RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/210 
23 December 2008  
 
(08-6232) 
Trade Policy Review Body Original:  Spanish 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
GUATEMALA 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Guatemala is attached. 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Guatemala. Guatemala WT/TPR/G/210 
 Page 3 
 
 
 CONTENTS 
 
  Page 
I. INTRODUCTION  5 
II. ECONOMIC AND TRADE POLICY ENVIRONMENT 5  
(1) CHANGES IN THE ECONOMIC ENVIRONMENT  5  
(2) OPENING UP OF THE ECONOMY  9  
(i) Central American Regulations on th e Valuation of Goods for Customs 
Purposes, Resolution 115-2004 9  
(ii) Consumer and User Protection Law, Decree No. 6-2003 10  
(iii) Government Procurement and Purchasing Information System (GUATECOMPRAS), Resolution No. 100 10
 
(iv) Law on the Recognition of Electronic Communications and Signatures, Decree No. 47-2008 10
 
(v) Law on Access to Pu blic Information, Decree No. 57-2008 11  
(3) MARKET ACCESS  11  
(i) International Trade Negotiations 12  
(ii) Administration of Trade Agreements 12  
(iii) Promotion of Trade 13  
(4) PROMOTION OF COMPETITIVENESS  14  
(i) Export Situation 14  
(ii) Elements Helping to Stimulate Exports 14  
(iii) Export Regimes 15  
(iv) Foreign Trade Institutions 16  
(v) Institutional Consolidation 16  
III. TRADE POLICY DEVELOPMENT 16  
(1) PROGRESS IN THE AREA OF FOREIGN TRADE  16  
(i) Tariffs 16  
(ii) Customs Procedures 17  
(iii) Technical Standards 17  
(iv) Services and Investment 17  
(v) Intellectual Property 17  
(2) TRADE AGREEMENTS  18  
(i) Central American Customs Union 18  
(ii) Free Trade Agreements in force 18  
(iii) Partial Scope Agreements in force 19  
(iv) Generalized System of Preferences Plus 19  
(v) Generalized System of Preferences 19  
(vi) Investment Promotion Agreements 19  
(vii) Trade Agreements currently being brought into force 20  
(viii) Trade Agreements currently being negotiated 20  
 
  
 Guatemala WT/TPR/G/210 
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 I. INTRODUCTION 
1. Since the last review, Guatemala's trade policy has continued to encourage the opening up of 
trade through the conclusion of international trade agreements. 
2. The Government of Guatemala has set itself a number of objectives as part of the trade 
liberalization process, in particular:  (a) to stimulate economic and social development by 
consolidating economic liberalization;  (b) to move  forward in the construction of an open economy;  
(c) to create a stable legal framework for the pr omotion and development of investment;  (d) to 
introduce mechanisms to prevent the application of unilateral and discretionary measures that affect 
trade flows;  (e) to foster cooperation between c ountries, partly through the implementation of specific 
projects in priority areas for development. 
3. This report is divided into two sections.  The first discusses Guatemala's trade and economic 
policy environment, while the second addresses trade policy, beginning with Guatemala's integration 
into the multilateral trading system and then goi ng on to discuss the negotiation and conclusion of 
trade agreements to date. 
II. ECONOMIC AND TRADE POLICY ENVIRONMENT 
(1) CHANGES IN THE ECONOMIC ENVIRONMENT  
4. Macroeconomic indicators in Guatemala have clearly improved since the last trade policy 
review.  After achieving a growth rate of 3.9 per cent in 2002, the national economy slowed down 
somewhat in 2003 owing to the low price of certain export products, the rise in oil prices and the uncertainty surrounding the electoral process.  Begi nning in 2004, however, thanks to a combination 
of favourable external conditions, monetary and fi scal discipline, and a positive reaction of economic 
operators, the economy began a steady process of r ecovery which lasted until 2007.  The average 
annual GDP growth rate in real terms went from 2.5 per cent in 2003 to 5.7 per cent in 2007, the 
highest in 18 years.  It is significant that fo r the fourth consecutive year, the GDP growth rate 
exceeded the annual population growth rate of 2.5 per cent.  According to the revised estimates of the 
Central Bank, the economy should grow by 4.3 in 2 008 in spite of the slowdown in world economic 
growth. 
5. Over the past few years the economy has tended to lean more and more towards the services 
sector.  In real terms, between 2002 and 2007 the value of services grew at an average annual rate of 
5.1 per cent, with the result that its share in GDP increased from 56.5 pe r cent to 59.6 per cent, 
making it the most dynamic sector of the economy dur ing that period.  Meanwhile, the agriculture, 
livestock, hunting, forestry and fisheries sector grew at an average annual rate of 2.7 per cent, with the 
result that its share of GDP fell from 14.1 pe r cent in 2002 to 13.3 per cent in 2007.  The 
manufacturing industry followed the same trend:  with  an average annual growth rate of 3.3 per cent, 
its share of GDP decreased from 19.2 per cent to 18.5 per cent. 
6. As regards investment, gross fixed capital info rmation, after recording a 9.3 per cent rise in 
2002, fell by 3.1 per cent in 2003 and 0.5 percent in 2004.  However, in 2005 it began to rise again, 
reaching 4.3 per cent that year and peaking in 2006 at  16.7 per cent before falling back to 8.9 per cent 
in 2007. 
7. From 2002 to 2007, the annual rate of inflation fluctuated between 9.23 per cent (2004) and 
5.79 per cent (2006).  In 2007, owing in particular to the surge in the international prices of oil, maize 
and wheat, inflation reached 8.75 per cent.  Nor has Guatemala been spared the inflationist trend that WT/TPR/G/210 Trade Policy Review 
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affected most countries in 2008:  year on year in flation, which stood at 8.39 per cent in January, 
reached a peak in July at 14.16 per cent before subsiding to 13.69 per cent in August and 12.75 per 
cent in September. 
8. In the macroeconomic policy area, the basic objective of the Central Bank is to contribute to 
the creation and maintenance of an environment c onducive to the orderly development of the national 
economy, which means favouring monetary, exchange  and credit conditions that promote general 
price stability.  Accordingly, monetary policy has been implemented with a view to developing a 
system of explicit inflation targets based on the select ion of the inflation target as the policy's nominal 
anchor and backed up by a flexible nominal exchan ge rate regime, using i ndirect monetary control 
instruments (monetary stabilization operations that  favour market decisions), as well as enhanced 
transparency in Central Bank activities. 
9. Over the past few years, the growth in economic activity has essentially relied on the 
maintenance of macro economic stability and the im plantation of a prudent monetary policy backed 
by a policy of fiscal discipline, helping to create an environment of confidence for economic operators. 
10. Guatemala adopted a flexible exchange rate system consistent with a monetary model 
involving explicit inflation targets, in which an y 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.  The nominal exchange rate has 
shown little variation since 2000 a lthough it has tended to appreciate more since 2004 than in 
previous years. 
11. As regards foreign trade, over the past si x years goods exports accounted on average for 
20.3 per cent of GDP, while the share of goods and services exports remained at approximately 
26.2 per cent.  Meanwhile, the goods imports/GDP ra tio averaged 38.8 per cent, while the goods and 
services imports/GDP ratio stood at 40.2 per cent. 
12. The total value of exports between 2002 and 2007 gr ew at an annual average rate of 10.7 per 
cent.  Agricultural exports registered an aver age annual increase of 13.2 per cent;  manufactured 
products, 8.3 per cent;  and minera ls, 26.7 per cent, the latter stimulated by the mining of precious 
metals, which began to acquire  more momentum as from 2006. 
13. In 2007, the value of exports grew at an increasi ng rate during the first five months of the 
year, and in May even exceeded by 29.1 per cent  the value for the same period in 2006.  In 
December 2007, the value of exports reached a total of US$6,925,700,000, i.e. US$912,900,000 
(15.2 per cent) more than the value reached dur ing the same period in 2006 and 55 per cent higher 
than the value for 2003.  What was decisive for the 2007 results was the good performance of sugar, 
banana, coffee, cardamom, and oil exports which, ta ken together, grew by 26.2. per cent;  exports to 
the Central American Common Market, which grew by 19.3 per cent;  and to a lesser extent, 
non-traditional products, which increased by 8.4 per cent. 
14. Accounting for 28.3 per cent of total exports in 2007, the Central American Common Market 
consolidated its position as one of the main engines of growth in Guatemala's foreign trade.  A little 
more than one-third of the growth in total expor ts was due to the excellent performance of sales to 
other countries in the region, which grew from US$1,664,100,000 in 2006 to US$1,961,100,000 in 
2007, an increase of US$316.9 million (19.3 per cent) over the previous year.  With the exception of 
records, matrices and tapes, and tyres and inner tub es of rubber, the main export categories recorded a Guatemala WT/TPR/G/210 
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 significant growth, particularly metal products (48. 5 per cent);  chemical products (23.5 per cent);  
articles of clothing (25.4 per cent);  food products (21.4 per cent);  fruit and preparations thereof 
(20 per cent);  construction materials (17 per cent);  textiles and yarns (15.6 per cent);  plastic articles 
(11.1 per cent);  and cosmetics (7.7 per cent). 
15. Turning to non-traditional prod ucts, in 2007 their value reach ed US$3,331,600,000, 8.4 per 
cent (US$257,300,000) higher than in 2006.  The ma in heading in this group of products, clothing 
articles (19.4 per cent of total exports and 40 pe r cent of non-traditional exports), was adversely 
affected by the liberalization of the world textil es market, which had a negative impact on the related 
foreign exchange earnings, particularly in the case of exports to the United States (97.4 per cent of the 
market) where demand was down by 8.8 per cent, representing a decrease of US$173.5 million.  On 
the other hand, with only a few exceptions, e xports of other non-traditional products performed 
dynamically, with glass products taking the lead (78.4 per cent growth) followed by metal products 
(72.2 per cent);  minerals (68.5 per cent);  fruit a nd preparations thereof (45.8 per cent);  wood and 
articles thereof (42.6 per cent);  food products (3 7.9 per cent);  natural rubber (32.2 per cent);  
vegetables (32.1 per cent);  and shrimp s, fish and lobster (21.9 per cent). 
16. Over the last six years, the country's export structure has undergone a number of 
integration-related changes.  In 2002, exports of agricultural products accounted for 21.9 per cent of 
the total, while manufactured goods represented 72.8 per cent, and minerals 5.2 per cent.  In 2007, 
agricultural exports accounted for 24.3 per cent of  the total, while manufactured goods represented 
65.4 per cent, and minerals the remaining 10.3 per cent. 
17. In a broader sense, 2007 saw further changes in th e structure of exports with respect to the 
same period in 2006.  In the case of the leading pr oducts (sugar, bananas, coffee, cardamom and oil), 
thanks to the surge in exports of the first four, th e five together reached 23.6 per cent of total exports, 
as compared to 21.6 per cent for the same period in  2006.  The clothing articles sector went from 
25.2 per cent of the total to 19.4 per cent, while sales to the Central American Common Market went 
from 27.3 per cent in 2006 to 28.3 per cent in 2007.  Meanwhile, non-traditional products (not 
counting clothing) gained more ground, reaching 28.7 per cent of total exports in 2007 as compared to 
25.9 per cent in 2006. 
18. The value of imports, for their part, grew at an  average annual rate of 12.1 per cent:  imports 
of agricultural products at 12.3 per cent and of manu factured products at 9.6 per cent, while mineral, 
imports, under the influence of the considerable incre ase in the price of fuels and lubricants, grew at a 
rate of 23.4 per cent. 
19. During 2007, the value of imports reached US$13,578,100,000, up by 14 per cent from the 
previous year.  The main agricultural imports (3.8 per cent of the total) were maize (US$150,100,000) 
and wheat (US$138,900,000), which together account ed for 56.6 per cent of that category.  Among 
the imports of manufactured goods (72.9 per cent of the total value), the most significant categories 
were:  vehicles and transport equipment (US$990 m illion);  machinery and mechanical equipment for 
electro-technical use (US$989.8 million);  textiles an d fabrics (US$914 million);  plastic materials and 
articles thereof (US$614.3 million);  various produc ts of the chemical industry (US$402.5 million);  
pharmaceutical products (US$332.1 mi llion);  and paper and cardboard  products (US$296 million).  
As regards mining products (23.3 per cent of the tota l value of imports) the main categories were fuels 
and lubricants (US$2,421,50 0,000);  iron and steel (US$478.5 million);  and aluminium 
(US$123.8 million). WT/TPR/G/210 Trade Policy Review 
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20. Services exports, for their part, have grown steadily over the past seven years, and have 
played a fundamental role in Guatemala's economi c development.  Among the main sectors involved 
were tourism, transport, insurance, and other bus iness services.  In 2007, services exports reached a 
peak for the past few years at US$2,258,600,000.   With services imports totalling US$921.6 million 
that year, the services trade balance showed a surplus. 
21. One of the main weaknesses affecting Guatemal a's foreign trade over the years has been the 
persistently high trade deficit.  Th is situation has resurfaced in the past seven years, during which the 
trade balance deficit grew by 90.2 per cent fro m US$3,496,700,000 in 2002 to US$6,652,400,000 in 
2007, when it accounted for 19.8 per cent of GDP. 
22. The trade balance in 2007 showed a defic it of US$6,652,400,000, US$758.7 million (12.9 per 
cent) higher than the previous year.  The balan ce of trade in goods with the different partners, 
according to trade relations with the country or economic influence, was as follows:  (a) countries 
with which Guatemala has concluded free trade agreements, a deficit of US$2,470,000,000;  
(b) Central America, a surplus of US$574.8 million;   (c) countries with which Guatemala has partial 
scope agreements, a surplus of US$46.5 million;  (d ) countries with which free trade agreements are 
currently being negotiated or are reviewed by th e Legislature, a deficit of US$1,327,800,000;  
(e) countries of Asia (China, South Korea, Hong Kong, Japan, Indonesia, Malaysia, Singapore and 
Thailand), a deficit of US$1,681,500,000;  ( f) CARICOM (except Belize), a deficit of 
US$56.7 million;  and (g) the rest of the world, a deficit of US$1,794,400,000. 
23. The balance of payments current account ba lance increased by 37.4 per cent from 
US$1,234.900,000 in 2002 to US$1,696,900,000 in 2007. 
24. As regards the performance of foreign trade dur ing the first six months of 2008, generally 
speaking, and in spite of the prevailing uncertainty  on international markets, exports, while slowing 
down considerably with respect to the exceptional growth recorded during the first half of 2007, 
nevertheless performed well, particularly in view  of the cooling off of the global economy.  In 
comparison to the first six months of 2007, the va lue of exports of the main products increased by 
9.6 per cent:  exports to Central America rose by  an impressive 22.6 per cent, while exports of 
non-traditional products rose by 9.2 per cent, together producing a figure of 12.9 per cent for the total 
value of exports. 
25. At the end of June, the value of exports  had increased by US$455.9 million, reaching 
US$3,996,300,000 as compared to US$3,540,400,000 in 2007.  Close to 80 per cent of the increase 
was due to the 22.6 per cent surge in sales to th e Central American Common Market, and the 9.2 per 
cent increase in sales of non-traditional products.  Meanwhile, the value of core product exports, 
which represented 26.5 per cent of the total, reach ed US$1,060,800,000, 9.6 per cent higher than in 
the first half of 2007.  Here, the revenue genera ted by coffee, oil and cardamom were decisive, since 
the price and volume of sugar decreased as well as the volume of bananas, cardamom and oil. 
26. The c.i.f. value of imports reached US$7,482, 000,000, i.e. US$1,082,600,000 or 16.9 per cent 
higher than the figure for the first half of 2007.  Impor ts grew at a faster rate  during the first half of 
2008 than the 12.7 per cent recorded for the first ha lf of 2007, owing largely to the higher oil bill. 
27. With US$3,996,000,000 worth of exports and US$7,482,100,000 of imports, Guatemala's 
trade balance halfway through 2008 showed a defic it of US$3,485,800,000, 26.9 per cent higher than 
a year earlier.  Among the different categories of tr ading partners, the countries with which Guatemala 
has concluded free trade agreements accounted for 33.5 per cent of the deficit;  the countries with 
which it has partial scope agreements accounted fo r 1.9 per cent;  the countries with which trade Guatemala WT/TPR/G/210 
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 agreements were awaiting approval by the Cong ress of the Republic or were currently being 
negotiated for 10.5 per cent;  and the rest of the world, for 35.3 per cent. 
28. Regarding the fight against poverty, the Living Standard Measurement Survey ( Encuesta de 
Condiciones de Vida – ENCOVI 2006  ) provided positive data showi ng that poverty had decreased 
from 56 to 51 per cent of the population over the past six years, i.e. at a faster rate than during 
previous periods.  The decline in poverty in rural ar eas was markedly faster than the national average, 
reaching 10 per cent for the period 2000-2006.  Howeve r, the rural poverty index remained very high 
(71.7 per cent), the worst affected being indigenous  population.  Unfortunately, it is highly likely that 
this year, with the high prices of food and oil derivatives, poverty will have worsened. 
29. One of the government's leading social invest ment schemes provides for short-, medium- and 
long-term projects.  The programmes currently be ing implemented target areas such as health, 
education, security, rural roads, agro-indus trial development, and rural development. 
30. The government has focussed its action on 41 municipalities most severely affected by 
extreme poverty and poverty.  According to official  estimates, this covers 98 municipalities to which 
rural development projects are to be extended.  The government has set itself improved poverty index 
targets and hopes to reduce these i ndices significantly over the next four years.  By 2011, the current 
poverty indices of 51 per cent for the total populati on with 15.2 per cent extreme poverty, should be 
reduced to 40.5 per cent and 10.5 per cent respec tively, bringing the Human Development Index 
down from 113 to 85. 
31. At the same time, the government launched th e National Integral Sustainable Development 
Plan which aims to coordinate and integrate govern ment policies to produce a State social action plan 
that is fully coherent and has a social impact.  Th is means promoting integral , coherent and consistent 
development, which goes hand in hand with the furt her mobilization and appli cation of social, human, 
material and knowledge resources, taking account of  the individual and collective aspirations of 
human beings within the framework of their cu lture, their ambitions and their possibilities.  
Essentially, the policies of a democratic country must seek to achieve the best possible quality of life 
and well-being for the population. 
32. Among the national and international challenges f acing Guatemala, special attention is being 
given to improving the quality of education and access to  lifelong vocational traini ng:  to job creation;  
to rescuing and preserving the environment and r especting biological and cultural diversity;  to 
developing a policy of leadership in international re lations so as to avoid, as far as possible, economic, 
social and territorial imbalances and greater concentration of wealth;  to improving hygiene and 
security, wages, and recreation and housing for worker s in urban and rural areas;  and to enhancing 
the welfare of the population with special emphasis on the most vulnerable groups. 
(2) OPENING UP OF THE ECONOMY  
(i) Central American Regulations on the Valu ation of Goods for Customs Purposes, 
Resolution 115-2004 
33. On 28 June 2004, the Council of Ministers fo r Central American Economic Integration 
(COMIECO) issued Resolution No. 115-2004 appr oving the Central American Regulations on the 
Valuation of Goods for Customs Purposes, which came into effect 30 days later.  These Regulations 
contain provisions referring to the Agreement on Im plementation of Article VII of the GATT 1994 in 
compliance with the commitment of the five States parties to the Economic Integration Sub-System as 
Members of the WTO. WT/TPR/G/210 Trade Policy Review 
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34. On 25 April 2008, COMIECO issued Resolution No. 225-2008 (COMIECO-XLIX) 
approving the Regulations to the Central Amer ican Uniform Customs Code (RECAUCA), which 
include the totality of the provisions contained in the Central American Regulations on the Valuation 
of Goods for Customs Purposes of 2004.  We note that RECAUCA entered into force for Guatemala, 
El Salvador, Honduras and Nicaragua on 25 August 2008. 
(ii) Consumer and User Protection Law, Decree No. 6-2003 
35. This law was issued on 18 February 2003 a nd entered into force on 26 March 2003 with a 
view to promoting, publicizing and protecting the rights of consumers and users and to establishing 
the offences, penalties and procedures that apply in this field.  The provisions of this law provide 
protection for consumers and user s and constitute a minimum standard of inalienable social and 
public rights and guarantees. 
36. Its Regulations, which entered into force on 18  December 2003, are set forth in Government 
Decision No. 777-2003.  They develop the provisions  of the Law with a view to regulating the 
administrative structure and functioning of the Depa rtment for Consumer Affairs (DIACO), which is 
the administrative unit responsible for enforcing the said Law. 
37. DIACO is an operationally and technically inde pendent department of the Ministry of the 
Economy responsible throughout the country for enfo rcing the Law and its Regulations, subject to 
such responsibilities as may fall to the courts of justice. 
38. The procedure for handling and settling complaints  filed by consumers and users in disputes 
with suppliers has been certified under Standard ICO 9001, since 12 December 2007. 
(iii) Government Procurement and Purchasing Information System (GUATECOMPRAS), 
Resolution No. 100 
39. The legislation governing the use of the Government Procurement and Purchasing 
Information System was drafted on the basis of the precepts set forth in the Constitution of the 
Republic of Guatemala as well as the Law on Govern ment Procurement, the Regulations thereto and 
other applicable legal instruments. 
40. The above Resolution aims to establish the dates,  rules, procedures and technical security and 
responsibility aspects governing the initiation,  development and use of GUATECOMPRAS. 
41. Users of GUATECOMPRAS would typically be buyers, suppliers, civil society and 
monitoring bodies, as a means of managing and following up ongoing government procurement procedures conducted by public institutions.  Any u ser may also consult the system as regards 
contracts that are classified as having been finalized. 
(iv) Law on the Recognition of Electronic Communications and Signatures, 
Decree No. 47-2008 
42. On 23 September 2008, after approximately fi ve years of discussion both in Congress and in 
the different government institutions, Decr ee of the Congress of the Republic of 
Guatemala No. 47-2008 introducing the Law on the Recognition of Electronic Communications and 
Signatures in Guatemala was published in the Diario de Centroamérica (Official Journal).  This Law 
is now in force, and provides for the legal recogn ition of electronic communications except as regards 
Guatemala's obligations under inte rnational agreements or treaties, and warnings which by their 
nature need to be printed.  It also paves the way for electronic signatures, addressing their legal, Guatemala WT/TPR/G/210 
 Page 11 
 
 
 administrative and commercial effects and providing for the creation of a government office 
responsible for the administration and control of all do mestic and foreign firms that wish to offer their 
services in issuing electronic signature certificates, thereby in turn preparing the ground for a new 
kind of commerce that goes hand in hand with globa lization, electronic commerce, and enhancing the 
country's participation in the dynamics and the be nefits of free economic and social development, 
modernization of economic processes without any artif icial barriers or impedi ments, and sustainable 
and equitable integration in the flow of world progress. 
(v) Law on Access to Public Information, Decree No. 57-2008 
43. The Law on access to public information is a lega l instrument that is considered to be of 
national interest, drawn up in strict conformity w ith the precepts of the Constitution of the Republic of 
Guatemala and of the various international instruments relating to the right of citizens to free access to public information, in particular the Universal  Declaration of Human Rights (Article 19), the 
American Convention on Human Rights (Article 13) and the International Pact on Civil and Political 
Rights (Article 19). 
44. This Law is based on the principles of equality, public disclosure of acts, promptness, 
exemption from payment and simplicity.  It cont ains a number of positive elements for the 
government of Guatemala:  (a) strengthening of the institutional structure;  (b) strengthening of the 
rule of law;  (c) strengthening of human rights;  (d) transparency of administrative acts;  (e) effective 
participation of the population in the monitoring an d control of public acts;  (f) guaranteed protection 
of personal information in the possession of those c oncerned and proper use of such information. 
45. This legal instrument is not only a social audit tool, it also contains a number of implicit 
positive elements that enable the population to be  aware of the government's actions and of its 
determination to ensure greater transparency. 
(3) M
ARKET ACCESS  
46. Guatemala has an open trade policy.  It respects the principles of national treatment and most-
favoured-treatment without discrimination.  Both principles apply in respect of market access for 
goods as well as for services and investment. 
47. Its technical standards and sanitary and phytosanitary measures are consistent with the 
principles laid down in the WTO Agreements.  All of the measures serve the legitimate objectives of 
protection of human, animal and plant health and life. 
48. On the subject of tariff levels, it should be recalled that since 1997, Guatemala, as a part of 
the Central American Economic Integration Sub-Sy stem, has had a common tariff policy with Central 
America under which a vast majority of applied ta riffs are below 15 per cent.  The average applied 
tariff is 7 per cent.  The degree of tariff harm onization with Central America exceeds 94 per cent. 
49. The average WTO bound tariff is 40 per cent. 
50. As regards internal taxes, Guatemala applies a value added tax (VAT) of 12 per cent to all 
products. WT/TPR/G/210 Trade Policy Review 
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(i) International Trade Negotiations 
51. Since 1986, Guatemala has had an integrated foreign trade policy aimed at promoting 
competitiveness and foreign trade as a means to cont ributing to the country's economic and social 
development. 
52. This policy was reviewed and updated in the mid-1990s, and now has two main focuses: 
(a) Development of competitiveness with emphasis on increased productivity; 
(b) opening up of trade with a view to promoting access to new markets and ensuring 
compliance with such trade instruments as th e free trade agreements, in particular by: 
1. Speeding up the negotiation of such agreements; 
2. ensuring the efficient and effective ad ministration of agreements already in 
force. 
53. Thus, 1996 marked the beginning of a new era dominated by the search for new markets for 
Guatemala's exportable supply through the negotia ted opening up of trade.  Since that time, 
Guatemala has completed negotiations and conclu ded free trade agreements with Mexico, the 
Dominican Republic, Chinese Taipei, and the United States (DR-CAFTA). 
54. Agreements have also been concluded with Colombia, Chile, Panama and Belize, and are 
currently in the process of ratification.  The fi rst of these cases involved joint negotiations with 
El Salvador and Honduras, while in the next two cases negotiations were conducted with the rest of 
Central America.  The agreement with th e United States was negotiated bilaterally. 
55. In order to establish its negotiating fronts, Guatem ala, in keeping with its integrated foreign 
trade policy, has a national negotiating agenda  which it periodically reviews and updates. 
56. This agenda is developed on the basis of trad e, strategic and political objectives, and involves 
reaching a consensus among the different production sectors and government departments. 
57. Guatemala's priority in these negotiations rema ins the WTO multilateral negotiations and the 
regional integration negotia tions with the rest of Central America, with which it is currently seeking 
to establish a customs union. 
58. In keeping with this regional integration objec tive, Guatemala has sought as far as possible, in 
its negotiations, to form a bloc with the countries of the region.  It is currently negotiating a free trade 
agreement with the European Union in association with  the rest of Central America.  Together with 
El Salvador, Honduras and Nicaragua, it is also in the process of completing negotiations with 
Canada, and with those same countries and Panama , it is initiating negotiations with CARICOM. 
(ii) Administration of Trade Agreements 
59. The Directorate for the Administration of Foreign Trade (DACE) is responsible for 
administering Guatemala's international trade agre ements and deriving the greatest possible benefit 
from them.  Its functions are determined by the co untry's foreign policy, the aim being to take full 
advantage of the opportunities offered by globalization in acco rdance with the Government's 
guidelines for the period 2008-2012. Guatemala WT/TPR/G/210 
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 60. The DACE was created under Article 15 of Gove rnment Decision No. 182-2000, the Internal 
Institutional Regulations of the Ministry of the Economy of 12 May 2000, published in the 
Diario de Centroamérica  (Official Journal) of 18 May 2000. 
61. Its main functions include the following: 
(a) Establish proceedings for the implementa tion of trade agreements and treaties to 
which Guatemala is a party;  (b)  to prom ote the harmonization of laws to make it 
easier to comply with the commitments made  and to exercise the rights deriving from 
the trade agreements in force;  (c) to gui de domestic producers with respect to the 
proper application of trade regulations;  (d) to coordinate inter-institutional and 
intersectoral consultations on the implementation of the trade agreements in force;  
(e) to proposing tariff modifications in defe nce of national interests or in compliance 
with agreements and treaties;  (f) to he lp update and disseminate information on the 
various trade agreements;  (g) to administer and provide advice on tariff quotas and other such mechanisms. 
62. It should be noted that the DACE is the only Central American government entity responsible 
for administering trade agreements that is certified under standard ISO 9001:2000. 
(iii) Promotion of Trade 
63. According to Article 14 of its Internal Regul ations, the Ministry of the Economy's main 
functions include promoting the exportation of its  national products.  Accordingly, since 2006 it has 
been implementing a trade promotion strategy that includes training, recourse to outward selling trade 
missions, support for participation in international trade fairs, etc. 
64. With a view to providing support to the entir e organized business sector, the Ministry of the 
Economy issued Ministerial Decision No. 258-07 of 10 July 2007 creating the National Trade Promotion Committee comprising the public sector (Ministry of the Economy) and the private sector.  Its purpose is to devise, implement and evalua te the annual national trade promotion plan. 
65. The training programme includes general knowledge of the target market, business 
opportunities for Guatemalan companies, and the required customs procedures for access to each 
market.  This information is supplemented with pr esentations on the free trade agreements and partial 
scope agreements signed by Guatemala or currently  being negotiated.  The training programme's set 
objectives are being achieved thanks in part to the help of the DACE and the Directorate for 
Economic Analysis, but above all thanks to the pa rticipation of international experts thoroughly 
versed in these areas.  There were a total of 2,909 such participants during the period from 2006 to 
2008. 
66. Meanwhile, 196 firms participated in 31 out ward selling trade missions under the trade 
promotion programme from 2006 to October 2008, with US$100,496,0 75 worth of business expected.  
This has unquestionably contributed to the 14.6 per cent growth of exports between 2006 and 2007. 
67. With regard to participation in internationa l trade fairs, the Ministry of the Economy has 
provided support to 50 Guatemalan firms which exhib ited in 13 international fairs chiefly relating to 
the most developed production sectors.  This s upport was provided through the Guatemalan Exporters' 
Association (AGEXPORT), the Guatemalan Chambers of Commerce and Industry, and the 
ornamental plants and manufacturing clusters. WT/TPR/G/210 Trade Policy Review 
Page 14 
 
 
(4) PROMOTION OF COMPETITIVENESS  
(i) Export Situation 
68. Economic openness and globaliza tion have brought significant changes to Guatemala's 
external sector, particularly in the structure of  its foreign trade, and specifically its exports. 
69. As a result of this process, at the end of 2007 the total value of exports reached 
US$6,925,000,000, signifying a growth rate of 16.5 per cent.  Exports of the main products were up 
by 27 per cent, while exports of new products to Ce ntral America increased by 19.3 per cent, and to 
the rest of the world, by 8.4 per cent. 
70. By August 2008, growth in total exports had reached 15 per cent, with the implicit creation of 
one million jobs. 
71. Certain export sectors performed particularly dynamically during this period, for example 
manufactured products, particularly processed foods, which reached US$392 million, 20 per cent 
higher than in 2007, and chemical  products, which reached US$577 m illion or 41 per cent higher than 
in 2007.  Shrimp and fish exports grew by 47 per cen t, while agricultural products, as part of the agro-
industrial chain, continued their growth trend.  Th e value of vegetable exports as well as fruit exports 
grew at a rate of 19 per cent, while wood and articles thereof grew at 7 per cent.  Other export sectors 
grew more modestly, and only one sector, textiles a nd clothing, produced a slightly negative result 
with a 2.5 per cent decline. 
72. Guatemala has a variety of export destinations .  According to data for 2007, Guatemalan 
products could be found in more than 139 countries.   However, outward trade flows continued to 
focus on the United States (43 per cent) and Centra l America (24 per cent), followed by the European 
Union (6 per cent), Mexico (5 per cent) and others (22 per cent). 
73. At the same time, in view of the strong tr end towards services exports as a means of 
establishing a position in the world market, Guatem ala launched a services export strategy at the 
beginning of 2007. 
74. As a result, Guatemala is now exporting certain  services.  Leading the way are call centres 
and software.  There is also a group which provi des laboratory services for exportation, sustainable 
tourism services, very recently joined by the h ealth and wellness tourism sector covering traditional 
medicine (medicine, dentistry, nut rition, reproductive medicine, etc.), alternative medicine (therapists, 
physiotherapists, naturopaths, etc.), tourism (hotels,  tour operators, travel agencies), and spas (beauty 
treatment, facials, massages, etc.). 
(ii) Elements Helping to Stimulate Exports 
75. Faced with the increasingly rapid opening up of the economy, the export sectors have come 
up with the answer. 
76. For example, the manufacturing sector has opted for higher value added products and more 
competitive products, and has decided to take advantag e of natural markets such as Mexico.  Sales of 
furniture and wood products to the Central Amer ican market are rapidly expanding, designs are 
diversifying, and higher value added and better quality products are being sold to the rest of the world.  
Shrimp exports are stimulated by the new domestic  demand from the farmed shrimp industry which is 
benefiting from new technology and good farming practices.  Higher value added agricultural 
products are now exported, and they are gradua lly adjusting to international sanitary and Guatemala WT/TPR/G/210 
 Page 15 
 
 
 phytosanitary measures.  The crafts sector is wo rking to design new products, to provide training and 
technical assistance, and to improve productivity a nd enhance its presence in markets such as Europe.  
In short, all of the export sectors are aiming to increase their productivity as the key factor in boosting their international competitiveness.  Sectors wh ich have recorded the slowest growth have 
encountered highly specialized global competition, for example the textiles and clothing sector, which 
is developing new strategies to diversify market ni ches and ensure rapid response in today's markets, 
using the country's advantages such as its proximity to the United States market and its membership in 
the DR-CAFTA free trade agreement. 
77. Efforts are being made to consolidate services exports through certification programmes, the 
creation of specialized free zones, the teaching of  English as a key to its expansion, training 
programmes for middle and upper management, a nd an aggressive trade promotion programme. 
78. Each one of the sectors has a growth strategy for the next few years which requires public and 
private sector cooperation as well as the following public policy inputs: 
- Promotion of rural development through ag ricultural and non-agricultural activities, 
rural free zones and services; 
- flexibility in labour relations in keeping w ith the requirements of the world market; 
- strategy to lower electricity costs; 
- strategy to lower transport costs; 
- continued efforts to modernize and e nhance the transparency of customs; 
- programmes for exporting SMEs; 
- national quality and certification systems; 
- attraction of investment; 
- expansion of the programme of government trade representatives abroad; 
- trade promotion; 
- optimum use of free trade agreements and expansion of markets. 
 
79. Among the tools used by the export sector to stim ulate its activities consists of programmes to 
promote exports in Guatemala, which have prove d a valuable means of attracting domestic and 
foreign investment, boosting expor ts and generating employment. 
80. Guatemala has two programmes:  the Law on th e Promotion and Development of Export and 
Maquila Activities (Decree No. 29-89) and the Free Zones Law (Decree No. 65-89). 
(iii) Export Regimes 
81. If it is to continue to develop an integrated foreign trade policy, Guatemala needs to further 
decentralize its industry and generate sufficient economic growth, but creating a larger supply of 
qualified labour within the national conglomerate a nd developing a diversified industry that would 
enable it to offer highly competitiv e products, expanding its export d estination markets, relying on the 
coordination of the production sectors and the government, and ensuring technology transfer 
achievable by providing incentives on the basis of the promotion laws already existing in the country. 
82. A number of legal instruments have been enact ed to that end, for example Decree No. 29-89 
of the Congress of the Republic and its regulati ons and amendments, and the Law on Free Zones, 
Decree No. 65-89 and its regulations.  Thanks to these instruments, jobs have been created and 
industrial zones set up, and it has been possible to develop the so-called " verdes " ("green" projects) –
agro-industrial projects such as fruit, flour and fern, and seed plantations which have helped WT/TPR/G/210 Trade Policy Review 
Page 16 
 
 
Guatemala to penetrate the United States and Euro pean markets, providing domestic and foreign 
investors with an incentive to continue in that direc tion, thereby helping to a certain extent to restore 
the trade balance and the balance of payments. 
Law on the Promotion and Development of Export and Maquila Activities 
 
83. Under this law, clothing articles have reach ed some 33 per cent, followed in order of 
importance by agricultural production, with 14 per cent. 
Free Zones Law 
 84. Guatemala currently has 16 approved free zones in operation, with a total of 216 users, 163 of 
them commercial, 33 industrial and 20 services. 
85. These free zones have helped to revive the production sectors.  It should be borne in mind that 
the WTO provides for the termination of export s ubsidies on 31 December 2015, and the Government 
of Guatemala is working to comply with that provision. 
(iv) Foreign Trade Institutions 
86. The above activities and the government policy to  be promoted come under the responsibility 
of the National Council for the Promotion of Exports ( Consejo Nacional de Promoción de las 
Exportaciones  – CONAPEX), which implements Guatemala's integrated foreign trade policy based on 
five priority areas:  conditions for the promotion of  trade and investment;  promotion and marketing;  
international negotiations;  polic ies and strategies for the modernization of production;  and 
administration of the liberalization agreements. 
(v) Institutional Consolidation 
87. Efforts to modernize and strengthen the executive br anch have resulted in a series of coherent 
and comprehensive measures to adapt the laws, polic ies, institutions and ways of supplying services 
as well as its management systems. 
88. This process of modernization and institutiona l consolidation has involved the establishment 
of various institutions needed to enable the State to respond to constant change.  They include the 
Supervisory Authority for Tax Administration r esponsible for the collection, administration, 
supervision and control of domestic  taxes and import duties, and the Telecommunications Supervisory 
Authority, a highly technical body which administers and supervises the use of the radio spectrum and 
the telecommunications register. 
89. In addition, the Ministry of the Economy has been  restructured so as to  enable it to ensure 
Guatemala's effective participation in the multilate ral trading system, as well as in regional and 
bilateral agreements. 
III. TRADE POLICY DEVELOPMENT 
(1) P
ROGRESS IN THE AREA OF FOREIGN TRADE  
(i) Tariffs 
90. Over the past five years, the countries of Central America have redoubled their efforts to 
establish a common external tariff and were able to  harmonize 95.1 per cent of their tariff universe.  Guatemala WT/TPR/G/210 
 Page 17 
 
 
 The remaining 4.9 per cent is currently being harmon ized, and the tariff policy parameters established 
in 1997 remain in force. 
(ii) Customs Procedures 
91. In recent years, the countries of Central America have made substantial progress in the area of 
customs facilitation, sanitary registration, harmonization of taxes, etc., thanks to the work done in the 
framework of the Central American Customs Union process, which has involved 24 rounds of 
negotiations thus far and has produced agreements to facilitate international trade by scaling down or 
eliminating certain customs or other requirements that impede such trade, and establishing common customs regulations through the Central American  Uniform Customs Code and its Regulations, the 
computerization of customs declarations and the electronic interconnection of the region's customs 
administrations.  Specific regulations were issued to consolidate an accelerated land customs transit 
regime within Central America and Panama.  Am ong other measures, procedures and formalities at 
intra-regional border crossings were simplified by introducing a unified procedure and a single 
customs office, open 24 hours a day. 
(iii) Technical Standards 
92. The publication in the Official Journal of the Law on the National Quality System on 
8 August 2005 laid the foundations for the quality in frastructure that Guatemala needed to fulfil the 
commitments that the globalized world entails.  The integration of the system involving the 
Guatemalan Standards Commission (COGUANOR), the Guatemalan Accreditation Bureau (OGA) 
and the National Metrology Centre has made it possi ble to coordinate these technical activities that 
are so essential to the development of the country 's production, and this c oordination should help to 
improve the quality of products for the benefit of domestic consumers while fostering the country's 
dynamic integration in external markets. 
(iv) Services and Investment 
93. Guatemala participated actively in the negotia tion of the General Agreement on Trade in 
Services (GATS) concluded at the end of the Ur uguay Round with the basic objective of expanding 
trade in services, achieving progressive liberali zation through successive negotiating rounds, and 
ensuring the transparency of rules and regulations. 
94. Services are an essential part of international trade, and have therefore been included by 
Guatemala in all of the free trade agreements that  it has concluded, for example financial services, 
investment services, cross-border trade in services, telecommunications and professional services. 
95. In the case of investment, according to the Cons titution, the fundamental obligations of the 
State include protecting capital formation, savings and investment and crea ting favourable conditions 
for the promotion of foreign capital investment.  The Law on Foreign Investment (Decree No. 9-98) 
regulates this type of investment in Guatemala,  prohibiting any discriminatory acts against foreign 
investors or their investments.  Foreign investors may participate in the development of any lawful 
economic activity in the country. 
(v) Intellectual Property 
96. In the intellectual property area there have been  efforts this year to reinforce the Special 
Prosecutor's Office for Intellectual Property Offe nces, with the result that a greater number of 
offenders have been successfully pursued and convi cted.  Also worth mentioning is the successful WT/TPR/G/210 Trade Policy Review 
Page 18 
 
 
reinforcement of the National Intellectual Property Committee, which now incorporates State 
institutions that were not previously involved, ex tending and improving the coverage of intellectual 
property related matters, including customs inspection and control of trade in goods protected by intellectual property rights.  The administration of intellectual property matters  at the international 
level has called for considerable change, with the trai ning of the responsible staff this year enhancing 
the implementation and monitoring of Guatemala's international agreements currently in force. 
(2) T
RADE AGREEMENTS  
(i) Central American Customs Union 
97. The commitment to form a Central American Cu stoms Union dates back to the signature of 
the General Treaty on Central Amer ican Economic Integration in 1960 , Article I of which includes a 
commitment by the Contracting States "to establis h among themselves a common market".  However, 
in the decades that followed, the countries focussed their efforts on developing the free trade zone. 
98. Following various efforts among the countries of the region to push the customs union 
process forward, in March 2002 the Presidents of Ce ntral America approved an action plan to speed 
up the process, creating different working groups fo r its implementation.  J une 2004 saw the approval 
of the General Framework for the Negotiation of th e Customs Union in Central America, which has 
served as a basis for the current negotiations. 
99. In December 2007, the governments of Cent ral America signed the Framework Convention 
for the Establishment of the Central American Customs Union containing legal provisions to 
consolidate the underlying objectives and principles.  It is currently in the process of ratification and 
approval by the different legislative assemblies. 
(ii) Free Trade Agreements in force 
Free Trade Agreement between the United Mexi can States and the Republics of Guatemala, 
El Salvador and Honduras 
 
100. The Northern Triangle – Mexico Free Trade Agreement signed by Guatemala, Honduras and 
El Salvador with Mexico came into force on 15 Ma rch 2001, and was the first trade instrument of its 
kind signed by Guatemala.  It is known as th e NT-Mexico FTA, and has enabled Guatemala to 
increase its goods exports to Mexico through lower tariffs. 
Free Trade Agreement Between Central America and the Dominican Republic 
 101. This Agreement was signed on 16 April 199 8 by Guatemala, Honduras, El Salvador, 
Nicaragua and Costa Rica with the Dominican Republic , and came into force on 15 October 2001.  It 
establishes a free trade area of approximately 40 million people.  As a result of these negotiations, 
more than 95 per cent of Guatemalan products have  duty-free access, an essen tial factor in increasing 
exports to that market. 
Free Trade Agreement Between the Dominican Republic, Central America and the 
United States 
 
102. This Agreement has been in force since 1 July 2006.  Follo wing its entry into force, 
Guatemala took a number of measures to meet its commitments under the Agreement, such as Decree 
No. 11-2006 Introducing Legal Reforms for the Impl ementation of the Dominican Republic – Central 
America – United States Free Trade Agreement, known as the DR–CAFTA Im plementation Law.  Guatemala WT/TPR/G/210 
 Page 19 
 
 
 This Agreement provides legal certainty, above all w ith respect to trade and investment between the 
parties. 
Free Trade Agreement between the Republic of Guatemala and Chinese Taipei 
 103. This Agreement has been in force since 1 July  2006.  The Administrative Commission of the 
Free Trade Agreement between the Republic of Gu atemala and Chinese Taipei published Decision 
No. 1 and its annexes, containing regulat ions on origin and dispute settlement. 
(iii) Partial Scope Agreements in force 
Cuba 
 104. The Partial Scope Agreement between Guatem ala and Cuba was signed in Havana on 
29 January 1999 and came into force on 18 May 2001.  Its objective is to grant tariff preferences and 
eliminate non-tariff restrictions so as to facilita te, expand, diversify and promote trade between 
Guatemala and Cuba, as well as to adopt measures and pursue actions so as to stimulate the process of 
Latin American integration. 
Panama 
 
105. Guatemala has a free and preferential trade agre ement with Panama which has been in force 
since 13 March 1975 and covers a li mited number of negotia ted products;  in fact it was effectively 
expanded with the signature of the FTA between Guatemala and Panama. 
Venezuela and Colombia 
 
106. In 1984 and 1985, Guatemala signed unilateral pa rtial scope agreements with Colombia and 
Venezuela.  In the case of Colombia, the Agre ement was replaced with the Free Trade Agreement 
which is currently in the process of administrative approval.  In th e case of Venezuela, in 2007 it was 
decided to renegotiate the agreement with a view to  enhancing trade relations, but there has been no 
significant progress in that respect. 
(iv) Generalized System of Preferences Plus 
107. Since 1 January 2006, Guatemala has been a GSP Plus beneficiary.  This meant that 
Guatemala had to ratify and implement the intern ational agreements on hu man and labour rights, 
environmental protection and governance.  This Agre ement is very important to Guatemala's exports 
with the European Union.  The necessary measures are currently being taken to ensure its renewal. 
(v) Generalized System of Preferences 
108. Guatemala also benefits from GSPs with othe r countries such as:  Australia, Canada, Japan, 
New Zealand, Norway, Switzerland and Russia.  Under these schemes, Guatemala receives tariff preferences which benefit its exports. 
(vi) Investment Promotion Agreements 
109. In keeping with its policy of protection of fo reign investment, Guatemala signed reciprocal 
investment promotion and protection agreements pr oviding for substantial guarantees of due legal 
process on the reception of such investment as we ll as protection and stability for the investor.  WT/TPR/G/210 Trade Policy Review 
Page 20 
 
 
Agreements of this kind have been concluded w ith Sweden, the Federal Republic of Germany, Chile, 
Korea, Chinese Taipei, France and Arge ntina.  Also, in 2007 the Protoc ol to the Treaty on Investment 
and Trade in Services was approved in Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.  
This Treaty contains all of the necessary provision s for investment between the countries of Central 
America. 
(vii) Trade Agreements currently being brought into force 
110. Free trade agreements with Colombia, Panama a nd Chile are currently in the process of being 
approved by the competent authorities, as is  a Partial Scope Agreement with Belize. 
(viii) Trade Agreements currently being negotiated 
111. Guatemala is in the process of negotiating, toge ther with other countries, the following trade 
agreements:  Partnership Agreement with the Euro pean Union, Free Trade Agreement with Canada, 
and Free Trade Agreement with CARICOM.  
__________