Guatemala’s Congress has approved Decree 18-2025, through which the country formalizes its accession to the Free Trade Agreement (FTA) between the Republic of Korea and the Central American republics. The decree, composed of two articles, endorses the Protocol of Accession and will enter into force eight days after its publication in the Diario de Centro América.
The FTA aims to stimulate trade expansion and diversification among the parties, reduce barriers to the exchange of goods and services, and promote fair competition conditions. It also establishes mechanisms for dispute resolution, strengthens intellectual property protections, and promotes bilateral and regional cooperation.
For Guatemala, accession opens significant commercial opportunities, particularly for the agricultural and textile sectors, by facilitating access to the Korean market and boosting investment flows. The agreement will also support the enhancement of productive and technical capacities while promoting the cross-border movement of goods and services under clear and standardized rules.
Recommendations for companies
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Assess immediate tariff impact
Identify products that may benefit from tariff reductions and map export opportunities to South Korea. Prepare pricing and margin scenarios to capitalize on advantages from day one of implementation.
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Review supply chains and rules of origin
Verify whether current inputs comply with the FTA’s rules of origin. Adjust suppliers or production processes to avoid delays or rejections once the agreement becomes operational.
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Update contracts and logistics models
Distribution, supply chain, and transportation contracts should be reviewed to incorporate new tariff conditions, transit times, and potential shifts in demand.
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Explore investment incentives and partnership opportunities
The FTA may make partnerships with Korean companies more attractive. Corporate teams should evaluate joint ventures and new product or service lines.
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Monitor publication of regulations and procedures
Although the decree confirms accession, practical implementation will depend on subsequent regulations. Companies should stay alert to customs requirements, certifications, and sector-specific timelines.
