Guatemalan authorities, the only country in the region that is negotiating the FTA with Korea unilaterally, announced that they will speed up efforts to sign the agreement before the end of the year.
The announcement was made by President Jimmy Morales in the company of the Minister of Economy, Acisclo Valladares Urruela, before the members of the board of directors of the National Coffee Association (Anacafé), which is one of the sectors that is demanding the adhesion of the country to the Free Trade Agreement (FTA) between Central America and South Korea.
In Guatemala, business associations, mainly in the export sector, are insisting that the government resume negotiations and complete the process of adhesion to the trade agreement with the Asian country.
The private sector groups explained that despite the commercial opportunities that Guatemalan companies have with South Korea, Guatemala is the only country in Central America that has not completed negotiations to sign the FTA, meaning that they are unable to take advantage of the benefits that this agreement offers.
Guatemalan coffee growers are warning that if the country does not adhere to the agreement signed between Central America and the Asian country, they will lose market share and will have to compete with their peers in the region under unequal conditions.
Representatives from the National Association of Coffee Growers (Anacafé) insist that the government sign the agreement that the other countries of the region have already signed with South Korea, arguing that they will lose out on the advantage they have achieved in recent years.According to coffee farmers, 23% of coffee exports go to Japan, South Korea, Taiwan and China.
A reduction has been projected of between 10% and 15% in the 2017/18 harvest due to the effects of drought and frost in different production areas in the country.
The projections are the result of an assessment carried out by the technical department of the National Coffee Association (Anacafe) in different parts of the country.For the 2017/18 harvest a production of 3.35 million hundredweight is expected.
A trade mission to Taiwan has been organized for November 13th for Guatemalan coffee exporters so that they can participate in the International Fair for Tea, Coffee and Wine 2015.
Funds from the Trade Office for Central America are being used to finance part of the costs for promotion, translation, logistical support and equipment needed for to the ´cupping´or tasting coffee companies who will take part in the mission.
Compared to the previous harvest, in the 2014/15 crop sales to US grew by 120% and 183% to Europe, boosted by favorable international prices.
The National Coffee Association announced that total exports of organic coffee increased by between 14% and 21% in annual terms, noting exports to new markets such as Greece, Norway, Sweden and Poland.
".. Anacafé has reported eight thousand hectares of organic coffee, representing 2.6% of the total planted area in which more than six thousand farmers work. This translates into one million shifts and eight thousand jobs per year, representing 3% of gross domestic product (GDP), according Anacafé. "
While waiting for the trust funds to be released, the resources sector is seeking the renewal at least 60% of plantations and exploring new markets in order to increase exports.
The producers union says it need funds to renovate at least 60% of the plantations costing between $3000 and $4000, and to seek new markets internationally and generate higher value added.
Total exports from the 2013/2014 harvest amounted to 3,130 thousand bags each weighing 60 kilos, 15% less than in the previous season, when 3,706 bags were sold.
The plague of rust fungus is the main culprit for the decline in coffee exports in most producing countries in the region, which affected, on average, 50% of the crop.
Coffee regions of Honduras, Guatemala and El Salvador have obtained certificates of geographical origin for export.
Acatenango in Guatemala, Apaneca-Llamatepec in El Salvador and Honduran Western Coffee's in Honduras, have obtained the certificates that guarantee the quality of the coffee produced in these geographic regions.
"The appellation goes beyond providing a good image for the country, it is a strategy for competitiveness for coffee growing," said Miguel Medina, vice president of the National Coffee Association (ANACAFÉ). "