The news of ongoing negotiations on a trade agreement between Argentina and the United States has dominated the headlines of political and economic media in recent weeks. Promoted by its advocates as a historic opportunity to integrate Argentina more deeply into the world economy, the proposed trade pact is now the subject of scrutiny. Industry analysts and sectoral leaders express concerns that the agreement, rather than boosting the country’s exports, could bring more risks than benefits to the national industrial fabric.

This trade relationship is based on unequal terms. The expression refers to the inequality between two countries at different levels of industrial development, production capacities, and technological advancement.

Negotiating Asymmetries

Although no official statement has been made, the Argentine government announced the trade agreement between Argentina and the United States as an initiative that could be considered “historic.” Negotiators reportedly seek a deal involving mutual tariff cuts and preferential access to certain sectors. In theory, such an arrangement could diversify and increase Argentina’s exports of agricultural and energy products and provide a new opening for North American investors in infrastructure, logistics, and technology. However, delving deeper into the numbers and sectoral distribution, one can see that the relationship between Argentina and the United States unveils a scenario of competition rather than complementarity.

Argentina’s trade balance is illustrative in this regard. For the period up to August 2025, the main destinations for Argentine exports were Brazil (USD 8.186 billion), China (USD 5.173 billion), the United States (USD 4.696 billion), Chile (USD 4.429 billion), and India (USD 3.408 billion). Shipments to the U.S. were led by fuel and energy, crude oil, gold, aluminum, and hormones. In exchange, it buys from the United States refined petroleum and gas, vaccines, and polymers. The profile of these products shows not only a clear technological gap between the two economies but also more than a relationship of commercial complementarity. Argentina exports raw or semi-elaborated material to feed the U.S. productive process while importing manufactured goods with higher added value. It is a paradigmatic case of the old-fashioned dependency model in which industrialization and knowledge creation are concentrated in the more developed partner.

Industrial sectors

Argentina’s productive fabric also faces challenges with this trade agreement between Argentina and the United States. A significant portion of Argentina’s economy, especially the automotive, petrochemical, pharmaceutical, and metal-mechanical industries, competes directly with its American counterparts. The United States has clear advantages in terms of production capacity, energy costs, and innovation.

The provinces of Buenos Aires (PBA) would be the most vulnerable in the event of a relaxation of tariff barriers, as they concentrate the country’s largest industrial belt. Buenos Aires is responsible for around a quarter of the national export basket of manufactured goods. These are predominantly transport equipment and auto parts, which are sold mostly to Mercosur markets. The opening of these sectors to direct competition from U.S. producers would put at risk tens of thousands of jobs, especially in municipalities linked to these factories and supplier chains. Argentine manufacturers of automobiles and auto parts, in particular, could lose competitiveness without the protection mechanisms currently in place within Mercosur. U.S. cars and spare parts are cheaper and technologically more advanced, which would displace Argentine producers and contribute to deindustrialization in a productive pole that underpins a large part of the national employment structure.

Mercosur Commitments

Mercosur, with which Argentina maintains a strong trade relationship, poses another set of challenges to the trade agreement between Argentina and the United States. As a customs union, Mercosur’s rules prevent members from signing bilateral free trade agreements on their own, without exceptions negotiated at the bloc level. Such a move could create diplomatic tensions within Mercosur, where past attempts by individual member states to sign external deals have been rebuffed.

The unequal negotiating position could also lead to the imposition of “asymmetric” conditions on the Argentine side. The U.S. free trade agreements include clauses on the protection of intellectual property, security of investments, dispute settlement mechanisms, and alignment of regulatory frameworks. This could limit Argentina’s policy autonomy and subject it to potential lawsuits under international arbitration rules. The inclusion of “sunset clauses” or “negative lists” (which would exempt sensitive sectors from liberalization) could, in theory, reduce the impact. However, the application and enforcement of these lists are often the subject of complex bureaucratic processes. Argentina’s negotiating leverage will be limited, and it may not be able to extract such guarantees.

Winners and Losers

Nonetheless, it would be overly simplistic to predict that everything that comes out of a trade agreement between Argentina and the United States would necessarily have a negative impact on the national economy. On the contrary, and as already mentioned, certain sectors could gain from an expansion in their access to the U.S. market. Argentina’s energy sector could be one of the great beneficiaries of a trade agreement between Argentina and the United States, with the opening of the U.S. market to liquefied natural gas (LNG) exports, lithium, or biofuels. On the other hand, the agrifood industry could find better conditions for its products, such as soybean meal, corn, wine, or citrus.

Likewise, extractive industries, and especially lithium mining in the provinces of Jujuy, Salta, and Catamarca, could benefit from new U.S. investments due to Washington’s interest in diversifying the supply of minerals necessary for its green energy technologies. In the same way, biotechnology and renewable energy projects may also find a better scenario for financing if the agreement includes formulas to encourage capital flows and technology transfers. The benefits, however, are not distributed equally across the board. If in the primary sector there are gains to be expected, the secondary sector, and especially the services sector, risks being left in the shade. Such an agreement could polarize Argentina even more, accentuating internal economic asymmetries that separate an export-promoted and currency-rich geography from industrial provinces like Buenos Aires, closer to the real economy.

Strategic Safeguards

If Argentina wants to take advantage of the opportunities that a trade agreement between Argentina and the United States could provide, it will need to strategically secure certain conditions during the negotiation process. These include phased liberalization with gradual tariff reductions that give domestic industries time to adjust; explicit exclusion of sensitive sectors such as the automotive and pharmaceutical sectors from immediate liberalization; reciprocity guarantees on investments that require U.S. investments to enter to incorporate value into the local chain, not to substitute it; technology transfer mechanisms that promote joint ventures and research and development partnerships, not just simple import substitution; and clauses preventing social and ecological dumping by guaranteeing fair labor and sustainability practices.

Without such conditions, the agreement would only increase Argentina’s dependency on raw material exports and weaken its industrial capacity.

Friendship Agreement or Rivalry

In sum, the trade agreement between Argentina and the United States could be a gateway or a booby trap. On the one hand, if the process is well managed, it can diversify Argentina’s export basket, attract investment, and open a direct line of negotiation with the most powerful economy on the planet. On the other hand, a poorly structured agreement could deepen structural imbalances, weaken the country’s productive apparatus, and reduce its policy space. For Argentina, the key will be to negotiate its position as a sovereign state that defends its national interest, prioritizes productive development, and re-industrializes as a primary national objective and not as a short-term diplomatic or political objective. The risks of a poorly done agreement include the possibility of opening up the country to deindustrialization, massive job losses, and fiscal exposure to uncontrollable risks. A well-structured and strategically balanced agreement, on the other hand, could be a key step towards a long-awaited process of modernization and sustainable development. In short, whether the United States is a true strategic ally or a potential rival will be defined by Argentina and its ability to assert its economic interests, defend its industries, and demand reciprocity in the opening of markets and the exchange of knowledge. Much is at stake, and the outcome of these negotiations will shape Argentina’s future role in the international economic order for generations to come.

In July of 2025, the Legislative Assembly approved a new piece of legislation, known as the Robotics Law, which is why El Salvador is the first country in the world to adopt a legal regime of its own to regulate this new technology. The purpose of the new regulation is to drive technological modernization, attract foreign investment, and develop new educational programs in the area of artificial intelligence (AI).

This move seeks to not only become a reference in the region but also to lay the foundations of an ambitious process of economic transformation that will move away from the chronic dependence on remittances and low added–value sectors.

The process contemplates, among other elements, the attraction of foreign capital, the modernization of national production, and the development of a highly qualified workforce. But it also implies the overcoming of deep structural problems, such as the multimillion-dollar investment that it initially requires, the need to upgrade technological infrastructure, and the urgency of designing a series of policies to prevent automation from aggravating existing social inequality.

Diversifying the Salvadoran Economy

One of the first benefits of this legal package will be economic diversification. To date, more than 20% of Gross Domestic Product (GDP) in El Salvador depends on the amount of remittances sent by Salvadorans residing abroad, and a large part of its exports comes from activities of low added value, such as agriculture or the maquila industry.

With the entry into force of the new framework, the Executive Branch hopes to open the door for high–added value activities such as industrial automation, robotics applied to health, and smart agriculture, among others.

In the first case, agricultural robots would be implemented for crop monitoring, intelligent irrigation management, or pest detection using sensors, among others. The idea is to help improve productivity, reduce costs, and, in this way, improve competitiveness in foreign markets.

In the case of industry, the installation of automated assembly lines could improve the efficiency of maquilas, but at the same time, diversify production to goods with greater technological complexity.

Pulling in Foreign Investment

But the ambition of El Salvador is even greater, because with this regulation, it wants to position itself as a regional technological benchmark. The mere existence of a specific norm that regulates and provides legal certainty for the operation of robots and AI systems is, in itself, an incentive for international companies interested in expanding into the region.

In a global environment in which technology companies are interested in regulatory frameworks and also in macroeconomic stability, El Salvador is in a good position to capture new capital. If it succeeds in attracting multinationals from robotics or automation, this would result in the creation of quality jobs, the transfer of knowledge, and new value chains. In this way, robotics in El Salvador is already one of the central pillars of the country’s long–term strategy for economic diversification.

Advancing in Key Sectors

The new legislation, meanwhile, opens the way to improvements in strategic areas:

• In health: surgical or rehabilitation robots could reduce waiting times and expand care to both private and public hospitals.
• In industry: automation would improve maquila productivity and transform them into centers of advanced manufacturing.
• In public services: robots could be used for urban cleaning, infrastructure maintenance, and environmental monitoring, among others, optimizing the spending of state resources.

Each of these advances will not only improve efficiency but will also help to increase the country’s competitiveness compared to its regional neighbors.

Education and Human Capital

A central axis of this strategy is talent generation. The norm is being accompanied by educational programs in AI and robotics for children, young people, and professionals. The main objective is to prepare new generations to participate in a globalized job market where technological skills are in increasing demand.

In this way, training local engineers and technicians, among others, would reduce the need to hire foreign consultants and also open the possibility for El Salvador to export technological services. But beyond that, it would create a virtuous cycle in which education boosts innovation and, in turn, stimulates the generation of wealth. Robotics in El Salvador will depend increasingly on a qualified workforce capable of designing, operating, and maintaining complex systems.

The Costs of Modernization

But there is a price to pay for all this. The construction of research laboratories, the installation of advanced digital infrastructure, such as 5G networks or data centers, and the execution of training programs will require billions of dollars in public and private investment.

At present, the Central American nation dedicates only about 0.2% of its GDP to research and development (R&D). By way of comparison, South Korea invests more than 4.5%. For this ambitious plan to take off, it will be necessary to multiply the budgetary efforts, as well as to capture foreign capital willing to finance the transition.

Another challenge has to do with the risk of social inequality. If robotics projects are concentrated only in major urban centers such as San Salvador or Santa Tecla, this could lead to leaving out rural areas. For this reason, it will be necessary for the government to promote that innovations reach small farmers or microentrepreneurs.

In addition, concern is also expressed about a possible loss of jobs, since automation will end up replacing tasks of routine character in manufacturing or services, with the risk that thousands of low–qualified workers are left without work. The solution to this problem is in the design of labor retraining policies that prepare workers for new occupations related to the operation, programming, and maintenance of robotic systems.

The Regulatory and Ethical Challenge

As a pioneer in the region, El Salvador has raised complex questions for the future. In case of doubt: who will be responsible if a surgical robot fails during an operation? Or how can we protect the data that machines are generating? What are the limits of the use of automated systems for security or surveillance?

The new law, in this regard, is only a first step. The country will have to update it in the coming years to address ethical and technical dilemmas that will arise. Without an adequate regulatory framework, there is the risk that innovation ends up running ahead of the regulation, creating uncertainty among both citizens and investors.

Balance

Economists are clear: the potential for growth is very high. If everything is done correctly, robotics could add an additional 2% or 3% to annual GDP growth over the next decade.

The counterpoint, however, is that in the short and medium term, the cost will be high—several percentage points of GDP over the next five years—to finance the expansion of the infrastructure, the training programs, and the design and application of a new regulatory structure. The risk–reward equation is clear: on the one hand, the investment is high, with high uncertainty. But on the other hand, the risk of continuing with an undiversified economy would be much higher in the medium term.

The approval of the Robotics Law has been a milestone in the history of El Salvador. Beyond being a gesture of modernity, what it represents is a commitment to a new economic model based on innovation and technology. In the end, the future of robotics in El Salvador will depend on the capacity for balance, between investment, inclusion, and education, to make sure that the benefits of automation are enjoyed in a fair way by all sectors of society.

CloudHQ, one of the world’s leading data center developers, has announced a significant $4.8 billion investment for the Mexico Plan that will lead to the development of six new data centers in Querétaro, Mexico. This large-scale infrastructure plan was confirmed by the Federal Government of Mexico’s Secretary of Economy and the Ministry of Economy. The $4.8 billion data center project will provide six large-scale data centers spanning 52 hectares and is one of the most significant private technology investments in Mexico’s history. “This means jobs with high added value. We are talking about 7,200 direct jobs and 900 indirect jobs that these six data centers will generate in Querétaro,” President Claudia Sheinbaum Pardo said. President Sheinbaum continued to note that, “Mexico is determined to receive large-scale investments of this type that have to do with the new productive specialization and the transformation that is currently underway in the country, whose objective is to move it towards greater productivity, greater capacity to manage and store data, and therefore, also towards greater international competitiveness.” As for the company, CloudHQ’s Chief Operating Officer, Keith Patrick Harney, announced that the six data centers combined will have a capacity of 900 megawatts (MW). The first phase of the project, representing 200 MW, has already been captured with support from the Federal Electricity Commission (CFE) and the National Center for Energy Control (Cenace), with a prior investment of $250 million.

Plans for an AI Future

According to the President of Mexico, this strategic investment in six new data centers will help the country to become one of the most important regional hubs for artificial intelligence, big data, and cloud computing in Latin America. As Sheinbaum said, “the data centers will be the basis for the future in artificial intelligence, they will be what gives us that possibility of an accelerated digital transformation of the country, which will allow us to strengthen automation, intelligent manufacturing, cybersecurity, data analysis, and the great industries of the future, like, for example, artificial intelligence.” The AI- and data-driven future that President Sheinbaum has discussed over the last few years also directly aligns with this Mexico Plan, which enables the country to host digital operations required by the global operations of foreign companies. One of the other factors Sheinbaum has noted for Mexico — and for this $4.8 billion investment — is energy. Sheinbaum has said, regarding the new Mexico Plan for 6 data centers, “It is one of the main factors, both in its availability and in sustainability issues. On this, we are working very closely with CFE and Cenace to provide competitive advantages in energy to companies like CloudHQ, which, as I mentioned, makes it a sustainable operation in that dimension.” Querétaro Governor Mauricio Kuri González, has also been present and noted, in a statement, that federal and local authorities have coordinated efforts to build an infrastructure strategy that will not only support the CloudHQ project but also other technology-related investments across the state. The strategy includes energy distribution, roads, and highways for access, as well as job training programs to connect local workers and communities to the new digital economy. Querétaro is already a target state for foreign investment from global technology companies, and now one of the largest technology clusters in Mexico after hosting the first six data centers of CloudHQ’s Mexico Plan.

CloudHQ’s Sustainability Focus

CloudHQ’s COO also announced their data center plans and the company’s commitment to sustainable development. Harney also noted, during the press event, that the first phase of 200MW has already been locked in with the CFE and Cenace and has been previously invested in with $250 million. The COO then also announced a number of other steps, including water-free cooling systems, along with compliance with the LEED gold and silver standards in the building and development of the six data centers. CloudHQ’s CEO, Pierre Fabre, in a release, noted that this relationship with the Mexican government will be important, saying, “We are proud of our relationship with the President of Mexico, which is already very productive, and we see that today we can work hand in hand for the country’s development.”

Preparing the New Generation

While the infrastructure for data centers and new technologies is important, the Mexican government is also looking for ways to connect and integrate local talent. As the Secretary of Economy, Marcelo Ebrard Casaubon, noted, “The country is not just focused on receiving foreign investment but also preparing Mexico for an economic model in which artificial intelligence plays a relevant role in our daily lives.” The secretary added, “We are talking about the 6G networks, which will take us in the short term, of course, because in the medium term we are going to be much more connected, with artificial intelligence in transport and telecommunications, which is what we see in airplanes, in their trip systems, even in your refrigerator if it is connected to the internet, or in your cell phone with ChatGPT, all of that will require the type of data centers that we are about to build and start operating.” The Ministry of Economy in Mexico has been working with the Secretariat of Public Education (SEP) in preparation and implementation of a training and job placement program for recent university graduates. These training programs will be focused on being able to work, operate, and maintain these types of digital infrastructure developments.

In recent months, Free Trade Zones in Uruguay have expressed their strong opposition to the introduction of the Domestic Complementary Minimum Tax, known as the Global Minimum Tax of 15% that has been proposed in the draft Budget Law for the four-year period of 2025 to 2029. In a formal statement issued by the entity, they affirm that the inclusion of Articles 628 and 662 in the Budget Law would put at risk the stability of the free trade zone regime and consequently, the predictability and legal certainty to which our country is accustomed; it would expose the country to international litigation processes and place Uruguay at a disadvantage with its main competitors in the region.

In this blog post, we want to delve into the points raised by the Chamber in this important debate, analyze the risks and benefits of applying the Domestic Complementary Minimum Tax, and explain why Free Trade Zones continue to be a key pillar of the country’s economic model.

Forty Years Fostering Competitiveness

It is not the first time that Free Trade Zones in Uruguay express their discontent with a measure they deem harmful to the stability of the regime. As stated, the free trade zone framework in the country was defined by the democratic authorities that returned to the country in 1985, as a State policy, meaning a policy that is not meant to change with the incoming governments.

One of the main purposes of the free trade zone regime, then and now, is to contribute to the competitiveness of the country in order to attract and retain high-value investments. The economic value added by the free trade zones can be measured in several ways. According to data from the Chamber of Free Trade Zones in Uruguay, in recent years, they have accounted for approximately 6.6% of GDP, 40% of total exports, and have indirectly created and directly maintained more than 66,000 jobs. But the contribution of the system extends beyond these figures, and it is based on them that they once again call for the stability of this key engine of the economy.

Uruguay has been recognized in recent years as a benchmark for the installation of new operations by international companies, in part because of the appeal and added value of the free trade zone system, through which companies with different business models and aimed at both national and international markets, in industries such as manufacturing, logistics, technology or global services, choose Uruguay as a platform to carry out their operations on a regional or even global scale.

The ecosystem of innovation, technological transfer, and management that they bring to the country becomes key in strengthening human capital and the productive fabric of the country.

On the other hand, the entry of multinational companies into Uruguay and the arrival of foreign professionals who work in them generate a positive multiplier effect on several sectors (housing, education, health, and others) and, with that, also increase economic activity in the country.

But that is not all, as Free Trade Zones claim that Uruguay is not losing revenue with the regime. On the contrary, using data provided by the Chamber of Free Trade Zones of Uruguay, every dollar of tax exemption in free trade zones generates more than seven dollars in added value for the national economy.

In other words, businesses that operate in the country under this regime not only purchase and subcontract nationally (generating income and jobs for Uruguayan suppliers), but they also contribute to the maintenance and improvement of infrastructure and generate additional economic activity in other sectors and with domestic companies that are dependent on export-oriented companies and their needs.

Legal Uncertainty and Contractual Risks

The Chamber’s statement also highlights that, in addition to the reasons mentioned above, the application of the tax, by including the provision of a Domestic Complementary Minimum Tax, would alter legal certainty, one of the values on which Uruguay has built its success in recent decades to attract foreign investment.

Specifically, Article 628 of the draft Budget Law for the period 2025-2029 includes a provision to modify Article 19 of Law No. 15,921, which means that, if approved, the Domestic Complementary Minimum Tax will no longer be subject to the tax exemptions enjoyed by companies with free trade zone authorization.

In this regard, the statement specifically affirms that “neither Article 628 nor Article 662 provides sufficient legal guarantees on the rights of companies with already signed contracts, violating acquired rights and predictability.”

The stability and clarity of the legal framework are not just semantic or technical issues. Companies decide to invest or expand in Uruguay based on these conditions. Any change that endangers this legal predictability can have negative repercussions on the credibility of the country. 

International Disputes

In the statement by the Free Trade Zones in Uruguay, another risk they highlight in the event that the change is approved is that the country would be exposed to international litigation processes, not only with investors that they contract with under free trade zone laws, but also under investment protection treaties.

The fact is that free trade zone contracts as well as investment protection treaties are not exempt from these clauses, and any change that does not respect the legal certainty to which these companies are entitled is exposed to being challenged in international forums.

Uruguay’s Free Trade Zones conclude this section of their formal statement, arguing that in addition to the above risks, the mere announcement of the new tax has already generated adverse publicity abroad, with international investors following developments in the country closely.

Threats to investment and jobs

The position of Uruguay’s Free Trade Zones is that the application of the proposed tax will lead to a reduction in new investment and may even lead to the dismantling of some companies already in the country, which would directly affect jobs, exports, and Uruguay’s competitiveness as a platform to serve the region and the world.

On the other hand, the statement points out that no other country in the region, except for Brazil, has approved the new tax, which means that to apply it now would place Uruguay at a competitive disadvantage within the Latin American region, where countries compete to attract high-quality foreign direct investment.

Does Uruguay have to apply the tax now?

Another argument made in the Chamber’s statement is that Uruguay is under no obligation to apply the new tax in the coming years.

In fact, the entity points out that large countries such as the United States, China, and India have not done so. The fact is that, in June, the G7 countries, which had promoted the measure, agreed to freeze its implementation.

In addition, several European countries that have implemented the tax in recent years have already admitted, in light of their experiences, that they regret having done so due to its negative impact on their economies. The OECD, the intergovernmental body that has promoted this type of measure, has not put pressure on Uruguay to do so either.

In this context, for Uruguay’s Free Trade Zones, the application of the new tax without a strategic purpose would be hasty, precipitate, and unnecessary. On the contrary, it is important to take a prudent approach, monitoring how the international debate on the subject evolves and acting at the appropriate time and when all the technical studies and positions are analyzed.

Free Trade Zones in Uruguay: A Permanent Pillar of Development

The position of Uruguay’s Free Trade Zones on the matter is based on the considerations mentioned above and, in its final paragraphs, reaffirms that free trade zones must remain a permanent pillar of the country’s development. The added value of the industry to the country, in terms of exports, high-quality job creation, and its role in integrating Uruguay into global value chains, has been proven over time.

In that sense, the Chamber of Free Trade Zones of Uruguay asks the National Parliament to eliminate Articles 628 and 662 of the 2025-2029 Draft Budget Law so that, together, they can preserve employment and competitiveness and Uruguay’s reputation in the region and the world. And it warns that protecting the stability of the free trade zone system is the only way to continue to have credibility and continue growing in the coming years.

At the 20th Industrial Congress, President Bernardo Arévalo reaffirmed that sustainable industrialization is the strategic path to transforming Guatemala’s economy and ensuring inclusive, modern, and resilient growth. His message emphasized that Guatemalan development depends on aligning economic progress with environmental preservation, institutional transparency, and social inclusion—a balance he considers fundamental for long-term prosperity.

A Vision for a New Economic Model

Addressing representatives of the private sector, the president called for the construction of strong alliances to advance toward a productive model that combines economic growth with social and environmental responsibility. Arévalo stressed that Guatemalan development cannot be achieved through economic expansion alone; it must also foster equitable access to opportunities, sustainable resource management, and robust governance.

“Working for political certainty and the recovery of justice institutions is the best contribution to the economic and social development of our country,” Arévalo stated. He underlined that legal and institutional stability is a prerequisite for attracting investment, promoting innovation, and generating quality employment. Without a reliable judicial system, he argued, neither foreign nor domestic investors can feel confident that their rights will be protected.

Public-Private Collaboration for Shared Prosperity

The president emphasized that his administration does not seek to compete with the private sector, but rather to complement it. “We want those who undertake, risk their capital, and bet on Guatemala to have clear rules and institutional support,” he explained. For Arévalo, the partnership between government and industry is essential to achieving the shared goal of Guatemalan development based on sustainability and productivity.

In that regard, he underscored that the State must play an active role as a facilitator of development, creating favorable conditions for businesses to thrive and contribute to collective well-being. This includes streamlining bureaucratic processes, enhancing legal transparency, and ensuring access to infrastructure and financing.

Modernizing the State: Efficiency and Digital Transformation

One of the central themes of Arévalo’s address was the need to modernize the state apparatus to make it more efficient, transparent, and accessible. He reported that 70% of administrative procedures across 14 government agencies have already been digitized, simplifying 444 processes that once required in-person visits and extensive paperwork.

By June 2026, more than 860 procedures are expected to be available electronically. According to Arévalo, this digital transformation is a cornerstone of Guatemalan development, as it reduces bureaucracy, cuts operational costs, and accelerates productive activities. “We want citizens and entrepreneurs to interact with the State through agile, modern, and reliable systems that reflect efficiency and trust,” he said.

This modernization agenda is also aimed at reducing corruption and discretionary practices within public administration, thereby strengthening institutional credibility and efficiency.

Strong Economic Indicators Signal Confidence

On the economic front, Arévalo presented figures reflecting a positive and stable performance. Real Gross Domestic Product (GDP) grew by 3.7% in 2024, while public debt remains at just 27% of GDP—one of the lowest ratios in Latin America. He highlighted that such fiscal discipline reinforces investor confidence and provides a solid foundation for financing long-term projects tied to Guatemalan development.

Additionally, foreign direct investment reached USD 476 million in the first quarter of 2025, while domestic investment increased by 12.8%. “All rating agencies have raised Guatemala’s outlook to stable and positive,” he added. These indicators suggest that confidence in the country’s economic direction is strengthening, particularly in sectors such as manufacturing, renewable energy, and technology.

Infrastructure: The Backbone of Industrial Growth

Arévalo also discussed infrastructure as a decisive factor for advancing sustainable industrialization. He noted that his government has prioritized public investment in social and productive projects—including hospitals, schools, housing, and transportation networks—to improve the quality of life and boost competitiveness.

Infrastructure expansion, especially in logistics corridors and port facilities, is expected to strengthen Guatemala’s regional integration and make it an attractive destination for manufacturing and export-oriented investment. “Connectivity is vital for industrialization. Every kilometer of road, every school built, every hospital opened is an investment in Guatemalan development,” he stated.

He further highlighted the international support the government has received, including assistance from the U.S. Army Corps of Engineers to modernize key equipment and institutions that underpin national infrastructure projects.

The Challenge of Justice and Governance

However, Arévalo acknowledged that achieving sustainable development requires confronting Guatemala’s deep-rooted structural challenges—chief among them, corruption and impunity. Although the homicide rate has been cut in half since 2010, he warned that these advances are at risk due to the continued weakening of the judicial system.

“Since 2017, certain mafias have taken over key institutions, diverting their functions to protect private interests,” he denounced. To reverse this trend, the president called for ensuring transparent processes in the selection of authorities such as the Attorney General, the Constitutional Court, and the Supreme Electoral Tribunal. “We are in a battle between the decent people of Guatemala and corruption and impunity,” he declared.

Restoring the rule of law, he said, is not only a moral imperative but also an economic one. A strong, impartial judiciary guarantees investor security and lays the groundwork for sustainable Guatemalan development that benefits all citizens, not just a few.

A Collective Commitment to the Future

The 20th Industrial Congress reaffirmed itself as a space for open dialogue between the government and the productive sector. Arévalo’s message underscored that sustainable industrialization is not merely an economic objective but a comprehensive national strategy requiring unity, transparency, and a long-term vision.

He called upon all sectors—public institutions, businesses, academia, and civil society—to work collaboratively in designing an industrial ecosystem that encourages innovation, respects the environment, and generates shared prosperity. “Guatemala has the potential to be a competitive, fair, and prosperous country. But to achieve it, we must work together,” he concluded.

In the broader context, Arévalo’s speech represented a call to action: to build a new chapter of Guatemalan development founded on sustainability, justice, and cooperation. His administration’s goals aim not only to increase productivity but also to create the social and institutional conditions necessary for lasting progress—ensuring that every advancement in industry contributes to a more equitable and resilient Guatemala.

In his presentation on the transformation of global supply chains in 2025, supply chain expert Jim Tompkins discussed Panama’s potential as a pivotal digital command center. “Panama must now pivot from a regional logistics hub to a hemispheric digital nerve center,” Tompkins noted at the Supply Chain Forum 2025. “At a historic juncture, Panama is prepared to emerge as the digital command house for supply chains throughout the hemisphere, going beyond traditional freight corridors and container ships into a data-driven network of intelligent logistics,” he added. Tompkins’ keynote speech at the annual industry event in Panama City, attended by over 700 executives, emphasized Panama’s unique position to lead the digitalization of supply chains. The country’s ideal location, cutting-edge logistics, and bi-oceanic connectivity give it a significant advantage, and with the right innovations, it can attract global digital partnerships.

The Next Step: Digital Control Tower for Supply Chains

Jim Tompkins went on to say that the next step for Panama was not merely physical infrastructure but a transition into a control tower for digital supply chains. By serving as a global command house, data networks, and analytics, Tompkins added that the country could coordinate trade flows to leverage its strategic position in the Western Hemisphere. The central theme of his address was that data has the potential to replace barrels of oil as the most valuable commodity. The success of any supply chain in the near future would be determined by the quality of automation and data analytics. In this scenario, Panama has the chance to become a smart gateway and transform into a reliable node for global digital commerce. If successful in its digital strategy, Panama, as a digital hub for supply chains, could shift trade to connect the entire Western Hemisphere, surpassing its historic role as merely a connector of oceans.

Five Forces to Build Panama as a Digital Hub for Supply Chains

In his comprehensive assessment of the factors that will affect Panama’s ability to achieve this ambition in 2025, Jim Tompkins identified five main advantages. First, the country’s geographic location already places Panama in the heart of major trade lanes that interconnect Latin America, the Caribbean, the United States, and the rest of the world. As the Panama Canal interconnects 140 maritime routes to more than 1,700 ports in 160 countries, its ability to offer unparalleled connectivity between Asia, Europe, the U.S., and Latin America is only second to its natural geographic advantage. Second, it has one of the most advanced multimodal infrastructures in the world, with facilities such as the Colon Free Zone, the Panama Canal Railway, and Tocumen International Airport offering seamless integration of sea, air, and land transport. Third, Panama has a track record of political and economic stability, which has always been an important factor in attracting investors, thanks to dollarization of the economy and pro-business legislation. Fourth is the growth of new generations of digital talent with advanced degrees in data science, logistics engineering, software development, and other disciplines that are critical to driving digital supply chains. Lastly, Tompkins emphasized that sustainability is an essential component of the nation’s long-term vision. As major companies continue to prioritize environmental and social responsibility, Panama’s commitment to renewable energy, green certifications, and circular economy principles will be increasingly important.

Panama’s Strategic Advantage

Jim Tompkins suggested a comprehensive framework to help Panama take the next leap toward becoming a global control tower, which would place the country’s expertise in logistics and its strategic geographic position at the heart of global trade. According to Tompkins, if Panama, as a digital hub for supply chains, invests in technology, talent, and regional collaboration, it could achieve its goal of becoming the world’s command house for supply chains. This would involve more than just physical infrastructure; digital ecosystems connecting ports, airports, logistics hubs, and corporate offices through common data platforms will be required. This next-generation global management system will allow real-time data analysis and decision-making, with the Panama Canal serving as a literal and figurative information highway. Panama, as a command house for supply chains, would be capable of monitoring trade movements across continents, proactively identifying issues, and proposing solutions using advanced AI systems. Analytics platforms would be able to anticipate disruptions by using artificial intelligence to track weather patterns, monitor political risks, and even read consumer trends from social media in order to manage supply networks more intelligently.

Collaboration is Key to Regional Alliances

Jim Tompkins recognized the value of regional integration in this process, with the Dominican Republic seen as a potential partner in a similar fashion to Panama as a digital hub for supply chains. By synchronizing operations with the neighboring country, goods could be delivered to the U.S. East Coast and beyond more quickly. Dominican Republic, by acting as an e-commerce hub, would also bring more competitive power to the Panama Canal in a trade corridor that would connect North America to the Caribbean, Central America, South America, and beyond. In addition to physical investments, the government and corporate sector in Panama would be well advised to invest in a public-private framework in which governments, corporations, academic institutions, financial services, and chambers of commerce collaborate to lay the groundwork for a fully digital ecosystem. Such ecosystems are built on shared standards and principles, and they are designed to last. This would require leadership and a shared vision from all sectors of society, as well as a willingness to accept new ideas. This public-private partnership and collaboration would be the cornerstone of a broader vision for Panama as a digital hub for supply chains, providing a level of trust and transparency that would make it the region’s most reliable command house for supply chains.

Uncertainty: The Top Risk for Supply Chains in 2025

In Tompkins’ opinion, uncertainty is the number one risk for supply chains in 2025. While geopolitical risks, market volatility, and cyber threats continue to threaten supply chains, climate-related disruptions such as hurricanes, floods, and rising seas are also a problem. A digital command house in Panama would address these uncertainties in several ways, giving businesses more control, foresight, and visibility over their operations. Panama, as a digital hub for supply chains, would act as a catalyst for digitization, bridging the gap between the analog and digital world to provide global corporations with more certainty. With real-time data monitoring, companies will be able to anticipate interruptions, adapt to market changes more rapidly, and keep consumer satisfaction high. In conclusion, Tompkins suggested that Panama as a digital hub for supply chains has the potential to go beyond just leadership in shipping lanes, supply networks, and technology and transform into a reliable node for global digital commerce. If successful in its digital strategy, it could shift trade in the Western Hemisphere.