Fifteen years after the first approach was made, the countries have not reached an agreement on the conditions of entry of products such as textiles, meat and sugar.
Since 2001, Guatemala and Canada have been trying to close negotiations to create a free trade area between the two markets. Besides pending negotiations related to phytosanitary issues, labor and environment, the definition of the terms of trade of products such as sugar, textiles, beef and pork has still not been made concrete, and there is no light at the end of the tunnel.
The proliferation of international trade agreements brings the opportunity to add value to products by adding a mark of origin.
An article in Prensalibre.com quotes Fanny de Estrada, director of Competitiveness of the Guatemalan Exporters Association, who said that "marks of origin are the result of trade agreements. 'One country can demonstrate an interest in many marks of origin, but that's part of the negotiation.
Six new free trade zones will operate in Guatemala, making the total 24 nationwide.
The new zones are located in Guatemala, Villa Nueva, Zacapa, Quetzaltenango, Puerto Quetzal and Tecun Uman, according to Economy Minister Luis Velasquez.
An article in Siglo21.com.gt, reports, "He said that in these areas commercial activities in manufacturing, industry and services will be developed.
Guatemalan exporters claim that they are losing business opportunities due to lack of exportable agricultural products and processed food goods.
The country is failing to meet the increased demand mainly from the U.S. and China.
Executives of the Guatemalan Association of Exporters (Agexport) noted that the shortages are mainly in vegetables, differential value-added products, cocoa, and ecological and organic products.
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."
According to the country's agency responsible for encouraging foreign direct investment (FDI), the agro-industrial sector is the most promising and important.
Fanny Estrada, director of the Guatemalan Exporters’ Association (AGEXPORT), commented that in several cases, "while demand exists for a product there is insufficient supply capacity," and added that, "there is potential to increase output in these areas".
The European Union is not willing to include already existing benefits in the Association Agreement with Central America.
Cencit, a Guatemalan commission which studies international treaties, remarked that losing the existing trade benefits would be counterproductive for the region. These include European market access for products manufactured in Central American free zones and maquilas.
In spite of globalization driving various forms of private economic integration, there still remain custom and tariff barriers.
International commerce experts agree that in order to fully take advantage of the benefits of free trade agreements with extra-regional blocks, Central America must complete the economic integration process started on October 14, 1951.
Exporters consider the country is losing competitiveness against the rest of Central America.
The decrees modifying Free Port and Maquilas Laws have been waiting in Congress for over 4 years.
"The proposed changes would foster the creation of industrial parks and supply networks, by granting them tax benefits", reports Prensalibre.com. "It is also intended to regulate the exchange between raw materials providers and the aforementioned industrial parks".
The Chamber of Commerce is demanding action by the Central Bank on the value of the Quetzal against the Dollar.
The Guatemalan Chamber of Commerce (CCG) wants the Central Bank (Banguat) to intervene the market and stop the devaluation of the national currency, the Quetzal. For this, the Chamber will run an advertising campaign, explaining the consumer its reasons and problems.
Agexport, Guatemala's export promotion agency, will hold several trade shows, expos and congresses in August and September.
Expomueble XXII will be held from August 4th to 9th, and it will be followed by the Recycling Expo Conference, the 10th and 11th of the same month.
A month later, from September 9 to 10, they will host the III National Congress for the Development and Application of Plastics in Agriculture, and later the same month, from the 10 to the 12, a software and services fair, known as Services Summit, will take place. The last event of the month will be the crafts fair "New World Crafts", to be held the 29th and 30th.
Export revenues grew by 2.8% and tourism by 4.3%, but remittances fell by 9.6%.
The statistics published by the Bank of Guatemala and noted in sigloxxi.com, referred to the period between January 1 and March 5.
The drop in remittances is highlighted: “In February of this year, $281.9 million entered the country from family remittances, an amount $36.4 million less than what was captured during the same month in 2008, a decrease of 11.4%.
The non-traditional products sector closed 2008 with $2.9 billion in exports.
According to the article published by the Prensa Libre daily, "...the chemical subsector is in first place with $900 million in exports, followed by food at $275 million, and construction materials at $208 million and then plastics at $138.4 million."
It is expected that in 2009 Guatemala will have many opportunities to get low volume order in specialized markets, especially in Mexico and the United States.