficiency of tax collection 
mechanisms.  
3.14.   Decree No. 4-2012 (Provisions to S trengthen th e Tax System and Combat Fraud  and 
Smuggling ) entered into force on 25  February 2012 and contains measures to strengthen and 
improve mechanisms to control and audit taxes . The Decree introduced important reforms to the 
Law on Value Added Tax (VAT) including  enhancement of the formal requirements and procedures 
to control audit s of tax credits and the introduction of a new "small taxpayer " scheme to remedy 
previous regulatory problems . In order to counteract evasion, the requirements and conditions 
involved i n electronic declarations were stepped up and tax simulation ( the issuance of fraudulent 
or false invoices) was classified as an offence under the Criminal Code.  
3.15.   The Tax Update  Law, Decree No. 10-2012, entered into force on 5  July 2012 and introduced 
gener al reforms to improve tax collection . It included a new Law on Income Tax (ISR) drawn up in 
a more orderly, structured way to make it easier to understand and easier to comply with . The 
new law expanded the tax base and personal scope, and incorporated int ernational standards, 
clauses on transfer pricing controls and the concepts of "permanent establishment " and "resident ". 
3.16.   The Emergen t Law on employment protection was approved by Congress pursuant to 
Decree No. 19-2016 and entered into force on 31  March  2016. It introduced important reforms to 
the Law on the promotion and development of exporting and maquila activities (Decree No. 29-89) 
and the Free Zones Law (Decree No. 65-89). WT/TPR/G/348  
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  3.17.   Originally both the Law on maquila activities and the Free Zones Law grant ed export 
subsidies to products such as clothing and textiles, processed foodstuffs and plastic products . 
The 2016 Emergen t Law on employment protection withdrew all tax privileges  in all sectors except 
for clothing and textiles, and services associated with i nformation and communications 
technologies, for which it provides for a limited number of specific subsidies.  
3.18.   Guatemala 's aim in introducing these reforms was to bring its subsidy programmes into line 
with its WTO commitments.  
3.4  Other relevant reforms and sector-strengthening measures introduced during the 
review period  
3.4.1   Financial system  
3.19.   The Organi c Law of the Bank of Guatemala was amended pursuant to Decree No. 26-2012. 
Pursuant to the reform the Central Bank has a more active role in providing financial assi stance to 
institutions with liquidity problems . Among other provisions, the reform broadens the contribution, 
the type of guarantees and the life of any loan that the Central Bank can offer institutions in that 
position without exposing the bank itself  to additional risks.  
3.20.   The regulatory framework for the insurance market was also amended significantly during 
the review period . Decree No. 25-2010, in force since January  2011, replaced the previous 
Insurance Law, strengthened the authorities ' supervisory rol e, brought the regulatory framework 
into line with international standards, modernized the regulations in force and increased their 
efficiency.  
3.4.2   Maritime transport and ports  
3.21.   The National Maritime Administration Commission (CONAMAR) was established in 
March  2015 pursuant to Government Decision No. 58-2015 to coordinate government maritime 
activities across institutions.  
3.22.   CONAMAR is composed of representatives from seven Ministries, including the Ministries of 
Defence, Agriculture, the Economy and Foreign Affai rs, and the National Council for Protected 
Areas . Its principal duties are to make national maritime policy recommendations ; coordinate 
measures with institutions associated with maritime administration ; cooperate in the review s of 
previously approved mari time policies ; and cooperate in recommend ations for  plans, programmes 
and strategies to promote national maritime development.  
3.23.   The Commission will remain in place for 25  years . Since 2015 the technical group has drawn 
up and embarked  on a detailed work programme to beef up the regulatory framework governing 
maritime matters and ports in Guatemala.  
3.4.3   Telecommunications  
3.24.   Significant reforms were made in the telecommunications field between 2009 and 2016 to 
strengthen the sector and improve its efficiency.  
3.25.   In 201 2 Decree -Law No. 34-2012 was promulgat ed, extending the period of radio spectrum 
use for an additional five years . As a result of the extension , spectrum  use is granted for a period 
of 20 years, which may be renewed.  
3.26.   The Law on mobile devices (Decree No. 8-2013) was approved with a view to reducing theft 
of mobile equipment by means of  a negative database . Decree  No. 12-2014 (Enhancement of Data 
Transmission Infrastructure) regulated the award of authorizations to install telecommunications 
infrastructure , and an infrastructure unit was created within the Telecommunications Supervisory 
Authority ( SIT) for  the purpose . 
3.27.   The sector was o riginally approved for privatization  in the 1990s, and these measures have 
enabled it to remain dynamic and  competitive . WT/TPR/G/348  
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  3.4.4   Energ y 
3.28.   In 2012, the Ministry of Energy and Mining (MEM) published the paper Energy Policy 
2013-2027 with a view to achieving sustainable energy development while ensuring social equity 
and environmental protection . 
3.29.   To that end, a strategy based on the following  priority areas was drawn up:  
 Security of electricity supply at competitive prices : this area aims to diversify the energy 
matrix and extend coverage nationally.  
 
 Security of fuel supply at competitive prices : the chief objectives outlined for this area 
included the introduction of alternative fuels into the marketing chain and the enhancement 
of inspections in the marketing chain for fuels and natural gas.  
 
 Exploration and exploitation of oil reserves with a view to national self -sufficiency : in this 
priority area the Government is  looking to increase opportunities for exploration and 
exploitation of the country 's reserves, and to modernize the technological platform for the 
production and transportation of oil and natural gas.  
 
 Efficient use of energy and energy  savings : the objectives in this area include the 
introduction of specific mechanisms to encourage efficient energy use and reduce the use of 
wood as a fuel in industry and homes.  
3.30.   One and a half years after launch ing the strategy, the MEM reported th at it had achieved a 
national coverage rate of 90 % and more stable power prices . At end -2015 MEM presented the 
results of the Pilot Plan to mix fuel ethanol into gasoline under Priority Area  2, which aimed to  
reduce dependence on fossil fuels and introduce  the use of alternative s. 
3.31.   As part of the process to update plans to expand the power sector, in 2012 MEM authorized 
a review of the Indicative Power Generation System Plan 2012-2026 and the Transmission System 
Expansion Plan 2012-2021.  
3.32.   The updates are very  important because they will help defi ne a cogent vision for the 
next 15 years  from their year of publication , based on various scenarios for expansion and a 
thorough analysis of variables such as the inclusion of hydroelectric and geothermal plant, energy  
efficiency measures and fuel prices.  
3.4.5   Intellectual property  
3.33.   With assistance from the World Intellectual Property Organization (WIPO), the Intellectual 
Property Regist ry launched the National Intellectual Property Strategy (ENPI) in mid -2015. The 
main objec tive is to promote the use of intellectual property as an instrument for economic and 
social development by encouraging creativity and innovation as aspects of productivity.  
3.34.   The Government of Guatemala is of the view that innovation, entrepreneurship and 
technology transfer are of major importance in generating sources of employment a nd creating 
new business models . Accordingly , in 2010, th rough the Intellectual Property  Registry , it signed a 
Cooperation Agreement with WIPO to establish a Network of Technol ogy and Innovation Support 
Centers (TISCs) . Four such centres are currently operational in Guatemala.  
3.35.   In order to adequately enforce intellectual property rights and prevent criminal offences that 
would undermine the system, Guatemala has bolstered the Int ellectual Property Offences Unit 
within the Public Prosecutor 's Office . Ongoing training projects have been running with national 
and international bodies to provide technical knowledge in this area . Knowledge -pooling drives 
have been held at institution l evel with the Jud iciary, the tax authorities (SAT) and the Intellectual 
Property  Registry . 
3.36.   In recent years the Guatemalan authorities have strengthened the regulatory framework 
governing the protection of intellectual property rights ( IPRs), chiefly throug h reform of the 
Industrial Property Law (LPI) Decree No. 3-2013, which entered into force in June 2013. The WT/TPR/G/348  
- 10 - 
  reform included provisions on a specific procedure concerning geographical indications (IG) and 
appellations of origin (DO) in Guatemala . It should be noted that Guatemalan legislation in this 
matter is modern and conforms to the provisions of multilateral intellectual property agreements 
such as the TRIP S Agreement, the Paris Convention, the Berne Convention and the Rome 
Convention.  
3.37.   In order to guara ntee the right to education and access to culture, in March  2016 pursuant 
to Decree No. 7-2016, Congress approved the ratification of the Marrakesh Treaty to Facilitate 
Access to Published Works for Persons who are Blind, Visually Impaired, or otherwise Pr int 
Disabled . Thus Guatemala became one of the 20  countries that helped to bring this Treaty into 
force on 30  Septem ber 2016 when it deposited its instrument of ratification of the Treaty 
with WIPO in June . Guatemala is currently in the process of implemen ting the Treaty . 
3.38.    Pursuant to Decree of the Congress of the Republic No. 20-2016 of 29  March  2016, the 
Government of Guatemala approved the accession to the Trademark Law Treaty and its 
Regulations . Ratification of that Treaty is pending . Once implemented,  the Treaty will provide 
strong support in promoting usage of intellectual property systems.  
3.4.6   Tourism  
3.39.   Tourism plays a very important role in the Guatemalan economy . According to Central Bank 
figures, in 2015 the inflow of foreign currency from tourism was U S$1,580  million, i.e. 14 % of all 
foreign currency received  in the country  during the year . Over the period 2009 -2015, the annual 
number of tourist arrivals rose by more than 35 %. 
3.40.   Guatemala is a multi -ethnic, multicultural and multilingual country . It is ho me to the largest 
number of Mayan archaeological  sites and retains  the architectural and artistic legacy of the 
colonial era . In view of its high biodiversity levels Guatemala was designated a megadiverse 
country in 2010 at the Tenth Conference of the Part ies to the Convention on Biological Diversity . 
These features make Guatemala a very attractive destination for a large number of tourism 
segments.  
3.41.   The Guatemalan Institute of Tourism (INGUAT) is a facil itating body with responsibility for 
governing , promot ing and encouraging the sustainable development of tourism at national and 
international level by coordinating actions across  the public and private sectors and civil society.  
3.42.   As part of that role  to coordinate the work of  tourism  stakeholders  and make Gua temala a 
world -class destination, INGUAT oversaw the drafting and launch of the Sustainable Tourism 
Master Plan 2015 -2025. It is an important planning tool comprising various sectoral development 
programmes that will be in place for ten years.  
3.43.   In Septem ber 2014, INGUAT and the Ministerio Público  signed a cooperation agreement to 
draw up an institutional coordination mechanism that would enhance the assistance and protection 
afforded to tourists.  
3.44.   In the most recent Travel & Tourism Competitiveness Index publ ished every two years by 
the World Economic Forum (WEF), Guatemala 's ranking was up 17 places in 2015 . When broken 
down into its component categories, the greatest progress was made in international openness, 
price competitiveness of the tourism industry a nd good value for money ; extent of staff training ; 
customer service ; the business climate ; tourism facilitation ; information and communications 
technologies ; the number of protected areas and known species ; and the number of intangible 
cultural heritage ex pressions, among other  categorie s. 
4  FOREIGN TRADE POLICY DEVELOPMENTS  
4.1.  The Ministry of the Economy (MINECO) is the body responsible for negotiating trade 
agreements and the administration of trade liberalization . It also has responsibility for 
representing G uatemala at the WTO and other international forums  on trade matters.  
4.2.  The Vice -Ministry for Integration and Foreign Trade is part of MINECO and has responsibility 
for promoting economic relations, developing external trade, and driving progress in regional WT/TPR/G/348  
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  economic integration . It consists of the Directorate s for the Administration of Foreign Trade 
(DACE), For eign Trade Policy and Economic Analysis, and the Permanent Mission of Guatemala to 
the WTO.  
4.3.  Guatemala 's priorities are the WTO multilateral negotiation s and Central American regional 
integration . In keeping with this regional integration objective, Guatemala has sought as far as 
possible to form a bloc with the countries of the region.  
4.4.  During the review period, Guatemala continued its policy of open trad e and compliance with 
its international commitments.  
4.5.  Where  tariff levels  are concerned  it should be recalled that since 1997 Guatemala, as a part 
of the Central American Economic Integration Sub -System, has had a common tariff policy with 
Central America u nder which the vast majority of applied tariffs are below 15 %. The average 
applied tariff is 5.6 %. The degree of tariff harmonization with Central America exceeds 93 %. The 
average tariff bound in the WTO is 41.3 %. 
4.6.  VAT applies to all commercial transactions  for domestic consumption and imports of goods . A 
VAT rate of 12 % is applied to all transactions in those categories.  
4.1.2   Integrated foreign trade policy  
4.7.  Guatemala has had an integrated policy on foreign trade since 1986 . It aims to promote 
competitiveness and  foreign trade as means of contributing to the country 's economic and social 
development.  
4.8.  This strategy was overhaul ed in 1997 and two fundamental pillars  were established , namely 
the development of competitiveness (with emph asis on increased productivity) , and trade 
liberalization.  
4.9.  In 2012 it was updated a second time and became the Integrated Policy on Foreign Trade, 
Competitiveness and Investment . It retained the principles set out in the 1997 document and the 
premise that foreign trade is a key element in economic development because it stimulates 
production, generates employment and increases people 's income . However, the challenges and 
objectives set by the country were updated and now became : to attract productive investment ; to 
expand  and diversify t rade; to increase the involvement of small and medium -sized enterprises 
(SMEs) in foreign trade ; to derive maximum benefit from the trade and investment agreements  
already negotiated ; to promote the country 's exports ; and to adapt the country to new 
intern ational market trends.  
4.10.   The strategy was developed by  the National Export Coordination Commission (CONACOEX) 
and approved by the National Export Promotion Council (CONAPEX), which is also  responsible for 
implement ing it . The formulation process included a b road consultation mechanism involving 
representatives of the public and private sectors.  
4.11.   The National Competitiveness Agenda 2012 -2021 was approved in 2012 by CONAPEX and is 
also one of the instruments governing trade policy . The Agenda recognizes that com petitiveness is 
a key factor that cuts across  all public measures and policies, and that it is extremely important for 
improving the business climate, attracting domestic and foreign investment and, therefore, for 
generating better opportunities for formal  employment for Guatemalans.  
4.12.    The National Development Plan K 'atun, described in paragraph  2.26 above , sets out the 
government 's development policies for the period 2016 -2032. It also adds to the framework that 
underpins Guatemala 's trade policy.  
4.1.3   Trade agr eements in force or under negotiation  
4.1.3.1   Trade agreements in force  
4.13.   The Directorate for the Administration of Foreign Trade (DACE) (within MINECO) is 
responsible for administering Guatemala 's international trade agreements and deriving the WT/TPR/G/348  
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  greatest possible be nefit from them . Its functions are determined by the country 's foreign policy, 
the aim being to take full advantage of the opportunities offered by globalization in accordance 
with the guidelines laid down by the Government for the period 2016 -2020.  
4.14.   Betwee n 2009 and 2016, Guatemala concluded the negotiation of the following trade 
agreements, which have now entered into force : Free Trade Agreement between Central America 
and Panama (2009) ; Agreement establishing an Association between the European Union and its 
member States, on the one hand, and Central America on the other (Part  4 on trade entered into 
force on 1  Decem ber 2013) ; Free Trade Agreement between Chile and Central America (2010) ; 
and Free Trade Agreement between the United Mexican States and the Republics of Costa  Rica, 
El Salvador, Guatemala and Honduras (2013).  
4.15.   During the review period, Partial Scope Agreements with Belize (2010) and Ecuador (2013) 
entered into force.  
4.16.   Currently the Free Trade Agreement with the member States of the European Free  Trade 
Association (E FTA) and the Partial Scope Agreement with Trinidad and Tobago are undergoing the 
approvals process through the relevant domestic channels . Guatemala has concluded the domestic 
legal formalities required for the Free Trade Agreement wit h Peru to enter into force.  
4.17.   Guatemala also benefits from the Generalized System of Preferences (GSP) schemes 
operated by other countries such as Australia, Canada, Japan, New  Zealand, Norway, Switzerl and, 
and the Russian  Federation, u nder which  Guatemala n exports  enjoy  tariff prefe rences . 
4.1.3.2   Trade a greements currently being negotiated  
4.18.   The aims of the Department for Foreign Trade Policy at MINECO are to conduct negotiations 
of international, multilateral, and bilateral trade agreements and treaties ; monitor the  Central 
American integration process ; negotiate free trade and investment agreements ; and promote 
Guatemalan exports.  
4.19.   Guatemala is currently negotiating the following instruments:  
 Free Trade Agreement between Central America and the Republic of Korea;  
 
 Free Trade Agreement  with Canada – bilateral negotiations have resumed ; and 
 
 Expansion of the Free Trade Agreement with Colombia within the framework of the Free 
Trade Agreement between the Northern Triangle of Central  America and the Republic of 
Colombia.  
4.1.4   WTO 
4.20.   Guatemala has been a Member of the WTO since July 1995 and was a GATT Contracting 
Party from 1991. Since then Guatemala has placed its full confidence  in the multilateral trading 
system . This can be seen in its active participation in negotiations and at the various WTO bodies, 
including the Dispute Settlement Body.  
4.21.   Guatemala is part of the Small , Vulnerable Economies group  (SVEs) , the Cairns Group, the 
Tropical Products Group, the Group of 20 (G -20), the Group of 33 (G -33), among others, and 
covers all the multilateral negotiating groups of the Organization.  
4.22.   Between 2009 and 2016 Guatemala was involved in three disputes as a complainant : 
China  – Grants, Loans and Other Incentives ; Dominican Republic – Safeguard Measures on 
Imports of Polypropylene Bags a nd Tubular Fabric ; and Peru – Additional Duty on Imports of 
Certain Agricultural Products . Guatemala has also been involved in 24  other cases as a third party.  
4.23.   Guatemala has made efforts to fulfil all its obligations, including those concerned with 
transpa rency, which is the reason why in the review period Guatemala continued to update its 
notifications.  WT/TPR/G/348  
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  4.1.5   Central American Customs Union  
4.24.   The commitment to form a Central American Customs Union dates from the signature of the 
General Treaty on Central American E conomic Integration in 1960, which includes a commitment 
by the Central American States to establish a common market.  
4.25.   The greatest progress to wards  achiev ing the customs union has been made in the 
last 15 years . Periodic negotiating rounds between the Cent ral American countries ha ve led to 
substantial progress in  areas including  customs facilitation through the simplification or elimination 
of certain customs and other requirements ; sanitary registration ; and harmonization of taxes . 
Similarly,  measures were  issued to strengthen  specific regulations establishing  an accelerated land 
customs transit regime between Central America and Panama.  
4.26.   On 10  April 2015, Guatemala and Honduras signed the Enabling Protocol for the Process of 
Deep Integration leading to the Free Movement of Goods and Natural Persons between the 
Republics of Guatemala and Honduras . The Protocol has been in force since 13  June 2016 and the 
unified domestic controls on sanitary measures, migration and customs are expected to be 
operational  by De cember 2016. 
4.27.   In 2016 Guatemala and El Salvador began working on a trade facilitation process between 
their two countries in the aim of streamlining trade between them.  
4.1.6   Trade promotion  
4.28.   Under Article 14 of MINECON 's Internal Regulations, its main functions i nclude the 
promotion of Guatemalan products . Accordingly, since 2006 it has implemented a trade promotion 
strategy that includes training, and mechanisms such as outward selling trade missions, support 
for participation in international trade fairs, etc.  
4.29.   The aim of the Trade Offices of Guatemala (PACIT) is to promote Guatemala 's exports 
abroad ; promote the country as a destination for tourism ; support efforts to attract foreign 
investment ; and implement and monitor the country 's trade policy . PACIT is an in terinstitutional 
body that has input from the Ministry of the Economy ; the Ministry of Foreign Affairs ; the 
Guatemalan Institute of Tourism  (INGUAT) ; the Chamber of Industry ; the Chamber of Trade ; the 
Guatemalan Exporters Association (AGEXPORT) ; the Nation al Competitiveness Programme 
(PRONACOM) ; and Invest in Guatemala, the investment promotion agency . It has nine trade 
offices in the United  States, Mexico, the Dominican  Republic, Colombia, Spain and the 
Netherlands.  
4.30.   Between 2013 and 2015 PACIT secured the participation of more than 980 foreign 
purchasers, conference delegates, exhibitors and visitors at trade fairs held in Guatemala . PACIT 
also coordinated more than 650  work schedules abroad for Guatemalan exporters and dealt with 
over 750  requests about pr ocedures for exporting and gaining access to the markets where it has 
offices.  
5  PROMOTING COMPETITIVENESS AND ATTRACTING INVESTMENT  
5.1  Promoting competitiveness  
5.1.  The National Competitiveness Programme (PRONACOM) was established in 2004 and is part 
of the Minist ry of the Economy . PRONACOM is a participatory national programme that facilitates 
interagency work and alliances that involve the public and private sectors as well as civil society . 
Its chief objective is to contribute to the development of  competitive  human and business capital, 
the decentralized development of the country and  an improvement in the Guatemalan  people 's 
standard of living by generating a larger number of formal jobs.  
5.2.  In 2012, PRONACOM launched the National Competitiveness Agenda (ANC) 2012 -2021, 
updating the ANC of 2005 . The Agenda identifies areas where there are gaps in competitiveness 
and in competitive development, such as human capital, the business climate, State 
modernization, strategic investment and legal certainty.  WT/TPR/G/348  
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  5.3.  The ANC 2012 -2021 was drawn up on the basis of a wide -ranging public -private dialogue and 
is divided into the following strategic priority areas that have been identified as key to measures 
that will generate inclusive growth . These areas are : a healthy, educated, skille d, inclusive society ; 
stronger, modern institutions ; social and environmental sustainability ; decentralization and local 
development ; a stronger production and technology infrastructure ; stronger industry.  
5.4.  The steps to take include the following : (a) bench marking and comparison with the aim of 
measuring progress in implementing the ANC, making it possible to design studies and identify 
those areas that need more attention ; (b) the elimination of restrictions on economic 
development, a key factor for reducin g the time -frames and real costs of transactions, and for 
boosting the basic ingredients of competitiveness ; and (c) the promotion of conditions that create 
value in the country in order to increase productivity and make the country more attractive to 
investment  in the long term . The strategy sets out a topic -based list of key measures that it 
recommends should be taken between 2012 and 2021 in order to achieve the objectives set.  
5.5.  Additionally, in 2015 the Ministry of the Economy and the Guatemalan Chamber of Industry 
presented a Proposal for an I ndustrial Policy for Guatemala B ased on Competitiveness and 
Innovation 2016 -2044. It aims to expand employment opportunities and improve Guatemalan 
workers ' incomes through the introduction of a new production struc ture and an exponential 
increase in national value added.  
5.6.  The strategies outlined in the proposal include attracting light manufacturing businesses to 
the urban areas of the country ; promoting stronger value chains for manufactures ; and the 
generation of e ffective technology transfer through  supply linkages.  
5.7.  The National Agency for Partnerships  for Economic Infrastructure Development (ANADIE) was 
established in 2010 pursuant to the Law on partnerships  for economic infrastructure development 
(Decree No. 16-2010). It is a decentralized agency that helps public bodies to design and 
commission infrastructure projects as public -private partnership s. ANADIE is currently behind nine 
projects in areas including the highways infrastructure, ports and airports, and pu blic buildings.  
5.2  Measures to improve competitiveness and the business climate  
5.8.  During the review period, Guatemala implemented a series of systemic reforms to improve 
the country 's competitiveness and the business climate based on the ANC 2012 -2021. Accordin gly 
new programmes were launched to make it easier to obtain information and perform 
administrative procedures . Given the crosscutting  nature of all these measures, PRONACOM 
worked with a large number of public sector institutions to coordinate their imple mentation . 
5.9.  In March  2013, Guatemala launched the online Business Creation System at 
https://minegocio.gt  in order to simplify the registration process and provide a single platform 
containing all the information needed for that purpose . The initiative was led by PRONACOM and 
support ed by  and coordinat ed with the Business  Regist ry; the Tax Administration Supervisory 
Authority (SAT) ; the Guatemalan Social Security Institute (IGSS) ; and the Ministry of Labour . 
The system me ans that : (a) companies can register with these four institutions at the same time, 
and (b) the registration process is now paperless thanks to the use of electronic signatures.  
5.10.   Similarly, also in 2013, the System http:// asisehace.gt  was launched – an online database 
designed to make  administrative procedures in Guatemala  completely transparent . The 
information provided on the platform includes  a full guide to the administrative procedures 
concerning companies, taxes, per mits, licences, registrations, real estate and the operation of 
businesses and companies . Both projects received technical assistance from UNCTAD and financial 
support from the Government of Luxembourg.  
5.11.   Other important reforms made during the review period  with a view to improving 
competitiveness were as follows : update to the exhaustive list held by the Ministry of the 
Environment and Natural Resources (sets out the processes for certain buildings) ; reduction in the 
time-frame for receiving construction pe rmits; reduction in the cost of obtaining construction 
permits ; reduction in the time -frame for receipt of construction permits ; reduction in the 
time-frame for receipt of certificates from the Property Register and in the property registration 
process ; reduction in the rate of income tax; reduction both in the time allowed for payment of WT/TPR/G/348  
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  other labour obligations (through the IGSS electronic payroll) and in the time allowed for import 
processing (as a result of the paperless customs programme).  
5.12.   These measur es all contributed to a significant improvement in Guatemala 's ranking in the 
World Bank 's Doing Business  report . In the 2014 edition, Guatemala rose from 93rd to 79th place 
and was named the Latin American economy that had made the greatest number of refo rms to 
make it easier to do business.  
5.3  Attracting investment  
5.13.   According to the Constitution, the fundamental obligations of the State include protecting 
capital formation, savings and investment , and creating favourable conditions for the promotion of 
foreig n capital investment . The Law on foreign investment (Decree No. 9-98) regulates this type of 
investment in Guatemala and prohibits any discriminatory acts against foreign investors or their 
investments . Foreign investors may engage in  any lawful economic a ctivity in the country.  
5.14.   As part of its policy of protection of foreign investment, Guatemala has signed 19  reciprocal 
investment promotion and protection agreements providing for substantial guarantees and legal 
certainty for investors of both parties so that they can make or continue to make investments 
under a predictable and enforceable framework . In so doing it aims to incentivize investors by 
guaranteeing that minimum applicable provisions are in place, such as Most -Favoured -Nation 
Treatment and Nation al Treatment . Direct and indirect investment generate s hundred s of medium - 
and long -term jobs and therefore a predictable legal framework is important.  
5.15.   Invest in Guatemala is the public agency  responsible for providing direct support to foreign 
investors i nterested in investing in the country . It provides customized advice and assistance to 
potential investors by coordinating visits to the country, links to contacts and key references, 
support to initiate operations, and practical assistance while operation s are being established in 
the country and afterwards.  
5.16.   The combination of a robust legal framework, macroeconomic stability and significant 
improvements in the business  climate as described above has  contributed to the increase of 
over 50% in foreign direc t investment (FDI) during the review period . Figures from the Central 
Bank show that in 2009 total FDI was US$600  million an d that in 2015 it was more 
than US$1,208  million . The expectation is that the follow up to the National Competitiveness 
Agenda, as u pdated in 2012, and the coordination of work  across the public institutions  will help 
this upward trend in FDI to continue.  
__________