Overview of best prospect sectors, major infrastructure projects, significant government procurements and business opportunities.
Last Published: 8/26/2019

Guatemalan businesspeople are accustomed to doing business with the United States, and key contacts in the large corporations are fluent in English. They also travel regularly to the United States to conduct business and attend trade shows and conferences related to their field.

The Guatemalan market is competitive and price-sensitive. Businesspeople expect good after-sales service and support. U.S. brands enjoy a good and long-standing reputation in the market for superior quality, and for offering the after-sales support that competitors may not supply.

Despite a growing Asian presence in certain markets, the Guatemalans value conducting business with a neighbor partner who stands behind the “Made in the U.S.A” label. As a signatory member of CAFTA-DR, Guatemalan importers and business representatives of U.S. products obtain CAFTA-DR benefits for their products when conducting business with the United States. As of January 1, 2015, 100 percent of U.S. consumer and industrial goods enter the CAFTA-DR countries duty free (for goods that meet the country of origin requirements). 

Under CAFTA-DR, more than half of U.S. agricultural exports now enter Central America and the Dominican Republic duty free. The remaining tariffs on virtually all U.S. agricultural products will be eliminated by 2020. CAFTA-DR is the third largest Latin American market for U.S. goods, surpassed only by Mexico and Brazil. Along with reduced trade barriers, CAFTA-DR loosened restrictions that have historically locked U.S. firms into exclusive, often inefficient, distribution arrangements. CAFTA-DR member countries have further promised increased transparency in customs dealings, anti-corruption measures in government contracting and procurement, and strong legal protections for U.S. investors.

Regionalization has quickly become a fact of life for doing business in Central America.  Factories and distribution facilities have been and continue to be designed to serve a regional market. Furthermore, rarely does a U.S. businessperson visit just one Central American country. New investors weigh the advantages that each country offers as they look to decide where to establish new plants.  Regional managers are becoming the norm, with responsibilities for multiple countries within the Central American marketplace.  Trade between the countries of Central America has also increased dramatically over recent years, a trend that was accelerated with CAFTA-DR implementation.

In March 2017, Guatemala began the implementation of the Trade Facilitation Agreement, under the WTO.  Guatemala’s participation in this initiative will benefit commerce through harmonization and automated systems in Customs, less discretional rulings, increased public-private sector dialogue, certainty and transparency on doing business internationally.

Central America Customs integration continued to play a key role in 2018, by incorporating El Salvador to the borders’ opening within the Northern Triangle countries.  The customs union within Guatemala, Honduras and El Savador facilitates to transport merchandise and people through its main border points under a smooth and practical system.

The government of Guatemala welcomes foreign investment and generally accords foreign investors national treatment. There are few legal or regulatory restrictions placed on foreign investors.  However, the country needs to overcome several of the challenges aforementioned in order to make Guatemala a truly business and investment friendly market.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.