Exports improve conditions for the country

By Mayora IP

International agreements that Guatemala has signed since 2005 have given the country more competitive advantages for trade, development, generating 77.6 percent of total exports, according to data from the Ministry of Economy (Mineco) and the Bank of Guatemala (Banguat). The Vice Minister of Integration and Foreign Trade, Edith de Molina, explained to the Guatemalan News Agency (AGN) that, in 2005, exports based on trade agreements or association agreements did not exceed 20 percent.

The main markets for Guatemalan products are the United States, Central America, the Eurozone, Mexico and Panama. Currently, Guatemala has signed 16 trade agreements with countries in the Americas, Europe and Asia, with exports growing up to U$S 11 million in 2019, a 2 percent rise compared to 2018. Pushed by exports, the economic growth for 2020 is expected to be between  3.1 and 4.1 percent.

In this context, with a population of more than 327 million people, the United States continues to be the main trading partner, and its main destinations are Florida, California, Texas, New York and New Jersey. For its part, in the Central American region, the main buyers are El Salvador, Honduras, Nicaragua, Costa Rica and Panama.

Guatemala expetcts to strengthen foreign trade through the approval of Decree 5-2020 by the Congress, which will incorporate the country into a Free Trade Agreement with Costa Rica, Panama and members of the European Free Trade Association (EFTA), a complementary instrument so that Guatemalan products have easier access to Iceland, Liechtenstein, Norway and Switzerland.