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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

International Sales Close to HomeTrade Americas Conference - DenverApril 2006


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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


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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


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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


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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


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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


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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


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Events – Central America

  • Secretary of Commerce CAFTA Trade MissionOct. 2005

  • USTDA Definitional Missions (Energy, Transport, IT)Various

  • ExpoManufactura (NAFTA-CAFTA), MonterreyMar. 2006

  • CAFTA Summit, Houston, TXApr. 2006

  • Western Hemisphere SCO Conference, DenverMay 2006

  • Enterprise Florida Trade Mission, GuatemalaMay 2006

  • US Chamber/TradeRoots/Alabama Mission, Guat/SalMay 2006

  • Central America Retail PromotionLate 2006


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Central America Int’l Buyer Program Events

  • Waste Expo IBP, Las VegasApril

  • Food Marketing Institute (FMI) IBP, ChicagoMay

  • National Hardware Show IBP, Las VegasMay

  • National Restaurant Association IBP, ChicagoMay

  • Int’l Franchise Expo IBP, Washington, DCJune

  • Clinical Laboratory Expo IBP, OrlandoJuly

  • MAGIC International IBP (Apparel), Las VegasAugust

  • World of Concrete IBP, Las VegasJanuary

  • AAIW Auto Industry Week IBP, Las VegasNovember


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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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