Business chambers applaud the new agreement between Guatemala and the United States.
Guatemala’s private sector hailed the signing of a new agreement between Guatemala and the United States related to infrastructure projects through technical cooperation, which business chambers anticipate will promote investment, job creation, and improve competitiveness.
“The recent signing of the agreement between Guatemala and the United States geared toward technical cooperation to carry out important infrastructure works has been received very positively by Guatemala’s private sector,” said representatives of the country’s main business chambers.
Organized private sector representatives commented on the economic, social, and investment benefits that will be derived from the binational agreement, highlighting the generation of formal employment and new opportunities to improve competitiveness as key benefits of the accord.
Guatemalan business chambers have reinforced their statements of support for the agreement with the United States by highlighting how the pact will serve to boost confidence in the country’s institutions and signal continuity of policies aimed at economic modernization.
The United States Army Corps of Engineers will participate in Guatemalan infrastructure projects
Last week, the Guatemalan government and the United States Army Corps of Engineers (USACE) signed an agreement to begin carrying out studies for the development of strategic infrastructure. The goal is to improve road connectivity through key routes and revive a rail corridor between Puerto Quetzal and Escuintla.
The planned investment is estimated at around US$110 million, which will be directly funded by Guatemala. The United States, through USACE, will provide technical cooperation as well as technical assistance and knowledge based on worldwide best practices in project design and execution.
From the viewpoint of Guatemala’s private sector, technical cooperation with USACE adds value to the initiative and credibility. Both elements, say business leaders, will help minimize risks and ensure transparency during project implementation, while also increasing the likelihood that projects will be completed on time and within budget.
“The presence of USACE provides certainty to this type of project since it is an entity of the US government that has the technical capacity and experience to develop megaprojects,” the Coordinating Committee of Agricultural, Commercial, Industrial, and Financial Associations (CACIF) said in a statement.
CACIF views the agreement signed between Guatemala and the United States as “an important step” to improve key roadways and connectivity, conditions that businesses say are vital for making Guatemala more competitive internationally and increasing the flow of investment that can create jobs.
CACIF has also pointed out that technical cooperation with the United States will not only benefit road infrastructure and logistics projects, but will also contribute to consolidating key infrastructure related to foreign trade and domestic production.
Better roads and logistics routes, ports, and highways are part of the necessary conditions to lower costs for exporters and open up more opportunities for Guatemalan products in foreign markets, according to the statements made by CACIF and other chambers.
“The modernization of Puerto Quetzal is a historic milestone that will allow Guatemala to take its place in value chains as a reliable logistics hub,” CACIF previously commented on the initiative to update infrastructure at the country’s largest port.
In a similar statement, the president of the Chamber of Industry of Guatemala (CIG) highlighted what represents the second agreement signed with the United States that seeks to boost the modernization of Guatemala’s infrastructure.
According to CIG, the technical cooperation agreement will allow improvements that facilitate investment and increase productivity while improving connectivity between production centers and ports or borders.
“These actions contribute to building a prosperous country and more sustainable future for the generations to come,” CACIF underscored in its statement.
“We want to continue being reliable partners in strategic supply chains and in joint work to mitigate migratory flows,” CACIF continued, referring to one of the stated goals of the cooperation agreement signed between Guatemala and the United States.
Guatemala Trade Agreement with the United States Opens Market Access for Exporters
The agreement signed last year between Guatemala and the United States, known as the Reciprocal Trade Framework Agreement, has also received support from the private sector.
The trade agreement signed with the United States seeks to return preferential tariffs to the majority of exports sent to the North American market. Commercial sectors and exporters have long requested the restoration of this agreement.
Business chambers noted that the trade agreement with the United States opens an opportunity to attract new investments, boost domestic production, and strengthen trade ties with Guatemala’s main export market.
Last year, the United States purchased more than US$10 billion worth of goods from Guatemala. The country is also one of the leading sources of foreign direct investment for Guatemala.
“The CACIF highlights that with the entry into force of the trade agreement with the United States, over 70 percent of the products exported from Guatemala to that market will be tariff-free,” the business umbrella group added in a statement.
Increased market access and infrastructure are two facets that, according to CACIF, work in synergy to boost Guatemala’s development. Improvements to ports, highways, and logistics help reduce the cost of production and exporting; improved access to the United States allows exporters to increase their sales.
Business leaders have praised the restoration of preferential tariffs with the United States as a sign of confidence in Guatemala’s productive sector and its ability to comply with regulations related to quality, labor, and production.