In the presence of the President of this country, Alejandro Giammattei, authorities from the Ministry of Economy (Mineco) signed the protocol between the parties, official media reported.
The treaty is of strategic importance for the country and regional trade as it expands investment opportunities and the exchange of goods for the isthmus states, the President emphasized at the event.
This decision means that 80 percent of products imported without paying taxes, 15 percent will undergo a reduction process of three to 19 years until tariffs fall to zero, and the rest will be excluded from the benefits, the Central American quoted Journal.
“It promises numerous challenges, as Guatemala sold more than $163 million abroad and imported $390 million in 2022. Figures that can grow in the future with optimism,” emphasized Mineco boss Luz Pérez.
Some products that will increase access to Korea include coffee, spices, cardamom, grains, palm oil seeds, raw sugar, cocoa and its derivatives, he described.
There was also the production of plastic, wood, glass, clothing textiles, shoes, marble, metallurgy, tobacco, salt and petroleum derivatives.
He named the eligible imports: wheat, concrete, fireworks, photographic products, lead compounds, gypsum, hydrated lime, mineral oils, hydrogen, medicines, paints and varnishes, perfumes and toilet water.
The event was also attended by representatives of the Ministry of Trade, Industry and Energy of South Korea, the Minister of Economic Development of the Republic of Honduras and the Vice Minister of Integration and Foreign Trade of Guatemala.
Guatemala was among the countries that had negotiated the free trade agreement with the Asian territory as a bloc, but had to postpone its entry due to a series of outstanding issues related to local “sensitive products.”
On September 30, 2021, they resumed talks and issued a message warning against negotiations between technical teams from South Korea and Central America.
This country sends ferronickel, coffee, bananas, aluminum, nickel, copper, electric batteries, lead, cotton and corrugated cardboard to this Asian country.
In addition, it is already South Korea's first trading partner in Central America, while in the opposite direction comes one of the most important foreign direct investments.
In 2022, Guatemala exported goods worth 163 million dollars and from there imports amounted to 390 million dollars of the same currency.
ro/znc