In 2017, cardamom exports from Guatemala totaled $367 million, and the 60% increase compared to the previous year was mainly due to an increase in the international price.
The increase in export value was mainly due to an increase registered in the price of cardamom on the international market over the past year, as it increased from $6.42 per kilo in 2016 to $10.27 per kilo in 2017, which represents growth of 60%, which coincides with the increase in the amount sold abroad.
According to the union of exporters, for 2018 the destinations that represent potential opportunities for special coffees are Taiwan, China, Australia, Malaysia, Czech Republic and Chile.
In the case of the Chilean market, the first multisectorial trade mission led by the Department of Market Development and Commercial Promotion of the Guatemalan Association of Exporters (Agexport) was carried out in 2017, in which more than 50 commercial appointments were attended, showing high interest for the special coffees of Guatemala.
Favored by an improvement in international prices, from January to November 2017 the country sold $317 million worth abroad, 71% more than was exported in the same period in 2016.
In the first 11 months of 2016, the country sold $186 million worth of cardamom abroad, 11% less than was sold in the same period in 2015.
Of the exports from the sector of miscellaneous manufactures, those that grew the most in 2017 were paper and cardboard products, leather products and those made by the chemical industry.
Last year products from the miscellaneous manufactures sector had as their main destination the Central American market (57%), mainly Honduras and El Salvador.This was followed by the United States (12%), Mexico (4%) and the Dominican Republic (3%).
In Guatemala sales of artisan products abroad totaled $63 million in 2017, 5% more than in 2016.
This year Guatemalan artisans will give priority to the markets of Germany, the United Kingdom and Canada, and expect to increase exports by 5% compared to 2017.
According to the union of exporters, 80 more tons of handicrafts were sold last year than in 2016.Dca.gob.gt reports that "...This growth was influenced by the constant innovation on the part of companies that make up the Craft Commission of Agexport, designing products ranging from those made with natural materials combined with designs and fabrics made by hand by craftsmen, to carpets, shoes, household decoration items and unique accessories with ecological and environmentally sustainable materials."
The 2016/17 harvest closed with a total export amount of 29,700 tons, equivalent to $300 million in revenues, 30% more than in the previous season.
In the harvest that just ended, the improved revenue was achieved with a lower export volume, due to an increase in the international price.In the 2016/17 season, 38 thousand tons were exported and $230 million were generated.
Businesses have reported difficulties when using the system that generates the invoice and the Central American single statement form and state that the three integrated customs offices are not working.
Integration of customs systems in Honduras and Guatemala started three months ago, but not in the agile way that the companies that trade in the region had hoped for.
Companies from Hong Kong and Taiwan could be interested in setting up a synthetic and manufacturing plant in the country.
The information was provided by representatives of the Apparel and Textile Commission (Vestex) at Agexport, who explained that in the case of the company from Taiwan, its interest is in establishing a manufacturing plant and supplying the US market.The other company, from Taiwan, could be interested in installing "... a manufacturing plant for synthetic products, and the countries that they are investigating are Guatemala and Haiti."
The customs union between Guatemala and Honduras favors small companies in particular, as they do not have to deal with the costly and slow procedures for export and passage through customs offices.
Although it does not yet cover the entire tariff universe, the effective customs union between Honduras and Guatemala will facilitate trade between both countries and this will have a positive impact on the development of both economies.
The high logistic costs and the appreciation of the Quetzal against the dollar are two of the factors which, according to exporters, have prevented better performance from being achieved in recent years.
According to Agexport, exports of Guatemalan agricultural products in the last 6 years have registered very low growth, going from $2.96 billion in 2011 to $3.2 billion in 2016.In the same period, non-traditional agricultural products which registered a decrease were peeled sesame seeds (-14%), frozen peas (-6%), broccoli (-47%), frozen beans (-35%), tomatoes (-35% %), potatos (-48%), and mangos (-3%), among others.
Due to favorable weather conditions, production for the present harvest has been estimated at 50 million pounds of mango, 43% more than in the previous harvest.
The results of this crop could help offset the decline suffered by mango production in the 2015/16 cycle, when a production of only 35 million pounds was achieved.
From this year these three products will be traded duty-free under the DR-CAFTA agreement.
The tariff reduction process that started with the entry into force of the free trade agreement with the United States and Central America has now reached completion for rum, flour and fats exported from Guatemala.
"...The first product is rum, which in 2006, when the trade agreement came into effect, had a tariff base of 40 percent.Last year, the import tax had reached 3.3 percent and this year it is zero.Other products that are in the same situation are the residues from the treatment of animals and plant fats (other than poultry, cattle and pigs) and flour from wheat or morcajo (meslin), according to the Ministry of Economy."
Problems related to health and safety come top the list of reasons why shipments of Guatemalan products are rejected in the US and Europe.
Pesticides, labeling, salmonella, processing, lack of information, products, lack of list of ingredients, aflatoxins and mislabelling, are in order the main causes of rejection by the FDA in the US.
Almost $100 million is the export value of the over 500 species and three thousand varieties of ornamental plants, cut flowers and foliage shipped in 2015.
Of the total production of flowers, ornamental plants and foliage,80% goes to the international market, while the remaining 20% is sold locally.In 2015 salesabroad totaled $95.3 million, and between January and August this year the figure has already exceeded $70 million.
The union of exporters has reported losses of $145 million, and more than 12,000 shipping containers held up because of the blockades which have now been going on for more than a week.
Reports indicate that two shipping companies have suspended operations at the ports and announced they will not disembark because of "inability to ensure the safety of their staff."This is just one example of the serious damage caused to in the country by the blockades and demonstrations held by truckers for almost a week at customs offices and ports in Guatemala.