Guatemala and United States flags. Image Credit: Oleksii Liskonih/iStock.
Guatemala Tariffs

Guatemala Reaches Historic Tariff Deal with the U.S.

Latina Republic

Guatemala’s President Arévalo announces that more than 70% of Guatemala’s exports to the United States will now be tariff-free.

Guatemala City, Nov. 13 — President Bernardo Arévalo announced on Thursday that Guatemala has reached an agreement with the United States to eliminate and reduce the tariffs imposed by the U.S. government on Guatemalan exports entering that country.

In a message published on his official social media accounts, the president stated:

“After a process of intense negotiations, we have reached a historic agreement with the Government of the United States to reduce and eliminate the tariffs that were imposed on all countries worldwide in January.”

The president highlighted that more than 70% of the products Guatemala exports to the United States will now have zero tariffs, and the vast majority of the remaining products will be subject to a 10% tariff.

 

 

Relationship Ties

President Arévalo emphasized that these actions are the result of the strong relationship between Guatemala and the United States.

“This is the result of the solid relationship between the Government of Guatemala and the Government of the United States of America, and it places us as an even more competitive and attractive country for investment.”

He also explained that reaching these agreements was the result of hard, continuous, technical, and political work led by the Minister of Economy, Gabriela García, and her team.

“We are proud to know that these efforts are bearing fruit and that we can confidently say Guatemala is moving forward on the path of growth, development, and well-being.”

The process included the participation of Guatemala’s private sector as a technical partner and to help generate coordinated national efforts to address the tariff challenge.

 

 

Promoting Economic Growth

Meanwhile, Minister García emphasized that this government is committed to protecting and promoting Guatemala’s economic growth.

“The purpose is to reduce and eliminate all barriers that hinder our country’s trade.”

She noted that after months of intense work and open dialogue with the U.S. government, Guatemala has become one of the first countries in the world to reach an agreement to reduce and eliminate tariffs.

 

 

Guatemala’s 12 Commitments 

Guatemala and the United States reached a historic trade agreement that eliminates tariffs on over 70% of Guatemalan exports, including key products like textiles, while most other goods will face a 10% tariff, details Prensa Libre. In return, Guatemala committed to 12 measures to improve trade:

Non-tariff trade: Guatemala commits to tackling key non-tariff trade barriers, simplifying regulations and approvals for U.S. exports—including pharmaceuticals, medical devices, and remanufactured goods—accepting U.S. automotive standards, and streamlining certificates, electronic approvals, and product registrations.

Agricultural products: Guatemala has committed to easing access for U.S. agricultural products by accepting U.S. certificates, including sanitary certifications, and keeping efficient, science-based regulations.

Intellectual property: The country pledged to maintain strong standards for intellectual property protection and enforcement, strengthen adherence to international rules, and resolve historical issues identified by the U.S.

Geographical indications: Guatemala will ensure transparency without restricting the use of common terms, such as certain cheese and meat names.

Digital trade: The country committed to facilitating digital trade, refraining from imposing discriminatory taxes or restrictions on U.S. digital services, and supporting free data flow.

 

 

Services: Guatemala will implement the Joint Initiative on National Regulation of Services to improve transparency and efficiency.

Trade facilitation: Guatemala affirms it will adopt best customs and regulatory practices to streamline trade.

Labor rights: Guatemala will protect labor rights, prohibit imports of goods made with forced labor, and strengthen labor legislation and enforcement.

Environmental protection: The country will enforce environmental laws, combat illegal activities in sectors such as logging, mining, and fishing, and comply with the WTO agreement on fishery subsidies.

State-owned enterprises and subsidies: Guatemala states it will correct any practices by state-owned enterprises or industrial subsidies that distort bilateral trade.

Economic security: The country plans to cooperate with the U.S. to strengthen supply chains, export controls, and combat unfair policies.

Public procurement: Guatemala intends to restrict access to central government procurement to countries without a free trade agreement, similar to U.S. practices.

The deal builds on CAFTA-DR, gives exporters more certainty, and boosts Guatemala’s competitiveness and attractiveness for investment.

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