The United States and Guatemala have reached a framework for an agreement on reciprocal trade, aiming to enhance their economic partnership. This new arrangement builds on the existing Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), which has governed trade between the two countries since 2006.
According to a joint statement, both governments will finalize the details of the agreement in the coming weeks, prepare it for signature, and complete necessary domestic procedures before it comes into effect. The United States has agreed to remove reciprocal tariffs on certain Guatemalan exports that cannot be sufficiently produced domestically in the U.S., as well as specific products like textiles and apparel that fall under CAFTA-DR provisions.
Both parties expressed optimism about concluding the agreement soon. The statement reads: "In the coming weeks, the United States and Guatemala will work to finalize the Agreement, prepare the Agreement for signature, and undertake domestic formalities in advance of the Agreement entering into force. Given Guatemala’s commitment to take significant steps to advance a stronger and more reciprocal trade relationship, the United States will remove the reciprocal tariffs on Guatemala’s exports to the United States for certain qualifying exports that cannot be grown, mined, or naturally produced in the United States in sufficient quantities, as well as certain products, such as textiles and apparel products, originating under the CAFTA-DR. The United States and Guatemala look forward to closing the Agreement soon."
