WASHINGTON -- Guatemalan officials and former officials used the Trump administration tariffs to pitch their nation as a desirable place for foreign investment, which could also benefit the United States by curbing migration from the Central American Country.
President Trump set 25% tariffs on Mexico, but only 10% tariffs on Guatemala, which could benefit the Central American country.
"That difference in tariffs could be an important element if the U.S. is considering strengthening the region for its own exports and for strategic motives," said Lisardo Bolaños, former deputy minister of Investment and Competitiveness in Guatemala's Ministry of Economy, said Wednesday in a Zoom conversation with the Center for Strategic & International Studies.
Guatemala in recent years has attracted foreign direct investment from 200 U.S. and other foreign firms, benefiting from the U.S. Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).
These investments have reflected companies' strategies to manufacture closer to the United States to avoid U.S. tariffs. The Guatemalan officials and former officials suggested that their relatively better position with regard to Trump tariffs could spur more investment.
