In sectors such as banana exports alone, an estimated $400,000 are generated each day, explained Carla Caballeros, executive director of the Chamber of Agriculture (Camagro), as quoted by the newspaper Prensa Libre.
The ability to continue absorbing this expense depends on each company, the executive argued, explaining earlier that each case is different since it depends on the negotiation with its buyer or importer.
However, she considered that it will be more difficult for small and medium-sized companies to operate with this burden, adding to the high costs of operating in this country due to the poor condition of roads and port congestion, among other factors. “Guatemala is the best ally the United States can have in the region. That’s why the solution lies in raising the political level of dialogue,” Caballeros commented.
Alejandro Ceballos, vice president of the Apparel and Textiles Association (Vestex), described the sector’s mixed reactions to the tariff, implemented on the 5th.
Some clients asked exporters to assume the 10 percent burden, while others are paying it themselves, which is expected to increase garment prices. In other cases, he explained, the company is sharing the burden.
The last week has been difficult, the executive stated, while predicting that companies will be able to hold out for a few weeks once they receive orders, but some are operating at a loss when this new charge is added.
Camagro warned three days ago of Guatemala’s disadvantages compared to Mexico and described the situation as worrying because more than 30 percent of Guatemalan exports are destined for the United States. The problem is that a 10 percent tariff on imports makes products from the land of the quetzal more expensive than those of competitors with open access (Mexico was exempt from the tariff), the organization explained.
The Guatemalan Business Commission for Negotiations and International Trade verified a payment of more than two million dollars for this item in the first few days, which affects key products such as coffee, mango, macadamia, among others.
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