Doing Business & Investing in Guatemala by AmCham Guatemala

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Board of Directors 2016 Juan Pablo Carrasco · Central Law President María Stella de Aragón· 3M 1st. Vicepresident Nicholas Virzi · Consultant 2nd. Vicepresident Ana Chan · Walmart México y Centroamérica 1st. Secretary Salvador Leiva · Pan American Life de Guatemala 2nd. Secretary Marcelo Bobadilla · Consultant 1st. Treasurer Rodolfo Saenz · United Airlines 2nd. Treasurer Odalis Guzmán · Hotel Real Intercontinental Vocal Michael Realini · Latinamerican Resources Vocal Rodrigo Gavarrete · Central Distribuidora S.A. Vocal

5 avenida 5-55 zona 14, Edificio Europlaza Torre 1 Nivel 5 Oficina 501-502 PBX: 2417-0800 www.amchamguate.com Published by: AmCham Guatemala

Mario Nathusius · Cemaco Vocal Gustavo Salas · PepsiCo Vocal Alejandro López · McDonald’s Vocal Stephen Miller · Helps International Vocal Roberto Castañeda · Planesa Vocal Nicole DeSilvis · United States Embassy in Guatemala ExOfficio Vocal Waleska Sterkel · AmCham Executive Director

Editorial Board Nicholas Virzi · Vice-President Waleska Sterkel · Executive Director Mariangel Ruiz · Communication Coordinator Gabriela Flores · Publication Coordinator Maria Inés Valle Balsells · Trade Center Coordinator Jimena Nitsch · Design and layout Ilma Bayo · Translator

Writers Michael Tutt

Omar Pérez

José Oribe

Rubén Morales

Arias

Juan Carlos Zapata

Nicholas Virzi

Fanny D. Estrada

Hugo Maúl

Enrique Godoy

Roberto Castañeda

Acisclo Valladares

Salvador Leiva

Antonio Malouf

Intermud

Fernando Suriano

Ana Chan

Virginia Servent

Cristina Sandoval

Nikki Bahr

by Juan Pablo Carrasco de Groote President, Amcham

Dear Member: In 2017 we will celebrate the 50th Anniversary of the Guatemalan-American Chamber of Commerce, -AmCham-, 50 years of an organization created by a small group of American business persons who shared the vision to create and promote investment and trade between Guatemala and the United States. 50 years back, these business persons probably never imagined how far their dream would reach. Today, the original 25 member companies have become over 500 national and international member companies, which makes us the largest bi-national chamber of Guatemala. During this time, AmCham’s roster has included several leading business persons and has been headed by 29 Presidents who have donated long hours of work, enthusiasm and vision to promote investment and trade between our country and our main trading partner, the United States. After half a century of work, we bring to you a mature and experienced Chamber; we not only have done things, but we have done them right. We are a stronger and more influential organization, capable of supporting development through a positive vision of the changes needed to build an improved Guatemala and to consolidate a stronger trade relationship between our country and the United States. For all of the above, I am pleased to invite our readers to join our vision as a leading organization that is proactive and capable of having a positive long-term impact through the promotion of trade relations between Guatemala and the United States. Let’s contribute to the construction of a prosperous future with development opportunities for all, and let’s continue to give that extra mile that characterizes the Guatemalan people. Sincerely,

Juan Pablo Carrasco de Groote President, AmCham

Waleska Sterkel de Ortiz Executive Director

The American Chamber of Commerce in Guatemala is a private, non-profit organization, conformed by business people interested in serving the community, and in the promotion of investment and trade between the United States and Guatemala. AmCham works through its member companies performing a wide range of activities. Our Creed: AmCham believes that economic development is essential to the progress and welfare. We believe that the key is the individual effort and initiative of every member of society. The rule of law, respect for property and individual liberties must be guaranteed by the authorities, and are essential to achieve a better standard of living in the country. We are:

Your Concierge for business AmCham

• • • • • • • • •

Double membership with the U.S. Chamber of Comerce. Improves productivity through training and education. Offers business tools Arrange US and Guatemalan government engagements Promotes bilateral trade Provides information for effective business decisions Organizes business meetings and events Facilitates Networking Provides key business contacts Contact us: American Chamber of Commerce in Guatemala 5ª. Avenida 5-55, Zona 14, Edif. Europlaza World Business Centre Torre 1, Niv. 5 PBX: (502) 2417-0800 wsterkel@amchamguatemala.com / www.amchamguate.com

Jimmy Morales Congratulations p. 12 President of Guatemala ASCABI’S Congratulations p. 14 Bilateral Chambers José Orive’s Congratulations p. 16 Amcham’s Ex-President

Investor´s Guide Arias p. 18 Guatemala Macroeconomic Data Nicholas Virzi – AmCham p. 22 Ease in Doing Business Once More Hugo Maúl – CIEN p. 26 Why Invest in The Agro- Industrial Sector in Guatemala Roberto Castañeda - Planesa p. 28 Pan American Life of Guatemala: More than a Century of Confidence in the Guatemalan Market Salvador Leiva – Pan American Life Guatemala p.32 Home Search & Assistance Intermud p. 34 The Urban Agenda, Human Development and Intermediate Cities Enrique Godoy - PRONACOM p. 38 How Does the CSR Impact a Multinational Company? Ana Chan – Walmart p. 40

Benefits a Decade After the Signature of DR-CAFTA p. 60 Rubén Morales- Minister of Economy of Guatemala What is “Mejoremos Guate” (Impoving Guate)? p. 64 Juan Carlos Zapata – FUNDESA Export Diversification p. 66 Fanny D. Estrada – AGEXPORT Importance of Trade between Guatemala and U.S. p. 68 Antonio Malouf - CACIF Alliance for Prosperity of the North Triangle: A Plan for Every Citizen p. 70 Acisclo Valladares- PRONACOM Competitiveness and Public Policy p. 74 Fernando Suriano- PRONACOM Interview with Mr. Ramón Parellada p. 78 Ramón Parellada (CEES Director) – by Luisa María Yax Competitiveness Law p. 80 Sigfrido Lee (CIEN)-by Hiba Jweiles Trade Relations between Guatemala and the United States p.84 Waleska Sterkel (AmCham) – by Kristel Haeussler How Counterfeiting and Piracy Directly Affect a Country’s Econmic Development p. 86 Virginia Servent – Fox International Channels

Sustainability: A Door Opener When Investing in Guatemala p. 90 Nikki Bahr - Sustaintable Srategies

Basic Requirements for Importing goods to Guatemala p. 46 Basic Requirements for Exporting from Guatemala p. 50 Scope of the New Legislation on Migration; Guatemala Cristina Sandoval- Consortium p. 54 Fiscal Obligations and Taxes for Business in Guatemala Omar Pérez – UHY Pérez & Co. p 58

Usefull Website p. 94 Amercian Emabassies Contacts p.94 American Chamber of Comerce of the United States of America Contact p. 94 Contacts for Trade Commissioners -PACIT p. 95 Contacts for AmCham’s in Central America p. 95

BUILDING TRADE IN GUATEMALA

AmCham was created on May 25, 1967 in recognition of the need for promoting trade relations between the United States and Guatemala and the opportunities this represents

A group of American citizens began meeting 50 years ago to try to do business with their native country.

MISSION To promote commercial relations between Guatemala and the United States by strengthening economic activities and the free enterprise, and to move ahead the legitimate interests of its members, encouraging social responsibility.

Over these 50 years, AmCham has had 29 presidents, each of whom has made a difference in his own way.

VISION To be a leading and proactive organization, able to have a long-term and positive impact on its members, the community, and the government, through the promotion of trade relations between the US and Guatemala..

lo largo de nuestra vida, algunos de ellos son sueños personales, otros familiares y en algunos casos, colectivos.

Quiero reconocer el liderazgo y el compro miso de cada miembro de AMCHAM, estoy consciente que cada uno de ustedes ha asumido con valentía el reto de promover un crecimiento económico más Los sueños personales nos motivan a crecer favorable para nuestra sociedad; su compromiso nos internamente, a superar nuestros temores y a creer en motiva a trabajar de la mano por una Guatemala nuestras fortalezas; los sueños familiares nos motivan diferente, una Guatemala con mejor calidad de vida y a estrechar lazos de hermandad para superar las con oportunidades para generar desarrollo y bienestar. adversidades y alcanzar niveles de bienestar común; y los sueños colectivos nos inspiran a pensar en grande, Los insto a que continúen trabajando arduamente, el a construir futuros para toda una sociedad y a luchar éxito cosechado en estas cinco décadas es un legado por el éxito de las grandes mayorías. que ustedes dejarán a las futuras generaciones, un Pero esos sueños en algún momento se hacen realidad y legado que servirá de inspiración para nuevos actores estoy seguro que la Cámara de Comercio Guatemalteco económicos, muchos de ellos emergentes pero que con Americana, hace 50 años soñó en grande y hoy está una dosis de visión y perseverancia multiplicarán las cosechando grandes logros para todo un sector oportunidades que todos anhelamos para facilitar el económico que confió e invirtió en este bello país empleo, la inversión y la competitividad. llamado Guatemala, el País de la Eterna Primavera. Medio siglo de arduo trabajo son el referente para Seamos entonces actores de cambio; cada uno desde su permitirme manifestar una sincera y extensiva espacio de competencia, pero todos al unísono bajo la felicitación a todos los miembros de AMCHAM, que premisa de dejar un país diferente al que heredamos. siempre se han distinguido por su perseverancia, Soñemos con un país de oportunidades, un país profesionalismo y una visión empresarial de justo en donde se privilegie el respeto a los derechos vanguardia, apegada al dinámico mundo de la humanos y se promueva la ética como forma de vida. globalización. Bill Gates, el empresario y filántropo estadounidense dijo: “El secreto del éxito en los negocios está en detectar hacia donde va el mundo y llegar ahí primero”, y AMCHAM hizo lo correcto hace 50 años, es decir, se anticipó a las dinámicas del comercio internacional en la región y estableció con visión de futuro un escenario propicio para la inversión, la competitividad y el desarrollo empresarial.

PALABRAS DE FELICITACIÓN 50 ANIVERSARIO CÁMARA DE COMERCIO GUATEMALTECO AMERICANA -AMCHAMPRESIDENTE DE LA REPÚBLICA, JIMMY MORALES

Colin Powell, el diplomático y político estadounidense, dijo en alguna ocasión lo siguiente: “un sueño no se hace realidad mágicamente; se necesita sudar, determinación y trabajo duro”. Y este pensamiento me hace reflexionar sobre los grandes sueños que como seres humanos tenemos a

Las relaciones comerciales entre Guatemala y Estados Unidos se han fortalecido en las últimas décadas y esa alianza entre ambos países en gran medida es resultado de la mística de desarrollo que AMCHAM ha venido impulsando de la mano de sectores que diariamente producen e invierten en nuestro país.

No me cabe la menor duda que AMCHAM seguirá siendo por muchas décadas más, un actor de cambio, un promotor del desarrollo y un aliado fundamental para la prosperidad económica. Mis mejores deseos para ustedes; cuenten con el apoyo del Gobierno de Guatemala, nosotros al igual que ustedes tenemos un gran compromiso y nuestro compromiso es con Guatemala! Congratulaciones por estos 50 años de espíritu empresarial, 50 años de éxito gremial que se traducen en cinco décadas de sueños convertidos en realidad! Atentamente, Lic. Jimmy Morales Presidente Constitucional de la República de Guatemala

THIS ECONOMIC BLOC REPRESENTS THE LARGEST NUMBER OF BUSINESSES AND INVESTMENTS IN THE COUNTRY.

From the outset, the chambers associated to ASCABI have established international trade relations, which has helped promote investment in Guatemala.

by Michael Tutt Ascabi’s Ex-President

The Association of Binational Chambers of Commerce (known by its Spanish acronym as ASCABI) was created to make joint efforts to promote binational and national commerce and attract investments to Guatemala. ASCABI was founded on October 30, 2002. Its current members are the Binational Chambers of Commerce of Canada, China, El Salvador, France, Germany, Italy, Mexico, the Republic of China (Taiwan), Spain and the United States of America. This economic bloc represents the largest number of businesses and investments in the country. Together we account for more than 25 percent, or $1, 795,465,000, of Guatemala’s exports and more than 75 per cent, or $5,423,933.000, of its imports. (Source: Bank of Guatemala).

The Board of Directors of ASCABI expresses its heartfelt congratulations to the GuatemalanAmerican Chamber of Commerce on the 50th anniversary of its foundation and for the success it has achieved over the last five decades.

We take advantage of this happy occasion to thank AmCham for the support it has given the association from the outset. As one of the founding chambers of ASCABI, its experience, leadership and commitment have been invaluable. It has been President of ASCABI twice and has actively supported the initiatives we have promoted for fourteen years, including:

Defense of intellectual property rights with regard to test data for pharmaceuticals and agrochemicals. Mutual recognition of health registers for nonoriginating products. Follow-up of amendments to the Industrial Property Law. Participation at the 2006 Investment Forum “Essence of Opportunities”, organized by the Chamber of Industry. Participation of ASCABI on two occasions in the Course on Tools for International Trade, organized jointly with Agexport and Rafael Landívar University. Participation at the Forum on the Customs Law. Participation in the creation of a strategic partnership between the Chamber of Commerce of Guatemala and ASCABI. Creation of a strategic partnership with the School of Political Science and International Relations of Rafael Landívar University. Organization of the Mini-Expo Organization of Expo-ASCABI Organization of the Conference on Citizen Security Organization of the conference “Guatemala in the Globalized World” Initiative for implementation of the Apostille Convention in Guatemala.

Follow-up of issues regarding ratification of the Free Trade Agreement between Mexico and Central America., the Association Agreement (AA) between Central America and the European Union and reactivation and finalization of the negotiations of the FTA between Guatemala and Canada. ASCABI’s offices are currently located in the AmCham premises. This has contributed greatly to its efficiency, in addition to the periodic meetings required for implementation of the ASCABI work plan, as well as the opportunity of receiving advice and support from its different departments, including the Executive Director, Public Relations, Finance, Trade Center, Publications, Sales, Events and others.

We reiterate our appreciation and sincere congratulations and wish you great success in your activities and the achievement of your objectives. We encourage you to continue promoting and strengthening commerce in Guatemala and offering new business and investment opportunities for Guatemala and our members. CONGRATULATIONS, AMCHAM, ON YOUR 50TH ANNIVERSARY!

AmCham’s support has helped ASCABI grow and become strong, and has enhanced binational and domestic commerce. We hope to continue working together toward common goals and thus contribute to progress in Guatemala.

I would like to congratulate AmCham on the occasion of its 50th anniversary and wish it lots of success for many years to come!

José Orive AmCham’s Ex-President 2006-2008

I had the honor to serve on its Board of Directors for some time and was able to appreciate the excellent service it provides for its members and the dedication of its entire team, which always strives to give the best it can offer. May you continue reaping successes and have a well-deserved celebration of your 50th anniversary. Greetings,

system via the D’Hondt method. Guatemala has 22 administrative subdivisions (departments) which are administered by governors appointed by the President of the republic and 332 municipalities with elected mayors and city councils. The Head of State is President Jimmy Morales since the general elections of2015.

Authors: José Augusto Toledo, Partner. Vivian Morales, Associate. Ligia Salazar, Associate. Cynthia Soto, Associate. Iraida Herrera

Guatemala, constitutionally, is a democratic and representative republic. Guatemala’s 1985 constitution provides for a separation of powers among the executive, legislative, and judicial branches of government. The executive power is exercised solely by the government, directed by the president. The legislative power is unicameral and is vested in both the government and the Congress of the Republic; and the judicial power is independent from both the executive and the legislative powers, with 13 members forming the Supreme Court of Justice that serve a 5 year term. Guatemala has a civil law system with a judicial review of legislative acts. The President of Guatemala is both head of state and head of government. The President, who must be a

The cabinet is the Council of Ministers named by the president. General elections were held on September 6, 2015. In view that no presidential candidate received more than 50% of the votes, a run-off was scheduled for October 25, 2015, where voters elected the new government office native-born lay person, is elected through popular vote for a four-year term and may not be reelected. The Constitution of Guatemala calls for a popularly elected Vice-President. The office of Vice-President provides a guarantee of presidential succession in case of the death or disability of the chief executive. The Supreme Court consists of 13 justices who are elected by Congress from a list of candidates submitted by the bar association, law school deans, a university rector, and appellate judges. The Supreme Court and local courts handle civil and criminal cases. There also exists a separate Constitutional Court which is Guatemala’s highest court. Members of Congress, which holds 158 seats, are elected through a party list proportional representation

II. GEOGRAPHY Location: Central America, bordering the North Pacific Ocean, between El Salvador and Mexico, and bordering the Gulf of Honduras and Caribbean. Total Area: Total: 108,890 sq km. Cities: Capital, Guatemala City (area Population approximately 2.5 million). Other major cities include Quetzaltenango and Escuintla. Climate: Tropical: hot, humid tropical lowlands and colder, drier highland peaks. Terrain: Two mountain chains enter Guatemala from west to east,

dividing the country into three major regions: the highlands, where the mountains are located; the Pacific coast, south of the mountains; and the Petén region, north of the mountains. All major cities are located in the highlands and Pacific coast regions; by comparison, Petén is sparsely populated Administrative Divisions: Guatemala is divided into 22 departments and sub‐divided into 340 municipalities. III. PEOPLE Nationality: Guatemalan Population: 15,189,958 (July 2016 estimate )it is the most populated country in Central America. Language: The official language is Spanish, as well as 23 non-official ethnic languages. Religion: Roman Catholic, Evangelic, indigenous Mayanbelief. IV.ECONOMY Official Currency: Quetzal Currency (code): Quetzal (GTQ), US dollar (USD), others allowed, Guatemala has enacted a Law of Free Negotiation of Foreign Currencies. Guatemala has a GDP per Capita

V. FINANCIAL SYSTEM of one-half average for Latin America and the Caribbean. The purchasing power parity GDP as of 2016 is approximately $123.3 billion; Guatemala’s GDP (PPP) per capita is US$7,900 and the real GDP growth rate is that of 3.5%. Mainly, Guatemala’s economy is dominated by the private sector, which generates about 90% of GDP. The United States is the country’s largest trading partner, providing 38.3% of Guatemala’s imports and receiving 34.91% of its exports. Given Guatemala’s large expatriate community in the United States, it is the top remittance recipient in Central America, with inflows serving as a primary source of foreign income equivalent to nearly one-half of exports or one-tenth of GDP.

PROGRAMS TO PROMOTE FOREIGN INVESTMENT, ENHANCE COMPETITIVENESS, AND EXPAND INVESTMENT IN THE EXPORT AND TOURIST SECTORS ARE WELL UNDERWAY ...

The Monetary Board is the authority responsible for the approval of the country’s monetary policy. The Bank of Guatemala was created as an autonomous entity responsible for all of the functions that correspond to a central bank such as, providing for the monetary conditions most favorable to the development of the national economy, both locally and internationally. The Bank of Guatemala has the task of promoting the management of the national banking system, and the coordination of the State’s activities of an economic and financial nature, as well as those relating to the monetary market while serving as the safeguard of the external value and convertibility of national currency as well as a good management of the international monetary reserves. The Bank of Guatemala also gives

Programs to promote foreign investment, enhance competitiveness, and expand investment in the export and tourist sectors are well underway and the implementation of the U.S.-Central AmericaDominican Republic Free Trade Agreement (CAFTADR) has led to increases in foreign direct investment inflows. Guatemala also has free trade agreements with Taiwan, Mexico, Chile and Colombia and recently with the European Union.

The Guatemalan financial system is integrated by 18 commercial banks, 13 financial institutions, 14 bonded warehouses, 6 credit card companies, 28insurance companies, 3 foreign exchange entities, 6 off shore entities, 9 stock brokers among other institutions supervised by the Bank Superintendence. These institutions give investors numerous financial services. (November 2016).

GUATEMALA’S BANKING SYSTEM IS REGULATED MAINLY BY THE FOLLOWING LEGISLATION Organic Law of the Bank of Guatemala (Decree 16-2002) Monetary Law (Decree 17-2002) Financial Supervision Law (Decree 18-2002) Banks and Financial Institutions Law (Decree 19-2002) Law Against Money or Other Assets laundering (Decree 67-2001) Law to Prevent and Repress Terrorism Financing (Decree 58-2005) Law on Free Negotiation of Foreign Exchange (Decree 94-2000) Market of Values and Merchandise Law (Decree 34-96) Monetary Securities Law (Decree 136-96)

At 10.8% of GDP (2016 est.), Guatemala’s taxes are low compared to the Latin American average. Natural resources: Oil, timber, nickel, gold. Agriculture: 13.2% of GDP and 31.2% of the labor force -- coffee, sugar, bananas, and vegetables. Industry: (23.5% of GDP): Types—sugar,prepared food, clothing and textiles, construction materials, tires, pharmaceuticals. Services (63.3% of GDP) Trade: Exports $11.43 billion (2016 estimated): coffee, bananas, sugar, crude oil, chemical products, clothing and textiles, vegetables. Major markets-- US 34.9%, El Salvador 8.4%, Honduras 7.3%, Nicaragua 5%, Canada 4.6%, Mexico 4.3%, Costa Rica 4.1% (2015) Imports: $16.76 billion (2016 estimated) :

an important place to the economic and financial information in order to benefit the economic agents. The inflation rate on consumer prices is currently at 4.6% (2016 estimate).

machinery and equipment, fuels, mineral products, chemical products, vehicles and transport materials, plastic materials and products. Imports- partners--U.S. 38.3%, Mexico 11.8%, China 13.4% El Salvador 4.9% (2015 estimated).

*Sources: http://www.indexmundi.com/guatemala/economy_ profile.html https://www.cia.gov/library/publications/the-worldfactbook/geos/gt.html http://www.sib.gob.gt http://www.pronacom.org http://www.worldbank.org/en/country/guatemala/ overview 21

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and development. Both factors help make business functions more predictable and temper the risks among which companies operate. Constant policy and regulatory changes are among the most common complaints among business people. Business owners’ perception that “things change every time the authorities change” is a constant complaint. Ultimately, this problem slows down entrepreneurial activity and affects the country’s long-term growth possibilities.

By Hugo Maúl R. Research Associate

It might sound repetitive, and perhaps it is, but the need to improve the country’s competitiveness and remove the obstacles to doing business bears repeating. The problems of insufficient investment, lack of formal employment and poverty faced by Guatemala cannot be solved with a stagnant economy, a production infrastructure that is deficient and in poor condition and the difficulties for investing, starting a 26

new business, innovating and improving productivity in the country. In this regard, one of the main macroeconomic problems besetting the country is the climate of generalized uncertainty that looms over the productive environment. Political stability and legal certainty are two essential factors for entrepreneurial growth

The absence of a relatively affordable and effective justice system affects business growth and expansion. A significant proportion of business owners, especially smaller and less productive ones, would rather miss potential businesses or resources whenever there is a breach of contract than resort to the justice system to solve the problem. This is mainly due to the fact that business owners feel that the cost of hiring a lawyer and litigating in court can be higher than the losses caused by the breach of contract or any other legal problem. There is also the perception that problems are not solved easily or fairly. Added to this is the extreme precariousness of property rights to the means of production. This precariousness, combined with social conflict, constitute powerful factors against investment, business expansion and the creation of new entrepreneurial opportunities.

THE ABSENCE OF A RELATIVELY AFFORDABLE AND EFFECTIVE JUSTICE SYSTEM AFFECTS BUSINESS GROWTH AND EXPANSION”

costs and can make it impossible to close specific business deals. As if this were not enough, one of the main limitations of competitiveness in the country is the inadequate production infrastructure. There are two main problems in this connection: the lack of a public infrastructure that supports the production process and the absence of a well-defined, long-range infrastructure policy on this issue.

It is important to realize that in this regard the development of Guatemala depends very little on an honest and capable President or on well-trained and If we add the significant degree of regulatory discretion honest parliamentarians and judges. The problems in certain areas of public administration, as well as the outlined above require the participation of every disrepute of public officials, it comes as no surprise Guatemalan, but especially a deep conviction that that many entrepreneurs would rather miss business change is possible and that in economic matters opportunities than be the victims of excess regulation. change comes about through economic growth, increased productivity, innovation and expanded The perception that formalities are drawn out and business opportunities. cumbersome and often lack a practical purpose, as well as the absence of up-to-date and centralized information regarding the different formalities required to operate a business, is still deeply ingrained among the population. This situation raises operating 27

I would like to start by thanking AmCham for this opportunity of telling the business community about our productive and commercial experience in this beautiful country.

By Roberto Castañeda President

From a historical standpoint, we must bear in mind that agriculture has existed practically forever, since its origins are prehistoric and its development came about in different cultures that practiced it, if not simultaneously, at least independently, such as the ones that arose in the Fertile Crescent (from Mesopotamia to ancient Egypt), as well as in our own Pre-Columbian cultures of Central America and the Chinese culture in East Asia.

It is worth noting that according to Bank of Guatemala (BANGUAT) and Ministry of Agriculture, Ranching and Food (MAGA by its Spanish acronym) statistics, the agricultural and ranching sector of Guatemala generated 13.6 percent of the gross domestic product (GDP) in 2014, and made a significant contribution to foreign exchange income and job generation. According to National Statistics Institute (INE by its Spanish acronym) 2012 and 2013 job and income surveys, the economically active population in Guatemala is 6.2 million persons. Of this total, agriculture employs 31.3 percent (1.9 million). Women account for 35 percent and men for 65 percent. Of the 108,889 square kilometers it covers, 26 percent are suitable for agriculture.

In this context, Guatemala has several advantages with respect to other countries in the world, particularly its favorable agro-environmental conditions, since it is located in the tropical area of the northern hemisphere, which gives it a large variety of altitudes, from sea level to 4,200 meters in altitude. It possesses about 360 microclimates, which allow it to offer a variety of quality products, in addition to enough The information on Guatemalan participation in raw materials practically year-round. This makes it a international trade is shown in the following table: country that with few exceptions is very attractive for domestic and foreign investment.

GUATEMALA: TRADE BALANCE TOTALS AND AGRICULTURAL SECTOR PERIOD: 2011 - 2015 In U.S. Dollars COUNTRIES

2011

2012

2013

2014

2015/p

TAA

2015*

2016*

TAA

TOTAL EXPORTS

10,400,892,699

9,978,703,243

10,024,794,292

10.803,467,863

10,677,367,649

0.66

6,557,574,407

6,214,311,549

-5.23

554,707,708

577,423,236

630,176,349

661,336,455

708,809,604

6.32

423,453,638

422,961,016

-0.12

16,612,984,426

16,994,375,657

17,517,930,897

18, 281,817,265

17, 639,934,124

1.51

10,249,551,366

8,268,643,712

-19.33

725,514,703

715,760,888

670,132,477

711,672,536

703,990,177

-0.75

408,756,889

375,927,017

-8.03

-6,212,091,727

-7,015,672,414

-7,493,136,605

-7,478,349,402

-6,962,566,475

-3,361,976,959

-2,054,332,163

-170,806,995

-138,337,652

-39,956,128

-50,336,081

4,819,427

14,696,769

47,033,999

AGRICULTURAL EXPORTS

RELATIVE WEIGHT

TOTAL IMPORTS

AGRICULTURAL IMPORTS

TOTAL BALANCE

AGRICULTURAL BALANCE

220.03

* AS OF JULY OF EACH YEAR ** DOES NOT INCLUDE SUGAR, BANANAS, COFFEE, CARDAMOM, RUBBER, TOBACCO AND SESAME SEEDS SOURCE: BANGUAT

As the table above shows, the behavior of total exports has remained static, with an annual growth rate of 0.66 percent during the last five years, whereas exports of the non-traditional agricultural sector have experienced a cumulative annual growth rate of 6.32 percent during the period 2011-2015. They rose from US$554.7 million to US$708.8 million and their relative participation in total exports went from 5 to 7 percent during those five years.

agricultural business and starting producing, first raspberries and later blackberries for export. This became the largest berry producing operation in Guatemala and we are now exporting strawberries and blueberries as well. To offer our customers a wider range of quality products, we expanded our investments and added the production of vegetables (snow peas, sweet peas, green beans and baby vegetables) to our exportable offerings.

The main agricultural products are: (a)Traditional products: coffee, sugar, bananas, cardamom.

These projects did not stop there. In view of the extraordinary conditions for investment in Mexico (in terms of incentives, contracting conditions and particularly the proximity to the United States market, among others), we invested in that neighboring country and in Chile. We still have confidence in our country and thus, combining our productive capacity in Mexico, Chile and Guatemala, we are able to supply fresh, healthy, quality and safe products 365 days a year.

(b)Non-traditional products: melons, pineapples, apples, lemons, plantains, papayas, blackberries, raspberries, green beans, cuttings, cauliflower, cabbage, potatoes, broccoli, tomatoes, pimientos, onions, carrots, sweet corn, flowers, foliage, crustaceans, fish and basic grains such as corn, beans and rice. Our companies’ investments date back to 1950, when my father started growing cotton. Cattle and horse breeding were added subsequently (for three decades) and I took part in these, working closely with him. After finishing my graduate studies in agronomy at Texas A&M University, considering the aforementioned variety of microclimates and Guatemala’s strategic position with respect to the United States market, the largest in the world, I had the vision of diversifying the family

I HAD THE VISION OF DIVERSIFYING THE FAMILY AGRICULTURAL BUSINESS “

We will continue investing in agricultural export crops in Guatemala, because in addition to the advisability of growing the manufacturing industry and the different services (banking, logistics, technology, etc.), human beings can never subsist without agriculture. If it were to disappear, how would they survive and develop without food?

Aldana, Rodríguez, Gómez y Asociados, S.C. Nuestra visión integra a la gestión de la firma el respeto por los valores y principios éticos, nuestros colaboradores, la comunidad y el medio ambiente. Nuestros valores: • Predicamos con el ejemplo • Respetamos a los individuos • Trabajamos juntos • Nos comunicamos de forma abierta y honesta • Investigamos los hechos y transmitimos nuestro conocimiento • Estamos comprometidos con la sociedad • Actuamos con integridad

7ª. Avenida 5-10, Zona 4 Centro Financiero, Torre I, Nivel 16 01004 PBX: (502) 2334-2628 FAX: (502) 2331-5477 kca.kpmg.com © 2017 Aldana, Rodríguez, Gómez y Asociados, S.C., es una sociedad civil guatemalteca y firma miembro de la red de firmas miembro independientes de KPMG afiliadas a KPMG International Cooperative (“KPMG International”), una entidad suiza. KPMG y el logotipo de KPMG son marcas registradas de KPMG International. Todos los derechos reservados.

THE COMPANY IS

HISTORY The initial vision for what would become the Pan-American Life Insurance Group insurance company came from a man on board of a ship carrying agricultural products from Central America to the United States. It was then, that Crawford H. Ellis from New Orleans, Louisiana, realized his passion for the people of Latin America and how important it was to offer them both personal and business insurance.

by Salvador Leiva General Manager

In 1911, Mr. Ellis shared his inspiration with three distinguished gentlemen and together they created the Pan-American Life Insurance Company, a company serving the personal and business insurance needs of people in Latin America and the United States. Pan-American Life issued its first life insurance policy in March 1912 and embarked on the path of becoming the first company recognized for serving the Americas.

In 1912 it entered the Guatemalan market, establishing a branch of Pan-American Life Insurance Company, but it was not until 1957 that it started operating formally through a branch office. In 1967 it became an affiliate under the name Compañía de Seguros Panamericana S.A., which would resume its original name, PanAmerican Life of Guatemala, in 2011, thus confirming its continued and uninterrupted presence in Guatemala until today.

DISTINGUISHED IN THE GUATEMALAN INSURANCE INDUSTRY BECAUSE IT OCCUPIES THE FIRST PLACE IN TERMS OF PREMIUMS ON THE INDIVIDUAL LIFE INSURANCE MARKET”

distinguished in the Guatemalan insurance industry because it TODAY occupies the first place in terms of premiums on the individual After more than a hundred years, life insurance market, the fourth Pan-American Life Insurance of place in medical insurance with the Guatemala still keeps its founders’ best technical performance in the original vision, offering its insured market, and the second place with financial solidity and security and the largest volume of investments, solutions that meet the life, health which exceed Q 654 million. These and personal accident insurance data place it among the ten leading needs of local and multinational companies in the country. companies and persons and families that seek financial security. It is Pan-American Life of Guatemala backed by a sound international has been the only insurance group that is present in the Company recognized by Fitch United States, Puerto Rico and has Ratings with the rating AAA (gtm) operations in Mexico, Guatemala, thanks to its position, quality, Honduras, El Salvador, Costa Rica, reliability and financial solidity. Panama, Ecuador, Colombia and 13 Caribbean islands, and employs The confidence of Pan-American more than 1,650 people. Life Insurance de Guatemala in According to Salvador Leiva, the Guatemalan service market is General Manager of Pan-American based on several factors: Life of Guatemala, the Company is

The country has long-term positive macroeconomic indicators. A long and uninterrupted company presence in the country, which has overcome various political and socio-economic factors, domestic civil confrontations and natural disasters, which assures its customers that the company is solid. The ability to adapt to different times and circumstances. Financial stability based on responsible and planned long-term management that instills confidence in our customers. A trained team with expertise in the insurance field, which translates into efficient and professional assistance. Competitive, high-quality plans, backed by more than 100 years’ experience on the market. In 2017 we will mark the 60th anniversary of Pan-American Life in Guatemala. Today, more than ever, our commitment to the Guatemalan market is clear.

INTERMUD’S RELOCATION SERVICES RELOCATION SERVICES When you are relocated to a new country, the happiness of your family is your happiness. It requires a certain ability to settle down quickly and effectibly. This is why you need a professional guidance for you and your loved ones during this process. Relocation professional can help you with moving, home search, school search, of visa services, banking and transportation solutions, etc.; basically coordinating every detail that you and your family will need in this new environment.

INCLUDE: • Familiarization Program • Emergency Kit • Temporary Accommodation • House Search Program • School Search Program • Legal Counseling (Working permit, residence permit, driver´s license, and other specific documents that your new destination requires) • Cross Cultural Training • Handyman and Cleaning Services • Pet Importation • Car Importation • Tourism • Departure Packages International Checklist When relocated, plan to learn as much as possible about the destination country, evaluating the following details: •Discover the location of services/business that are relevant for you and your family, i.e., hospitals, banks, gas stations, restaurants, supermarkets, etc. • Take climate variation into consideration; some clothing, books and family treasures can be affected by moisture or extreme temperatures in your new destination. • Learn what appliances will work in the destinations country.

By Yaneli Perdomo Business Development Manager, GMS INTERMUD, S. A. www.intermud.com e-mail: Intermud@intermud.com

Understand the following: • Culture • Laws • Immigration • Insurance coverage • Taxes • Housing options

Pre-Move visit When you are looking at housing option let a professional broker guide you through pre-selected properties • Take pictures of homes, rooms, schools, city and places of interest to show your family. • Check electric compatibility for your home appliances if you are considering using them abroad. • Locate emergency medical care providers and facilities and ask if they accept your company/ family medical insurance. • Understand the schooling cycle • Locate your home country’ s embassy • Survey supermarkets and shopping areas Arrival Action List When you arrive to the new county, take time to get familiar with the area. Places to locate • Schools and bus stops • Doctors’ and dentists’ offices • Nearest hospital’s location • Local fire and police departments • Museums, zoo and parks • Pharmacies • Veterinary office/pet hospital and pet food store • Churches • Shopping centers • Restaurants • Markets • Banks • Beauty and barber shops • Dry cleaner • Transportation Services

Driving around:

• Taxis with meter must charge you according to it, in transfers under 12kms. The fare for longer transfers may be negotiated.

When renting a car it’s important to become familiar with the street system and local driving regulations. The following is a summary of Guatemala’s traffic laws: Driver’s License: • Traffic and Transit Police are clearly identified by their bright yellow/green uniform. Only transit officers are authorized to handle traffic accidents, incidents and infraction. Drivers must carry their driver’s license, photocopy of your passport and car rental contract with you at all times. • Minimum and maximum speed limits vary and are posted throughout the highway system. • Driving under the influence of alcohol and/or drugs is strictly prohibited. The law enables transit police officers to perform alcohol tests on drivers. • Drivers and passengers not wearing seat belts, talking on mobile phones or disobeying transit signals will be fined. • Pull over if a police officer asks you to do so. They must be in a complete uniform and properly identified. • Your personal documents and the vehicle’s having previous unsolved infractions, which may result on the temporary confiscation of the car’s registration. In this case you’ll be able to recover them by simply paying the overdue tickets at the Transit Department at the municipality. • If you’re involved in an accident, always wait until a police officer or an insurance company representative arrives. Do not move your vehicle. • Under no circumstances give money to police and/ or transit officers. • If a police officer insists on detaining you or your documents without a justifiable reason, ask to be taken to the nearest police station. • When on the road, never stop at signals from individuals hitchhikers. • Make sure to park your car only in safe and/or p areas and try to always use parking lots. Remember not to leave any valuable objects visible in your vehicle. • Taxi drivers must be clearly identified with their photo and name. 36

Tourists may drive in the country with their own driver’s license. If they plan to reside in the country, they must obtain a Guatemalan driver’s license, the requirements are: • Passport • Certificated from an authorized Driving School • Certificate from an ophthalmologist • Must be 18 Years Old • Copy of passport • Document verifying their status (work contract, retired, etc…) • Driver’s license from the home country Important webpages and apps, you have to know There are certain webpages and apps with further information that will help you to know more about activities, places and other interesting things. Check them! Webpages • Páginas Amarillas (general information) www.paginasamarillas.com.gt • Dirección General de Migración www.migracion.gob.gt • Instituto Guatemalteco de Turismo (INGUAT) www.visitguatemala.com • Guatedining www.guatedining.com Apps • Cinepolis App • Emergencias Guatemala App • Guatuneed App

The world’s population is increasingly urban. The world’s economic growth and sustainable development will depend more and more on the sustainable development of those territories and the population that will live in them. By 2050, 75 percent of the Earth’s population will live in cities.

By Enrique Godoy Presidential Development Commissioner

Guatemala needs an urban agenda. At this time we do not have a public policy for urban development and cities, although the Katun 2032 identifies the need for such a policy. Guatemala is beginning an urbanization process that the rest of Latin America completed 20 years ago. The average urbanization rate in Latin America is 80 percent and Guatemala hardly exceeds 55 percent. Being the last country to undergo this process has certain advantages, such as learning the lessons of others, learning from hits and misses. The first lesson is that any country’s development necessarily requires development of its cities. There is not a single developed country that is predominantly

between the populations of both territories. Migration exerts pressure on urban centers with poor infrastructure, those that lack land-use plans and have no institutions to serve a population that seeks opportunities. For these reasons, we must People gather in cities to innovate, add value to prepare these territories to become orderly, inclusive, their products and exchange products and services competitive and resilient cities. This means limiting efficiently. Planned and orderly urban development urban sprawl and taking care of ecosystems. is a public policy priority that ensures that public services can be provided more efficiently to city Obviously, we cannot ignore the fact that a rural dwellers. This first lesson implies understanding that population will always exist. Although it will drop we need national criteria to coordinate the relationship from the current 45 percent to around 20 percent between cities and their neighborhoods. It means of the total, this means 8 million inhabitants. We building the necessary urban infrastructure in these must invest in human development (education, health and capacity building) in the cities and connectivity among them to territories where these people live generate local competitiveness. to ensure comprehensive human LET US SERVE THE development. Rural poverty is Cities range from small and mediumharsh, but urban poverty is cruel. sized ones with 10,000 to 100,000 POPULATION WHERE Not planning adequately will doom inhabitants to metropolitan regions IT LIVES WHILE WE millions of people to living in urban that will surpass one million dwellers, BUILD THE CITIES poverty belts. such as Xela and Cobán-Carchá. WHERE IT WILL LIVE “ rural and agricultural. We must build city-regions that combine urban and rural aspects in each region. This is fundamental in the Plan of the Alliance for Prosperity of the North Triangle (PAPTN by its Spanish acronym).

The second lesson is the need to design public policies that coordinate the integration between the rural and urban population in the framework of a vision for the development of people in the territory. The natural trend is for more than half of the young people in rural areas to seek better opportunities by migrating to urban areas. The path begins at the municipal capital, followed by some intermediate regional city, a nearby metropolitan region, Guatemala City or migration to the United States. The challenge is to generate development conditions in these small, medium-sized and intermediate cities to facilitate development in smaller and rural communities. It is not through isolation or confrontation between rural and urban areas that the base for development can be broadened, but rather by coordinating the relationship

The most important lesson is that achieving sustainable urban growth and implementation of an urban agenda requires institutions capable of promoting these policies. The urbanization process exceeds the capacities of municipalities and the existing institutions. The Ministry of Urban Development and Housing must implement public policies for building housing in neighborhoods and cities, not 35 kilometers away on roads that lead nowhere. We have to support the metropolitan regions of Cobán, Xela, Jutiapa, Guatemágica (Coatepeque-Retalhuleu-Mazatenango), Puerto Barrios, Zacapa-Chiquimula and Escuintla. We must build the country for the next fifty years. Let us serve the population where it lives while we build the cities where it will live. 41

The social impact of each of our stores includes: job creation, goods at low prices, and opportunities for local suppliers to grow with us. These impacts are enriched thanks to a community support program that is aligned with our company’s vision, which allows us to use the business’s strengths for the benefit of communities and to state that we help improve families’ quality of life. Walmart has created more than 9,800 jobs in the country, and as part of our vision we promote the development of each of our associates.

by Ana Chan Coorporate Affairs

At Walmart we strive to be a valuable member of the communities where we operate. We are committed and work to make a real difference by creating economic opportunities and strengthening communities. We know that our actions have an impact in society in more ways than one and for that reason we work under four pillars: associates, suppliers, the community and the environment.

On the other hand, the Fertile Ground program seeks to develop micro, small and mediumsized suppliers with sustainable agricultural practices, post-harvest handling, logistics, increased productivity levels, better quality standards and the possibility of entering other markets. It is worth mentioning that many agricultural division suppliers have entered the company through the Fertile Ground program. 25 producers are now part of this program in Guatemala.

Under the pillar of caring for the environment, we have volunteer days during which we have replanted 16.5 hectares, which represents more than 16,000 trees planted in the country’s protected areas. We also care for and maintain replanted areas through periodic visits by corporate volunteers. More than 120,000 persons have benefited from reforestation and care of urban forest areas.

As a company, we are very proud of the fact that many successful SMEs that now export their products started working under the A Hand to Grow program. Some of these businesses started operating out of a garage, kitchen or living room. They were born as ideas and dreams of entrepreneur who decided to take a step forward and go formal. These were all successful ideas that received the Walmart vote of confidence and offered them a support and training platform.

As part of our Corporate Social Responsibility program, the pillar of providers is very important. That is why Walmart Mexico and Central America provides growth opportunities and promotes the development of small and mediumsized enterprises. We provide them with tools to grow their businesses and meet quality standards, which in turn allows them to become professional and in many cases international. Examples of this are the A Hand to Grow and Fertile Under the environmental pillar, Ground programs, implemented by we constantly reaffirm our Walmart at the regional level. commitment to the protection and conservation of the environment A Hand to Grow is a support, through sustainability initiatives training and assistance program that are part of the company’s that Walmart offers to producers Corporate Social Responsibility in Central America. It is worth pillar. highlighting that more than 50 percent of Walmart’s suppliers in 15 years ago we also started our the region are SMEs. In Guatemala recycling program and we can now 117 SMEs are now part of the proudly state that during the last program, of which 32 percent five years we have recycled up to are led by women and a large 37,000 metric tons of cardboard, percentage are family enterprises. plastic and aluminum.

Source: Guatemalan Chamber of Commerce

HOW TO IMPORT - REGISTRATION:

charges: machinery, transportation equipment or more technologically and functionally complex equipment; manufacturing, obtaining, transforming, The importer shall meet the following requirements: repairing, maintenance, adaptation, production or 1. Have a Taxpayer Identification Number (known by manufacture of goods. Goods may enter the country as temporary imports for a fixed period with suspended its Spanish acronym as NIT) Customs duties, and taxes. The purpose or objective 2. Have a business that is registered as a taxpayer 3. Have a Commercial License stating that the business for importing the goods must be stated and then they must be re-exported within the fixed time period. engages in importing 4. Have Internet Access or visit Tax Administration Superintendence (known by its Spanish acronym as SAT) offices or branches 5.Register on the SAT internet filing and payment system, BANCASAT, at a local bank. TYPES OF IMPORTS: Under the General Classification, imports are classified as follows: Consumer Imports: Under this Customs classification, goods may enter Guatemala for use by paying customs duties and taxes and complying with the relevant formalities. Temporary Imports: This Customs classification allows goods that will be sent abroad after assembly to enter Guatemala under a mechanism that suspends payment of Customs duties, taxes and other import

INCOTERMS According to the Madrid Industrial Organization School, INCOTERMS (International Commercial Terms) are â&#x20AC;&#x153;international rules for interpreting commercial termsâ&#x20AC;? created by the International Chamber of Commerce (ICC) in 1936. They are constantly reviewed, most recently in 2010.

It is worth noting what falls outside the scope of the INCOTERMS: They are not a law. They are applied voluntarily by the parties. They are merely recommendations known as Uniform International Practice.

They do not establish ownership of the goods. Property of the goods is specified in the sales agreement. Sometimes there are costs that fall outside the INCOTERMS, which must be settled by the parties involved.

The purpose of the INCOTERMS is to establish criteria regarding the distribution of costs, responsibilities and the transfer of liabilities between two parties (buyer and seller) in an international agreement for the purchase and sale of goods. According to the Promoter of Foreign Trade of Costa Rica (PROCOMER), INCOTERMS help prevent the uncertainty resulting from different interpretations in different countries. The INCOTERMS include provisions regarding: What is covered by the price The time and place where liability for the goods is transferred from the seller to the buyer. The place where the goods are to be delivered Who will be responsible for hiring and paying the carrier and insurance The documents each party will process and the cost this entails.

EXPEDITED IMPORT WINDOW (VAI by its Spanish acronym): The purpose of the VAI window (https://vai.gt) is to facilitate the necessary formalities for importing into Guatemala as well as to fill out electronic forms. This results in expeditious handling, less bureaucracy and cost savings. It reduces the formalities from 13 to four for bringing goods into Guatemala.

Energy and Mining The VAI window currently provides access to the health permits required by MAGA and the Ministry of Health through SEADIM WEB.

Registering as an importer: Non-Tariff Import Permits related to the Ministry of Public Health and MAGA may be applied for through a four-digit code provided The platform of the VAI window is open 24/7, 365 days by the VAI window. For more information, visit a year. It saves up to 65 percent of the steps required file:///C:/Documents%20and%20Settings/Maria%20 for importing goods into Guatemala. It also seeks to Jose%20Nichols/Mis%20documentos/Downloads/ improve the countryâ&#x20AC;&#x2122;s World Bank Doing Business Solicitud%20de%20Reg score, specifically in the area of trans-border trade. A Non-Tariff Permit Application is an essential The group of institutions that are part of the VAI widow Customs document for importing goods that do not are the Tax Administration Superintendence (SAT), pay Customs duties. This is applicable mainly to goods Chambers of Commerce and Industry, Guatemalan intended to protect the life and health of humans and Exporterâ&#x20AC;&#x2122;s Association (AGEXPORT), the National animals and preserve plants. Council on Protected Areas (CONAP) and the following Non-Customs Import Permits related to the Ministry of Public Health and MAGA may be applied for through ministries: the VAI window. For more information, visit file:///C:/Documents%20and%20Settings/Maria%20 Agriculture, Ranching and Food (MAGA) Jose%20Nichols/Mis%20documentos/Downloads/ Defense Solicitud%20de%20Permiso%20No%20Arancelario%20 Health (MoH) FINAL%20(1).pdf Economy

Source: AGEXPORT Guatemalan Exporter’s Association

An Export Code, obtainable through the SEADEX WEB system, is required in order to export. This code may be downloaded by visiting http://vupe.export.com. g t s e cc i ó n S e r v i c i o s V U PE - O PA / CódigodeExportador

A number of required forms must be filled out for each export. There are different types, depending on the country of origin, the country of destination and means of transportation to be used. A list of the documents you will need depending on what you intend to export is given below.

SINGLE CUSTOMS DECLARATION (DUA) The document to be used depends on the goods to be exported, the means of transportation and type of export. Any of the following DUAs may be used: Simplified DUA: applies to exports sent by sea or air. It is issued prior to exporting.

Textile products: export document: Extex * Textile products or those containing textile materials must meet the requirements of the Garment and Textile Commission (VESTEX) in order to obtain the required document.

Complementary DUA: applies to exports sent by Plant products: export document: Plant Health sea or air. It is issued after the goods are exported and Certificate. used to liquidate the export with SAT. * Plant-based products, depending on the destination, Amended DUA: used to liquidate the export and to may require a Plant Health Certificate stating that correct data contained in the Complementary DUA they meet the requirements established by MAGA. whenever mistakes were made in filling it out. Provisional DUA: used for bulk exports (goods that are Animal-based products: export document: Animal Health Certificate. not packed or crated). Provisional Complementary DUA: used to confirm a bulk export that was carried out. Normal DUA: used for exports carried by land.

* If requested by the country of destination, an Animal Health Certificate stating that animal-based products meet the requirements established by MAGA must be obtained.

All these documents may be filled out electronically Certificate of Origin through SEADEX WEB at a low cost. For more information, visit http://vupe.export.com.gt in the * If the country where the goods are to be exported requests it, a Certificate of Origin should be obtained VUPE-OPA/SEAXEX WEB Services section. from the Chamber of Commerce. 1. SPECIAL EXPORT PERMITS GSP Certificate of Origin (Generalized System of Exporting certain goods requires a special permit from Preferences) certain institutions. Most of these special permits may be obtained through the central VUPE offices. Some * If the goods to be exported are part of the scheme non-tax requirements that apply to certain export of any of the Generalized Systems of Preferences in existence, with Japan, New Zealand, Canada, products are mentioned below. Switzerland, Australia, Russia, Turkey or Norway, the Form A Certificate should be used. This certificate must Wood Products: export document: INAB be authorized by the Foreign Trade Administration Certificate. (DACE by its Spanish acronym) of the Ministry of * Wood products or products containing wood should Economy. It must be filled out through the SEADEX meet the requirements of the National Forestry WEB system. Institute (INAB by its Spanish acronym).

EUR-2 Certificate for the Circulation of Goods, Association Agreement (AA) with the European Union. * If the goods to be exported are part of the AA scheme with the European Union, and also complies with a specific rule of origin, the EUR-1 Certificate for the Circulation of Goods shall be issued. This certificate must be authorized by the Ministry of Economy and the Verification of Origin Questionnaire must be filled out through the SEADEX WEB system for that purpose. Export Credentials: * This document is required for exporting mining products. The exporter must also have a Mining License, to be obtained from the Mining Legal Department of the Ministry of Energy and Mines.

Your logistics agent should obtain the relevant transport documents for carriage of your goods.

Hazardous Waste Export Permit * This permit is required if the goods are classified under the â&#x20AC;&#x153;Hazardous Waste Materialsâ&#x20AC;? tariff heading of the Basel Convention. This permit is issued by the Ministry of Energy and Mines. Snow Peas * Registration with the AGEXPORT Snow Pea Commission is required in order to export snow peas.

by Cristina Sandoval Saravia Associate Counsel csandoval@consortiumlegal.com.gt

After repeatedly failing to reform, amend or repeal the Migration Law, on September 20, 2016 the Congress of the Republic finally adopted the Migration Code, which partially repeals the Migration Law (dating back to 1998), of which only Section X, Crimes and Misdemeanors, amended in 2015, remains in force.

and other migrants who enter the country for lawful purposes.

It also includes a definition of Guatemalan migratory law, which regulates a person’s freedom to enter, remain, transit and leave the national territory respecting the fundamental rights of persons The new regulations on migration contemplate recognized by the Constitution of the Republic, several aspects such as strengthening the country’s domestic legislation and international instruments. migratory security, full recognition of the right to With regard to migrants’ right to work, the migrate and respect of the rights of migrants. It Code recognizes that the State of Guatemala must includes institutional restructuring and promotes a guarantee the rights enshrined in the Constitution of more orderly regularization of migrants that considers the Republic of Guatemala, domestic legislation and aspects of international migratory law. international instruments recognized in the country for all migrants and their families I. PROTECTION OF MIGRANTS It defines a migrant worker as “any foreign person who The new Code fully recognizes the right to migrate and performs paid activities in the national territory” and harmoniously incorporates the State’s responsibility recognizes different categories of migrant workers: to guarantee the personal integrity, life and liberty of every foreign person in the country, establishing a. Trans-border and itinerant workers appropriate care, assistance, security and protection b. Seasonal workers for migrants in the categories of asylum seekers and c. Consultants, advisors or specialized technical refugees as well as migrant workers, their families workers d. Self-employed workers 54

II. INSTITUTIONAL RESTRUCTURING It eliminates the relationship between the Bureau of Migration of the Ministry of the Interior (which is “THE NEW LEGISLATION ON now the top authority on migration) and creates the MIGRATION IS A SIGNIFICANT STEP Guatemalan Migratory System. It is made up of the National Migratory Authority, the Guatemalan FORWARD IN THE SYSTEM FOR Migration Institute and the National Migrant THE PROTECTION AND SECURITY Assistance Council. The purpose of this migration OF THE DIFFERENT CATEGORIES system is to ensure the protection of migrants, MIGRANTS AND A RENOVATION OF appropriately and effectively regulate the entry and departure of Guatemalans and aliens and act THE CURRENT MIGRATION SYSTEM” under the principles of officiousness, timeliness, independence, impartiality and transparency. It also gives the Institute the authority to sanction within the exclusive area of its competence, including the “The new legislation on migration is a significant step imposition of administrative measures and monetary forward in the system for the protection and security fines and ordering migrants to leave the country. of the different categories migrants and a renovation of the current migration system” that has been III. ENTRY INTO FORCE characterized by its inability to adapt to the needs of modern life and to legislative harmonization at the The new migration regulations (Decree 44-2016), Central American level, since it used to be the least upwhich have not been enacted yet because an appeal was to-date migration law in the region. filed before the Constitutional Court, which ordered a provisional amparo that essentially establishes the Its implementation will represent a significant change following: with respect to the current legislation and the existing actions of the Bureau of Migration, which is literally a. During the six months after its entry into force, unable to respond to the needs, conditions and basic the Care and Protection Council shall meet as often controls required by migration. as necessary to establish an agenda and within a year develop a definition of the procedures The new decentralized administration model will not to be followed in the cases included among the only recognize and ensure the right to migrate and responsibilities assigned to it by the Code. migrants’ human rights, but will also be in accordance with the administrative conditions and international b. The National Migration Authority shall be created standards on migration, giving legal certainty to 60 days after the entry into force of the Code and processes that have to do with migrants’ stay and legal start drafting Regulations and the transition status in the country. plan, which shall be ready within a period of six to twelve months. It is therefore extremely important to ensure that the Regulations governing the law, which are still c. All the applications, procedures and formalities being developed, are in line with the regular legal that existed prior to the entry into force of the Code framework and make it possible to implement the shall be dealt with under the old Migration Law. principles, bases and policies of the national migration system enshrined in the new Code in order to ensure proper coordination with State agencies, international Constitutional Court, Case Number 6351-2016, organizations and, especially, civil society. December 16, 2016, Guatemala. 56

Omar Pérez Partner, UHY Pérez & Co. operez@uhy-perez.com

Guatemala is a country with one of the lowest tax burdens in Latin America and the Caribbean. And this is very attractive for investors.

INCOME TAX On for-profit activities. a. Rate: 25% of profits (taxable income). Payment frequency: annual. Due date: March 31. Installments are due in April, July and October of each year. Income-tax returns are filed annually. b. Rate: 7% of income (gross income). Payment frequency: monthly through withholding Due date: first ten business days of the following month. An informative return is filed annually.

An important factor for any investor is that since Guatemala is a country with territorial income taxation, taxes are only paid on what is generated in the national territory, and that Guatemala has enacted legislation on Transfer Prices that stipulates that companies with related parties abroad must conduct Comments: One of these two methods must be this study each year. selected. This allows investors to choose the most favorable structure that represents the lowest tax rate. WHAT ARE THE MAIN TAXES? It also makes it possible to plan adequately for taxes when a group of companies are part of a corporation. Value-Added Tax (VAT) Rate: 12 percent Payment frequency: monthly. Due TAXES ON NON-RESIDENTS date: the last business day of the following month. 5% on transportation, insurance, telephony, data Comments: This tax is payable on practically every commercial transaction, with very few exemptions and tax-free transactions. The most important one is possibly the second and subsequent sales of real property, which do not pay this tax. Moreover, it is determined by offsetting the tax generated by sales with the tax generated by the acquisition of goods and services, which results in a tax due or tax credit for the following period. Buying - selling used vehicles. Except when a special status is recognized. 58

transmission, international communications and dividends payable to non-residents. 3% on news feeds or the use of films, music recordings, photo stories, etc. 15% on fees, salaries, payments to artists and sports figures, financial, scientific or technical advice. 25% on other unspecified income. Payment frequency: monthly through withholding. Due date: first ten business days of the following month. Comments: this tax is withheld by the local Company from its foreign supplier. If the local company assumes payment of the tax, it is not deductible for income-tax purposes.

EMPLOYEES (SALARIED WORKERS) GUATEMALA IS A COUNTRY Rate: 5% for those earning less tan Q300,000 a year. WITH ONE OF THE LOWEST TAX Payment frequency: monthly through withholding. Annual return. BURDENS IN LATIN AMERICA AND Rate: 7% over the excess over Q300,000 per annum THE CARIBBEAN (approx. US$40,000). Payment frequency: monthly through withholding. that affect taxpayer status with SAT include the level Annual return. of annual sales and the tax contribution the company represents. Comments: Similar to a flat rate; simple and userGeneral liabilities include keeping legal authorized friendly. The employer is under the obligation to books, which mainly have to do with the company’s withhold and pay the tax to the Tax Administration. accounting, and more specific regulations such as submitting returns on SAT systems, issuing electronic INCOME AND CAPITAL GAINS invoices as sales documents and even withholding Rate: 5% on dividends. value-added tax on behalf of the State. Payment frequency: monthly. Due date: first ten business days of the following month. Guatemala is one of the countries of Central America Rate: 5% on all other income. with the most technical and electronic tools for filing Payment frequency: monthly. Due date: first ten taxes and monitoring taxpayers. business days of the following month. Guatemala is considered a foreign-investment friendly Comments: These are mainly operations that are not country, with relatively simple regulations compared part of the normal corporate activity. with the other countries of the region, but appropriate counseling is a must when investing in a foreign SOLIDARITY TAX country to ensure that no breaches of tax regulations Rate: 1% of income or net assets, whichever is higher. are incurred or that liabilities are not created that Payment frequency: quarterly. Due date: last might represent financial losses. business days of the following month. Comments: Operates as a minimum income-tax payment. This tax can be credited to income tax or Bibliography the other way around, depending on the method and certain conditions. This tax does not have to be paid ECLAC (n.d.). Financiamiento Políticas Públicas. during the first four operating quarters. Retrieved from CEPALSTAT: http://interwp.cepal.org/ sisgen/ConsultaIntegradaFlashProc_HTML.asp What are our main tax liabilities? Excepto los Activos sean mayores en 4 veces los ingresos, en ese caso se tributa sobre los ingresos. Except when assets Depending on the taxpayer’s status with the Tax are four times greater than income, in which case the tax is Administration Superintendence (SAT by its Spanish paid on income. acronym), the liabilities are different. The main factors With few deductions, the main one being Q38,000 per annum that does not have to be substantiated (approx.. YS$5,000). 59

Our main imports included goods such as : The Executive subscribed the agreement in 2004. Congress approved it on March 10, 2005, and it entered into force on July 1, 2006. Since then, Guatemala has enjoyed such benefits as a two-way customs duty exemption program, preferential entry of goods and services into the United States market and a stable legal framework that guarantees trade rules for all Guatemalans with the United States.

By Rubén Morales, Minister of Economy of Guatemala

Ten years after the entry into force of DR - CAFTA, the A team from the Ministry of Economy led the benefits of creating a regional economy with our most negotiation of this trade instrument. At that time I important trade partner are undeniable. was in charge of the Trade in Trans-border Services negotiating group. Negotiation of this trade agreement was not easy. Guatemala had to adapt to the trends in international trade, to globalization, but there was resistance to change among certain sectors.

TRADE BALANCE OF GUATEMALA AND THE UNITED STATES AFTER THE AGREEMENT Millions of U.S. Dollars 2006 YEARS 2,782.8 Exports 4,198.2 Imports -1,415.4 Trade Balance Trade Exchange 6,981.0

2007

2008

2009

2010

2011

2012

2013

2014

2015

2,909.6

3,014.4

2,924.4

3,258.7

4,307.6

3,955.0

3,823.0

3,863.0

3,810.6

4,642.9

5,242.4

4,211.9

5,124.7

6,508.6

6,460.4

6,488.2

7,344.2

6,509.5

-1,733.3

-2,227.9

-1,287.5

-1,866.0

-2,201.0

-2,505.4

-2,665.1

-3,481.2

-2,698.9

7,552.5

8,256.8

7,136.3

8,383.4

10,816.2

10,415.4

10,311.2

11,207.2 10,320.1

Source: Bank of Guatemala

OUR TRADE WITH THE UNITED STATES PRIOR TO DR-CAFTA. Trade Balance of Guatemala and the United States prior to the Agreement

Years Exports Imports Trade balance Trade exchange

2001 642.5 2,414.3 -1,771.8 3,056.8

Millions of U.S. Dollars 2002 2003 2,215.7 2,384.3 3,269.9 3,373.0 -1,054.2 -988.7 5,485.6 5,757.3

Source: Bank of Guatemala

Before we entered into a trade agreement that governed transactions with our main trading partner, Guatemalan exports to the United States of America consisted mainly of:

2004 2,660.3 3,674.5 -1,014.2 6,334.8

2005 2,686.4 3,982.8 -1,296.3 6,669.2

Our exports to the United States increased between 2006 and 2015 since the entry into force of DR-CAFTA, from US$2,782.8 million in 2006 to US$3,810.6 million in 2015. Imports went from US$4,198.2 in 2006 to US$6,509.5 in 2015.

Today, like ten years ago when we negotiated the DRCAFTA, we are convinced that DR-CAFTA will help us build economic growth in Guatemala, a growth that must be inclusive and sustainable. We see that DRCAFTA has brought us benefits.

Clear and stable rules in our trade relations with our main trading partner have led to an increase in trade. There have been few changes in the type of products we export (exportable supply) but now we export larger quantities of those products. The share of those goods in the total amount exported has also varied. Garments now account for 32%, bananas for 18%, precious stones and metals for 9%, fruits for 7% and coffee for 7%.

DR-CAFTA has allowed us to attract more investments. For 2015, the Bank of Guatemala recorded US$347.8 in investments from the United States, which represents 28.8% of the total Foreign Direct Investment (FDI). Investments have been made in sectors such as Energy, Manufacturing, Commerce, Telecommunications and others.

Major United States investments have been made in the call-center industry, which is a major source of formal employment, especially for young people; it provides income three times higher than the minimum wage.

THE CHALLENGE FOR US IS TO INVEST STRATEGICALLY IN THE TERRITORIES, DEVELOP THE POTENTITAL OF THE LOCAL ECONOMY IN DIFFERENTE SECTORSâ&#x20AC;?

CHALLENGES We should take more advantage of trade agreements in general. Guatemala currently has 13 trade agreements in force and preferential access to more than 40 markets, including the United States. The challenge for us is to invest strategically in the territories, develop the potential of the local economy in different sectors, with technological innovations, encourage diversification and improve the quality and variety of the goods offered to domestic, regional and global markets. The Ministry of Economy is working towards that end by implementing an economic policy that will allow us to create sufficient and appropriate human development opportunities for the entire population through an inclusive and sustainable economic growth model.

We must attract and promote even more public and private investment to grow our economy. The Economic Policy we are fostering contemplates a 16% increase in investments as a percentage of GDP, to 20.8%.

DR-CAFTA has benefited us as consumers, with more goods at better prices, but we can benefit even more as vendors on that great market by exporting more and diversifying our exportable supply.

DR-CAFTA promotes productive chains. We must take better advantage of them. Through rules of origin, it allows us to use raw materials from the member countries to manufacture the end products and export them as original products. This promotes regional trade by taking advantage of tariff preferences.

As suppliers, we should take more advantage of the Customs Duty Exemption Program. Guatemala currently has free trade for more than 90% of tariff headings. To achieve long-term sustainable economic and commercial growth we must take more advantage of our global links with regional liberalization and integration actions such as the ones included in the Economic Policy.

A Development Strategy for More than 6 Percent Growth

The pillar of Greater Solidarity in Guatemala focuses on supporting the actions to be carried out by the State by implementing the Thousand Day Window to reduce chronic malnutrition in the country. We are doing this through coordination among the associations and foundations that make up the Alliance for Nutrition. We are also working in coordination with Businesses for Education to monitor performance indicators of teachers’ obligation to teach 180 days a year.

By Juan Carlos Zapata Executive Director

fter the 2010 National Business Encounter (known by its Spanish acronym as ENADE), at which the organized business sector made a proposal to reduce poverty and improve well-being in the country, work began on a development proposal for the next fifteen years that might include actions the country needs to increase its economic growth. Mejoremos Guate is a country development strategy promoted by the organized business sector through CACIF and FUNDESA to develop actions that will make Guatemala more productive and enhance its competitiveness, increase solidarity in the country for 64

The pillar of More Productivity in Guatemala coordinates the actions of the Private Competitiveness Council to analyze the operation of the different sectors and how each one is aligned with development priorities at the territorial level. The analysis of sector productivity has shown how many jobs are being generated in each sector and the existing gaps that must be filled for greater growth. Technical support is also provided to the National Competitiveness Council in the development of the National Infrastructure Plan.

The Security and Justice pillar is coordinated directly with CIEN, which is providing technical support for the development of a criminal justice flowchart for the country that will provide improved indicators to the security and justice system. Support is also given to municipalities through the ALERTOS Platform for development of a technical monitoring strategy that will allow them to use technology to reduce crime rates. Finally, the pillar of Strong Institutions in the country is coordinated directly with Foundation 2020 and CACIF as part of the Technical Alliance in Support of the Legislature (known by its Spanish acronym as ATAL), which gives support to members of Congress and congressional committees in the form of technical input on bills that are under discussion. This is communicated in a coordinated effort with Guatemala Visible (Visible Guatemala).

Bill 4904: Amendment of the Commercial Code to reduce the time and cost required to incorporate a Company and give more legal certainty to investors.

MEJOREMOS GUATE IS A COUNTRY

Bill 4646: Amendment of the Registry of Secured Transactions to allow small and medium-sized enterprises to use the register and thus expand credit in Guatemala.

DEVELOPMENT STRATEGY PROMOTED BY THE ORGANIZED BUSINESS SECTOR THROUGH CACIF AND FUNDESA “

Bill 4896: Leasing Law, which would help give legal certainty and facilitate leasing processes.

greater investments in health, education and formal technical training, strengthen the State’s capacity to invest more in security and justice and result in a strong, transparent State with institutions at the service of its citizens (www.mejoremosguate.org, 2010). 65

Fanny D. Estrada Director of Institutional Relations

How did 2016 end for the exports sector? 2016 closed with more than 4,000 Guatemalan products exported to 125 international markets. Total sales as of December 2016 totaled US10.5785 billion, or 0.9 percent less than in 2015. In your opinion, what factors influenced that negative result? Our analysis shows that several domestic and international situations led to reduced Guatemalan exports. For example the fall in commodity prices, the 15 percent reduction in the country’s mining industry, the economic slowdown in the United States, Guatemala’s main trade partner, and the downturn in other advanced economies and major emerging markets. Were there also domestic factors? Of course; not all factors are external. Domestic situations such as the blockades had a major impact on the export sector. There were 972 blockades between January and August. On the other hand, there is the loss of competitiveness due to the unexplainable increase in the exchange rate of the quetzal with respect to the currencies of countries with much stronger economies 66

than the Guatemalan economy. The authorities now agree that the currency is overvalued. This is killing productive activities in the country and here I’d like to add that this is not only affecting exports in general, but also everything produced and sold on the domestic market, including goods that are not exported, because it severely affects the country’s competitiveness. We now compare ourselves not only with Mexico but also with the United States, El Salvador and other countries. Smuggling has increased as a consequence. Toward which countries did exports grow? Precisely, not all was bad news in 2016. For example, there was interesting growth in the Eurozone, which, taken as a whole, grew by almost 6 percent, particularly Germany, Belgium and Spain. There was also significant growth in the Canadian market, with a 72 percent increase. Canada has been an attractive market for different manufactured products such as sweets and metal goods. Incidentally, the negotiations of the free trade agreement with them should be closed as a matter of urgency. These markets are highlighted in the document “Best Markets”, which is the first study developed by AGEXPORT that identifies the 18 best export markets for 2017, based on consumer trends that show

potential for Guatemalan goods and services for the One of the priorities to be considered this year is the exports sector. country’s logistics. We have serious problems that are affecting trade, such as delays at ports, added to the What is the position of the exports sector? blockades and stoppages that have already given rise to stressful situations in 2017, without forgetting The export sector hopes to see a recovery of 3.4 long lines at Customs due to deficient processes and percent in the global economy in 2017, especially in insufficient port infrastructure. All of this affects markets like that of the United States, where exports competitiveness and is costing Guatemala a high price. are expected to grow significantly, as well as imports. However, the country has to make strong decisions and This would generate US$ 11.1 billion in foreign take decisive action to prepare for the uncertainties of exchange for Guatemala in 2017 and would increase global trade, such as a protectionist trend that may the estimated closing value for 2016 by 4.9 percent. give rise to obstacles to market access. We have to pay close attention to the actions of the new President of AGEXPORT is preparing with short, medium and long- the United States. He has been the source of a lot of term actions. For example, at the short term we have uncertainty. new services to encourage business and promotion on the 18 key markets we have already identified. This How are you preparing for the future? includes 360o exploratory missions, high-level trade missions, physical and virtual business rounds. At the We are preparing with short, medium and long-term medium term, we will continue along the three paths actions. For example, at the short term we have new for accelerating growth in the sectors and continue services for encouraging business and promotion on to coordinate ten proposals for simplifying export the 18 key markets we have already identified. We processes. Long-term, initiatives will be promoted are talking about 360o exploratory missions, highon the legislative agenda such as ratification of ILO level trade missions and physical and virtual business Convention 175. This is the first step that would allow meetings. At the medium term, we will continue Guatemala to offer work on a per-hour basis with implementing the three paths for accelerating growth benefits. This is an important tool that would pro in the sectors and continuing to coordinate ten jobs for mothers, elderly and young people and even proposals for simplifying export processes. Longdisabled persons. term, we are promoting initiatives on the legislative agenda such as ratification of ILO Convention 175. What are the prospects for 2017? This is the first step that would allow Guatemala to We hope that, although the prospects for the global provide work on a per-hour basis with benefits. This economy are not too encouraging, they will not is an important tool for giving jobs to mothers, elderly deteriorate further. This offers us a possibility and we and young people and even disabled persons. Ensuring are forecasting 5 percent growth, which would mean that irrigation programs are implemented to improve exports of US$ 11.1 billion, compared with exports in productivity; promoting the learning of English. 2015, which represented US$ 10 billion. Continuing to support plans proposed by CONAPEX, There are sectors in which exports would be promoted which is the public and private entity that develops in 2017, including different manufactured goods, public policies for promoting exports and investments plastic and wood products, pipes, stone and metal and encourages society to view exports as the best goods and many others. We also expect investment solution for generating jobs in a small economy like flows to increase in the coming years. that of Guatemala. 67

By Antonio Malouf Vice President Historically, trade with the United States of America has played a crucial role for Guatemala. Since 1951, the U.S. has been the main destination for Guatemalan exports and this position was strengthened after the signature of the Central America – Dominican Republic Free Trade Agreement (DR-CAFTA). Despite the diversification of goods and markets that has developed in the country and which has meant being less dependent on the United States, the latter is still Guatemala’s main trading partner.

The Free Trade Agreement signed by the United States, Central America and the Dominican Republic (DRCAFTA) in 2006 has facilitated trade and investment by eliminating import duties and other barriers to trade in goods and services. This, in turn, has opened

the doors to a market of more than 320 million people 34.9 percent of the country’s exports now go to the United States. The main goods exported to the U.S. are garments, bananas and, thirdly, semiprecious metals and stones.

During the first quarter of 2016, the country exported a total of US$5,389,605,882, of which 33.45 percent (US$1,802,942,573) went to the United States. The United States is also Guatemala’s main source of imports, especially oil by-products, machinery and mechanical devices, vehicles and transportation material. Guatemala currently imports 38.3 percent from the United States, compared with 13.4 percent from China.

The United States have been the main destination of exports of garments and textiles, especially since the signing of DR-CAFTA. Guatemala’s industry has specialized in catering to the needs of customers in the United States by creating more efficient plants, with more technology, that produce better-quality garments. The United States have, in turn, taken a fresh look at the region as a center for the supply of this type of goods and services, thanks to its strategic position and stability.

The United States sees Guatemala as a destination for its exports, which makes it attractive for investors. According to the Bank of Guatemala, in 2015 the United States invested US$347.8 million, or 28.8 percent of the country’s foreign investment, in the country. These investments were made mainly in power, the manufacturing industry, commerce, banks and insurance companies.

Trade relations with the United States, including the garment and textile industries and other sectors, have encouraged technological innovation, created jobs, improved the living conditions of the population and offered the challenge of making efforts geared towards diversification, quality improvement and the supply of goods and services.

by Acisclo Valladares Presidential Commissioner for Competitiveness and Investment

uatemala has made considerable strides in improving the investment climate. A clear example of this is the macroeconomic stability shown by the country in recent years. We can also highlight the reduction of violence; the homicide rate has reached the lowest point since 2002 (approximately 28 for every 100,000 inhabitants). And we must not forget the fight against corruption, in which Guatemalan institutions like the Office of

reduction of violence

HOMICIDE RATE HAS REACHED THE LOWEST POINT SINCE 2002

APROX. 28

FOR EVERY 100,000 INHABITANTS

WE HAVE TO COMMIT OURSELVES TO USING TAXES IN

the Public Prosecutor and the Judiciary, as well as the International Commission against Impunity in Guatemala (CICIG) and citizens in action played a fundamental role in 2015. These achievements are considerable but not enough to significantly increase investments in the country and reach growth rates that will improve Guatemalans’ living standards. On September 23, in the framework of the Alliance for Prosperity of the North Triangle, I took part in a meeting, together with representatives of the Government and the productive sector of Guatemala, El Salvador and Honduras, the Inter-American Development Bank (IADB) and the Government of the United States, including Vice President Joseph Biden. During this meeting, Vice President Biden noted that in order to attract foreign investments, local businesses have to show faith in their country. I fully agree with Mr. Biden: if we do not invest in Guatemala ourselves, we cannot expect others to do it for us. What is the Government supposed to do? We have to commit ourselves to using taxes in the best possible manner, with transparent, effective and efficient spending. We should also prioritize projects that can reduce the gaps in infrastructure and education (especially job training). These are variables that directly affect the business climate. The most important tool of the National Competitiveness Program (PRONACOM) is the National Competitiveness Agenda (NCA), a country policy that seeks to generate development and

THE BEST POSSIBLE MANNER, WITH TRANSPARENT, EFFECTIVE AND EFFICIENT SPENDING.”

promote equitable economic growth. This valuable tool will help us improve Guatemala’s business climate by considering different factors that support competitiveness in the country. These range from prioritizing those sectors that have the greatest job generating potential to identifying gaps in logistics, among others. We have also considered the country’s emigration trends and migration from rural to urban areas and have included these factors in the GT Urban Agenda, which was developed in alignment with the NCA. These two agendas are coordinated with the Plan for the Alliance for Prosperity of the North Triangle. This is why PRONACOM is promoting convergence and harmony between the public and the productive sectors, civil society and academia for coordination and development of medium-sized cities. For these to grow, we must prioritize and finance infrastructure through innovative implementation mechanisms or through existing platforms such as Public-Private Partnerships (PPPs), together with the National Agency for Alliances for Development of Strategic Infrastructure (known as ANADIE by its Spanish acronym). The country’s development and the shared vision of a prosperous and dynamic Guatemala should be achieved and financed by Guatemalans. I invite you to consider this. Let us set ourselves common goals and work to have the country we would like to have.

Sustainable Development Engines for a Country

By Fernando Suriano Buezo Executive Director

Guatemala is a rich country that has a favorable geographic location, abundant natural resources and labor, and a stable macroeconomic environment that facilitates commercial decisions and results in greater investments. However, unless we promote competitive advantages that take advantage of these strengths, our development will slow down. 74

Competitiveness can be understood as a countryâ&#x20AC;&#x2122;s ability to be profitable on the market. A competitive country has an edge in the production of goods and services, attracts investment, and generates wealth, development and employment.

Although companies can have a competitive edge, for example by improving production lines and reducing costs, a nation achieves this through public policies and laws that allow productive sectors to act with minimal red tape and greater advantages compared with the conditions in the same sectors in other countries. Government institutions, as the governing bodies of the State, are called upon to control and monitor the domestic economy by observing principles such as expeditiousness, efficiency, efficacy and streamlining. At the National Competitiveness Program (PRONACOM) we promote the National Competitiveness Agenda (NCA), a domestic policy that seeks to generate development and quality of life and to promote inclusive economic growth.

at the global level, we promote strong institutions, since we know that clear laws and efficient and transparent institutions are important factors for the nation’s competitiveness. We also work on public policy initiatives, bills and amendments of laws to support the monitoring and investigation of doubtful acts, focusing on the collection of fines, taxes and embezzled sums resulting from illegal activities or evasion, while taking care not to interfere or obstruct the development and growth of the national economy.

“ COMPETITIVENESS AND PUBLIC POLICY ARE CRUCIAL FACTORS FOR THE DEVELOPMENT OF AN ECONOMY THAT SEEKS TO ATTRACT INVESTMENTS AND GENERATE ADVANTAGES FOR INDUSTRY AND COMMERCE. “

On the other hand, we take part in human resource training and education initiatives such as the Threshold Program of the Millennium Challenge Corporation (MCC), which seeks to improve the quality of middle education and job training in high school, to enhance the capacity to mobilize resources through Public-Private Partnerships (PPPs) and improve tax collection. We believe that a country where labor is capable of performing complex jobs can adjust To improve the business climate to the demands of a globalized and ensure that Guatemala con economy that recognizes the compete with other economies importance of human capital. The strategies implemented as part of this agenda include actions such as streamlining processes to reduce costs and time; amending laws to improve the country’s business climate to make it more attractive for investors; training human resources and supporting micro, small and medium-sized businesses and entrepreneurs, as well as economic development and the local competitiveness of the country’s territories.

In conclusion, competitiveness and public policy are crucial factors for the development of an economy that seeks to attract investments and generate advantages for industry and commerce. Government institutions should therefore work hand in hand with the private sector and determine the actions to be carried out to achieve the objectives of the NCA and other Government plans and policies that seek to improve Guatemalans’ standard of living. For more information, visit our website, www.pronacom.gt.

BOX TOOLS One of the platforms promoted by PRONACOM is the website Asisehace.gt, which provides information on how to carry out more than 300 formalities related to the economy, which also fosters transparency in administrative processes. On the other hand, the website Minegocio.gt is an e-government tool that can be used to register corporations and limited-liability companies. At the end of the process, users receive a corporate license, which saves time and money.

The Law on strengthening fiscal transparency and governance of the Tax Administration Superintendence (SAT by its Spanish acronym) was enacted on July 19, 2016 with 107 votes. It regulates bank secrecy in Guatemala and gives SAT the authority to review companies’ and private individuals’ fiscal periods. It also amends the election of the superintendent, who will henceforth be elected through a competitive examination, as well as the organic laws of SAT, of banks and financial groups, of the National Register of Persons and the Tax and Commercial Codes. Mr. Ramón Parellada was interviewed on Wednesday, November 2 regarding the abovementioned law, addressing a few specific points to obtain more details and to discuss the role the United States played in its adoption.

Interview with

MR. RAMÓN PARELLADA

by Luisa María Yax Valle

Universidad Fransisco Marroquín (UFM)

* The opinions expressed in this interview, are not necessarily position of the American Chamber of Comerce, Guatemala -AmCham78

The first question was regarding the intentions that led the members of Congress to adopt the law. Mr. Parellada answered that the law and its adoption were unnecessary. What should be done, in his view, is to simplify the tax system so people pay more taxes, and reduce the size of the informal economy in the country. To solve the problem of tax evasion, controls should not be tightened, but rather tax rates should be lowered. If one of the motivations for approving the law was to reduce illegal activities such as drug trafficking and/or money laundering, which entail cash transfers abroad, this will only happen in the case of drug trafficking when drug production and consumption are no longer

penalized in the country, according to Parellada. The interviewee was next asked what are and will be the side effects of the adoption of the law in Guatemala. Parellada mentioned that Guatemala will become a “tax hell” rather than a tax haven, as argued by those who were in favor of this law. It will be a tax hell where SAT officials will have access to the bank accounts of individuals and

WHAT SHOULD BE DONE, IN HIS VIEW, IS TO SIMPLIFY THE TAX SYSTEM SO PEOPLE PAY MORE TAXES, AND REDUCE THE SIZE OF THE INFORMAL ECONOMY IN THE COUNTRY.

companies. This may now be done with their prior consent, following due process and with a court order. After the law goes into effect it will be available to those who might use it to blackmail. Criminals and other persons may misuse this information, which should and must be confidential and private. Moreover, Parellada underscores that this law should not have been adopted, since its consequences for Guatemala are for the most part negative.

law. What other countries say should not affect decisions taken in ours; the principles they and we so heartily defend should be respected, states Mr. Parellada in that regard. The United States exerted a lot of pressure on this decision; there were different ways in which this pressure was exerted: threats of discontinuing support and blackmail of sorts on the part of that North American country. It is a shame that a country like the U.S.A. interferes on the subject of transparency and fiscal enhancement, when it is one of the countries with most fiscal terrorism in the world. It is not a good example of a free society, since on multiple occasions it has attacked the sovereignty of countries like Guatemala; it has attacked individual freedom, states Mr. Parellada. However, he states that the pressure did not come only from the United States; there was also international pressure in general.

The interview ended by stressing the lack of trust and negative and immediate effects adoption of this law has and will have on Guatemala, by undermining financial institutions and jeopardizing the banking system, which would collapse due to the lack of trust. If somebody feels that his privacy is being systematically violated because of the fact of having a bank account, he would close his savings and checking accounts. Bank secrecy Finally, the interviewee was asked has been and still is the basis for regarding the role played by other banking activity. Therefore, bank countries in the hemisphere and secrecy should not have been Europe, especially underscoring eliminated, stresses Mr. Parellada. interference by the United States of America for adoption of this 79

with Sigfrido Lee Vice Minister of Economy By Hiba Jweiles

Universidad Fransisco Marroquín (UFM)

Photo: Jannoon 028 / Freepik

* The opinions expressed in this interview, are not necessarily position of the American Chamber of Comerce, Guatemala -AmCham-

Guatemala is one of the many countries that agreed to enact a Competitiveness Law by November 30 of this year as a result of the Association Agreement between Central America and the European Union. Bill 5074, or Competitiveness Law, was actually submitted to Congress six months ago by the Ministry of Economy. Sigfrido Lee, former Vice Minister of Economy, shares his opinion regarding the bill. What is the purpose of the Competitiveness Law (Bill 5074) and what benefits does it claim to offer the country? Contrary to what many believe – that it is regulation against monopolies – the law seeks to regulate and sanction acts that threaten competition on

Guatemalan markets. It does not necessarily do so; it and sanction actions that are considered detrimental regulates non-competitive entities. by this law but do not necessarily eliminate the causes that gave rise to the lack of competitiveness. That What would be the effect of creating the is why the reality in Guatemala is not considered; Superintendence of Competition proposed by what was done is that international legislation was this bill? copied without taking into account the realities of the It would be detrimental. It is a bureaucratic, politicized domestic market. entity, with arbitrary and varied responsibilities. It is not a technical, politically independent unit. Do you agree with those who think that this What do you think of the excessive independence of the Superintendence? The law proposes a decentralized and independent entity that does not report to the Executive but is parallel to it. In addition it creates a board of directors that includes Congress, the Association of Economists, the Bar Association, representatives of the President and the Supreme Court of Justice, which are political entities. A parallel, politicized entity is thus being created. First, Congress reserves the right to veto the representatives of the other sectors mentioned. Second, the Association of Economists and the Bar Association are actors interested in this law; they are cartels. Interested actors are placed in charge of implementing and upholding this law. Third, representatives of the Supreme Court of Justice have a conflict of interest because they create an additional entity to the Court, which complicates the legal process. And this Superintendence gives them more independence to do as they please.

law is one of those things that Guatemala has accepted without asking for anything in return? They are wrong in this regard. First, it is legislation that is ordered by the constitution of the country. (However, Mr. Lee remarked that the constitution asks for one thing and the law proposes something different). Secondly, there is a number of free trade agreements that justify the enactment of this law. Guatemala is being given access to European markets in exchange for this law. It is also worth considering if access to European markets justifies the enactment of this law.

Do you agree with those who believe that Guatemala is not ready for this law, or that the law does not consider the conditions in the country? Whether the country is ready or not is not the issue. I believe no country has ever been ready to implement laws such as this one.

Do you agree with those who believe that the law is the result of pressure on the part of the United States and the European Union? Yes, there is pressure, especially on the part of those two, for enactment of a law such as this one. They are not interested in Guatemalan consumers. They are interested in their companies being able to come here and compete under a certain set of rules. The problem is that the rules that are adopted do more harm than good. What they ask for is a set of rules, but not all those this law seeks to implement. That is overkill. And it is worth mentioning this, because although there is international pressure for adoption of a law, that is not necessarily the law that is currently being discussed by Congress. The law is terrible for the country. What is being adopted is a law that caves in to that pressure, but ties the noose tighter. There could have been a better law that meets international requirements.

The second part is important because the law is being created in a vacuum, in the absence of a domestic policy and strategy for promoting competition. What happens then is that there are many laws that punish

The devil is in the details. The problem is the details of the law and not the law itself. The contents of the law is bad. I am not saying no to a law; I am saying no to this law, because a better one could have been drafted.

MAYORA & MAYORA, S.C. ABOGADOS

Years

Celebrating 50 years of serving the region’s largest corporate clients and congratulating AMCHAM for reaching the same milestone.

A reflection on the history of our law firm Eduardo Mayora Dawe was born shortly before the era of Guatemalan President, Jorge Ubico. He witnessed as a young student the revolution that followed in 1945, which he always remembered and respected for all of its ideals and what it meant for his country. In 1953, he became a lawyer and notary and practiced for more than 60 years. After specializing in the United States, he returned to Guatemala as one of its first jurists with training in the U.S. Common Law System, cementing the concept with the opening of the firm. With the founding of the firm, we embarked on a 50 year journey that has brought us to serve the largest global clients and handle many first-instance matters in the jurisdiction. We have longstanding roots in handling complex corporate and financial matters as well as being responsible for helping international clients expand their businesses into our jurisdiction.

Lic. Eduardo Mayora Dawe Founding Partner August 8, 1928 – December 10, 2014

Mayora & Mayora, S.C. is a leading law firm in Guatemala for international business transactions and the exclusive Lex Mundi member for the jurisdiction. Over the Firm’s half-century existence, we have become the go-to place for client’s needs in corporate law, mergers and acquisitions, banking and finance, taxation, litigation and arbitration, telecommunications and energy law, and government procurement. Contact us today at our main offices in Guatemala or at our branch in Honduras.

GUATEMALA CITY, GUATEMALA T: +502-2223-6868 F: +502-2366-2540/1 E: info@mayora-mayora.com

TEGUCIGALPA, HONDURAS T: +504-2236-5899 F: +504-2236-5899 E: oguillen@mayora-mayora.com

www.mayora-mayora.com

By Kristel Haeussler, Universidad Fransisco Marroquín (UFM)

I thank Waleska Sterkel de Ortíz, Executive Director of AmCham, for sharing her time and the following information on the topic.

Waleska studied International Trade at Rafael Landívar University and has more than 15 years’ experience in trade-related matters. Her experience includes ten years at Agexport as trade promotion manager and manager of the commercial attaché program. Incidentally, Guatemala has four commercial attachés in the United States. This shows the importance of the United States market for Guatemala, since it is the most important trade partner

There is a tech campus in Guatemala known as Tec, which has all that is needed to increase development and provide new market options. An example of this software development is that Guatemala currently manages special effects for major companies like Universal Studios, which has attracted the attention of various industries toward the country. It is also worth noting that Guatemala is producing electronic games in the form of apps. Intellectual property

THE ROLE OF THE AMERICAN CHAMBER OF COMMERCE (AMCHAM) IN THE TRADE RELATIONS BETWEEN GUATEMALA AND THE UNITED STATES CONSISTS OF WORKING WITH MULTINATIONALS, DOMESTIC COMPANIES AND LAW FIRMS IN ORDER TO IMPROVE TRADE RELATIONS

for exports and imports alike. Because of this, Waleska is knowledgeable regarding such relations and shared the following with us. During the last 20 years Guatemala has had a considerable diversity of goods that are major exports. Guatemala is the main supplier of snow peas and the fifth most important supplier of bananas to the United States. The most important export products for the United States market are foodstuffs, agricultural and manufactured goods. Guatemala manufactures for major brands, including Tommy Hilfiger and GAP. In the communications sector, Guatemala has a large number of call centers, despite the limited number of English-speaking Guatemalans. Growing this sector is therefore a challenge. Its production in the area of technology is increasing despite the shortage of infrastructure in the country. During the past 15 years the country’s software industry has grown considerably.

rights, however, are not respected. It is a challenge for Guatemalans to persuade users that these rights are not a cost but an investment that allows new ideas and brands to develop. On the other hand, the role of the American Chamber of Commerce (AmCham) in the trade relations between Guatemala and the United States consists of working with multinationals, domestic companies and law firms in order to improve trade relations. How does it do this? AmCham has many departments; the main one is the Trade Center. It organizes business meetings, trade missions, labeling for the Food and Drug Administration (FDA), etc. AmCham advises Guatemalan companies that wish to enter the United States market and American companies interested in the Guatemalan market. It has several departments that provide services to its members. The Chamber has more than 500 members. It has 11 committees that provide information on the topics the Chamber deals with. AmCham is thus the lead organization for promotion of trade relations between Guatemala and the United States of America. 85

What is counterfeiting and what is piracy? We must understand the meaning of both these scourges. WHAT IS PIRACY? COUNTERFEITING:

The illegitimate use of others’ work by copying, imitating or altering the original work without its Passing off a fake product as an original; taking owner’s permission for subsequent distribution. advantage of the recognition of another party’s Reproduction and distribution of copies of others’ renowned brand to promote illegitimate products. works without the owner’s permission.

by Virginia Servent Palmieri Anti-piracy Director virginia.servent@fox.com

Counterfeiting directly attacks a trademark or Among other works, piracy affects musical, literary, patented product. It seeks to take advantage of a movie, computer and cybernetic products as well as recognized brand or product to obtain profits without audiovisual works. making a big investment. We are now a click away from massive distribution or WHAT DOES A COUNTERFEITER SEEK? from gaining access to a work. Investment is limited to a computer and an internet connection to commit • To reach consumers through deceit. To make them the illegal act. believe that they are buying the original product or product line. CONSEQUENCES OF PIRACY FOR INDUSTRY • A consumer can often tell the false product from the original, but prefers it because the fake product will always be cheaper. In the case of products that are not essential, a consumer does not look for quality but rather for recognition for the use of the product. CONSEQUENCES OF THE COUNTERFEITING OF BRANDS AND PRODUCTS: • Proliferation of unfair competition; • Reduced sales of original products; • Loss of interest in investing locally in original brands and products. DANGEROUS CONSEQUENCES: • Direct damage to health; • Death. The production of counterfeit medicines has caused damage to health and even death. Counterfeit personal hygiene products are harmful for the consumer. In an alarming case, Panama sued Spain for a syrup that caused the death of 170 people. A Spanish company supplied a toxic substance to a Panamanian company.

• Creativity cannot thrive without compensation. • Nobody is willing to invest without economic gain. • BLOCKBUSTER, the best-known movie rental company, closed its doors for good after the informal market entered the trade. Likewise, other industries have reduced the level of their investments and hence limited their production due to the meager profits generated by the entertainment industry through distribution, when the same production can be accessed even before it hits the market. COUNTERFEITING AND PIRACY AND ECONOMIC DEVELOPMENT When competing on a legitimate market, with competitors who work at the same level, playing by the same rules, the market is attractive for investors. With the existence of an informal market, with unfair competitors, investing in any industry is not too attractive. When a brand or product reaches a significant level of recognition, it becomes a perfect target for counterfeiting. 87

Protection of brands and products is therefore vital, as well as surveillance, to prevent illegality from becoming politically correct. The same happens with piracy and protected works, with the added factor that protection is less formal and simpler and therefore easier to infringe. That makes surveillance even more important.

NO COUNTRY WILL BE COMPETITIVE AND ATTRACTIVE FOR INVESTORS IF WE DO NOT OFFER THEM A LEGAL AND PROTECTED MARKET WHERE WE CAN OFFER SECURITY AND

PROTECTION” Recognition of brands, products and works draws the immediate attention of the informal industry, which is hungry for others’ ideas to fill their OUR COMMITMENT: pockets. Industries should cater to and please consumers As innovation improves and new forms of but at the same time protect them. communication and entertainment emerge, these new forms sabotage the creative industry. Tools should be provided for them to tell originals from counterfeits, originals from pirated goods. Products are sold on the internet below cost, without quality standards or controls. Easy access and competitive prices should be offered. Audiovisual content, complete books, video games, etc. are offered for free on the internet. Platforms adapted to technological advances should be available to give consumers easy and Illegal platforms are offered through altered legal especially secure access to products and/or equipment that makes it possible to access them services. merely by connecting the equipment to a device. Consumers’ awareness should be raised regarding respect for what is legitimate and the advantages of legitimate over illegitimate products. No country will be competitive and attractive for investors if we do not offer them a legal and protected The cooperation of internet service providers, market where we can offer security and protection. an industry that is directly affected, should be This requires teamwork – among industry, consumers encouraged in order to block access to websites and the government – to be able to offer fruitful that lead consumers to this type of products and/ ground for investment. or services.

By Nikki Bahr L. President nbahr@rse.com.gt

In August 2016, I had the honor of moderating a panel on sustainability experiences composed of multinational companies investing in Guatemala. The panel included directives from Bayer, CEMEX, Telefonica, Walmart and Jaguar Energy during the “1st International Encounter for Corporate Social Responsibility” organized by the Canadian Embassy in Guatemala, the Mexican Embassy in Guatemala and with the support of UNDP, the German Embassy and ASCABI (of which AMCHAM is a member). The panel discussed the importance of corporate investments in the region and and how sustainability had added value to their core business strategies. 90

One of the first reflections of this panel was that • Continuous proactive local engagement is needed to in Guatemala and in the region, multinational ensure good relations with local stakeholders. This corporations have added significant depth to the is particularly critical when operating in areas with sustainability agenda by sharing an array of good low levels of income and low levels of education. practices, a structured approach and a capacity to Companies must not rely on one way corporate giving compare practices across countries and regions. strategies, but must allocate significant corporate Sustainability has been on the Guatemalan business resources to listen and interact with local leaders of agenda since the end of the 90’s. It has been driven all types to ensure proper hiring practices, ensure by local business leaders seeking to use the economy negative impacts on communities are mitigated, and the corporate agenda to drive social inclusive ensure positive impacts on communities are taken development. Initiatives have been catalyzed advantage of, among others. institutionally in groups like Sustainable Strategies consulting, CentraRSE civil society, IPRES – UNIS • An emphasis was placed on operating in compliance academia, and the CSR AMCHAM committee, among with international environmental standards, versus others. complying with local legislation. This aids in reducing environmental risks and anticipates changes in local The business role in sustainability has shifted over regulation. For example, the panelists mentioned the years, but the strong local commitment continues they had invested in technology for waste reduction, to shape the agenda in the country, and even in the emissions reductions, better water management, region. This trend differs from Asia, Africa, etc. were among others. the sustainability agenda has been led by external drivers. • A growing interest in sustainable goods and services was noted. Experience indicates that interest Another reflection was that sustainability has helped does not imply a price premium, panelists noted. companies invest, grow and strive in Guatemala. However, there is a growing interest for new products The panelists concurred that voluntarily operating and services with a sustainable story behind their considering social and environmental impacts helps production. them gain a competitive advantage in country. Common benefits cited can be highlighted in five • Finally, companies indicated that government themes. and industrial relations with peers become easier when companies consider sustainability in their • Social investments help open doors at local and operations as a key driver for success. When national levels when initiating investments in voluntary standards adopted by companies are country, specifically in rural areas. Investments, higher than local legislation, companies cited that must be prioritized and executed in partnership local governments felt more at ease in facilitating with local civil society to guarantee success and to their investments. As well with local businessmen respond lo local priorities. The panelists referred to common ground was found easily when expectations their initial strategies as responding to local needs of operating practices were indicated to follow and then further work with communities to orient international best practice. the social investment strategies towards the 17 Sustainable Development Goals -UNDP. 91

TRADE COMMISSIONERS PROGRAM FOR INVESTMENT AND TOURISM -PACIT-

INGUAT – GUATEMALAN INSTITUTE OF TOURISM:

www.visitguatemala.com INVEST IN GUATEMALA:

http://www.investinguatemala.org/en NATIONAL COMPETITIVENESS PROGRAM-PRONACOM:

www.minfin.gob.gt

MINISTRY OF HEALTH:

www.mspas.gob.gt

www.pronacom.gt

SUPERINTENDENCY OF TAX ADMINISTRATION –SAT:

OFFICE OF THE PRESIDENT:

SUPERINTENDENCY OF TELECOMMUNICATIONS-SIT-:

www.sgp.gob.gt

ATTORNEY GENERAL:

www.mp.gob.gt

MINISTRY OF AGRICULTURE:

www.maga.gob.gt

MINISTRY OF COMMUNICATIONS:

www.civ.gob.gt

MINISTRY OF ECONOMY:

www.mineco.gob.gt

MINISTRY OF EDUCATION:

www.mineco.gob.gt

MINISTRY OF FOREING AFFAIRS:

www.minex.gob.gt

MINISTRY OF LABOR AND EMPLOYMENT:

www.mintrabajo.gob.gt

MINISTRY OF MINES AND ENERGY:

www.mem.gob.gt

MINISTRY OF FINANCES:

www.sat.gob.gt www.sit.gob.gt

GUATEMALA CENTRAL BANK:

Miami

New York

Washington

DUNIA MIRANDA Commercial Attache Phone: (305) 373-0322 Toll Free: 1-877-249-1247 1101 Brickell Avenue Suite 603-S Miami, Fl. 33131, U. S. A. E-mail:gtimiami1@gmail.com Skype: gtimiami1

DIEGO DIAZ Commercial Attache Phone: (212) 689-1014 (917) 975-6883 Toll Free: 1-877-249-1247 276 Park Ave South, 2nd Floor. New York, NY. 10010 E-mail:gtinewyork@gmail.com Skype: diego.diaz.81

MIGUEL SOLIS Commercial Attache Phone: (202) 679-2358 Toll Free: 1-877-249-1247 2220 R. Street N. W. Washington, D. C. 20008, U.S.A E-mail: gtiwashington@gmail.com trade1@guatemala-embassy.org Skype: gtiwash

Los Angeles

Headquarters

JOSE RODRIGO GUEVARA Commercial Attache Telephone: (213) 610 5017 Local Phone: (502) 2378 1340 Toll Free: 1-877-249-1247 3540 Wilshire Blvd. Suite 100 Los Angeles, CA 90010 E-mail: gtilosangeles@gmail.com Skype: jrguevaras

OTTO MAZARIEGOS Executive Director Phone: (502) 2422-3405/3616 E-mail omazariegos@investinguatemala.org Call Center: (+502) 2414-4446

www.banguat.gob.gt

NATIONAL INSTITUTE OF ELECTRICITY -INDE:

www.inde.gob.gt

NATIONAL STATISTICS INSTITUTION:

www.ine.gob.gt AGEXPORT:

www.export.com.gt APPAREL AND TEXTILE INDUSTRY ASSOCIATION:

www.vestex.com.gt

GUATEMALAN CONSTRUCTION CHAMBER -CONSTRUGUATE-:

www.construguate.com

GUATEMALAN CHAMBER OF COMMERCE:

www.camaradecomercio.org.gt

AmCham’s in Central America

GUATEMALAN CHAMBER OF INDUSTRY:

www.industriaguate.com

EL SALVADOR Carmen Muñoz, Chief Executive Officer American Chamber of Commerce of El Salvador, Edificio World Trade Center Torre II, Nivel 3 Local 308, 89 Avenida Norte, Col. Escalón, San Salvador, El Salvador Phone: (503) 2263-9494 amchamsal@amchamsal.com www.amchamsal.com

HONDURAS

NICARAGUA

COSTA RICA

Eyby Aguirre, Executive Director Honduran-American Chamber of Commerce Tegucigalpa (Main Office) Edificio Torre Alianza I, 7 nivel, Colonia Lomas del Guijarro Sur, Boulevard San Juan Bosco, frente a las oficinas principales de Citi. Tegucigalpa Phone: (504) 2271-0094 / 0095 / 0096 Fax: 2271-0097 amcham@amchamhonduras.org www.amchamhonduras.org

Avil Ramírez, Chief Executive Officer American Chamber of Commerce of Nicaragua Plaza España, de la Rotonda el Güegüense 400 mts al sur, 75 mts. al este. PBX: 2266-2758 publicrelations@amcham.org.ni www.amcham.org.ni

Alberto Arguedas, Executive Director Costa Rican- American Chamber of Commerce 300 m Noreste del ICE, Sabana Norte 300m Noreste del ICE Sabana Norte Phone (506) 220-2200 info@amcham.co.cr www.amcham.co.cr