Guatemala, US sign agreement on reciprocal trade, commercial ties

The Guatemalan government announced Friday that a new trade agreement with the US will exempt more than 70% of exports from American tariffs.

President Bernardo Arevalo announced a new phase in trade relations with Guatemala 's largest commercial partner.

"The signing of this agreement opens a framework of cooperation, certainty, and new opportunities for those who produce, work, and undertake business in Guatemala—an agreement that positions us as a reliable partner and a strategic ally in the region," Arevalo said in a statement on social media.

He said the treaty will boost Guatemala's textile, manufacturing, and agricultural industries, as well as expand foreign investment in the country, where the US already holds a significant share of the market.

Last year, 30.3% of Guatemalan exports were destined for the US, amounting to $4.3 billion, according to figures by Arevalo. One of every three Guatemalan exports is shipped to the US market, and under the new agreement, 70.4% of exports will benefit from zero tariffs.

The agreement was signed in Washington by US Trade Representative Jamieson Greer and Guatemalan Economy Minister Gabriela García.

US and Guatemalan authorities outlined the commitments by both countries under the framework in a statement by the White House, particularly the implementation of trade regulations that open Guatemalan markets to US goods and investments.

The commitments include streamlining regulatory requirements and approval processes for US exports, including pharmaceutical products and medical devices; removing import restrictions on remanufactured goods; preventing barriers to US agricultural products; and facilitating digital trade by refraining from imposing digital services taxes or other measures that discriminate against US digital services.

"President Trump's leadership is forging a new direction for trade that promotes partnership and prosperity in Latin America, further strengthening the American economy, supporting American workers, and protecting our national security interests," said Greer.