What is Needed to Attract More Investment?

In Guatemala, businessmen are asking the incoming government to create a public policy on foreign investment that incorporates issues such as fair and equitable treatment of investments, the minimum standard of treatment and the definition of arbitrariness.

Thursday, August 29, 2019

Foreign direct investment (FDI) in the country is not having its best moment, as figures from the Bank of Guatemala indicate that in 2018 the flow captured was $1.031 million, 12% less than the $1.170 million reported in 2017. See official data.

Given this situation, business sectors are demanding the authorities in office and those who will assume in January 2020, to improve public policies for investments that arrive in the country, as in recent years there have been cases of companies that have had to face international arbitration lawsuits in the International Center for Settlement of Investment Disputes (Ciadi).

See "Mine Suspension and Future of Investments

Carlos Cabrera, member of the Legal Committee of the Canadian Chamber of Commerce, explained to Prensalibre.com that "... It is necessary that this public policy incorporates the concepts that have been argued in several Ciadi awards such as the fair and equitable treatment of investments, the standard of minimum treatment and the definition of arbitrariness."

Cabrera added that the policy "... It must contain clear procedures to avoid arbitrariness in the actions of officials of all state entities. The objective is that these actions be a commitment of the State and go beyond the authorities in office and at least the next two governments."

Also see "Insecurity and Conflict Discourage Investments

The institutional coordination of the three State agencies to guarantee the correct execution of investment projects, establish a national economic agenda that allows officials and politicians to be clear about the economic course of the country, and prioritize in the agenda the promotion of foreign investment, are other aspects that must be taken into account to elaborate the requested policy.

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