Travel Reference
In-Depth Information
Guatemala's economy is still very much based on agriculture.
The U.S.-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA)
was ratified by Guatemala on March 10, 2005. Priorities within DR-CAFTA include the
elimination of customs tariffs on as many categories of goods as possible, opening ser-
vices sectors, and creating clear and easily enforceable rules in areas such as investment,
customs procedures, government procurement, electronic commerce, intellectual property
protection, the use of sanitary measures for the protection of public health, and resolution
ofbusinessdisputes.ImporttariffswereloweredaspartofGuatemala'smembership inthe
Central American Common Market, with most now below 15 percent.
Other priorities include increasing transparency and accountability in Guatemala's pub-
lic finances, broadening the tax base as part of the peace accords, and completing imple-
mentation of reforms of the finance sector. The implementation of these changes involved
reforming Guatemalan laws and a long, involved process in the national legislature. The
process finally ended in June 2006, with DR-CAFTA officially taking effect on July 1,
2006,aftertheU.S.DepartmentofCommerceofficiallycertifiedthecountryincompliance
with the trade agreement.
