EU Statement at the Trade Policy Review of Guatemala, 12 November 2025
On behalf of the European Union, I would like to welcome Guatemala's Delegation, led by Mr. HÉCTOR JOSE MARROQUÍN MORA, Deputy Minister of Integration and Foreign Trade, and H. E. Eduardo Ernesto SPERISEN-YURT and his team in Geneva. I would also like to thank the Discussant, H.E. Mr Dacio CASTILLO (Ambassador of Honduras) for the introductory remarks.
Mr Chair,
The EU welcomes this opportunity to review the developments in Guatemala's trade policies and practices. Let me begin by acknowledging Guatemala's very good economic results, which place it among the countries with the best macroeconomic indicators in the region. Guatemala has demonstrated remarkable resilience to external shocks, maintaining economic stability even in challenging global circumstances.
Despite the importance that the Government of Guatemala attaches to foreign trade, we note that trade remains rather concentrated in terms of products and trading partners, and accounts for a relatively low share of national GDP. While Guatemala is considered an upper middle-income country, it continues to face significant challenges with a high share of poverty and inequality affecting its population.
The EU and Guatemala have maintained close relations for decades, illustrated by our growing trade relations, underpinned by our Association Agreement and regional dialogue with Central America, and extensive cooperation. Guatemala is a very important partner for the EU in Latin America.
EU-Guatemala trade flows have doubled in the last 10 years, and EU investment in Guatemala has almost tripled. Total trade between the EU and Guatemala attained a level of EUR 2.93 billion in 2024. The EU is Guatemala's fourth-largest export destination, reflecting the strength and potential of our economic partnership.
However, the EU believes that ensuring this macroeconomic health translates into better living conditions for all people, especially in rural and indigenous communities, remains a significant challenge. It is concerning that poverty still affects over 50% of the population. The EU believes that sustainable and inclusive development, a green and just transition, and the promotion of responsible and sustainable value chains are essential to improving living conditions.
A number of interlocutors have highlighted the need for more Foreign Direct Investment in Guatemala, including from the EU countries. The best guarantee for attracting investment is a favourable legal framework and a stable political, social, and economic environment.
The EU continues supporting bilateral trade with Guatemala and reminds of the importance of further collaboration to boost trade opportunities, by facilitating trade in areas such as sanitary and phytosanitary measures and market access.
The EU appreciates Guatemala's commitment to the WTO and its participation in various initiatives, including the Investment Facilitation for Development Agreement. We welcome that Guatemala is part of the Multi-Party Interim Appeal Arbitration (MPIA) arrangement that provides a temporary framework for resolving WTO disputes. We encourage Guatemala to consider joining plurilateral agreements (e.g. such as the WTO Government Procurement Agreement to which Guatemala recently became an observer) and other initiatives that could enhance its integration into global value chains. We look forward to working constructively with Guatemala on the WTO reform.
Chair,
While we acknowledge Guatemala's efforts and progress, allow me to highlight some areas where the EU sees room for improvement and which are of particular interest to EU companies and Member States.
First, regarding trade facilitation, the EU notes that the full implementation of the Single Window for Foreign Trade (VUCE) and the establishment of integrated border posts remain pending. We encourage Guatemala to accelerate its efforts to fully comply with its commitments under the Trade Facilitation Agreement and to ensure comprehensive use of the Central American Digital Trade Platform to prevent bottlenecks in regional trade.
Second, in the area of sanitary and phytosanitary measures, we encourage Guatemala to fully implement the principle of recognizing pest- or disease-free zones as established in the WTO SPS Agreement, particularly when importing products from the EU. Additionally, we note that the Competition Law, enacted over a year ago, still awaits implementing regulations. We urge Guatemala to expedite this process to ensure the law becomes fully effective.
Third, regarding government procurement, we encourage Guatemala to enhance transparency and accessibility in its procurement system, particularly for foreign suppliers. As already mentioned, we would also invite Guatemala to consider acceding to the WTO Government Procurement Agreement, which would provide additional opportunities for both Guatemalan and international businesses.
Finally, in the area of intellectual property rights, we note that Guatemala still lacks specific legislation on plant varieties and encourage the development of a comprehensive framework. We also believe that developing geographical indications for agricultural and artisanal products could contribute significantly to rural development and the preservation of Guatemala's rich cultural heritage.
In conclusion, the EU values its partnership with Guatemala and remains committed to supporting the country's economic development and integration into global markets. We look forward to continued dialogue and cooperation to address these challenges together.
On behalf of the EU, I look forward to a constructive exchange of views during this review and wish Guatemala's delegation the utmost success during its 4th Trade Policy Review.