Guatemala Prioritizes Joining Korea-Central America FTA to Boost Trade

By Oh Seok-min

SEOUL, July 2 (Yonhap) -- Guatemala is prioritizing its accession to the Korea-Central America Free Trade Agreement (FTA), which is expected to further boost bilateral trade and investment with South Korea, while helping diversify the Central American country's export markets, its foreign minister said.

Guatemalan Foreign Minister Carlos Ramiro Martinez made the remarks in an interview with Yonhap News Agency in Seoul on Wednesday during a visit that included talks with his South Korean counterpart, Cho Hyun.

"It will further expand trade, and it will surely create a more favorable scenario for increasing Korean investment in Guatemala," Martinez said. "At the moment, Guatemala has very few export products going to Korea, but we expect that to expand as well."

South Korea's FTA with five Central American nations -- Panama, Nicaragua, Honduras, Costa Rica and El Salvador -- entered into force in 2021. Guatemala later reached an agreement with Seoul on joining the pact and signed an accession protocol in January 2024.

"Now the process is pending the completion of the same domestic procedures by the rest of the Central American countries' congresses. We are working with the intention that this process be as brief as possible," Martinez said.

"For us, this FTA issue is a matter of high priority, and that is what we are focused on."

Martinez said the FTA is expected to generate positive economic effects, given the complementary nature of bilateral trade and Guatemala's position as one of the largest economies in Central America.

Bilateral goods trade totaled about US$418 million in 2024, with South Korea's exports to Guatemala reaching $287 million and imports standing at $131 million.

South Korea's exports to Guatemala are dominated by transport and capital goods, including trucks, passenger vehicles and construction equipment, while major items of Guatemala's exports to South Korea are coffee, copper scrap, electrical components and knitwear products.

"Though trade is entirely favorable to Korea, we believe Guatemala can offset that in other areas through direct investment," he said.

The minister also highlighted Guatemala's efforts to improve the investment environment for foreign companies by streamlining administrative procedures, while emphasizing anti-corruption measures aimed at strengthening confidence among investors.

More than 250 Korean companies operate in Guatemala, primarily in the apparel sector, while the Korean community in the country numbers more than 6,000 people, making it the fourth-largest Korean community in Latin America after those in Argentina, Brazil and Mexico.

"The presence of Korean companies in Guatemala is a sign of confidence in our country and the opportunities it offers," Martinez said. "We would like it not only to grow in the textile sector, where it is currently concentrated, but also to expand into other industrial sectors."

Martinez praised South Korea's official development assistance (ODA) programs in Guatemala, saying they have delivered lasting benefits to local communities as Korean projects "have a vision of sustainability."

While welcoming the recent focus of Korean aid programs on climate resilience and climate change adaptation, the minister stressed that traditional development priorities, such as malnutrition, education and health remain important.

Martinez expressed hope that Guatemalan President Bernardo Arevalo will visit South Korea in the future, saying such a visit would underscore the close ties between the two nations.

The minister also expressed his country's intention to invite South Korean President Lee Jae Myung to Guatemala, pointing out that no South Korean president has visited the Central American country in 19 years.