The Mexicans Have Arrived

In 1995, exports from Mexico to Guatemala increased by 42.5%, reaching a total of $310 million. Guatemala's exports to Mexico, during the same period, fell 38% to $51 million.

Guatemala is Mexico's most important commercial partner in the Central American region, for 44.6% of Mexico's exports to the isthmus go to Guatemala.

Most of the Mexican companies export their products to Guatemala, but many have invested in local plants, or at least in their own local distribution systems. The majority of Mexican companies seek local partners, with whom they establish joint ventures.

The interest in our market is such, that Bancomext recently inaugurated a Business Center in our capital, to aid these strategic ventures between Mexicans and Guatemalans.

Lately, business relations between the two countries have suffered because of temporary compensatory tariffs placed by the Guatemalan government. Furthermore, the Guatemalan government placed a legal battle against smuggling, because of the allegedly huge amount of Mexican products that enter the country illegally.

Negotiations between Mexico and the so called North Triangle -Guatemala, Honduras, and El Salvador- seem to be reaching a conclusion, that would establish a Free Commerce Treaty among the four countries, which does end the conflicts, but at least sets procedures to solve them.