Guatemala Adheres to the Free Trade Agreement Between Central America and the Republic of Korea

President Giammattei pointed out how this will contribute to the country's economic development.

by Pamela Contreras

Guatemala City, by Yuliza Muñoz -AGN-. President Alejandro Giammattei participated in the signing of Guatemala’s accession to the Free Trade Agreement -FTA- between the Republics of Central America and the Republic of Korea.

During his address, the president explained that this action strengthens the strategies planned to improve the country’s competitiveness and economic development.

He stated, “It is an honor to witness this event. It is an event that certainly opens the path of our history. It marks a landmark in our commercial relations. It reflects our commitment to the prosperity and development of all Guatemalans. It will undoubtedly benefit millions of citizens in all countries.”

He also explained that his administration pursued plans for the country’s growth based on the five pillars of the General Government Policy 2020-2024. The document established measures to promote the stimulation of Guatemalan exports, which were about to reach a 50% increase during the last four years.

The accession to this treaty is aimed at strengthening trade relations with Korea and Central American countries. It is also a significant achievement for Guatemala and the region.

Trade relation with Korea

President Giammattei emphasized that the Republic of Korea has been an important ally for the country’s imports and exports. He highlighted that proof of this work is that in 2022, there were USD 163 million in exports to that Asian country and USD 390 million in imports.

Free Trade Agreement

Treaties are created when two or more nations join in terms of trade. Nations agree on customs duties and taxes the countries impose on imports and exports.

Therefore, this agreement reduces barriers to trade exchanges between nations. In a free trade policy, the purchase and sale of goods and services across international borders are facilitated through tariffs, fees, subsidies, or prohibitions.

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