Free Trade Agreement (FTA) Guatemala Taiwan

Course summary Taiwan (ROC Rep. of China) Guatemala Free trade Agreement (FTA):

The Guatemala-Taiwan Free Trade Agreement entered into force on 1 July 2006.

Under the Taiwan (ROC Rep. of China) Guatemala Free trade Agreement (FTA), Guatemala will extend free-tariff treatment to 447 agricultural products from Taiwan, or 45.8 percent of the total listed Taiwanese products, while another 221 agricultural products, or 22.6 percent, are excluded, and tariffs on the remainder will be reduced by stages, the amount and timing to be determined later.

Taiwan, in turn, will grant tariff exemptions to 644 or 41 percent of listed Guatemalan agricultural products, maintain current levels for 12.5 percent, and gradually lower tariffs on the rest.

With respect to industrial products, Guatemala will allow imports of 3,509 items, or 66.18 percent, of the total number of Taiwan-made products specified in the draft agreement.

Taiwanese businessmen are also allowed to invest in Guatemala and then extend their operations, or market their goods, to the United States and other countries in Central America under the terms of the Central American Free Trade Agreement to which Guatemala is a signatory.

In 2010 Guatemala export US$40 million in products to Taiwan and import US$90 million. Coffee and sugar are the main products Guatemala export to Taiwan and it is eying meat exports as trade jumped 40 percent in the last two years.

Regional Value Content (Article 4.07)
The regional value content of the goods shall be calculated according to the following formula:

RVC= [(TV- VMN) / TV] * 100

Where:
- RVC is the regional value content, expressed as a percentage;

- TV is the transaction value of the good adjusted to a FOB basis, unless as stated in paragraph 2. In case this value does not exist, or cannot be determined according to the principles and rules of Article 1 of the Customs Valuation Agreement, it shall be calculated according to the principles and rules of Articles 2 through 7 of the Agreement; and

- VMN is the transaction value of the non-originating materials adjusted to a CIF basis, unless as stated in paragraph 5. In case that the value does not exist or cannot be determined according to the principles and rules of Article 1 of the Customs Valuation Agreement, it shall be calculated according to the principles and rules of Articles 2 through 7 of the Agreement.
 

Free Trade Agreement (FTA) Guatemala Taiwan:

Free Trade Agreement (FTA) Guatemala Taiwan (Spanish):

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