Trading Partner Portal: Guatemala
As the most populous country in Central America, Guatemala has a population of 17.2 million people and it is roughly the size of Tennessee. Guatemala is part of the Central America Common Market and has a GDP of $78.4 billion. According to the CIA Factbook, their GDP per capita is roughly one-half that of the average for Latin America and the Caribbean. World Bank
The United States is the country’s largest trading partner, providing 40% of Guatemala’s imports and receiving about 35% of its exports. In 2019, the United States exported $6.8 billion to Guatemala, including products like petroleum & coal, food manufactures, special classification provisions, and chemicals. Guatemala is currently the U.S.’s 36th export destination. The United States imports $3.98 billion from Guatemala including agricultural products, apparel products, food manufactures, and oil and gas. (U.S. Department of Commerce)
As California’s 33rd largest export partner, Guatemala imported over $626.95 million worth of goods in 2019. Petroleum and coal products accounted for 53.6% and textiles & fabrics accounted for 9%, while used merchandise and computer and electronic products were other top categories. California imports approximately $633 million from Guatemala, including apparel, agricultural products and food manufactures. (U.S. Department of Commerce)
In 2018, the U.S. invested $126.5 billion into Central America. Guatemala’s foreign direct investment into the U.S. in 2018 totaled $15 million (BEA).
Preliminary Overview of the Economies of Latin America and the Caribbean
ECLAC, December 2019
U.S. – Dominican Republic – Central American Free Trade Agreement
On August 5, 2004, the United States signed the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) with five Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua) and the Dominican Republic.
President Bush signed the US-DR/CAFTA on August 2, 2005, giving final U.S. approval of the agreement. This follows a vote in the U.S. House of Representatives on July 28 and the U.S. Senate on June 30, 2005. The governments of El Salvador, Guatemala, Nicaragua, Honduras and the Dominican Republic have implemented the agreement as of March 2007. Costa Rica ratified CAFTA completely in 2008.
The United States and the five Central American countries shared over $52.6 billion in total (two-way) trade in goods in 2015. U.S. goods exports to Central America totaled $29.9 billion in 2015. Leading U.S. exports to Central America include petroleum and coal, computers, chemicals, and food manufactures. Leading U.S. imports from Central America include apparel products, agricultural products, manufactured commodities, and transportation equipment. The U.S. is the main supplier of goods and services to Central American economies. Forty percent of total goods imports by Central America come from the United States.
California exports to the DR-CAFTA market totaled over $1.8 billion in 2015, making it the 4th largest state exporter.
For More information, see CalChamber’s DR-CAFTA Trade Issue page.
Central American Ambassadors Promote Benefits of Trade Agreement with U.S.
(March 9, 2005) The California Chamber of Commerce hosted five ambassadors representing the nations included in the proposed U.S.-Central American Free Trade Agreement (CAFTA) at an International Luncheon Forum yesterday.
The CAFTA was signed on May 28, 2004 in Washington, D.C. U.S. Trade Representative Robert Zoellick signed on behalf of the United States. Trade ministers from Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua signed on behalf of their countries. On August 5, 2004, representatives from the United States and the Dominican Republic signed an agreement formally including the Dominican Republic in the agreement.