Guatemala Prioritizes Accession to Korea-Central America FTA

Guatemala is prioritizing completion of its accession to the Korea-Central America Free Trade Agreement, its foreign minister said Wednesday. The agreement, already in force with five other Central American countries since 2021, is expected to expand trade and create conditions for increased South Korean investment, the minister said during a visit to Seoul.

Guatemala signed an accession protocol with South Korea in January 2024. The remaining step is ratification by the other Central American countries' congresses.

Bilateral goods trade reached about $418 million in 2024, with South Korean exports totaling $287 million and imports from Guatemala at $131 million. South Korean exports to Guatemala consist mainly of transport and capital goods such as trucks, passenger vehicles and construction equipment.

Guatemala's exports to South Korea include coffee, copper scrap, electrical components and knitwear. More than 250 South Korean companies currently operate in Guatemala, primarily in the apparel sector, and the Korean community there numbers more than 6,000 people.

The minister also noted Guatemala's efforts to improve the investment climate through streamlined procedures and anti-corruption measures. South Korean official development assistance programs in Guatemala have focused on sustainability, with recent emphasis on climate resilience alongside traditional priorities such as malnutrition, education and health.

The minister expressed hope that Guatemala's president will visit South Korea and that South Korea's president will visit Guatemala, noting that no South Korean president has visited the country in 19 years.