The United States of America (United States, or U.S.) and the Republic of Guatemala (Guatemala) have agreed to a Framework for an Agreement on Reciprocal Trade (Agreement) that further strengthens and builds upon our long-standing economic relationship, including the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), which entered into force for the United States and Guatemala in 2006.
Key terms of the Agreement between the United States and Guatemala will include:
- Guatemala has committed to addressing a wide range of non-tariff barriers affecting trade in priority areas, including streamlining regulatory requirements and approvals for U.S. exports including pharmaceutical products and medical devices; removing import restrictions on remanufactured goods; accepting U.S. auto standards; and streamlining certificate of free sale requirements, accepting electronic certificates, removing apostille requirements, and expediting product registration requirements for U.S. exports.
- Guatemala has committed to address and prevent barriers to U.S. agricultural products in its market, including with regard to U.S. regulatory oversight and acceptance of currently agreed certificates issued by U.S. regulatory authorities. Guatemala also committed to maintain science- and risk-based regulatory frameworks and efficient authorization processes for agricultural products.
- Guatemala has committed to a robust standard for intellectual property protection and enforcement, including fully implementing certain international intellectual property treaties and taking steps to resolve many long-standing intellectual property issues identified in the Office of the United States Trade Representative's Special 301 Report.
- Guatemala has committed to provide transparency and fairness regarding geographical indications, while ensuring that market access will not be restricted due to the mere use of certain cheese and meat terms.
- Guatemala has committed to facilitate digital trade, including by refraining from imposing digital services taxes or other measures that discriminate against U.S. digital services or U.S. products distributed digitally, ensuring the free transfer of data across trusted borders, and supporting a permanent multilateral moratorium on customs duties on electronic transmissions at the World Trade Organization (WTO).
- Guatemala has committed to take effective actions to implement the Joint Initiative on Services Domestic Regulation.
- Guatemala has committed to continue facilitating trade, including by following best practices in customs, and adopt and implement good regulatory practices.
- Guatemala has committed to protect internationally recognized labor rights. In furtherance of this commitment, Guatemala will prohibit the importation of goods produced by forced or compulsory labor and strengthen its labor laws and their enforcement.
- Guatemala has committed to adopt and maintain high levels of environmental protection and to effectively enforce its environmental laws. Guatemala has also committed to take measures to improve forest sector governance and combat illegal logging, strengthen enforcement of its fisheries-related measures, combat illegal wildlife trade and illegal mining, and fully implement the WTO Agreement on Fisheries Subsidies.
- Guatemala has committed to address potential distortionary actions of state-owned enterprises and to address industrial subsidies that may have an impact on the bilateral trading relationship.
- Guatemala has committed to strengthen economic and national security cooperation to enhance supply chain resilience and innovation through complementary actions to address non-market policies of other countries, as well as addressing duty evasion and cooperating on investment security and export controls.
- Guatemala has committed to take steps to restrict access to central level procurement covered by its free trade agreement commitments for suppliers from non-free trade agreement partners, permitting exemptions as necessary, in a manner comparable to the United States' procurement restrictions.
In the coming weeks, the United States and Guatemala will work to finalize the Agreement, prepare the Agreement for signature, and undertake domestic formalities in advance of the Agreement entering into force. Given Guatemala's commitment to take significant steps to advance a stronger and more reciprocal trade relationship, the United States will remove the reciprocal tariffs on Guatemala's exports to the United States for certain qualifying exports that cannot be grown, mined, or naturally produced in the United States in sufficient quantities, as well as certain products, such as textiles and apparel products, originating under the CAFTA-DR. The United States and Guatemala look forward to closing the Agreement soon.
