Guatemala Will Join FTA Between South Korea and Central America

By Mayora IP

According to news agency Yonhap, Guatemala will join the free trade agreement (FTA) between South Korea and a group of Central American nations.

"South Korea and five Central American nations -- Costa Rica, El Salvador, Panama, Honduras and Nicaragua -- fully implemented their FTA in March 2021, and they reached a deal with Guatemala for its joining of the pact following two years of negotiations," Yonhap informed based on a statement from the Ministry of Trade, Industry and Energy of South Korea.

Guatemala was initially among dialogue partners for the FTA, but it had stepped out during negotiations amid differences on tariff and country of origin related rules.

"Guatemala's envisioned participation is expected to further develop the Korea-Central America FTA as a key platform for our firms' advance into the market," Ahn said.

The FTA is a comprehensive agreement that covers a wide range of trade issues, including tariffs, non-tariff barriers, trade in services, investment, and intellectual property. The agreement eliminates or reduces tariffs on a wide range of goods traded between the two parties. It also includes provisions on trade facilitation, rules of origin, and dispute settlement.

The agreement has boost trade and investment between Korea and Central America.