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Guatemala

Guatemala. International Sales Close to Home Trade Americas Conference - Denver April 2006. Guatemala - Political. Peace Accords signed in 1996, ending 36-year Civil War President Oscar Berger – 2004-08 Dramatic decrease in military expenditures

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Guatemala

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  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. 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 Central America -Regional Industry Sectors

  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 Int’l 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 • Int’l 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@mail.doc.gov • Costa Rica/Nicaragua – Jim McCarthy • james.mccarthy@mail.doc.gov • Guatemala/Honduras – Mitch Larsen mitch.larsen@mail.doc.gov • El Salvador – Mary Boscia • mary.boscia@mail.doc.gov

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