Guatemala

1
Guatemala
International Sales Close to HomeTrade
Americas Conference - DenverApril 2006
2
Guatemala - Political

• Peace Accords signed in 1996, ending 36-year
  Civil War
• President Oscar Berger 2004-08
• Dramatic decrease in military expenditures
• Largest indigenous population in Central America
• New Organized Crime Law
• Economic Growth vs. Population Growth Education
  and Health Challenges

3
Guatemala - Economy

• Largest economy in Central America
• Economy nearly completely privatized
• Record remittances in 2005
• CAFTA ??
• Tax collections approximately 10 of GDP
• Tariffs relatively low 1-17 for almost all
  products
• VAT 12
• BB Credit Rating February 2006
• World Bank Credit Program 2005-08
• Rapidly negotiating FTAs globally

4
Guatemala - Commercial

• Regional Leaders LaFragua/Pais, Pollo Campero,
  Cementos Progreso
• New Foreign Investment WalMart, GE, Bayer,
  etcetera
• Strong U.S. Export Growth to Guatemala
• Customs agreements with El Salvador Honduras
• Nearly half of imports from U.S.
• Tourism development Ecotourism (Survivor) Mayan
  Culture Volcanoes Sailfishing
• Major Projects Airports, Ports, Roads,
  Environmental, Ecotourism

5
Guatemala - Challenges

• Income Disparity
• Security
• Corruption / Rule of Law / Transparency
• Judicial Reform
• Investment Attraction (!!)
• Economic Growth versus population growth
• Healthcare education
• Unemployment / underemployment
• Startups / SMEs

6
Opportunities Best Prospect Industries

• Automotive parts and service equipment
• Food processing/packaging eq. Processed foods
• Electric power generation / distribution
  equipment
• Hotel and restaurant equipment
• Franchising
• Security and safety equipment and services
• Telecommunications
• Construction equipment
• Textile machinery/fabrics
• Computers/peripherals/software/IT services

7
Central America -Regional Industry Sectors

• Apparel, Textiles Equip
• Automotive Parts and Service Equip
• Information Technologies
• Infrastructure and Construction

• Food Processing Packaging
• Franchising
• Hotel Restaurant Equip
• Medical Equip Pharmaceuticals
• Telecom Equip Services

8
Events Central America

• Secretary of Commerce CAFTA Trade Mission Oct.
  2005
• USTDA Definitional Missions (Energy, Transport,
  IT) Various
• ExpoManufactura (NAFTA-CAFTA), Monterrey Mar.
  2006
• CAFTA Summit, Houston, TX Apr. 2006
• Western Hemisphere SCO Conference, Denver May
  2006
• Enterprise Florida Trade Mission, Guatemala May
  2006
• US Chamber/TradeRoots/Alabama Mission,
  Guat/Sal May 2006
• Central America Retail Promotion Late 2006

9
Central America Intl Buyer Program Events

• Waste Expo IBP, Las Vegas April
• Food Marketing Institute (FMI) IBP, Chicago May
• National Hardware Show IBP, Las Vegas May
• National Restaurant Association IBP, Chicago May
• Intl Franchise Expo IBP, Washington, DC June
• Clinical Laboratory Expo IBP, Orlando July
• MAGIC International IBP (Apparel), Las
  Vegas August
• World of Concrete IBP, Las Vegas January
• AAIW Auto Industry Week IBP, Las Vegas November

10

• CONTACTS
• Central America Dan Thompson
• daniel.thompson_at_mail.doc.gov
• Costa Rica/Nicaragua Jim McCarthy
• james.mccarthy_at_mail.doc.gov
• Guatemala/Honduras Mitch Larsen
• mitch.larsen_at_mail.doc.gov
• El Salvador Mary Boscia
• mary.boscia_at_mail.doc.gov