In Guatemala, the Chambers of Industry, Construction, Commerce and Agriculture agree that the reforms to the State Contracting Law constitute a step backwards in terms of transparency and open the door to greater opacity in public spending.
In April 2021, the deputies approved the amendments to Decree 57-92, which among other things allow for an increase in the amounts of direct and low value purchases.
The business sector in Guatemala is anticipating an increase in the prices of food and medicines, due to the government's decision to raise the cost of procedures such as the issuance of licenses and health registrations, required to market these products.
By means of Government Agreement 179-2020, which entered into force on December 1, 2020, new fees were imposed for the services of procedures for licenses, registrations and other processes for medicines, laboratories, pharmaceuticals, food products and others.
After dropping in May 2020 due to the outbreak of covid-19, then registering a -11% year-on-year variation, since then the economic activity index has been recovering quickly, reporting a reduction of only 0.3% in September.
The 0.3% decline in the Monthly Index of Economic Activity (IMAE) was influenced by the drop recorded in Accommodation and food service activities, Construction, Trade and vehicle repair, Transportation and storage, as well as by the growth observed in Manufacturing industries; Supply of electricity, water and sanitation services, and, Agriculture, livestock, forestry and fishing.
After the industrial activity registered in May one of the lowest levels of the last years, it is expected that the sector will close 2020 in negative variations, but more moderate than those reported in the first half of the year.
The Index of Economic Activity of the Chamber of Industry of Guatemala, which is calculated by Central American Business Intelligence (Cabi), states that during May and in the context of the economic crisis resulting from the outbreak of covid-19, fell by about 10% when compared to the same period in 2019.
Given the possibility that in the coming weeks business will reopen in Guatemala, 86% of consumers do not agree with the opening of shopping centers and 84% do not support the reactivation of restaurant table service.
The "Exploratory Study of the Behavior of Guatemalans towards the Coronavirus", revealed that at this time, when the number of covid-19 infections in the country exceeds 33 thousand and the number of deaths amounts to more than 1,400, consumers would not agree with the reopening of some businesses.
The Constitutional Court provisionally suspended the agreement that allowed companies that currently do not have the economic capacity to comply with the payment of the Annual Bonus, to reconcile the amortization of the obligation with the employees.
The agreement of the Ministry of Labor (Mintrab) 250-2020, which was published in the Diario de Centroamérica on July 10, stipulates that in order to postpone the payment of the Bono 14, employers who are not in a position to do so due to the economic crisis resulting from the outbreak of covid-19, could make an application to the Ministry.
It is estimated that in the context of the spread of covid-19 in the country, eight out of ten companies in the industrial sector have reduced their sales and six out of ten have seen their distribution capacity affected.
The Chamber of Industry of Guatemala (CIG) conducted a survey to calculate the impact of the current health crisis on the operations of the country's industrial companies.
A talk on the prevention of covid-19 infection at the beginning of the working day and the rule of not sharing tools among workers are part of the protocols that companies must comply with in order to operate.
Because of the covid-19 outbreak in the country, the construction industry will have to apply safety and hygiene controls in the coming months.
Until December 16, 2022, businesses in Guatemala will have to comply with the rules contained in the Regulations for Environmental Evaluation, Control and Monitoring.
The Ministry of Environment and Natural Resources (MARN) reported that after the publication of Government Agreement 317-2019 on December 24, 2019 in the Central American Journal, which reforms Government Agreement 137-2016, the period was extended by three years so that all projects, works, industries or productive activities present their respective environmental instruments in order to function.
The initiatives of Competition, Leasing and the reforms to the General Law of Telecoms are some of the projects that the new administration of Giammattei plans to present to the Congress of Guatemala.
During his inaugural speech, the new president of Guatemala gave the first guidelines in the economic field, highlighting which projects should be streamlined in the Legislative.
Alejandro Giammattei, Guatemala's new president, is hosting a country with weak institutions, legal uncertainty and a business sector that is asking for a less "hostile" environment for new investments.
As a result of the operations carried out by the Superintendence of Tax Administration to stop smuggling, in recent days there have been two attacks on the customs area of Tecún Umán I, on the border between Guatemala and Mexico.
According to information provided by the Guatemalan authorities, on November 13 and 17, groups of alleged smugglers attacked the customs of Tecún Umán I in San Marcos, because in the operations deployed by the tax authority, merchandise was seized that was not declared upon entry into the country.
From January to June in Guatemala, the Industrial Activity Index registered a 2% drop regarding the same period of 2018, which is explained by the drop of the chemical and pharmaceutical industries, and mining.
According to the Industrial Activity Index (IAIG) developed by Central American Business Intelligence (CABI), 85% of the negative result of the index is related to macroeconomic aspects, that is, influenced by what happens with the country's economy, and the remaining 15% is determined by industry issues.
In Guatemala, the chambers of industry and commerce oppose the bill that proposes to create a special tax regime for agricultural activity.
The project "Law on Simplification, Updating and Tax Incorporation", which has been in Congress for more than two years, was scheduled for final discussion until September 10. See full bill.
Arguing that the regulations contradict some articles of the Political Constitution, in Guatemala union groups brought an action against the agreement that allows companies to hire part-time personnel.
After years of discussion, on June 27th Governmental Agreement 89-2019 was published in the Official Gazette. This Agreement establishes the Regulations of Convention 175 of the International Labor Organization (ILO), which will regulate the hiring of part-time personnel in the country.
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