My presentation for todays South Gate Trade event... Doing Business in Guatemala I want to tell you much about doing business in Guatemala, but before we get into that, I want to present a brief market overview of this great country. Market Overview: • Guatemala is at the center of a large regional market for U.S. goods and services • The United States is Guatemala’s main trading partner • Guatemala’s GDP reached an estimated USD 46.8 billion in 2011 • Approximately 150 U.S firms have a presence in the Guatemala market • The largest country in Central America and accounts for more than one-third of the region’s GDP Next I would like to present both the challenges and opportunities the country has. Market Challenges and Opportunities: • Violent crime and weak judicial institutions remain serious challenges • Corruption, impunity, worker rights, protection of intellectual property, food security, education, and deep socio-economic divisions are also challenges • Most hurdles in exporting tend to bureaucratic in nature • In October 2010, a major regulation was established to prevent money laundering • The signing of the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) by the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua in August 2004 was giant step toward greater economic integration between the U.S. and these Central American and Caribbean nations • Under CAFTA-DR, nearly 92% U.S exports enter Guatemala duty-free • Nearly all textile and apparel goods that meet the agreement’s rules of origin are now traded duty-free and quota-free • Guatemala will eliminate nearly all tariff in agricultural products in 2012 Based on the current state of the market, its challenges and opportunities, and the direction the country is heading under its new political leader, here is an insight into market entry strategy. Market Entry Strategy: • If the country continues to work toward free trade as well as providing toward personal and investment security, U.S. Companies can expect a growing market in Guatemala • Part of the reality is that Guatemala has serious challenges, with low education levels topping the list • The other part is that there is a relative stability. Regional integration and CAFTA-DR will spur investment, growth, trade, and increased market opportunities for U.S. firms. President Obama announced the National Export Initiative (NEI - export.gov) two years ago, with the goal of doubling exports by 2014. U.S. embassies are committed to supporting U.S. companies to start exporting or grow their exports to Guatemala. In this section, you’ll find a quick description of Guatemala as an export market and some suggestions for getting started. Exporting to Guatemala: Getting Started 1. Visit the export.gov page on Guatemala (export.gov/guatemala/) to get an overview of economic conditions and opportunities. Access the U.S. Commercial Service Market Research Library containing more than 100,000 industry and country-specific market reports, authored by our specialists working in overseas posts. The Library Includes: • Country Commercial Guides (read latest “Doing Business In” guides) • Industry Overviews* • Market Updates* • Multilateral Development Bank Reports* • Best Markets* • Industry/Regional Reports* 2. Contact your local U.S. Export Assistance Center for advice and support on exporting to Guatemala. Contact a Trade Specialist Near You: export.gov/eac/index.asp 3. Contact your local Small Business Development Center (SBDCs). Starting a business can be a challenge, but there is help for you in your area. Small Business Development Centers (SBDCs) are partnerships primarily between the government and colleges/universities administered by the Small Business Administration and aims at giving educational services for small business owners and aspiring entrepreneurs. 4. Contact in-country business support organizations such as the American Chamber of Commerce in Guatemala (amchamguate). 5. Make use of business matchmaking services – MyBusinessMatches 6. Contact your local Hispanic Chamber of Commerce Presented by: The Regional Hispanic Chamber of Commerce Sandy Cajas President & CEO [email protected] RegionalHispaniccc.org
Posted on: Fri, 07 Jun 2013 14:31:59 +0000
Trending Topics
Recently Viewed Topics
© 2015