Peru-Guatemala FTA is now a reality

On April 23, 2025, Peru and Guatemala signed a protocol activating the Free Trade Agreement (FTA) signed in 2011, marking a milestone in trade relations between the two countries. This agreement seeks to facilitate the exchange of goods and services, reduce tariffs and promote mutual economic development.

With bilateral trade reaching US$250 million in 2024, this FTA represents a significant opportunity for exporters, importers and transporters interested in strengthening their presence in Central and South America.

Details of the agreement and its commercial impact

The signed protocol allows the FTA between Peru and Guatemala to enter into force, facilitating market access and providing legal certainty to companies. This agreement will especially benefit micro, small and medium-sized enterprises (MSMEs), which account for more than a third of Peruvian exports to Guatemala.

Among the products with the greatest export potential are grapes, palm oil, strawberries, and fuel from Peru, and cane sugar, refrigeration equipment, insecticides, and cocoa confectionery from Guatemala.

Benefits for MSMEs and strategic sectors

Peruvian President Dina Boluarte noted that the agreement will provide MSMEs with the legal security and preferential access they need to grow and innovate. The FTA is also expected to boost sectors such as the metal-mechanic, agro-industrial and technological sectors, promoting export diversification and attracting investment.

Guatemala, for its part, consolidates its position as Peru's second largest trading partner in Central America, which reinforces the strategic importance of this agreement for both countries.

Analysis of JAH Insurance Brokers

At JAH Insurance Brokers, we recognize that the activation of the Peru-Guatemala FTA represents both opportunities and challenges for companies involved in international trade.

Risks:

• Variations in trade and tariff policies that may affect the stability of the agreement.

• Logistical and transportation risks associated with increased trade.

• Exposure to fluctuations in financial markets and exchange rates.

Opportunities:

• Access to new markets with preferential conditions.

• Diversification of products and services offered.

• Strengthening of commercial relationships and expansion of distribution networks.

The role of insurance in this context is fundamental to mitigate risks and guarantee the continuity of business operations. We offer customized solutions that include trade credit insurance, transportation insurance and business interruption coverage, tailored to the specific needs of exporters, importers and carriers.

Recommendations for exporters, carriers and importers:

1. Evaluate and update insurance coverages: Make sure your current policies cover the new risks associated with NAFTA.

2. Diversify markets and products: Take advantage of the opportunities offered by the agreement to expand your presence in new sectors and regions.

3. Strengthen the supply chain: Implement strategies to ensure the efficiency and resilience of your logistics operations.

4. Specialized training and advice: Seek support from international trade and insurance experts to optimize your trade and risk management strategy.

Conclusion

The entry into force of the Peru-Guatemala FTA opens up a range of opportunities for companies involved in international trade. However, it is essential to have a solid risk management strategy adapted to this new context.

At JAH Insurance Brokers, we are committed to providing you with the support and advice necessary for your company to take full advantage of the benefits of this trade agreement. Contact us today and find out how our insurance solutions can boost your growth and protect your business.

Official source:
Ministry of Foreign Trade and Tourism of Peru (MINCETUR). Peru and Guatemala sign protocol to put into effect the Free Trade Agreement between both countries. Published on April 23, 2025. Available at: https://www.gob.pe/institucion/mincetur/noticias/1154572