Both countries agreed to include threads, fabrics and clothing in the batch of items that are already subject to tax relief, as part of the Free Trade Agreement in force.
The Ministry of Economy of Guatemala informed that the trade between both countries will experience a significant increase because of the recent signature of several agreements that expand the productive value chains.
Shrimp, mangoes, confectionery, non-alcoholic beverages and electric accumulators are some of the products that will have tariff benefits with the signing of the Partial Scope Agreement between both countries.
From the press release of the Ministry of Economy of Guatemala:
October 31st, 2018. To accelerate the reduction of mutual tariff preferences granted to a list of 61 products traded in the Guatemalan and Cuban markets, according to the Partial Scope Agreement (PSA) in force since 2001, this Wednesday, trade authorities of both countries signed in Havana, the so-called "Second Protocol to Modify the Deepening of the PSA between Guatemala and Cuba."
The signing of the trade agreement is scheduled for late February, a measure that bodes well for improving access to Korean high-tech products and increasing agro-exports from Central America.
A report by Moody's analyzes the impact expected in El Salvador and in the other countries of the region, from the entry into force of the free trade agreement with the Asian nation.
A proposal has been made to reactivate the process so that the commercial agreement, which was approved by the Peruvian congress in 2013, completes the ratification process in the South American country and enters into force.
The main factor that has delayed the entry into force of the Free Trade Agreement between Guatemala and Peru has to do with the conflict that arose in 2013 due to the tariffs imposed by the Andean nation on imports of sugar from Guatemala, which resulted in the Guatemalan government filing a complaintwith the WTO.
Starting from April the South American country will start implementing a timetable for elimination of the safeguard for balance of payments, reducing the current tariff levels from 15% to 10% and from 35% to 23.3%.
From a statement issued by the Ministry of Foreign Trade in Ecuador:
From April 2017 the schedule for dismantling of the safeguard measure will be implemented for balance of payments, reducing the current tariff levels from 15% to 10.0% and from 35% to 23.3%.In this regard, the reduction will apply to established customs declarations submitted from April 1, 2017.
Dairy products and some metalworking products, plastics, tires and wood were excluded from the trade agreement between Central America and China.
Bananas will not incur tariffs when entering South Korea for five years, pineapples for a period of seven years and pork for ten years.In addition to the terms of tariff reduction, the countries in the region unilaterally negotiated the exclusion of some goods produced locally.Guatemala announced that it will continue negotiations unilaterally.
Not fearing free trade, lowering tariffs and facilitating business development are some of the ingredients the Chilean export model that Central America could follow.
In an interview with Elfinancierocr.com, ProChile's director, Roberto Paiva, explained that one of the main reasons behind the success of his country's foreign trade model is the high degree of trade liberalization.Not only for having reduced tariffs, but also for"... 'having negotiated trade agreements. We have agreements with Europe and much of Asia. We don't yet have Africa.This opening not only lowers tariffs but brings us closer to the market and the business'. "
Central American coffee will incur 0% tariff in 10 years, while bananas, vegetables and baby vegetables will be shielded from the entry into force of the agreement.
In the fifth round of negotiations which will be held in Seoul from August 8 to 12 it is expected that progress will be made on the definitions for the treatment of 9% of the universe of products that have not yet been analyzed.
In light of the recent problems in the dairy trade between Nicaragua and Costa Rica, the Central American exporters union advocates eliminating barriers and facilitating trade.
Elsalvador.com reports that "...Taxes on perfumes in customs offices in Honduras, problems with entry of frozen goods into Costa Rica, meat and dairy going from Nicaragua into Honduras, beef and chicken from Panama to Costa Rica and impediments to the free marketing of milk and dairy products between Costa Rica and Nicaragua are some of the problems that are hampering business growth in the region. "
A favourable ruling has been given to the appeal by Escalas Mercantiles Innovadoras, with the temporary suspension of the collection of a 13.8% tariff on imports of chicken out of the quota.
Elperiodico.com.gt reports that "...Among the arguments presented by Escalas Mercantiles is the fact that in January they still paid zero percent tariff. Furthermore, the change, according to the arguments put forward, violates rights such as freedom of industry, trade and labor by publishing a new list which amended tariffs without prior publication of a ministerial agreement where these changes are agreed. "
From 2016 grain importers will go from paying the current 40% import tariff to 36% in 2016 and it will continue to decline until it reaches 0% in 2023.
The rice producing sector in El Salvador is trying to prepare for the start of the process of tariff elimination on imports of the grain, which already next year will be reduced by 4% from the current rate.
The free trade agreement with Switzerland, Norway, Liechtenstein and Iceland will grant free access to these countries for 77% of primary agricultural products and those processed in Guatemala.
The entry into force of the FTA now depends on the approval of Congress and subsequent ratification by the Executive.
Dca.gob.gt specifies that "... the EFTA grants free access to 77% of primary and processed agricultural products from Guatemala, 10% of goods will have tariff preferences and 13% are excluded ... Guatemala meanwhile granted free access to 43.8 percent of primary and processed agricultural products, an additional 29 percent were liberalized in periods of 5 to 10 years, 0.8 percent will enjoy tariff preferences and 0.2 percent on a tariff quota to Switzerland, excluding 26.1 percent of articles.... ".
Several years after conversations began, Central America and South Korea finally started the formal negotiations for a free trade agreement.
From a statement issued by the Government of Guatemala:
In Houston, Texas, the Minister of Economy of Guatemala, Sergio de la Torre, and his Central American counterparts in charge of foreign trade, met with Korean Minister of Commerce, Industry and Energy Yoon Sang-Jick, to start negotiating the Free Trade Agreement between the Republic of Korea and the Central American republics.
The Partial Agreement signed by Guatemala with Trinidad and Tobago generates great business potential with an economy that boasts the highest income per capita in the region.
From a statement issued by Agexport:
Since the Ministry of Economy of Guatemala announced the negotiation of a partial scope agreement with Trinidad and Tobago, the sectors represented in AGEXPORT (agricultural, manufacturing and services), expressed their interest in exporting, due to high business potential and investment attraction this country represents.
Guatemalan businesses are complaining about the existence significant differences in import and export tariffs in each country and are demandig that they be leveled in order for them to compete on equal terms.
Companies argue that products from India coming into the country pay fees of 15%, and in some cases do not pay anything while to enter India, Guatemalan products incur tariffs of up to 70%, depending on the product.