In 2016 exports from the free zone regime fell by 4% compared to 2015, and those from companies covered under the maquila incentive law, fell by 6%.
The negative results in foreign sales of companies operating under one of the two incentive schemes is due in part to the departure of several companies from the free zone regime, having been affected by the Emergent Employment Act.
It has been reported that one of the 17 free zones operating in the country has started the process of closing its operations entirely due to the legal uncertainty generated by the emergent employment law.
Companies operating in free zones have spent several months denouncing the serious situation they have faced since the Emergent Act for the Conservation of Employment was implemented, instead of encouraging investment and job creation, it has become a good example of how to discourage investment in a country.
The 50 companies already operating at Tocumen's airport facilities will be able to access free trade zone incentives if the request made by the administration of the terminal is approved.
The documentation was submitted to the National Commission of Free Zones at the Ministry of Trade and Industry (MITI), and there will be a 30 day period to review and approve the application.
Among the changes to be made to the draft of the Emerging Law for the Conservation of Employment is the limitation of activities developed in free zones.
The bill which aims to uphold a series of incentives for the productive sector, while the Law on Investment and Employment is being analysed in Congress, will undergo a series of amendments at the request of the tax administration and the Ministry of Finance.
The business sector is demanding that the government take action to minimize the impact of the expiry at the end of the year of tax incentives granted to foreign firms in free zones.
About 1,300 companies enjoy the benefits granted by the World Trade Organization, which expire on December 31 this year. Two companies have already moved their operations to other countries, according to the Ministry of Economy of Guatemala.
In Guatemala, in order to meet WTO requirements, exemptions will be eliminated gradually, and instead economic benefits will be awarded.
The exemptions are to be applied to sectors such as maquila industry, through Law 29-89, and the Free Zones Act.
"In order to meet a requirement of the WTO, the exemptions will be eliminated gradually, but economic benefits will be granted in order to keep the country attractive for investments", said Pavel Centeno, Minister of Finance.
The XV Latin American Conference on Free Zones will be held in Antigua Guatemala, from 26 to 28 October.
One of the points to be discussed at the conference is the new requirements for tax incentives required by the World Trade Organization (WTO), which need to be in place by 2015.
Lorena Alvarez writes in Elperiodico.com.gt, "the event will bring together 500 businessmen, officials and delegates from international Latin American countries, Spain and Portugal, according to the organisers."