Following the 2nd Administrative Committee Meeting under the Free Trade Agreement (FTA) between Taiwan and Guatemala on 9 July 2019, both parties reached consensus on the contents of four Decisions, which officially entered into force as of 1 April 2020.
These Decisions relate to the establishment of an electronic certificate of origin exchange mechanism, adjustment to the quota for Guatemalan cane sugar, elimination of tariffs for Guatemalan trees, shrubs and bushes, grafted or not, of kinds which bear edible fruit or nuts, other ornamental grass, fresh, and etc., and for Taiwan-made motorcycles and bicycles.
Over recent years, Guatemala’s motorcycle market has developed rapidly, with average sales reaching 180,000 units per year. Motorcycles have become one of the main forms of transportation for Guatemalans. In 2019, Taiwan was Guatemala’s 14th and 3rd largest importing country for motorcycles and bicycles, respectively. The Decisions taking effect on 1 April will increase opportunities for our businesses as well as expand bilateral trade.
Guatemala is the largest economy in Central America, and also one of our important economic partners in Latin America. It is an important source of cane sugar, coffee and other agricultural products for Taiwan. Since the Taiwan-Guatemala FTA took effect 15 years ago, bilateral trade has increased from US$130 million in 2005 to US$209 million in 2019 (61% increase), clearly representing the trade benefits of the FTA.
The Decisions (in Chinese, English and Spanish versions) are available for viewing on the BOFT website: https://www.trade.gov.tw/english/Pages/List.aspx?nodeID=676.