Juli 2008: Nieuwsflits Guatemala
From Handelswijzer Midden-Amerika
Canada renews inerest of free trade agreement with Guatemala
Helena Guergis, Canadian Foreign Affairs an International Commerce Secretary, visited Guatemala to confirm her country’s intentions to retake negotiations of a Free Trade Agreement with Guatemala, El Salvador, Honduras and Nicaragua. She announced that a preliminary meeting will take place this month. Guatemala is the second most important trade partner for Canada in Central America, during 2007 commerce between the two nations reached US$353 million, from which Canada exported US$130.9 million and imported US$221.6 million from Guatemala. According to Guergis, there is investment potential for Canadian companies in Guatemala, around US$750 million of Canadian capital have already been invested but she believes that this amount could reach US$2,000 million. During her 3 day visit Guergis met with local government and civil society representatives. In these meetings she discussed issues such as hemispheric security, human rights and commerce.
Lay overs increase 18% during first semester of 2008
Lay overs of more than 1,550 employees of the export department of Grupo Cantel, reflect the difficult situation for employment this year; an increase in production costs and a decrease in sales, which is getting worse due to the world economic crisis, has forced companies to massive lay overs in order to keep their business afloat. According to statistics from the General Work Inspection Department, during the first semester of 2008, they’ve received 3,225 notices of lay overs, an increase of 18% compared to the 2,735 notices received during the same period in 2007. From the 3,225 cases received this year, only 312 have been solved and only Q6.5 million have been granted to workers as labour compensations.
S&P maintains score for Guatemala
The north American risk company, Standard & Poor’s Ratings, confirmed scores for Guatemala in BB/B in foreign currency and BB+/B in local currency. Guatemalan scores are supported by a solid trajectory of conservative fiscal policies, an improvement in the debt profile, a stable remittance flow and a political transition without delays. Nevertheless, S&P points out the low fiscal income in comparison to other countries that are in the same rank as Guatemala. Poverty and unequal income distribution are an obstacle to economic growth, according to the document.
New Pinion oil processing plant to be opened
Around 200 small farmers from the communities of Suchitepéquez and Retalhuleu will benefit from the opening of a pinion oil bio fuel production facility. This facility was the initiative of Fundación Technoserve with the financial support of the United States Agency for Development. According to United Nations technical staff, which visited the project on July, this facility could become an efficient economic model for the fight against poverty not only in Guatemala but in other countries with similar weather and soil conditions. Lionel López, Technoserve Director, stated that their goal is to duplicate the project in other areas. The facility will cost around US$10,000 and will have the capacity to process 3 tons of seeds per day.
Demand for biofuel boosts real state sales
The global rise in fuel prices and the demand for bio fuel have boosted interest in Guatemalan lands for harvesting african palm in order to produce bio fuel. The north American company Green Earth Fuels, property of The Carlyle Group, Riverstone Holdings and Goldman Sachs, acquired more than 25 thousand hectares in the Departments of Petén, Alta Verapaz, and Quiché. These lands will be used for the production of african palm.
Guatemalan National Bank (BABGUAT) warns about economic risks
According to Banguat’s President, María Antonieta Bonilla, a decline in world economy, an unstable financial market and the increase in prices of raw materials and basic foods, are all risks for the national economy. During June 2008 Guatemala’s inflation reached 13.56%, its highest level in 14 years. Bonilla suggested that in order to deal with the food crisis, temporary subsidies should be created as well as food programs in public schools. She also mentioned the reduction of import tariffs. By September the Guatemalan National Bank will publish new growth estimates for the economy. Last April this figure was reduced from 5.3 to 4.8%. Nevertheless, Bonilla foresees a positive growth for the Guatemalan economy due to a good rhythm in exports, remittances and tourism.
