WORLD TRADE  
ORGANIZATION  WT/TPR/M/210 
18 March 2009 
 (09-1362) 
Trade Policy Review Body 
4 and 6 February 2009  
 
 
 
TRADE POLICY REVIEW 
 
GUATEMALA 
 
Minutes of Meeting  
 
Chairperson:  H.E. Mr. Yonov Frederick Agah (Nigeria) 
 
 Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF GUATEMALA 4 
III. STATEMENT BY THE DISCUSSANT 6 
IV. STATEMENTS BY MEMBERS 7 V. REPLIES BY THE REPRESENTATIVE OF GUATEMALA AND ADDITIONAL 
COMMENTS  13 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 17 
 
Note:   Advance written questions by WTO Memb ers and the replies provided by Guatemala are 
reproduced in document WT/TPR/M/210/Ad d.1 and will be available online at 
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm. 
  WT/TPR/M/210 
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 I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The second Trade Policy Review of Guatemala was held on 4 and 6 February 2009.  The 
Chairperson, H.E. Mr. Yonov Frederick Agah (Nig eria), welcomed the delegation of Guatemala, 
headed by Mr. Ruben Morales, Vice-Minister of Integration and Foreign Trade, together with 
H.E. Ambassador Eduardo Sperisen-Yurt, Permanen t Representative of Guatemala to the WTO, as 
well as the discussant, H.E. Ambassador Mario Matus of Chile.   
2. The Chairperson recalled the purpose of the Tr ade Policy Review Mechanism as well as the 
main elements of the procedures for the meeting and timeframes for Guatemala to respond to written 
and oral questions.  The Report by Guatemala was contained in document WT/TPR/G/210 and that of 
the WTO Secretariat in WT/TPR/S/210.  For this  review, the following delegations had submitted 
written questions by the two-week deadline:  the United States, Costa Rica, Chile, Canada, Mexico, 
Colombia, Japan, Ecuador, the European Communi ties, and Korea.  El Salvador had submitted 
written questions after the two-week deadline;  add itional questions by Mexico had also been received 
after the deadline.   
3. The Chairperson had considered with keen inter est the reports prepared by Guatemala and the 
Secretariat for this meeting.  Both reports not ed that Guatemala had continued to place trade 
liberalization at the core of its development strate gy.  It had adopted liberalization measures through 
concurrent multilateral, regional, and unilateral in itiatives.  The report by Guatemala noted that the 
Government had set itself a number of objectives as part of further trade liberalization efforts, in particular to stimulate economic a nd social development.  In this regard, he asked Guatemala what 
additional measures it foresaw in order to advan ce reforms, and whether some of these would be 
aimed at strengthening market competition and the regulatory framework.  The Chairperson stated his 
belief that Members would also be interested to know whether and how the current world financial 
crisis was affecting Guatemala's reform efforts. WT/TPR/M/210 
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 II. OPENING STATEMENT BY THE RE PRESENTATIVE OF GUATEMALA 
4. The representative of Guatemala
 stressed the importance of pl acing the present exercise in the 
context of the financial turmoil in the global econo my.  Although this had given rise to protectionist 
sentiments and isolationist temptations, Guatemala ha d maintained its firm belief in the rules-based 
multilateral system, as consistently demonstrated  since its accession to GATT in 1991 and as a 
founding Member of the WTO. 
5. Guatemala had reduced poverty since 1986, when it had initiated a policy of export 
promotion.  This process had been aided by impr oved access to foreign markets, regional integration, 
and consolidation of the democratic system. 
6. Guatemala's macroeconomic stability was due to a very low fiscal deficit, record levels of 
international reserves, and the lowest external debt in Latin America.  Inflation had been kept below 
two digits.  Guatemala accounted for 35% of Central American GDP, and 43% of interregional trade.  
Despite the global economic crisis, the Guatemalan  economy continued to grow and diversify.   
7. While agriculture and ranching remain among the principal sectors , the commercial and 
manufacturing sectors were of growing importance.  These included the textile, apparel, and chemical 
industries.  Trade in services was increasingly releva nt for Guatemala, especially the tourism sector.  
Services offered great potential for the Guatemalan economy. 
8. The National Council for the Promotion of E xports (CONAPEX) directed an integrated 
foreign trade policy.  Composed of government minist ers and the heads of the principal private sector 
groups, this mixed forum provided stability in trade policy.  The fundamental pillars of Guatemala's 
integrated trade policy were the development of  competitiveness, commercial openness, enjoying the 
benefits of trade, and the administration of trade.   These ends had been achieved by strengthening the 
national system of quality; greater participation in negotiations; greater focus on compliance with 
obligations, including the strengthe ning of governmental and private institutions, as well as by the 
implementation of programmes to promote trade through commercial attaches, market intelligence, 
and new market opportunities. 
9. Guatemala's economic dynamism was shown through the steady increase in exports, the 
global economic crisis notwithstanding.  Guatemala had also diversified the range of goods that it 
exported.  In addition to raw materials, Guatemal a was now an exporter of non-traditional products.  
The number of products in the export base had rise n from 149 in 1986 to more than 4,000 in 2008.  
Imports had also increased due to the rising need s for exported-oriented inputs and the rise in 
domestic purchasing power, and demonstrated th e openness of the Guatemalan economy.  The 
principal export markets continued to be the Unite d States, Mexico, and Central America, but exports 
to Asia and the Caribbean had also risen.   
10. The multilateral forum had become a top priority  for Guatemala.  The country participated 
actively in various groups and coalitions, includi ng the G-33, the small economies group, G-20, the 
Cairns Group, and the group on tropical products.  The Doha Round was necessary for developing 
countries such as Guatemala to consolidate thei r opportunities.  The Central American Common 
Market was another priority area, with regional integration being the key to development.  The 
Central American countries sought to further harmon ize their common external tariff, together with 
their technical regulations and sanitary measures, as we ll as to negotiate with third parties as a solid 
bloc.  Guatemala had also developed a network of trade and investment agreements with the United 
States, Mexico, Cuba, the Dominican Republic, Panama, Colombia, and Chinese Taipei, among 
others.  Central America was also negotiating agreements with the European Communities and 
Canada.  Guatemala had negotiated a series of ag reements for the promotion and protection of  WT/TPR/M/210 
 Page 5 
 
 
 investment, of which 14 were in force and anot her dozen were in the process of negotiation and 
approval. 
11. The representative stressed that the Guatemala had an open and dynamic economy, its 
average applied tariff was 5.9% and its bound rate was 42.7%.  There were no barriers to investment, 
where both national and MFN treatment were guaranteed. 
12. Guatemala promoted social solidarity and coh esion, having developed policies to aid small 
and medium-sized enterprises in their insertion into  the global economy.  This had included assistance 
and training for cooperatives and rural associations  for export promotion, the establishment of a 
model for community forestry concessions, and the development of support programmes for fair 
trade.   
13. Guatemala also supported trade facilitation, fo r which its Ambassador to the WTO served as 
chairman of the negotiating group in the Doha Roun d.  An important aim of internal policy was to 
prevent excessive administrative procedures from slow ing down business.  This had led to a series of 
directives to facilitate trade activity and avoid th e waste of time and resources; for example, the 
registration of businesses had been simplified throu gh a unified procedure, customs operations had 
been modernized, and investment  incentives were being reformed.  Guatemala was convinced that 
much of its development was tied to the attraction of foreign capital and the opportunity to count upon 
services that satisfied the needs of its consumers.  This was seen in the rising number of telephones 
per person and in the doubling of elect rical generation over the past decade. 
14. The representative discussed the ch allenges that Guatemala faced in the development of rural 
areas and the reduction of poverty.  In that contex t he reiterated the commitment to work for the 
consolidation of an open and competitive economy, to improve access to international markets, and 
diversify exports. WT/TPR/M/210 
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 III. STATEMENT BY THE DISCUSSANT 
15. The discussant
 noted that Guatemala had experienced  macroeconomic stability and sustained 
growth during the entire period of the Review.  That record, and the expectation of continued if reduced growth in the current economic environmen t, was a significant accomplishment for a country 
that had been in civil war a little more than ten year s ago and had also suffered from natural disasters.   
16. Guatemala's trade policy gave equal importance to the multilateral, bilateral, and regional 
levels.  Guatemala had successfully expanded its netw ork of trade agreements, now covering most of 
its trade.  Participation in the Central American  Common Market (CACM) had benefited Guatemala, 
and CACM’s integration was admirably sophisticated. 
17. Guatemala permitted investment in most sectors of its economy, and had continued the 
process of deepening its liberalization in market a ccess.  Its average MFN tariff had declined during 
the period of the Review, and remained well belo w its average bound rate.  Tariffs were even lower 
for the partners who had trade agreements with Gu atemala.  The discussant observed that perhaps the 
next step would be to conso lidate these gains in the WTO. 
18. Guatemala did not require import licences, a nd had not imposed anti-dumping, countervailing 
duty, or safeguard actions during th e review period.  It had continued the process of customs reform, 
adopting means to improve the functioning of the system.   
19. Guatemala had created a National Committee on Intellectual Property, and several members 
had requested more information about the composition and functions of this institution.  There was a 
lack of legislation for mask works for inte grated circuits and geographic indications. 
20. Reviewing the questions raised by member s, the discussant identified as a common 
denominator the weakness of institutions.  These included the lack of transparent information, 
concerns over the functioning of some institutions, the inability of some organisms to perform their 
functions adequately, the absence of clarity in the requirements that must be met, and imprecise criteria for the adoption of certain decisions. 
21. The discussant expressed the hope that the expl anation for these shortcomings was that the 
institutions in question were still y oung, and needed time to correct their errors.  He applauded the 
will of the authorities to improve the institutions an d to reinforce a rules-based society.  Among the 
steps he recommended were:  strengthening of th e consumer-protection authority;  providing 
additional information on the govern ment procurement process;  correcting the delays in the process 
of approving technical regulations;  clarifying the procedures by which foreign SPS measures were 
recognized as equivalents;  enacting a competition law;  providing for a stronger, better trained 
telecommunications entity;  and putting in operation the Group on Biology of Modified Organisms.  WT/TPR/M/210 
 Page 7 
 
 
 IV. STATEMENTS BY MEMBERS 
22. Members commended Guatemala for its support of the multilateral trading system.  Many 
mentioned the steps Guatemala had taken towards trade facilitation, the reduction in its average 
tariffs, and its active participation in the DDA negotiations;  many especially commended 
Ambassador Sperisen-Yurt for his role as Chair of the Negotiating Group on Trade Facilitation.  
Numerous Members reviewed the recent trends in  their countries' trade with Guatemala, and 
congratulated Guatemala for its continued economic gr owth even in the face of the current financial 
crisis.  Several Members also sought additional in formation on such issues as Guatemala's plans for 
the elimination of export incentives by the end of 2015, the status of its reforms on intellectual property rights and government procurement,  and the regulation of the electrical and 
telecommunications sectors. 
23. The representative of the United States
 noted that both the Secretariat's and Guatemala's 
reports indicated that Guatemala was pursuing a stra tegy of trade liberalization at the multilateral, 
regional, and bilateral levels.  The U.S.-Guatema lan relationship had changed recently from one based 
on unilateral trade preferences to one based on reci procal free trade through the Dominican Republic-
Central America-United States Free Trade Agreement (DR-CAFTA), which had been signed in 
August, 2004 and had entered into force for Guatemala on 1 July 2006.  The United States commended Guatemala on its path to trade liberal ization unilaterally, regionally, and multilaterally.  
During the review period, Guatemala had submitted se veral notifications to the WTO, for example on 
domestic support for agriculture, customs valua tion, and technical barriers to trade.   
24. In addition to the removal of tariff and non-ta riff barriers to trade and investment, the  
DR-CAFTA included important disciplines relating to  customs administration and trade facilitation, 
technical barriers to trade, government procuremen t, investment, cross-border trade in services, 
financial services, telecommunications, electronic commerce, intellectual property rights, transparency, and labour and envi ronmental protection.  Guatemala had continued with the process of 
reform in customs administration, streamlini ng customs procedures, adopting the new Central 
American regulations on customs procedures and valu ation, and taking steps to improve functioning 
of its customs services, and ceasing to apply mini mum customs values.  Moreover, Guatemala had 
made several amendments to its intellectual propert y legislation, extending additional protection to 
copyrights and industrial property rights beyond the minimum standards provided in the TRIPS Agreement, ratifying four WIPO treaties, and reinforcing the Special Prosecutor's Office for 
Intellectual Property Offences and the National Inte llectual Property Committee.  The United States 
welcomed these efforts and would furthe r welcome more specific information. 
25. The United States encouraged Guatemala to continue to strengthen its technical and 
administrative capacity to apply sanitary and phytosa nitary measures correctly, and urged predictable, 
transparent, and non-discriminatory application of Guatemala’s new government procurement system.   
26. The United States reminded Guatemala of the n eed to take preparatory steps to fulfill its 
WTO and DR-CAFTA obligations with respect to its free-zones regime, and encouraged Guatemala 
to continue along the path toward free market po licies and a regulatory framework that eliminated 
distortions and encouraged competition, with a particular focus on the areas of electricity and telecommunications. 
27. The representative of Costa Rica
 noted that Costa Rica shared with Guatemala the view that 
the Doha Round should offer new commercial oppor tunities for all developing countries under the 
most favoured nation principle.  He highlighted, in particular, their joint work in the Tropical Products 
Group, as well as on the banana issue and in the Cairns Group, to seek fair and non-discriminatory treatment for their agricultural products.  WT/TPR/M/210 
Page 8  
 
 28. The representative of Chile
 noted that the FTA between Chile and Central America 
(Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua) had entered into effect in 
October 1999, liberalizing trade in goods and se rvices while also liberalizing investment and 
recognizing the different levels of  development among the parties.  Chile had also entered into 
bilateral protocols with each of the five Central American countries.  The protocol between Chile and 
Guatemala was currently in the Chilean Senate, having already been approved by the Chamber of 
Deputies. 
29. Guatemala had set ambitious goals for stimula ting economic and social  development and had 
achieved great advances at the level of norms and institutions.  Chile had pos ed questions regarding 
technical regulations, especially with respect to the National Commission on Technical Regulations 
(CRETEC). 
30. The representative of Canada  observed that, beyond the implementation of the Customs 
Valuation Agreement, Guatemala had also been succe ssful in introducing other significant reforms of 
its customs administration.  Canada was committed  to continuing its partnership with Guatemala 
under the Customs Capacity Building Project in the Americas and to assisting Guatemala in the 
implementation of international standards that ensured security of the trade supply chain and 
facilitation of legitimate trade.   
31. Canada encouraged stronger laws and regulations to further stabilize and bring greater 
transparency to Guatemala's financial sector.  The reinforcement of the legal and institutional 
framework of a country was even more important in the current global economic climate.  Canada 
also encouraged Guatemala to continue its work  towards phasing out export subsidy programmes in 
order to bring its domestic policies into line with  its international commitments.  Canada would 
continue to work with Guatemala on various project s aimed at contributing to the sustained economic 
development of the country;  it had recently announ ced its contribution to a rural development project 
in Guatemala.  Canada also looked forward to c ontinued collaboration with Guatemala as negotiations 
continued towards a free-trade agreement between Canada and Central America. 
32. The representative of Mexico  noted that while Guatemala had adopted important reforms, 
including the simplification of its customs proced ures, reductions in tariffs, and the adoption of 
intellectual property legislation, it also faced macr oeconomic challenges such as the need to reduce 
poverty through sustained growth, inflation, and th e need to reduce its current account deficit.  
Another challenge would arise from the reduction of  remittances from the United States.  Mexico 
considered it indispensable that Guatemala adopt a competition law to eliminate unfair practices such 
as monopolies, oligopolies, and cartels.  Rules should also be strengthened to improve the efficiency 
of the telecommunications, maritime, and financial sectors. 
33. Guatemalan institutions lacked capacity in the elaboration, application, and notification of 
SPS and TBT measures.  Mexico was especially concerned over Guatemalan measures that restricted 
imports of eggs and related produc ts due to concerns over avian influenza:  the disease had been 
eradicated in the same year that Guatemala had imposed the restrictions, and called upon the 
Guatemalan authorities to take the necessary steps to permit access for these products.  Mexico also 
urged Guatemala to submit a revised GATS offer in  the Doha Round that reflected the level of 
autonomous liberalization it had undertaken since the Uruguay Round.   
34. The representative of Colombia  addressed the issue of the incentives granted by Guatemala 
for certain exports, and observed that Guatemala had pledged to eliminate these programmes by the 
end of 2015.  The exports benefiting from the se incentives already enjo yed the advantages of 
preferential access to foreign markets, had a short distance to travel to those markets, and were 
produced at a low cost of labour, thus, the additional factor of export subsidies could result in prejudice to the other exporters that did not gran t such subsidies.  Moreover, the experience of  WT/TPR/M/210 
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 countries such as Colombia had been that the elim ination of export subsidies had not resulted in 
reduced exports.  Colombia also encouraged the Guatemalan authorities to continue to introduce 
reforms to facilitate trade, while noting that the efficacy of trade po licy should not be determined by 
whether the trade balance was positive or negative. 
35. The representative of Japan  stated his appreciation of the Secretariat's effort to post "main 
points" on the Members' site one week before the session, in accordance w ith the newly introduced 
procedure.  Japan reiterated its hope that Guatemal a would continue to promote trade liberalization 
and structural reform for sustainable development,  and to contribute to the further progress of the 
WTO and DDA in order to benefit from the multilateral trading system. 
36. The representative of Ecuador  emphasized that Guatemala and Ecuador shared several 
important characteristics, including their status as small economies and the composition of their exports.  They therefore held similar positions re garding the reduction of agricultural subsidies, 
membership in the Group of 20, as well as the necess ity of reaching a definitive and integral solution 
for the issues of discrimination against bananas and the reduction of barriers to agricultural exports. 
37. The representative of the European Communities
 noted the progress in trade liberalization 
since Guatemala's last Review.  This trade ope ning had resulted in an expansion of trade and 
investment and it had been flanked by the implementation of needed structural reforms.  Nonetheless, 
this economic progress had not yet been accompanied by an increase in social cohesion and a 
reduction in poverty levels.  The Guatemalan aut horities had launched several initiatives in order to 
improve social cohesion, but these had proved to be modest.  Unemployment was growing and the informal economy was also increasing.  The level of poverty remained very high, and with very 
severe inequalities amongst the population.  Guatemal a should continue efforts to further reduce 
poverty levels and improve the lives of all Guatemalans.  The EC would like to learn more about the 
way in which Guatemala tried to link its trade policy measures to poverty reduction. 
38. Exports from free-trade zones and maquila ha d recently registered a downward trend.  
Guatemala needed to apply transparent regulations  in those free-trade zones and pursue increased 
productivity in line with the principle of sustaina ble development through, for example, the EC's 
GSP+ preferences. 
39. Trade relations between Guatemala and the EC we re strong, positive, and growing:  the EC 
was Guatemala's third-largest trading partner and a major investor.  The EC had recently launched 
negotiations for an Association Agreement with Cent ral America, including an FTA.  There remained 
key challenges to be resolved, notably on market  access, services, and investment, and on the region-
to-region dimension of the agreement. 
40. The EC-Central America FTA negotiations were  being negotiated on a "region-to-region" 
basis to provide further impetus to the integrati on process in Central America.  Overall, Guatemala 
remained an attractive destination for EC invest ors, but improvement of the business climate and 
greater legal certainty for investors remained cruc ial in order to boost investment.  A more stable 
business climate, strengthened legal certainty, and a mo re efficient judicial system were needed for 
local and foreign investors.  The EC encouraged the authorities to undertake more efforts to improve 
the legal and regulatory climate for investment, and ma de special mention of the electrical sector and 
its recurring price-setting practices, and the insuran ce sector and its restrictions on the establishment 
of branches of foreign insurance companies. 
41. The EC believed that all countries benefitted from having an open, transparent, non-
discriminatory and efficient government procurement system.  There was significant discrimination in 
Guatemala regarding the participation of foreign nati onals in biddings, since they could only take part 
in the bidding process if they acted through a lega lly accredited representative in Guatemala.  The EC WT/TPR/M/210 
Page 10  
 
 urged the Guatemalan authorities to end the discriminatory requirement, to accelerate the 
implementation of the outstanding elements of Gu atecompras, and to consider the advantages of 
joining the WTO Plurilateral Agreem ent on Government Procurement. 
42. The representative of Korea
 stated that Korea had established and successfully implemented 
numerous technical assistance programmes for Gu atemala’s government officials, as well as 
programmes to upgrade Guatemala's economic and social infrastructure through various ODA 
projects.  In particular, Korea had provided th e necessary financial and technical assistance in IT-
related projects such as the establishment of the Information-Communication-Technology Training 
Center, the Web portal system for e-Government purposes, and funds to construct the "Guatemala 
Education IT Highway" project. 
43. He asked what Guatemala perceived to be the right balance between multilateralism and 
bilateralism when it came to trade liberalization, and what effo rts Guatemala had exerted to counter 
the change in trading environment for the textile  and apparel sector since 2005.  He requested a 
detailed explanation of the arrangements agreed on textiles and apparel in the DR-CAFTA, with 
particular emphasis on the rules of origin, and how Guatemala saw the DR-CAFTA benefiting its 
apparel sector. 
44. The representative of El Salvador  emphasized the importance of the establishment of the 
Guatemalan-Salvadoran Chamber of Commerce and Industry, which brought together business people 
from the two countries, as well as  the steps that Guatemala had ta ken to facilitate trade through the 
rationalization of customs procedures, tariff reduc tions, and the adoption of new laws on government 
procurement and the protection of intellectual propert y.  Guatemala and the other CACM partners had 
advanced regional integration through the coordi nation, harmonization, and convergence of their 
economic policies.  The objective was to achieve eco nomic and social development that was equitable 
and sustainable, and reflected in the wellbeing of  the people and the growth of all CACM member 
countries.  El Salvador and Guatemala had coope rated under the rubric of CACM in the areas of 
technical harmonization and codifi cation and in sanitary measures fo r medical and hygiene products, 
among others, allowing for greater flexibility in the documentation of transportation for products and 
persons.  The two countries had signed an agreement that advanced thei r integration, allowing them to 
make further, concrete steps towards the custom s union and to increase their trade and investment. 
45. El Salvador and Guatemala shared interests in  the multilateral trade negotiations with respect 
to such matters as the consolidation and intensif ication of special and differential treatment for 
developing countries, including the recognition of th e situation of small ec onomies and the promotion 
of solutions for the specific needs put forward by  these countries.  El Salvador and Guatemala had 
joined with other developing countries to promote the decision of the General Council for the continuation of the transition period under Article  27.2(b) of the Agreement on Subsidies and 
Countervailing Measures, allowing for the continua tion of certain incentive programmes through the 
end of 2015. 
46. The representative of Brazil
 noted that, in the context of a global crisis that could 
disproportionally affect Guatemala, the promotion of South-South trade could be a key instrument to minimize the effects of the slowdown in developed economies on Guatemala's efforts to create wealth 
and reduce poverty.  Whereas the deepening of economic interdependence between Guatemala and 
Brazil was to be pursued with increasing emphasis by their Governments, their cooperation in the 
WTO was already excellent.  Like most developing  countries, Guatemala had high stakes in the long-
delayed conclusion of the Doha Round.   Brazil was confident that Guatemala, as a leader of its region, 
would continue to work with countries committed to the conclusion of the DDA to put the multilateral 
trade negotiations back on track as soon as possible.  WT/TPR/M/210 
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 47. The representative of Honduras  noted that Guatemala formulated its trade policy in the 
context of its participation in CACM, and that the process of regional integration had been dynamic in 
recent years.  He reviewed some of the steps ta ken by CACM for integration both within the region 
and with trading partners.  He asked for additiona l information regarding the steps being taken to 
comply with the 2015 deadline for the elimination of certain export incentives.  Increasing 
competition was one of the most important challenges for Guatemala's economic policies, and 
Honduras hoped that a new competition law could be enacted soon.   
48. The representative of Panama  anticipated the entry into for ce of the FTA with Guatemala, 
which was still in the process of being approved by  the Assembly of Guatemala.  Panama commended 
Guatemala for its liberalization, strengthening the protection of intellectual property rights, and its 
reforms in telecommunications, as well as for its role in the Doha Round negotiations on tropical 
products, trade facilitation, small ec onomies, and the banana issue. 
49. The representative of Nigeria  noted that Guatemala had continued to put trade liberalization at 
the core of its development policy.  Remittan ces from the United States made an important 
contribution to the Guatemalan economy;  he asked wh at steps Guatemala intended to take in order to 
minimize the impact of the slowdown in the U.S. econom y.  With respect to the various rules of origin 
applied under agreements to which Guatemala was a party, he asked whether Guatemala experienced 
any complexities in the implementation of these agr eements.  Regarding copyright, he asked whether 
Guatemala had taken any additional measures to ensu re that the domestic industry was not damaged 
by illegal manufacture of works and phonograms.  
50. The representative of Barbados  recognized Guatemala's comprehensive regulatory and 
legislative measures for consumer and user protec tion, the recognition of electronic communications 
and signatures, government procurement, and access to public information, amo ng others, to facilitate 
greater levels of openness and transparency.  This, by extension, would promote a more favourable 
environment for trade, investment, and developmen t.  Guatemala nevertheless faced persistent 
economic and social challenges related to the relativ ely small size of its economy that were likely to 
increase in the current global turmoil.  Countries such as Guatemala and Barbados would therefore 
need special attention to reduce the impact of and facilitate recovery from crisis.  The representative 
expressed appreciation for the active participation of  the Guatemalan delegation within the Small and 
Vulnerable Economies Group and the overall Doha negotiations. 
51. The representative of Turkey  observed that that all of Guatemala's tariffs were ad valorem , 
and it had maintained tariff quotas for only five agri cultural products.  It was now further reforming 
the customs procedures, and building its technical capacity.  Turkey would welcome the alignment of 
the customs valuation procedures with the relevant WTO Agreement, and wished to learn more about 
why certain transportation and handling charges could also be used as additional elements for reasons 
of customs valuation.   
52. Turkey also requested clarification on the statement that the Mexico-Northern Triangle 
Agreement included a clause to the effect that it would prevail over the WTO agreements in case of 
incompatibility, whether the Association Agreement with the EC would pave the way for a free-trade 
agreement in the near future, and whether the Cent ral American Common Market had any intention of 
concluding such an agreement with the EC. 
53. The representative of the Dominican Republic  urged Guatemala to continue the process of 
liberalization of the various sectors of its economy, to maintain and improve fiscal discipline, and to 
introduce a new competition law. 
54. The representative of India  noted that India and Guatemala enjoy warm and friendly relations, 
and hoped to have a resident Mission operational in Guatemala City in the next couple of months.  WT/TPR/M/210 
Page 12  
 
 The opening of the Mission would facilitate further de velopment of close bilateral ties and in fulfilling 
India's objective of enhancing regi onal cooperation with the Central American countries.  India had 
joined hands with Guatemala in its  efforts towards advancing Inform ation Society.  An Information 
Technology project assisted by India and executed by TCS, an Indian company, had been handed over 
to Guatemala.  The venture would help Guatemala in human capacity building for developing 
Information Technology by providing IT training to people from different sectors.  An Indian 
company had also shown interest on a petroleum re finery project in Guatemala.  Cardamom and 
mangoes were two agricultural products common to bot h India and Guatemala.  Cardamom, originally 
from the south of India, had been introduced in  Guatemala in 1914.  Guatemala was the world's 
biggest producer and exporter of cardamom and its production set the prices in the global market.  
Although India had not posed any questions to Guatemala, he would like to mention that the non-
availability of long term visas for Indian businessme n even for execution of projects was a hindrance 
which negatively impacted on expanding economic  and commercial cooperation between the two 
countries.  India hoped that Guatemala woul d take steps to address this situation. 
55. The representative of the Separate Customs Te rritory of Taiwan, Penghu, Kinmen and Matsu
 
(Chinese Taipei) observed that as the largest count ry in Central America and a Member of the WTO 
since its establishment, Guatemala played an active role both within its own geographical region as well as in this forum.  Guatemala was doing well with its WTO obligations, while strengthening its 
multilateral relationship through active participation in regular activiti es and in the negotiations.  Its 
economic growth and stability was generally well set to continue, and should contribute ultimately to 
improving the trading environment both within its region and throughout the world.  As an  
export-oriented country, Guatemala would obviously be affected in the short run by reduced export 
demand and inward foreign investment.  It c ould overcome these challenges if it continued to 
implement its ongoing economic policies and pursued its  liberalization objectives in particular areas, 
such as trade in services and competition.  WT/TPR/M/210 
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 V. REPLIES BY THE REPRESENTATIVE OF GUATEMALA AND ADDITIONAL 
COMMENTS 
56. The representative of Guatemala  noted that written responses to written questions had been 
distributed on the first day and he would address only the questions that had been presented orally on the first day of the TPRB.  
1. Macroeconomic themes 
57. Responding to the comments made by the represen tatives of Japan, Nigeria, Turkey, Chinese 
Taipei, and Mexico regarding Guat emala's response to the global fi nancial crisis, as well as the 
observations of the European Communities and Japan regarding efforts to fight poverty and promote social cohesion, he noted that on 29 January th e President of Guatemala had presented the National 
Plan for Economic Emergence a nd Recuperation.  The plan wa s based on the strengths and 
comparative advantages of Guatemala, including a pr udent macroeconomic policy, a stable exchange 
rate, low internal and external debt, as well as smal l and medium-sized enterprises that created jobs 
and a financial sector that had maintain ed a stable national financial system. 
58. The principal objectives of the plan were to genera te confidence to maintain and, to the extent 
possible, increase investment and employment dur ing the crisis, as well as guarantee basic social 
protection for the poorest and most vulnerable sectors.  The main elements of the plan included:  the implementation of an anti-cyclical fiscal policy to  generate employment thr ough spending on physical 
and social infrastructure, including through the enact ment of a law to promote public-private alliances 
for these works;  providing more resources for c itizen safety, anti-contraband commissions, and to 
combat money-laundering;  prior itizing the housing, energy, and ru ral development sectors;  and 
advancing agricultural and rural development through a programme to promote agricultural 
diversification and exports. 
59. Guatemala hoped to overcome its dependence on certain markets.  Since 1986, Guatemala 
had diversified its exportable produc ts and international markets.  This diversification had been 
accompanied by concrete actions to open markets,  including a series of negotiations with Mexico, 
Belize, Panama, Colombia, the Dominican Repub lic, and Chinese Taipei, among others, as well as 
designing a promotion strategy that allowed Guatem ala to achieve better advantage of markets. 
60. Guatemala had implemented specific programm es coordinated by the Council of Social 
Cohesion, which were aimed at reducing the economic  gap between the most vulnerable sectors of the 
country and improving the conditions of their lives.   The progamme known as My Family Progresses 
aimed to ensure that children aged six to fifteen  years attend school, through economic incentives as 
well as by ensuring their basic nutrition.  The Solidarity Basket programme provided for monthly 
distribution of staple foods.  Another programme was planned for 2009 to make public transportation 
available free to the poorest citizens, and the Solid arity Dining Rooms programme provided breakfast 
and lunch for the poor.  The social protection netw ork also included the Programme of Attention to 
the Older Adult.  All of these programmes were made  possible thanks to a better distribution of state 
resources.  A fiscal reform had created the Solidar ity Tax, as well as changes to existing taxes. 
61. Institutional strengthening remained a priori ty for Guatemala.  Among the measures taken 
were the creation of the National Security Counc il and the strengthening of the National Civil Police 
and the Office of Civil Intelligence.  Guatemala had also improved transparency through the Free 
Access to Public Information Law, which helped to make processes more transparent, eradicate 
corruption, and combat impunity.  The Governi ng with the People programme created spaces for 
interaction and permanent dialogue between citizens, local authorities, and the central Government.  
The Judicial Career Law, approved in April 2008, was pa rt of an effort to strengthen the justice sector.  
Transparency mechanisms had been created fo r all state programmes, including government WT/TPR/M/210 
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 procurement.  The creation of a Transparency Commission and a Citizen Observatory for Public 
Expenditure were foreseen. 
62. The government procurement programme known as Guatecompras was being used 
increasingly, guaranteeing transparency in state purchases and acquisitions.  The system had been 
developed by the Government with the assistance of the World Bank more than six years ago.  The 
Government of Guatemala sought to improve and business climate and promote national and foreign 
investment.  The National Competitiveness Programme (PRONACOM) and the Invest in Guatemala programme coordinated joint private-public-sector activities that created a better climate for investment.  These actions had helped to improve the country-risk classification, to increase number of certified companies, to reduce in the administra tive procedures, and to increase foreign direct 
investment from US$296 million in 20 04 to US$837 million in 2008. 
63. Guatemala reiterated its commitment to devel oping an improved juridical and institutional 
system.  A draft bill was pending introduction in the Congress of the Republic.  Existing Guatemalan legislation already provided for regulation of these subjects in the telecommunications and electrical sectors.  The legislation on Central American econom ic integration contemplated the development of 
rules and regional institutions for co mpetition policy in the near future. 
2. Trade policies by measure 
64. The rules of origin of the DR-CAFTA agre ement provided for a cumulation mechanism by 
product group for apparel sectors.  This mechanism allowed the use of raw materials from Mexico for 
exports to the U.S. market under the DR-CAFTA pref erences.  In the agreement between El Salvador, 
Guatemala, Honduras, and Mexico, a similar cumula tion mechanism permitted the use of U.S. raw 
materials;  this was implemented by means of coop eration agreements with the customs authorities of 
Mexico and the United States.  The DR-CAFTA included other mechanisms of flexibility and 
promotion in the textile and apparel sector, such as a list of scarce raw materials that was periodically 
revised, and a series of rules of origin that perm itted simple transformation.  This permitted the 
expansion and consolida tion of international production chai ns.  Similar provisions were under 
negotiation for inclusion in the agreements with Canada and the European Communities.  Guatemala 
also sought to improve the design and fashion sectors through cooperation agreem ents such as the one 
negotiated in the FTA with Colombia, and by work ing with the sector to study ways to implement 
productivity-based salaries. 
65. Guatemala recognized the importance for the development of the country of protecting 
intellectual property.  The Government was strengt hening the mechanisms for protecting the rights of 
authors and industrial property.  This included reinforcing the Intellectual Property Prosecutor's 
Office in the Public Ministry, strengthening the cu stoms service's control of merchandise entering the 
country, and public-education campaigns had been u ndertaken for prosecutors and judges as well as 
the general public.  Penalties had been increased, and a National Committee on Intellectual Property 
had been created to follow the commi tments assumed with third countries. 
66. The Government was working continuously and consistently to strengthen the institutions 
dedicated to the administration of commercial openi ng.  For example, the Ministry of Economy had 
recently certified the Directorate of Administration of Foreign Trade (DACE) under the ISO 9001:2000 norms and was making efforts to achieve creater capacity for personnel in all of these 
areas.  Guatemala has also adopted a policy of specialization in specific areas.  DACE had a unit 
specialized in rules of origin, and the public-pri vate National Committee on Rules of Origin provided 
for more efficient application of the rules. 
67. Regarding customs valuation, Guatemala complie d with the Agreement on the Application of 
GATT Article VII.  This was reflected in national legislation and the Uniform Customs Code of  WT/TPR/M/210 
 Page 15 
 
 
 Central America and its regulations .  The 2008-11 Strategic Instituti onal Plan of the Superintendency 
of Tax Administration (SAT) foresaw further steps in  the modernization process.  The plan was based 
on the values of responsibility, transparency, produ ctivity, integrity, and professionalism, and had 
been developed through consensus among the stake holders.  It foresaw improvements in customs 
procedures and systems, and would facilitate trad e.  It foresaw the implementation of SAQB’E 
system, which integrated a single administrative chain for the principal customs processes.  It 
facilitated trade by reducing delays , simplifying procedures, providing access for users to interact and 
consult through the Internet, mechanisms to elim inate paperwork, and the use of indicators of 
effectiveness and efficiency. 
68. Guatemalan legislation permitted foreign insurers to operate as sociedades anónimas .  These 
incorporated firms could be composed of 100% foreign capital and be administered entirely by 
foreigners.  A draf Law of Insurance Activities, wh ich was in Congress, would allow foreign insurers 
to establish branches in Guatemala. 
69. The approval and entry into force of the trade agreements negotiated with Belize, Colombia, 
Panama, and Chile was a priority for Guatemala.  Th ese four agreements were expected to enter into 
force before the end of the first semester of 2009;   Guatemala's internal legal procedures were being 
undertaken. 
70. The discussant  noted that the Review of Guatemala had been positive, indicating that the 
country was on the correct path, with sound and positive economic indicators.  Guatemala was achieving a difficult balance between dealing with the needs of the moment and not losing sight of the 
future and the long term.  This balance, and po litical stability, were necessary but not sufficient 
conditions for progress and development.   
71. The creation of solid institutions was important, including those devoted to customs, 
government procurement, intellectual property, cons umer protection, technical regulations, and SPS 
measures.  Guatemala was advancing its commercial opening on all levels:  unilateral, bilateral, 
regional, and multilateral.  Its participation in th e Central American Common Market and its policy of 
regional trade agreements with ampl e coverage confirmed and consolid ated this trade liberalization. 
72. Some areas required additional work, including th e need for a competition law;  strengthening 
of the financial sector;  introduction of greater  competition in the telecommunications market;  
improving the capacity to apply SPS measures correctly;  the need to reduce the bound rate in order to 
give greater consistency and predictability to the ta riff regime, and to perfect the institutions dealing 
with technical barriers to trade. 
73. Guatemala's free-trade agreements sought tota l trade opening, insofar as they included all 
areas and sectors of the economy and covered goods, services, invest ment, technical regulations, and 
strong disciplines.  However, this was all done outside the WTO, and raised two issues:  why the countries that negotiated these agreements, which c overed the majority of their trade, could not 
consolidate this opening in the WTO;  and why Memb ers were not promoting the MFN principle.  All 
countries were in one way or another on the path of FTAs, knowing that in so doing they were 
increasing discrimination.  This led to the question,  why could we not ensure that the rules of the 
WTO guaranteed that the FTAs of the world went in the direction of approximation rather than divergence, and did not propagate discrimina tion?  Why not promote the MFN principle? 
74. The representative of the United States
, requested additional, follow-up information on the 
terms and timetable for the enactment of new competition legislation. 
75. The representative of Canada  sought clarification of the procedures to enroll for a 
professional accreditation.   WT/TPR/M/210 
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 76. The representative of Colombia
 thanked the Guatemalan delegation for the information that 
the free-trade agreement between Colombia and Guat emala was expected to en ter into force before 
the end of the first semester of 2009, and for th e information regarding Guatemala's review of its 
special regime programmes.  The representative co mmended Guatemala for the actions it had taken to 
promote textile and apparel trade.  
77. The representative of Chile  noted that he would transmit to his capital the information that the 
trade agreement with Chile was expected to be approved during the first semester of 2009.   
78. The representative of Guatemala  thanked the Members for their comments and additional 
questions, and undertook to provide res ponses to the questions in due course.  WT/TPR/M/210 
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 VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
79. The second Trade Policy Review of Guatemala has allowed this Body to appraise in detail the 
evolution of its trade policies since 2002.  I tha nk Vice-Minister Morales, Ambassador Sperisen-Yurt 
and their team for engaging so constructively in this  Trade Policy Review exercise.  I would also like 
to thank the discussant, Ambassador Matus, and Me mbers who participated in the discussion as part 
of this exercise. 
80. This has been a very positive review.  We have heard widespread acknowledgement by 
Members of Guatemala's macroeconomic stability, its sustained growth during the period of the 
Review, and its commitment to trad e liberalization at multiple levels.  Guatemala has also received 
well-deserved commendation for the reforms it has undertaken in customs procedures and for its 
advances in the protection of intellectual propert y rights.  Through these and other reforms to 
liberalize and facilitate trade, Guatemala has adva nced its significance as a trading partner and its 
attractiveness as a destination for investors.   
81. Our discussion has also highlighted the fact that  a country's trade policies, like the multilateral 
trading system itself, cannot be seen in isolation from the broader economic environment.  Noting that 
the global financial crisis poses serious challenge s for all countries, several Members welcomed 
Guatemala's sustained commitment to open markets.  Members also observed that the liberalization of 
trade policy in Guatemala has been one component  in a broader reform effort leading to the 
strengthening of both Guatemala's market economy and its institutional framework.  Although some 
improvements have been made, it was, nevertheless, observed that  poverty and inequality remain 
high. 
82. Members commended Guatemala for its support for and active participation in the 
multilateral trading system and the Doha Devel opment Agenda.  They also pointed out that 
Guatemala has not used anti-dumping, counter vailing duties, or safeguard measures.   
83. On the other hand, Members expressed concerns in relation to transparency and to the ability 
of some agencies to carry out their functions effec tively in several areas.  In response, Guatemala 
provided updated information on the status of instit utions that have been established or are in the 
process of formation, including their composition and procedures.  Guatemala also clarified numerous aspects of the government procurement process, in cluding the terms under which foreign providers 
may participate;  and provided additional inform ation on the country's SPS and TBT procedures.  
Members also pointed to the wide gap between Gu atemala's bound and applied tariff rates, noting that 
reducing this gap would improve the pred ictability of Guatemala’s regime.   
84. In response to questions regarding the export subsidies included in its free-zones regimes, 
Guatemala reiterated its commitment to meet the 2015 deadline for the elimination of these measures.  
Some Members welcomed and acknowledged the importance of the ongoing efforts to adopt 
competition policy legislation to help address an ti-competitive practices in the domestic market.  
Guatemala also explained several aspects of the pr ocedures by which rights are granted and enforced, 
in response to requests by some Members' for a dditional information rega rding its protection of 
intellectual property rights. 
85. Members also raised questions about the regulatory framework in the electricity, 
telecommunications, and insurance sectors.  In th is context, Guatemala provided updated information 
on the status of service sector reforms that have been  enacted recently or are still pending action in the 
legislature.  Observing that Guatemala has alread y undertaken, on an autonomous basis, significant 
liberalization in its services sector in the years since the conclusion of the Uruguay Round, Members 
invited it to bind these reforms in the GATS to enhance legal certainty.   WT/TPR/M/210 
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 86. In conclusion, we have, through this Review, gained a first-hand appreciation of Guatemala's 
significant progress since its first Review, and the challenges that lie ahead.  Members very much appreciated Guatemala's trade liberalization and ot her modernization efforts, which have gone hand-
in-hand with economic growth.  Me mbers thus encouraged Guatemala to continue down this road, in 
order to help its economy face the current world financial crisis, and further its prospects for 
sustainable economic growth and social development. 
87. I would like to close this meeting by thanki ng, once again, the discussant and the Members 
for contributing to an informative review.  I should also thank the interpreters for their usual hard 
work.  I would also like to thank the delegation of Guatemala for addressing the various issues that 
Members have raised both in writing and orally.  We look forward to receiving responses to the 
follow-up questions within the next month.   
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