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U.S. and Guatemala Reach Framework to Expand Trade

Trade Update • Nov. 14, 2025

Key Points

  • The U.S. and Guatemala agreed on a framework to strengthen trade under CAFTA-DR.
  • Guatemala will remove barriers for U.S. exports, including medical devices, pharmaceuticals, and automotive products.
  • The agreement strengthens intellectual property, digital trade, labor, and environmental protections.
  • Guatemala will improve supply chain security, procurement rules, and industrial subsidy oversight.
  • Certain U.S. tariffs on qualifying Guatemalan exports, such as textiles and apparel, will be removed.
Two hands shaking with the flags of the United States and Guatemala in the background, symbolizing a new reciprocal trade framework

The U.S. and Guatemala agreed on a reciprocal trade framework to enhance their economic relationship. The framework sets commitments for Guatemala to reduce trade barriers, improve regulatory processes, and expand access for U.S. exports. It strengthens intellectual property protections, digital trade rules, labor rights, and environmental standards.

According to the agreement, the U.S. will remove tariffs on qualifying Guatemalan exports, including textiles, apparel, and other CAFTA-DR products. Also, it outlines the following commitments by Guatemala.

Trade and Regulatory Measures

  • Streamline approvals for U.S. exports, including pharmaceuticals and medical devices.
  • Remove restrictions on remanufactured goods and align auto standards with the U.S.
  • Simplify product registration and accept electronic certificates of free sale.

Agriculture and Food Products

  • Prevent barriers to U.S. agricultural exports
  • Accept U.S. regulatory certificates
  • Maintain science-based approval processes

Intellectual Property

  • Implement international IP treaties fully.
  • Resolve long-standing IP issues.
  • Ensure fair use of geographical indications for cheese and meat.

Digital Trade

  • Guatemala will not impose discriminatory digital taxes
  • Will allow cross-border data transfers
  • Support the WTO moratorium on customs duties for electronic transmissions

Labor and Environment

  • Enforce labor laws and prohibit goods from forced labor.
  • Maintain high environmental standards, combat illegal logging, mining, and wildlife trade, and improve forest and fisheries governance.

Procurement and Tariffs

Central-level procurement will favor FTA partners with necessary exemptions. Also, as mentioned earlier, the U.S. will remove tariffs on qualifying Guatemalan exports.

The agreement will soon be finalized and signed.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.

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