US inks reciprocal trade agreement with Guatemala

“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 Ambassador Greer in a USTR release.

USTR Jamieson Greer and Guatemala’s Minister of Economy Adriana Gabriela Garcia recently signed the US-Guatemala Agreement on Reciprocal Trade.
The agreement addresses trade barriers facing American workers and producers, expands and solidifies markets for US exports and strengthens strategic economic ties in the Western Hemisphere, Greer said.
US trade body NCTO welcomed the signing.

The agreement addresses trade barriers facing American workers and producers, expands and solidifies markets for US exports and strengthens strategic economic ties in the Western Hemisphere, he said.

“This agreement builds on our long-standing trade relationship and shared interest in reinforcing regional supply chains,” he added.

The key terms of the agreement includes breaking down non-tariff barriers for US industrial and exports, advancing trade facilitation and sound regulatory practices; protecting and enforcing intellectual property; preventing barriers for digital trade; improving labour standards; strengthening environmental protection; strengthening economic security alignment; and confronting state-owned enterprises and subsidies.

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 US procurement restrictions.

Welcoming the announcement, National Council of Textile Organizations (NCTO) president and chief executive officer Kim Glas said the agreement marks an important step toward strengthening the US textile supply chain.

“Guatemala is a key partner in the CAFTA-DR [Dominican Republic-Central America-United States Free Trade Agreement] region, with nearly $2 billion in two-way textile and apparel trade. Together, the region operates as an integrated co-production platform that is essential to the US textile supply chain,” he noted.

The US-Western Hemisphere textile and apparel supply chain remains ‘a critical strategic alternative’ to China and other Asian producers, he added.

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