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U.S. Department of State
Guatemala Country Commercial Guide
Office of the Coordinator for Business Affairs




                           COUNTRY COMMERCIAL GUIDE

                                 GUATEMALA

                              FISCAL YEAR 1996



This Country Commercial Guide (CCG) presents a comprehensive look at 
Guatemala's commercial environment through economic, political and 
market analyses.  

The CCGs were established by recommendation of the Trade Promotion 
Coordinating Committee (TPCC), a multi-agency task force, to consolidate 
various reporting documents prepared for the U.S. business community.  
Country Commercial Guides are prepared annualy at U.S. Embassies through 
the combined efforts of several U.S. governement agencies.  



Table of Contents

Chapter

I.   Executive Summary

II.  Economic Trends and Outlook
     A.  Major Trends and Outlook
     B.  Principal Growth Sectors
     C.  Government Role in the Economy
     D.  Balance of Payments Situation
     E.  Infrastructure Situation
          
III. Political Environment
     A.  Nature of Bilateral Relationship with
         the United States
     B.  Major Political Issues Affecting 
         Business Climate 
     C.  Brief Synopsis of Political System,
         Schedule for Elections, and Orientation
         of Major Political Parties

IV.  Marketing U.S. Products and Services                 
     A.  Distribution and Sales Channels                  
     B.  Use of Agents and Distributors: Finding a Partner
     C.  Franchising                                      
     D.  Direct Marketing                                 
     E.  Joint Ventures                         
     F.  Licensing                                        
     G.  Steps to Establishing an Office                  
     H.  Selling Factors/Techniques
     I.  Advertising and Trade Promotion                  
     J.  Pricing Product                                  
     K.  Sales Service/Customer Support
     L.  Selling to the Government                        
     M.  Protecting Products from IPR 
         Infringement                                     
     N.  Need for a local Attorney                        

V.   Leading Trade Prospects for U.S. Business            
     A.  Best Prospects for U.S. Exporters of Non-agricultural Products
     B.  Best Prospects for U.S. Exporters of Agricultural Products

VI.  Trade Regulations and Standards 
     A.  Trade Barriers, Tariffs and Import Taxes
     B.  Customs Valuation                                
     C.  Import Licenses                                  
     D.  Export Controls                                  
     E.  Import/Export Documentation                      
     F.  Temporary Entry                                  
     G.  Labeling/Marketing Requirements                  
     H.  Prohibited Imports                               
     I.  Standards                                        
     J.  Free Trade Zones/Warehouses                      
     K.  Membership in Free Trade Arrangements            
 
VII. Investment Climate                                   
     A.  Openness to Foreign Investment                   
     B.  Conversion and Transfer Policies
     C.  Expropriation and Compensation
     D.  Dispute Settlement
     E.  Political Violence
     F.  Performance Requirements/Incentives
     G.  Right to Private Ownership/Establishment
     H.  Protection of Property Rights
     I.  Regulatory System
     J.  Bilateral Investment Agreements
     K.  OPIC and Other Investment Insurance Programs
     L.  Labor
     M.  Foreign Trade Zones
     N.  Capital Outflow Policy
     M.  Major Foreign Investors

VIII.Trade and Project Financing                          
     A.  Brief Description of Banking System              
     B.  Foreign Exchange Controls Affecting
         Trading                                          
     C.  General Financing Availability           
     D.  How to Finance Exports/Methods of 
         Payments                                         
     E.  Types of Available Export Financing
         and Insurance                                    
     F.  Project Financing Available                      
     G.  List of Banks with Correspondent U.S. Banking
         Arrangements                                     

IX.  Business Travel                                      
     A.  Business Customs                                 
     B.  Travel Advisory and Visas                        
     C.  Holidays                                         
     D.  Business Infrastructure                          

X.   Appendices
     A.  Country Data                                        
     B.  Domestic Economy
     C.  Trade (1994 to 1996)
     D.  Foreign Direct Investment Statistics
     E.  U.S. and Country Contacts
         Country Government Agencies                       
         Country Trade Associations/Chambers of Commerce
         Country Market Research Firms                     
         Country Commercial Banks                          
         U.S. Embassy Trade Personnel                      
         Washington-Based USG Country Contacts             
         U.S.-Based Multipliers Relevant for Country
     F.  Market Research
         Industry Sector Analyses (ISAs)
         Scheduled USDA/FAS Annual Commodity and Special Reports
     G.  Trade Event Schedule



I.  Executive Summary

Guatemala is the northernmost country in Central America with Mexico to 
the north and west, Belize and the Atlantic Ocean to the east, Honduras 
and El Salvador to the southeast and the Pacific Ocean to the south.  
Famed for its volcanoes, textiles and Mayan ruins, Guatemala is also a 
good market for U.S. products and can be an attractive place for foreign 
investment.  With a population of 10 million, it is the largest country 
in Central America.  The capital, Guatemala City, has a population of 
about two million and has several first-class hotels and restaurants.  
The city is served by La Aurora International Airport, which is located 
just minutes from the major business and financial areas.

Guatemala's economy is the largest in Central America, with a GDP of 
about $12 billion.  It is also one of the most important U.S. trading 
partners in the Caribbean Basin region.  Imports from the United States 
in 1994 reached $1.35 billion, with a significant U.S. trade surplus, 
and are forecasted to grow at an average annual rate of 10 percent over 
the next few years.  U.S. products and services enjoy high name 
recognition in Guatemala and U.S. firms have a good reputation in the 
Guatemalan market.  As a result, almost one half of all Guatemala's 
imports come from the United States.

The Guatemalan market is competitive.  Guatemalan business people are 
price sensitive and expect good after-sales service and support.  They 
are accustomed to doing business with U.S. firms and many travel 
regularly to the United States and speak English.

The Guatemalan economy has done well over the last several years.  Real 
GDP grew by 4.8 percent in 1993 and by 4.0 percent in 1994.  Guatemala 
may see higher growth during 1995.  Inflation has been relatively 
moderate, as well, holding at 11.6 percent each of the last two years.  
Through the first six months of 1995, the Bank of Guatemala reported an 
annualized inflation rate of just under 8.0 percent.  Guatemala's 
expanding economy has been led by traditional exports, such as coffee 
and sugar, and by non-traditional exports, such as assembled clothing, 
winter fruits and vegetables, furniture and cut flowers.  The non-
traditional sector, in particular has seen dramatic growth and has 
provided jobs and increased income for tens of thousands of people over 
the last ten years.  Tourism has also developed significantly and should 
continue to grow.  In 1994, more than half a million tourists visited 
Guatemala.

The Government of Guatemala welcomes foreign investment and generally 
accords foreign investors national treatment; there are few legal or 
regulatory restrictions placed on foreign investors.  The U.S. is by far 
the largest foreign investor in the country.  

Most hurdles to exporting and investing in Guatemala are bureaucratic in 
nature.  The government is generally aware of these problems and has 
proposed some steps to overcome them.  One of the most crucial is the 
"one-stop shop" for investors, legislation for which is currently 
pending before the Guatemalan Congress.  There are no exchange controls 
and the currency, which currently trades at about 5.7 quetzales to the 
dollar, has not fluctuated significantly in recent years.  Currency is 
bought and sold freely in national markets.  There are no restrictions 
on repatriation of profits by foreign business people.

Country Commercial Guides are available on the National Trade Data Bank 
on CD-ROM or through the INTERNET.  Please contact STAT-USA at 1-800-
STAT-USA for more information.  To locate Country Commercial Guides via 
the INTERNET, please use the following world wide web address: WWW.STAT-
USA.GOV.  CCGs can also be ordered in hard copy or on diskette from the 
National Technical Information Service (NTIS) at 1-800-553-NTIS.


II.  Economic Trends and Outlook

A.  Major Trends and Outlook  

After peaking at 4.8 percent in 1992, real growth decelerated in 1993 
and 1994 to 4.0 percent.  The government's goal is 5 percent real growth 
in 1995, but most observers are predicting another year of 4 percent 
growth.  Most of that growth continues to result from increased 
consumption.  Accounting for over three quarters of GDP, private 
consumption continued its steady acceleration of the last five years, 
increasing from 4.6 percent real growth in 1992 to 5.0 percent in 1994.  
Rising a scant 0.4 percent in 1994, private investment decelerated 
dramatically from the 14 percent achieved in 1992.  Inflation has 
exceeded the official target of 8 percent in each of the past three 
years.  Topping 13.7 percent in 1992, it dipped to 11.6 percent in 1993 
and 1994.  The goal for inflation is again 8.0 percent for 1995; through 
the first six months of 1995, the Bank of Guatemala reported an 
annualized inflation rate of just under 8.0 percent.

Agriculture continues to dominate the Guatemalan economy, contributing 
roughly a quarter of total output, two thirds of exports and half of 
employment.  Guatemalan agriculture is in the process of 
diversification; production of premium grade coffee no longer 
predominates in the agricultural economy, even though it is still the 
single largest export.  In recent years there has been significant 
development of small-to-medium size fruit and vegetable production for 
export to the United States, Europe and the rest of Central America.  
Guatemala also produces a variety of other commodities.  It is the third 
largest exporter of the spice cardamom, a large producer and exporter of 
shrimp, seafood, cut flowers, ornamental plants, fruits and vegetables.  
Overall growth in the agricultural sector should be moderate but steady 
over the next three to five years.  Coffee prices have recovered from 
lows in the early 1990's, sugar demand should remain strong and exports 
of non-traditional products should continue to grow, albeit at a slower 
rate than in the late 1980's.

B.  Principal Growth Sectors  

Finance has been the fastest growing sector.  Construction, which had 
been a real growth sector has slowed significantly.  After growing 21.5 
percent in 1992 and 10.5 percent in 1993, construction expanded only 1.9 
percent in 1994.  Finance accelerated slightly from 6.4 percent real 
growth in 1992 to 7.9 percent in 1993 and 1994.

The agricultural sector grew 1.9 percent, in real terms, during 1994, 
down only slightly from 2 percent real growth in 1993.  Over the last 
five years the non-traditional products sector has accounted for 
Guatemala's greatest agricultural growth.  This trend is expected to 
continue in the short-run, although, at a slower rate.  The fruit and 
vegetable industries in Guatemala have continued expanding and have 
become far more organized and accustomed to U.S. regulations and market 
requirements.  Vegetable and fruit exporters in Guatemala can now 
virtually sell all they produce.  During the past five years the 
production of baby vegetables (small, immature), sugar, snap peas, and 
berries has increased in response to a growing demand in the United 
States.  Macadamia nut production is another sector showing impressive 
growth potential.  Future export growth will depend on increased 
production and maintenance of the U.S. Generalized System of Preferences 
(GSP) and Caribbean Basin Initiative (CBI) which grant them preferential 
access to the U.S. market.

Guatemala's sugar production and exports should continue to rise in the 
short-run as the industry continues to reduce costs through greater 
efficiencies.  The area planted for sugar continues to expand using 
lands traditionally devoted to cotton and cattle production.  The coffee 
industry is expected to increase production by increasing yields, but is 
not expected to begin expanding production for another few years.  A key 
factor for all long-run capital investment in agriculture will be 
interest rates.  Guatemalan interest rates are in the high twenty 
percent range, which makes it difficult for agro-businesses to borrow 
money locally. 

C.  Government Role in the Economy  

The government plays a small and decreasing direct role in the economy.  
It directly owns and operates a small number of enterprises.  The most 
significant of these are GUATEL, the Guatemalan Telecommunications 
Company, INDE, the National Electrification Institute and EEGSA, the 
Guatemalan Electric Company.  GUATEL has a legal monopoly on 
telecommunications services but has authorized domestic and foreign 
firms to provide paging, cellular and international services, and is 
currently in the process of selecting a second national cellular 
telephone service provider.  INDE and EEGSA have similarly contracted 
with a number of private companies for the generation of electricity 
over the last three years.  One U.S. firm is already providing close to 
a fifth of the country's functioning electrical capacity.  Another U.S. 
firm recently began operating a plant that will contribute another 78 MW 
this summer.

The government accounts for only a small share of Gross Domestic Product 
(GDP).  Government parastatal entities contribute less than 3 percent to 
GDP, in addition to the approximately 10 percent of GDP usually 
generated by the central government in any given year.  Poor tax 
collection and administration hamper the government's ability to provide 
sufficient basic infrastructure and other services and contribute to the 
government's generally weak fiscal position.  Tax revenues fell back to 
just 6.7 percent of GDP in 1994 and the combined public sector deficit 
reached 2.7 percent of GDP for the second straight year.  The government 
hopes to increase the tax burden to 8.5 percent and reduce that deficit 
to 1.3 percent of GDP in 1995, although that looks increasingly 
difficult.

D.  Balance of Payments Situation 

Growth in imports declined to 8.6 percent in 1994.  As a result, the 
trade deficit fell from 11.2 percent in 1993 to 9.5 percent in 1994. The 
government hopes to bring this deficit down to 8.1 percent in 1995, if 
they can boost exports by 21.8 percent and limit the growth of imports 
to only 9.1 percent.  With family remittances exceeding $350.00 million 
a year, the current account deficit is significantly smaller than the 
trade deficit.  After rising to 7.8 percent in 1993, the current account 
deficit dropped to 5.7 percent of GDP last year.  The government hopes 
to reduce it further to 4.9 percent of GDP in 1995.

In any case, the 1994 current account deficit was more than compensated 
by a fairly robust net inflow of $667.20 million in private capital (a 
decrease of 32 percent from 1993 inflows).  Net official capital flows 
decreased from $77.80 million in 1993 to $55.30 million in 1994.  
Overall, net capital flows were $787.50 million in 1994, down from $959 
million in the previous year.  As a result, foreign reserves finished 
1994 at $800.00 million, equal to slightly more than 3.5  months of 
imports.  The goal for 1995 is to maintain foreign reserves at that 
level.  

E.  Infrastructure Situation  

Guatemala's national infrastructure in telecommunications, electricity, 
highways and ports is inadequate to meet the needs of the population and 
impedes economic growth.  Telephone density is low, even by regional 
comparison, and only approximately one third of the population has 
access to electric power.  The highways are generally in poor condition 
and both the highways and the ports have serious security problems.  
Generally, infrastructure is significantly better in Guatemala City and 
Guatemalan and foreign business people do business in Guatemala 
successfully.  

The Government recognizes the problems caused by the general lack of 
adequate infrastructure and is working within the resource constraints 
that it faces to improve the situation.  The Guatemalan Telephone 
Company just conducted an international public bid for a second national 
provider of cellular telephone services and has been undertaking a 
number of projects to increase the number of regular telephone lines 
throughout the country.  The two government-owned electricity providers 
have are looking to private sector solutions to increase the national 
capacity to generate electric power and granted contracts to national 
and foreign firms to sell electric power to the national grid.  In the 
area of highways, the Ministry of Communications, Transport and Public 
Works has also been looking to private concessions to expand and improve 
the national road network.  Security on the national roads and at the 
ports continues to be a problem, but the Government and private sector 
have formed a commission to see how the situation can be improved.

Guatemala has five ports, of which three are important for international 
trade, especially in agricultural products.  On the southern, Pacific 
coast about 110 kilometers south of Guatemala City is Puerto Quetzal, 
the country's largest and newest port, which handles all bulk grains and 
a significant amount of container imports.  It is connected both by 
railway and by roads to the city of Escuintla and Guatemala City.  
Warehouses are available within the port area, but total warehouse 
infrastructure is limited.  Therefore, importers and distributors 
typically move their cargo to storage facilities in Guatemala City or in 
the case of raw materials directly to the processing plants.  Virtually 
all agricultural and non-agricultural imports are moved by truck.

On the northeastern Caribbean coast, approximately 300 kilometers from 
Guatemala City are the ports of Santo Tomas de Castilla and Puerto 
Barrios.  They have container and very limited bulk unloading capacity.  
Puerto Barrios is owned by a banana company and is used mainly for 
banana exports; because it is privately owned it charges higher prices 
for rendering its services for export and lower prices for imports.  
These ports are connected to Guatemala City by both railway and roads, 
but most containers are transported by truck.  These ports are ideal for 
exporters from the East Coast of the United States.  The vast majority 
of container shipments from Miami, New Orleans and Texas enter Guatemala 
through these two ports.

The La Aurora International Airport in Guatemala City is the only 
international airport in the country that is equipped with freight, 
legal and warehouse (including refrigerated warehouses) infrastructure.  
The airport serves a large number of national and international 
passenger and freight airlines and offers good access to the United 
States, Central America and Mexico, as well as flights to Europe and 
South America.

The Panamerican Highway runs through Guatemala connecting it with 
Mexico, Honduras and El Salvador.  Customs procedures have improved 
significantly at the borders in recent years and no longer represent 
major bottlenecks.  The import/export traffic between Guatemala and El 
Salvador is the heaviest. 


III.  Political Environment

A.  Nature of Bilateral Relationship with the United States

Relations between the United States and Guatemala are generally good.  
Current U.S. policy towards Guatemala is focussed on:

  -Supporting the institutionalization of democracy;
  -Encouraging Guatemalan respect for human rights
   and the rule of law;
  -Supporting the peace process to end the country's
   long-running insurgency;
  -Supporting sustainable broad-based economic growth, 
   with U.S. trade and investment; and,
  -Cooperating with the Guatemalan Government in 
   fighting the illegal drug trade.

B.  Major Political Issues Affecting Business Climate

Over the past decade, foreign investors have not generally been the 
target of political violence, although Guatemala continues to struggle 
to end its 35-year-old insurgency, led by the Guatemalan National 
Revolutionary Union (URNG).  Some public installations and projects 
have, however, been affected by the violence.  Numerous electrical 
towers and some bridges have been destroyed or heavily damaged over the 
years.  Oil trucks have periodically been forced to dump their loads by 
the side of the road in the Peten department.  Recent advances in the 
peace process offer hope that the insurgency is coming to a close.  

On March 30, 1994  the Department of State issued a Travel Warning 
advising all US citizens to avoid non-essential travel to Guatemala 
because of possible violence related to widespread, unfounded rumors 
that foreigners were stealing children in order to extract and sell 
their vital organs.  The warning was modified in mid-1994 to exclude 
from the warning travel to the main tourist and business locations in 
the country.  None of the victims of the violence or harassment 
resulting from the so-called "baby parts" issue has been a U.S. or 
foreign businessperson.

C.  Brief Synopsis of Political System, Schedule for Elections,
 and Orientation of Major Political Parties

Guatemala's 1985 Constitution calls for election by universal suffrage 
of a one-term President, a unicameral Congress, and municipal officers; 
it mandates an independent judiciary and a human rights ombudsman, who 
is elected by and reports to Congress.  Democracy's roots are still 
relatively shallow in Guatemala.  The 1990 election was the first 
peaceful transfer of power from one-elected civilian government to 
another since 1951.  Voter participation is generally low as is popular 
confidence in the democratic system.  The abstention rate in a runoff 
election for the presidency in 1990 was 55 percent.  More recently, 84 
percent of eligible voters stayed home in a January 1994 referendum on 
constitutional reforms.  Twenty-six percent of the population -- the 
highest in Central America -- do not oppose military intervention in 
politics, according to a reliable 1993 survey.  Polls also consistently 
show little confidence in the judicial system and the Congress.  The 
significant political parties are on or towards the right of the 
spectrum.  Less than 5 percent of adults, however, belong to a formal 
political party.

Then-Human Rights Ombudsman Ramiro De Leon Carpio was elected President 
by the Congress on June 6, 1993, after President Jorge Serrano fled the 
country in the wake of his failed attempt to assume dictatorial powers.  
As a result of a lengthy anti-corruption campaign by De Leon that 
resulted in some significant constitutional reforms, the country held 
special congressional elections in August 1994, 16 months early.  A new 
Supreme Court was also selected shortly after the August voting last 
year.  General elections will be held as previously scheduled in 
November 1995 to select a new congress and president.  If no one 
candidate in each election category wins 50 percent plus one vote, a 
run-off election between the top two candidates in each election 
category will be held in early January 1996.  Winners will take office 
on January 14, 1996.



V.  Marketing U.S. Products and Services

A.  Distribution and Sales Channels

Guatemalan business people are accustomed to doing business with the 
United States.  Most importers have traveled extensively to the United 
States and/or done business with U.S. business people.  Many speak 
English.  Nevertheless, to maximize the probability of succeeding in the 
Guatemalan market, U.S. exporters should be aware of and respect local 
business practices.

About half of all firms selling into the Guatemalan market do so by 
means of a Guatemalan agent or distributor.  The rest sell directly to 
Guatemalan buyers.  Generally speaking, the more pre-sales marketing and 
after-sales support and service that a product requires, the more 
important it is to have a local agent or distributor.

Most business is conducted in Guatemala based on personal relationships.  
Guatemalan business executives and government officials place great 
importance on personal contacts with suppliers.  U.S. suppliers should 
be prepared to have a local representative or distributor and to travel 
to Guatemala personally.  U.S. business persons often are surprised at 
the accessibility to key decision makers and the openness and frankness 
of local buyers.

B.  Use of Agents and Distributors: Finding a Partner

One of the most important decisions a U.S. company will make in 
Guatemala will be the selection of a qualified and competent sales 
representative and/or distributor.  A distributor with well-positioned 
sales outlets in the major commercial locations will greatly enhance 
chances of capturing a major share of the end-user market.

Selection of the appropriate agent or distributor requires time and 
effort.  Guatemala has a good number of qualified, competent people who 
can serve in this capacity.  The same high standards when selecting 
someone in the United States should, to the greatest extent possible, be 
used in Guatemala.  English language capability, while important, should 
not be the over-emphasized as a decision factor when selecting an agent 
or distributor.  Other Reputation, product and industry knowledge, track 
record, enthusiasm and commitment should be weighed heavily.

Exclusivity will be requested by most potential agents and distributors, 
not only for Guatemala, but also at times for part or all of Central 
America.  U.S. exporters should scrutinize the request closely.  The 
trend among foreign firms seeking representation in Guatemala is toward 
non-exclusivity and even well-defined, renewable periods for 
representation.  Guatemala can be a great place from which to enter the 
larger Central American market, but not all potential agents and 
distributors will be in a position to do it well.

In deciding with whom to work, U.S. firms should take the time to to get 
to know the people they are considering, both in business and social 
settings (i.e. visit their offices, dine together, request both local 
and international bank and trade references).

When consummating the agency or distribution arrangement, U.S. exporters 
should make sure the agent or distributor understands clearly the terms 
of the relationship.  The written agreement is important; however, both 
parties really need to understand it completely to avoid problems later.  
The constant need to refer to the written agreement to clarify issues 
forebodes problems for the success of the relationship.

Formal agency or distribution agreements should be reviewed by a 
Guatemalan attorney hired by the U.S. exporter (independent of the 
Guatemalan party with which the agreement is being established).  The 
Guatemalan legal system can be slow and the law, under certain 
conditions, offers local agents and distributors a great deal of 
protection.  Under no circumstances should a U.S. exporter give a local 
agent or distributor the responsablity of registering any intellectual 
property (i.e. trademarks, trade names, copyrights, etc.); it should be 
done directly by the U.S. exporter with the assistance of a Guatemalan 
attorney.  
 
C.  Franchising 

Guatemalan entrepreneurs are very receptive to U.S. companies offering 
franchising arrangements.  Presently there are close to 20 U.S. firms 
operating under franchising arrangements, particularly companies that 
provide fast-food services, hotel operations, physical fitness 
facilities and car rentals.  Such franchises include McDonald's, Burger 
King, Wendy's, Sizzler Steak Houses, Westin Hotels, Marriott Hotels, 
Ramada Hotels, Crowne Plaza Hotels and Radisson Hotels.  The 
opportunities for the establishment of additional U.S. franchises in all 
areas of economic activity are very good.

D.  Direct Marketing

Approximately one half of all imports from the United States are the 
result of direct sales.  Many of these result from Guatemalan business 
people contacting potential suppliers located in their traditional U.S. 
supply centers, such as Miami, South Florida, New Orleans and Houston, 
among others, to satisfy a specific product or service need.

As previously mentioned, most business is conducted in Guatemala based 
on personal relationships, however, direct sales by U.S. manufacturers, 
suppliers, exporters, etc., to local end-users is possible without a 
local representative.  Direct marketing is usually more effective in 
cases where the product is well known or the universe of local buyers is 
relatively small and easily identifiable, i.e. sugar millers.  To be 
effective, a U.S. exporter would need to send a sales person (preferably 
the same person all of the time so that a relationship can begin to 
develop) to Guatemala on a regular basis to call on existing and 
potential customers.  Direct sales to Government agencies and state-
owned firms, except in a few cases, are not possible unless the foreign 
firm has some sort of local representative authorized to act on its 
behalf.

Telemarketing and mail order sales are not common in Guatemala.

E.  Joint Ventures

Commercial companies in Guatemala are governed by the Commercial Code 
(Congressional Decree No. 2-70 of January 28, 1970).

Article 10 of this Code recognizes as commercial companies those 
organized exclusively as: (1) general partnerships; (2) limited 
partnerships; (3) special limited liability companies; (4) corporations; 
and (5) stock-issuing partnerships.  Article 12 provides that banks, 
insurance companies, reinsurance companies, bonding companies, re-
bonding companies, financial firms, general warehouses, stock markets, 
mutual societies, and other similar organizations will be controlled  
with respect to their form, organization and operation by the provisions 
of the Commercial Code only to the extent they are not covered by other 
specific laws and regulations.

Joint Ventures (negocios en participacion) are regulated by Articles 861 
to 865 of the Commercial Code as contracts not as companies or juridical 
persons.  The use of a trade name that includes first names and two 
family names of the participating persons shall make those persons 
legally responsible, just as if they were members of a general 
partnership, assuming they consented to the use of their name.

In a joint venture the participants enter into a participation contract 
(contrato de participacion), by which the person called the "active 
partner" obligates himself to share with one or more persons called the 
"participants", who contribute goods or services, the profits or losses 
resulting from one or several operations of their enterprise or of the 
complete turnover thereof. The active partner operates in his own name; 
there is no legal relationship between third parties and the 
participants.

The Guatemalan Development Foundation (FUNDESA), a private sector 
organized and operated business assistance organization, provides 
information to foreign firms on joint-venture opportunities in 
Guatemala.  FUNDESA has offices both in Guatemala City and Miami, 
Florida to provide information and assistance to U.S. firms.  FUNDESA 
plans to open a New Orleans Office in September 1995.  The telephone 
number for the Miami Office is (800) 741-6133. 

F.  Licensing

A company or association that has been legally established in the United 
States may be established in Guatemala or may have agencies  or branches 
in Guatemala, after receiving authorization from the government. It must 
show proof of its legal constitution, that it is not opposed to the laws 
of the republic, and that it has appointed a remunerated local agent 
with all general and special powers. For purposes of the law, the agent 
will be presumed to be invested with such powers, even though the agency 
agreement may not specifically so provide.

A foreign company or association that does business in Guatemala is 
required to: (a) establish agencies or branches that take care of its 
business; (b) have an accounting system, in legal form and in Spanish, 
in which the operations or business negotiations that take place in 
Guatemala are recorded; and (c) submit for decision by the laws  and 
courts of the republic any legal questions that arise from the business 
of the agency or branch.

In general, licensing is defined as a contract partnership in which two 
or more persons agree to place goods or services in common for the 
purpose of carrying on a economic activity and dividing the profits. The 
licensing contract is tailored according to the needs and interests of 
the parties involved.  However, all obligations are governed by the 
Civil Code.

G.  Steps to Establishing an Office

How to Obtain Permission to Operate in Guatemala:

A foreign entity legally registered in its country of origin and 
intending to do business in Guatemala must:

-- Register with the Mercantile Registry (Registro Mercantil) and

-- Register with the Guatemalan Internal Revenue Service
   (Direccion General de Rentas Internas-DGRI).

Documents to be submitted to the Mercantile Registry with 
Request for Registration:

-- Proof that the entity is legally constituted in accordance
   with the laws of the country (state) in which it is organized 
   or registered. 
 
-- Certified copy of the deed of incorporation (charter), the by-
  laws and modifications thereto.

-- Proof that the Board Directors has duly resolved to operate in
   Guatemala and has authorized the legal procedure to obtain
   permission to do so.

-- A power of attorney in which the person named is given ample
   powers to act and to represent the entity in all legal matters.

-- A document in which an amount is assigned as capital with
   reference to the entity's operations in Guatemala and in which
   it is expressly stated that the entity will be responsible
   for its obligations in Guatemala with all of its assets
   both in Guatemala and abroad.

-- A declaration that the entity recognizes the jurisdiction of the
   courts and laws of Guatemala with respect to its activities and
   operations in the country and that neither the entity nor its
   representatives and employees will will seek special rights as
   foreigners.

-- A declaration that the entity, prior to concluding operations in
   Guatemala will fulfill all legal requirements in connection
   therewith.

-- Certified copies of its latest financial statements (balance
   sheet and income account).

The documents must be certified by an authorized official in the country 
(state) of origin and must be authenticated by an appropriate Guatemalan 
Consular Official.

The address of the Mercantile Registry is the following:

-- Registro Mercantil de Guatemala
   6 Calle 7-57, Zona 1
   01001 Guatemala, C.A.
   Tel. (502-2) 535819 and 300827
   Attn. Mercantile Registrar
   
Registration with the Guatemalan Internal Revenue Service-DGRI:
 
The documentation for registration with the DGRI, as required by the 
Income Tax Law is identical to that required for registration with the 
Mercantile Registry. It is advisable to have the documents prepared in 
duplicate and to submit one set to the DGRI together with a copy of the 
authorization to operate in Guatemala issued by the Ministry of 
Government. Registration under the Value Added Tax (Decree 72-83) is 
also necessary.

H.  Selling Factors/Techniques

The three most important factors affecting Guatemalan purchasing 
decisions are price, service and quality.  Being "Made in USA" usually 
confers a strong advantage to any product in the Guatemalan market 
place.

Direct sales by U.S. exporters to end-users, importers/wholesalers and 
retailers is usually most successful when the product is well known 
within the market or when a limited number of (usually large) buyers 
exists.  Direct sales are often supported by local advertisement, sales 
promotional campaigns, technical or illustrative brochures, visits by 
salespeople and in some cases samples.

Sales via local agents and distributors are the most effective means of 
penetrating the market successfully in most cases.  The U.S. exporter 
appoints a person or firm who in turn either promotes sales on a 
commission basis or purchases the merchandise and resells it.  Endusers 
and retailers generally do not have the experience nor the time to 
import directly or to handle customs clearance which is time consuming. 
Once an exclusive representation has been given to a local company, it 
can not be taken away and given to another concern without complying 
with the existing Agency, Distribution and Representation Law contained 
in Congressional Decree No. 78-71, of September 29, 1971.

I.  Advertising and Trade Promotion

Advertising in Guatemala is usually done through the local media such as 
newspapers, magazines, radio and television.  Also the use of billboards 
displayed along highways has proliferated in recent years.  Firms 
interested in advertising in Guatemala may want to contact the following 
association for guidance and names of Guatemalan firms that could be of 
assistance.

-- Union Guatemalteca de Agencias de
   Publicidad - UGAP
   (Guatemalan Union of Publicity Agencies)
   3 Avenida y 12 Calle, Zona 10
   Edificio Geminis 10, Torre Norte
   01010 Guatemala, C.A.
   Tel. (502-2) 35-32-69
   Fax: (502-2) 35-32-68

Trade Promotion:

The U.S. Department of Commerce's Commercial Office at the U.S. Embassy 
in Guatemala City can provide guidance and assistance to U.S. firms 
seeking to enter or expand their presence in the Guatemalan market.  The 
following trade associations at times can also provide guidance, 
information and/or assistance to companies planning trade promotion 
events which may include product demonstrations, seminars, conferences, 
etc. The associations are as follows:

-- American Chamber of Commerce of Guatemala
   6 Avenida 14-77, Zona 10
   01010 Guatemala, C.A.
   Tel: (502-2) 68-31-06/37-44-89
   Contact: Charles Chambers, Executive Director   

-- Camara de Comercio de Guatemala
   (Chamber of Commerce)
   10 Calle 3-80, Zona 1
   01001 Guatemala, C.A.
   Tel. (502-2) 30-51-56
   Fax: (502-2) 51-41-97
   Contact: Sr. Federico Pola, Manager

-- Camara de Industria de Guatemala
   (Chamber of Industry)
   Edificio Camara de Industria
   Ruta 6, No. 9-21, Zona 4, Nivel 12
   01004 Guatemala, C.A.
   Tel. (502-2) 34-08-49
   Fax: (502-2) 34-10-90
   Contact: Lic. Eduardo Sperisen, Executive Director

-- Fundacion para El Desarrollo, S.A. - FUNDESA
   (Guatemalan Development Foundation)
   Parque Gerencial Las Margaritas, Nivel 4
   Diagonal 6, 10-65, Zona 10
   01010 Guatemala, C.A.
   Tel: (502-2) 32-79-52 to 56
   Fax: (502-2) 32-79-58   

A major international promotion scheduled for October 31 to November 12, 
1995 is INTERFER, the Guatemalan international trade fair held every odd 
year in Guatemala City.  Information on exhibiting in the "USA Pavilion" 
can be obtained from the Commercial Service Office at the U.S. Embassy, 
tel: 011-502-2-31-15-41 ext. 259 and fax: 011-502-2-31-73-73.

Major Newspapers:

The leading major dailies in Guatemala are the following:

1. Prensa Libre
   13 Calle 9-31, Zona 1
   Edificio Prensa Libre
   01001 Guatemala, C.A.
   Tel. (502-2) 30-50-96
   Fax: (502-2) 51-87-68
   
2. Diario El Grafico
   14 Avenida 4-33, Zona 1
   01001 Guatemala, C.A.
   Tel. (502-2) 30-50-80
   Fax: (502-2) 51-00-14 (advertising)
   
3. Siglo Veintiuno
   7 Avenida 11-63, Zona 9
   Edificio Galerias Espana, Nivel 6
   01009 Guatemala, C.A.
   Tel. (502-2) 60-67-04
   Fax: (502-2) 31-91-45
   
4. Diario La Republica
   13 Calle 8-41, Zona 10
   01010 Guatemala, C.A.
   Tel. (502-2) 34-38-43
   Fax: (502-2) 39-03-51 (advertising)
   
5. Diario La Hora
   9 Calle "A" 1-56, Zona 1
   01001 Guatemala, C.A.
   Tel. (502-2) 2-68-66/2-68-64
   Fax: (502-2) 51-70-84
         
Television Channels/Companies:

The following are the major television channels in Guatemala:

1. Canal 3 de Television
   Canal 7 de Television
   30 Avenida 3-40, Zona 11
   01011 Guatemala, C.A.
   Tel. (502-2) 94-64-92/94-74-91
   Fax: (502-2) 94-74-92
   
2. Canal 5 de Television
   4 Calle 18-68, Zona 1
   01001 Guatemala, C.A.
   Tel. (502-2) 53-21-03
   Fax: (502-2) 53-39-71
   
3. Canal 11 de Television
   Canal 13 de Television
   20 Calle 5-02, Zona 10
   01010 Guatemala, C.A.
   Tel. (502-2) 68-05-69/68-25-32
   Fax: (502-2) 37-08-61
   
4. Canal 21 de Television
   Avenida de Las Americas 14-06, Zona 13
   01013 Guatemala, C.A.
   Tel. (502-2) 31-46-16
   Fax: (502-2) 31-45-71
    
5. Mayacable/Comtech
   23 Avenida 31-01, Zona 5
   01005 Guatemala, C.A.
   Tel: (502-2) 35-58-55
   Fax: (502-2) 35-57-44
     
Radio Stations:

The following is a list of some of the major radio stations in Guatemala 
City.

1. Radio Fabu Stereo
   4 Avenida 2-07, Zona 9
   01009 Guatemala, C.A.
   Tel. (502-2) 31-65-26
   Fax: (502-2) 34-11-94
   
2. Cadena Azul de Guatemala
   Radio Mundial y Radio Emperador
   6 Avenida 2-80, Zona 1
   01001 Guatemala, C.A.
   Tel. (502-2) 53-94-18
   Fax: (502-2) 53-36-52
   
3. Emisoras Unidas
   4 Calle 6-84, Zona 13
   01013 Guatemala, C.A.
   Tel: (502-2) 71-74-44
   Fax: (502-2) 72-02-83

4. Radio Nuevo Mundo
   Radio Cristal
   6 Avenida 10-45, Zona 1, Nivel 2
   Tel: (502-2) 30-36-18/30-39-28/30-46-18
   Fax: (502-2) 2-20-36

5. Organizacion Alius
   6 Avenida 0-60, Zona 4
   Edificio Torre Profesional II, Nivel 3
   01004 Guatemala, C.A.
   Tel. (502-2) 35-24-33
   Fax: (502-2) 35-20-45

6. Radio Panamericana
   1a Calle 35-48, Zona 7
   01007 Guatemala, C.A.
   Tel: (502-2) 91-22-93
   Fax: 95-65-04

7. Radio Corporacion Nacional
   6 Avenida 11-55, Zona 9
   01009 Guatemala, C.A.
   Tel: (502-2) 35-20-30 
   Fax: (502-2) 35-20-05
 
Magazines and Business Journals:

The following are some of the leading magazines for business in 
Guatemala.

1. Revista Cronica
   6 Avenida 0-60, Zona 4
   Edificio Torre Profesional II
   Nivel 3, Of. # 312
   01004 Guatemala, C.A.
   Tel. (502-2) 35-16-93
   Fax: (502-2) 35-23-60
   
2. Revista Critica
   6 Avenida y 10 Calle, Zona 1
   Plaza Vivar, 4o Piso
   01001 Guatemala, C.A.
   Tel. (502-2) 51-43-71
   Fax: (502-2) 51-87-56 

4. Revista Gerencia 
   Asociacion de Gerentes de Guatemala
   6 Avenida 1-36, Zona 14
   01014 Guatemala, C.A.
   Tel. (502-2) 32-93-32 to 36
   Fax: (502-2) 32-93-42
   
5. Revista Industria
   Camara de Industria de Guatemala
   Ruta 6, No. 9-21, Zona 4
   Edificio Camara de Industria
   01004 Guatemala, C.A.
   Tel. (502-2) 34-08-49 to 58
   Fax: (502-2) 34-10-90
   
6. Revista Comercio
   Camara de Comercio de Guatemala
   10 Calle 3-80, Zona 1
   01001 Guatemala, C.A.
   Tel. (502-2) 30-51-56/30-36-28
   Fax: (502-2) 51-41-97

7. Guatemala Business Review
   American Chamber of Commerce of Guatemala
   6 Avenida 14-77, Zona 10
   01010 Guatemala, C.A.
   Tel: (502-2) 37-44-89
   Fax: (502-2) 68-31-06
   
J.  Pricing Product 

Price is a very important decision factor for most Guatemalan business 
people when selecting a supplier of imported goods and services.  Many 
Guatemalan business people are accustomed to purchasing directly from 
abroad when they feel that the price of locally available imported 
products or services are too high.

The Pricing of a product is based on different factors.  Local merchants 
consider the following when deciding how to price a product.

a) Product F.O.B. cost

b) Product freight and/or transportation cost

c) Product insurance cost

d) Consular fees

e) Import duties 

K.  Sales Service/Customer Support

Sales service and support ranks high in the minds of Guatemalan buyers.  
U.S. firms, more than other foreign firms, generally have a reputation 
for providing good service and support.  U.S. firms interested in 
penetrating the Guatemalan market should make a commitment to offer 
excellent service and support to their Guatemalan buyers, agents and 
distributors.  This commitment to excellent service and support should 
also be made clear by the U.S. firm to its local agent or distributor.  
Poor or mediocre service often leads to lower sales.  The Guatemalan 
business community is comparatively small and word travels fast about 
local and foreign firms that offer poor service and support.

Although after-sales service is not included in the Commercial Code, 
many representatives, wholesalers and retailers provide after-sales 
service and support. This is particularly the case with items such as 
household appliances, electronic consumer goods, telecommunications and 
computer equipment, other electronic equipment and industrial machinery.  
There are no provisions in the law regarding product guarantees.  
However, most retailers provide some sort of guarantee that covers 
problems that occur under normal conditions of use.

L.  Selling to the Government

Sales to government agencies and corporations are best achieved through 
local agents, distributors and other types of representatives; at times 
it is a requirement.  Either way, it is not very practical to target 
government sales if a firm does not have anyone in Guatemala to be on 
the look out for the opportunities and then to assist with obtaining the 
specifications and meeting the deadlines for submission.

The existing Government Procurement Law (Decree 57-92) stipulates that 
all government purchases over US$ 161,000 must be submitted for public 
competitive bidding and no less than 5 bidders must participate, except 
when a project is considered to be so urgent as to be declared a 
national emergency.  In the latter case the Government of Guatemala can 
forgo the bidding process and may acquire the goods or services, 
regardless of the amount, from local firms or through dealers for direct 
importation.  Unless otherwise specified, all government public bidding 
requires foreign suppliers to meet pre-qualification requirements, and 
to submit bids through local established representatives.  Government 
purchases or acquisitions are generally exempted from import duties.  
The period granted for submission of bids is often quite limited.

M.  Protecting Products from IPR Infringement

U.S. and other foreign encounter a various kinds of intellectual 
property issues in Guatemala.  Firms with valuable intellectual property 
to protect should take the legal steps necessary to assure that it is 
protected.  Firms should never delegate to a local agent, distributor or 
business partner the job of registering intellectual property.  It 
should be done directly by the U.S. firm with the assistance of a 
Guatemalan attorney.  Careful attention to IPR issues initially can 
prevent problems later.

Industrial Property Registry:

Congressional Decree No. 26-73 ratified the Central American Agreement 
for Industrial Protection.  This law established a uniform legal 
framework for all the Central American countries regarding trademarks, 
trade names and expressions or publicity jingles and signs.

Ownership of a trademark is obtained through its registration in 
accordance with the above mentioned agreement and proven with the 
registry's certification, issued by a competent authority.

The rights granted through the registration of a trademark last ten 
years, and may be renewed repeatedly for the same period of time by 
complying with the requirements established by the agreement.

Any natural or legal person, may obtain the registration of his trade 
marks.

The Industrial Property Registrar may be contacted at:

-- Registro de la Propiedad Industrial
   5 Calle 4-31, Zona 1
   Edificio Plaza Rabi, 7o Nivel
   01001 Guatemala, C.A.
   Tel. (502-2) 30-16-92/7 and 30-18-22/5 

N.  Need for a Local Attorney

The professional services of a lawyer are very useful in instances like 
preparation of agency and distribution agreements and practically 
essential for registration of a new company, registration of a patent or 
trademark, debt collection, property rights, power of attorney, and 
trade arbitration.  As a matter of good business practice U.S. business 
people should not share the attorneys utilized by their local business 
associates.

The following is a list of some of the Guatemalan law firms that have 
English-speaking attorneys and practice international corporate law in 
Guatemala.  The U.S. Government cannot recommend any particular attorney 
and many other qualified attorneys also practice business law in 
Guatemala.

BELTRANENA, DE LA CERDA Y CHAVEZ
Avenida La Reforma 12-01, Zona 10
Edificio Reforma Montufar
01010 Guatemala, C.A.
Tel: (502-2) 31-86-33
Fax: (502-2) 31-76-14
Contact: Luis Beltranena Valladares

QUEZADA, TORUÑO Y ASOCIADOS
Avenida La Reforma 9-00, Zona 9
01009 Guatemala, C.A.
Tel: (502-2) 31-20-01
Fax: (502-2) 32-37-36
Contact: Fernando Quezada

BONILLA, MONTANO & TORIELLO
Avenida La Reforma 15-54, Zona 9
01009 Guatemala, C.A.
Tel: (502-2) 34-40-57/34-40-86/32-60-62
Fax: (502-2) 32-23-61
Contact: Rodrigo Toriello Arzu

PALOMO CAMPOS Y ASOCIADOS
12 Calle 1-25, Zona 10
Edificio Gemenis 10, Torre Norte, Ofcna. 1306
01010 Guatemala, C.A.
Tel: (502-2) 35-33-01/35-33-04 to 06
Fax: (502-2) 35-32-97
Contact: Eduardo Palomo E.

SOTO & SOTO
13 Calle 1-51, Zona 10
Edificio Santa Clara, Torre II, Ofcna. 202
01010 Guatemala, C.A.
Tel: (502-2) 31-39-60
Fax: (502-2) 31-34-09
Contact: Manuel Arturo Soto

MAYORA & MAYORA
Ruta 6, 9-21, Zona 4
Edificio Camara de Industria, Nivel 4
01004 Guatemala, C.A.
Tel: (502-2) 31-03-97/32-35-42/34-79-21
Fax: (502-2) 32-35-23
Contact: Eduardo Mayora Dawes



V.  Leading Trade Prospects for U.S. Business


A.  Best Prospects for U.S. Exporters of Non-Agricultural Products 
(Millions of $US)
  

A.  RANK OF SECTOR:  1  
B.  NAME OF SECTOR:  Computers and Peripherals
C.  ITA INDUSTRY CODE:  CPT  

                               1994    1995    1996

D.  Total Market Size:         57.4    77.9    96.5
E.  Total Local Production:       -       -       -  
F.  Total Exports:               .5     5.5     6.0
G.  Total Imports:             57.9    72.4    90.5
H.  Total Imports from U.S.:   52.3    65.4    81.7
I.  Exchange Rate:              5.77   5.74     N/A      

Comments:

The market for computers and peripherals is growing.  Future demand for 
computers and peripherals is excellent.

Imports of computers and peripherals increased from 40.3 million Dollars 
in 1993 to 57.9 million Dollars in 1994, a 43 percent increase.

The Guatemalan government purchased approximately 15 percent of the 
equipment imported.  The rest was bought by industry, commerce, banks, 
professionals, hospitals, individuals and universities.

Computers and peripherals have become an everyday necessity and are 
essential to the public sector and to large private concerns.  A large 
number of PCs are being sold to small and medium sized firms, as well as 
to the public in general.  There are approximately 200 recognized 
computer and peripheral equipment dealers in Guatemala, as well as four 
warehouses.  In addition there are a large number of "unofficial" 
dealers who purchase only from the warehouses for a limited number of 
clients.  The import market is expected to grow at an estimated annual 
rate of 25 percent for the next three years.

The main competitors for U.S. exporters, which already have a 90.4 
percent of the import market, are:  Panama with 2.9 percent of the 
market; Mexico with 1 percent of the market; and Japan also with 1 
percent of the market.

List of the most promising sub-sectors within this industry, along with 
estimated 1996 total market size of each sub-sector (USD millions) :


8473.3000  Parts & Access. for adp. machines and units  26.1
8471.2000  Electronic computers  25.0
8471.1000  Analog or hybrid adp. machines   3.6
8471.90  Peripheral equipment   3.5
8523.2000  Unrecorded magnetic discs   1.6


Best Prospects for U.S. Exporters of Non-Agricultural Products
                      (US$ millions) 

A.  RANK OF SECTOR:    2
B.  NAME OF SECTOR:    Agricultural Machinery and Equipment
C.  ITA INDUSTRY CODE: AGM

                                 1994    1995    1996
D.  Total Market Size:           91.2    109.6  127.7
E.  Total Local Production:      28.4     34.1   40.9
F.  Total Exports:                1.3      1.4    1.6
G.  Total Imports:               64.1     76.9   88.4
H.  Total Imports from U.S.:     36.8     44.2   53.0
I.  Exchange Rate:                5.77     5.74   N/A

Comments:

1994 imports of agricultural machinery and equipment increased by 37.7 
percent over the previous year.   The U.S. alone experienced a 44.4 
percent increase in exports to Guatemala between 1993 and 1994.  Among 
the traditional export crops, coffee had the highest earnings.  Sugar 
cane and milling machinery imports are expected to increase, since many 
firms are increasing their investments. Guatemala's agricultural sector 
is in the process of diversification.  Agro-industries are being 
established, using vegetable and fruit produce.  The Bank of Guatemala 
reported that during the first semester of 1995 export earnings for non-
traditional agricultural products increased by 42.9 percent over the 
same period in 1994.  Agricultural machinery import projections look 
favorable with expected annual increases of 20% for the next three 
years.
 
The agricultural sector employs approximately 60 percent of the labor 
force of the country, contributes 25 percent to the gross domestic 
product of Guatemala and accounts for about 66 percent of the country's 
export earnings.

The main competitors for U.S. exporters in this industry are: Japan with 
8.6 percent market share; Germany with a 6.4 percent market share; and 
Italy with a 5.6 percent market share. 

List of the most promising sub-sectors within the industry, along with 
estimated 1996 total market size of each sub-sector (USD millions):


4011.9100  Tractor and agricultural machinery tires
           and tubes                                     2.7  
4011.9900                                                3.2
8201.4000  Hand tools and parts                          3.1
8424.8110  Sprayers - agricultural and horticultural     2.5
8431.3900  Parts and accessories for conveyors, loaders
           and elevators                            1    0.0  
8701.9010  Agricultural tractors, Disesel operated      43.0
8708.9900  Parts and accessories for agric. tractors    32.6  
8716.3900  Trailers and loaders                          3.3
           New and used machinery.



Best Prospects for U.S. Exporters of Non-Agricultural Products
                (U.S. millions, unless otherwise noted)

A.  RANK OF SECTOR:    3 
B.  NAME OF SECTOR:    Telecommunications Equipment
C.  ITA INDUSTRY CODE:    TEL

                               1994      1995      1996

D.  Total Market Size         39.4      50.4   71.8
E.  Total Local Production      --       --     --   
F.  Total Exports              0.6       1.0    2.2
G.  Total Imports             40.0      51.4   74.0
H.  Total Imports from U.S.   20.0      24.6   34.0
I.  Exchange Rate:             5.77     5.74    N.A.
 
Comments:

The largest buyer/importer of telephone equipment and systems is GUATEL, 
the government-owned Guatemalan Telecommunications Company.  Guatemala 
is probably the largest importer of telephone equipment in Central 
America. One of the fastest growing sub-sectors within this industry is 
cellular telephony. The second cellular concession (Band "A") will be 
awarded in September and the winning firm will start operations at the 
end of 1995.  According to GUATEL estimates, the establishment of the 
new firm could generate additional imports of equipment in the  U.S.$ 
7.0 to 10.0 million range in 1996 alone. Also within the next five 
years, the following projects will be undertaken by GUATEL's Planning 
Division: a) Installation of 50,000 digital lines in the capital city; 
b) Installation of switching equipment for 40,000 telephone lines; c) 
Installation of fiber-optic network and transmission equipment , 
electric power, air conditioning and the external plant for 47,000 
subscribers; d) interconnection and infrastructure for metropolitan 
telecommunications; e) Digital net-datalink: Digitalization of lines 
rented to third parties in the Metropolitan Network and main towns in 
the rest of the country. Also, the market for telecommunications 
equipment, such as faxes, telephone sets, PBX's, answering machines and 
others is open. Any government office, private company or individual can 
acquire these products from local distributors. The import market for 
this equipment is expected to grow at a rate of approximately 15 percent 
per year. Local production includes 
assembling of T.V. sets, telephone sets and some radio communications 
equipment. The largest supplier of telecommunications equipment is the 
U.S. with 48.0 percent of the import market. The second supplier is 
Japan with 33.0 percent, followed by Mexico with 21.0 percent (1994). 


Other country suppliers include Germany, Sweden, Panama and Taiwan.

List of the most promising subsectors within the industry, along
with estimated 1996 total market size of each subsector (USD
millions):

  HTS NO.

  85173  Telephone exchanges              15.0
  85173  Telephone switching equipment    15.0
  85173  Cellular telephone equipment     12.0
  85179  Telephone switching parts         4.0
  85171  Telephone sets                    5.3
  85183  Telephone hand-sets               2.0
  85252  Telephone parts                   2.5
  85281  Television sets                   5.0
  85442  Telephone multi-cable             3.0
  85447  Optical fiber cable               5.0
  85251  Radio Transmission equipment      4.0
  - - -     Others                         3.6


Best Prospects for U.S. Exporters of Non-Agricultural Products
                         (US$ millions) 

A.  RANK OF SECTOR:  4
B.  NAME OF SECTOR:  Food Processing & Packaging Equipment
C.  ITA INDUSTRY CODE:  FPP

                               1994    1995    1996
D.  Total Market Size:         58.1    64.5    73.9
E.  Total Local Production:    16.3    18.7    21.5
F.  Total Exports:               .2     2.5     3.1
G.  Total Imports:             42.0    48.3    55.5
H.  Total Imports from U.S.:   16.8    19.3    23.2
I.  Exchange Rate:              5.77    5.74    N/A    

Comments:

The market for food processing and packaging equipment has high 
potential in Guatemala, due to strong interest in the country in 
establishing new agro-industry plants and expanding existing ones, both 
for local consumption and for export purposes as part of the campaign to 
emphasize non-traditional exports.  Non-traditional product exports were 
reported by the Bank of Guatemala to have increased during the first 
semester of 1995 by 42.9 percent over the same period in 1994.

There is also great demand for international food franchises, especially 
U.S. franchises, which also use food processing equipment.

The U.S. market share during 1994 was 39.9 percent, followed by Germany 
with 33.6 percent, Mexico with 3.9 percent and Argentina with 3.8 
percent.  For the next three years it is expected that imports will 
increase at an annual average of 15 percent. 

List of the most promising sub-sectors within the industry, along with 
estimated 1996 total market size of each subsector (USD millions):

8419.8950  Machinery, plant equipment to process, heat,
           cook, sterilize, cool, etc. food and beverages   3.8
8421.1100  Cream separators                                 2.5
8422.3090  Packaging machinery, including cleaning,
           bottling, filling and sealing bottles, cans     11.1
8438.1000  Bakery, macaroni, spaghetti, etc. machinery      1.8
8438.3000  Machinery for sugar preparation                  2.5
8438.4000  Brewery machinery                                7.7
8438.8000  Machinery for the preparation and manufacture
           of food and beverages                            2.5
8438.9000  Parts for food processing machinery              6.3
8479.2000  Machinery for the extraction and preparation
           of animal and vegetable oils and fats            3.2

Food processors are buying both new and used machinery.


Best Prospects for U.S. Exporters of Non-Agricultural Products
              (U.S. millions, unless otherwise noted)


A.  RANK OF SECTOR:    5
B.  NAME OF SECTOR:    Electrical Power Gen. & Dist.
C.  ITA INDUSTRY CODE:  ELP   

                                1994    1995      1996

D.  Total Market Size           42.7    45.6      49.9     
E.  Total Local Production      16.2    17.1      18.0 
F.  Total Exports                8.5     9.3      10.1 
G.  Total Imports               35.0    37.8      42.0  
H.  Total Imports from U.S.     16.0    17.1      20.0
I.  Exchange Rate: U.S.D.        5.77    5.74      N.A.   
 
Comments:

Total imports of electrical power generation and distribution equipment 
have increased at an average rate of 5.0 percent per year. Electricity 
sector authorities have reported that the forecasted demand for 1997 
will be over 1,000 mega-watts and that by the end of this year 200 
additional mega-watts will be installed.   In the the short term, the 
Guatemalan Electric Company (Empresa Electrica de Guatemala, S.A.- 
EEGSA) plans to install or contract the installation of 4 or 5 
electrical power generation sub-stations, which will increase the 
national electrical power generation capacity by about 650 mega-watts by 
the year 2000 at an estimated cost of U.S.$ 2.6 billion.  Current 
consumption is 300 kilowatts per capita per hour. Over the last five 
years, the demand for energy has increased by 7 percent per year. 
However, it is expected that from now to the year 2005 this demand will 
grow at an annual rate of 6.5 percent. The local industry, which 
consists principally of manufacturers of wire and cables, connectors and 
terminals, fuse and switching boxes, and switch gears, also grew by 
about 6.0 percent in terms of production value over the last year. The 
U.S. has been the leading country supplier with approximately 42 percent 
of the total imports. Other important suppliers include:  El Salvador 
(materials only), Germany, Japan, Brazil and Mexico. 

List of the most promising subsectors within the industry, along
with estimated 1996 total market size of each subsector (USD
millions):

  HTS NO.

8410/01  Hydraulic Turbines and parts      10.0
85023    Electrical/gas generators         10.0
85010    Electric generators                1.5
85023    Generating sets N.E.C.             2.0
84021/2  Steam Boilers and parts            2.0
85440    Wire and cable                     3.0
85042    Dielectric Transformers            4.0
85043    Electric Transformers              2.0
83610    Automatic circuit breakers         1.0
85371    Control panels, consoles, desks    0.5
85324    Lightning arresters                0.4
85372    Switchgears and switchboards       1.0
85461    Electrical insulators              0.5
90283    Electricity meters                 0.6
----     Others                             1.0


Best Prospects for U.S. Exporters of Non-Agricultural Products
         (U.S. millions, unless otherwise noted)


A.  RANK OF SECTOR:  6 
B.  NAME OF SECTOR:  Automotive Parts/Service Eqpt. 
C.  ITA INDUSTRY CODE:  APS

                               1994      1995      1996

D.  Total Market Size          36.2    39.0    42.5
E.  Total Local Production     10.5    11.7    12.5
F.  Total Exports               0.5     0.7     1.0
G.  Total Imports              26.2    28.0    31.0
H.  Total Imports from U.S.    11.8    13.1    15.2   
I.  Exchange Rate:             5.77    5.74     N.A.   

Comments:

Imports of automotive parts, accessories and service equipment have been 
growing steadily for the past three years. The future for this product 
category looks promising. In order for U.S. suppliers to compete against 
third country suppliers (Japan, Germany, Brazil and Taiwan), they must 
offer good quality and service plus competitive prices. The U.S. has 
been the leading country supplier accounting for approximately 45 
percent of the total imports. Local production of certain items is also 
growing due to the high retail price of some imported parts and 
accessories and the growing number of vehicles in circulation. Most 
vehicles in circulation in Guatemala are Japanese and European, 
nevertheless, sales of U.S. vehicles are increasing.  

List of the most promising subsectors within the industry, along
with estimated 1996 total market size of each subsector (USD
millions):

  HTS NO.

  840991  Ignition parts                  9.0
  848210  Ball bearings                   4.5
  87840  Engine parts                     6.0  
  841391  Parts for fuel-inject. pumps    2.5
  851100  Electronic ignition parts       1.5
  848310  Transmission parts              3.0
  841330  Fuel and oil pumps              0.8
  840820  New and used engines            1.7
  851220   Electrical lightning eqpt.     0.7
  848410  Engine gaskets                  1.0
  401010    Rubber belts                  1.0
  681310  Brake linings and pads          2.0
  840734   Spark ignition parts           2.0
     - - -     Others                     9.5  



Best Prospects for U.S. Exporters of Non-Agricultural Products
                          (US$ millions) 

A.  RANK OF SECTOR:  7
B.  NAME OF SECTOR:  Medical Equipment 
C.  ITA INDUSTRY CODE:  MED

                                 1994    1995    1996

D.  Total Market Size:           25.6    29.8    36.9
E.  Total Local Production:      10.2    11.2    12.3
F.  Total Exports:                1.2     1.3     1.4
G.  Total Imports:               16.6    19.9    24.9
H.  Total Imports from U.S.:      8.6     9.9    11.9
I.  Exchange Rate:                5.77   5.74     N/A   

Comments:

During 1994 and 1995 the major importers of medical equipment have been 
the private sector and international organizations providing assistance 
in the health sector.  1994 imports increased by 39 percent over 1993.  
U.S. exports rose 30 percent during the same period.  Funds have been 
virtually non-existent for government hospitals and institutions. 

Guatemala, for the last several years, has been and still is in need of 
medical equipment and supplies.  Very good possibilities for imports of 
equipment from the U.S. and other countries are foreseen for 1996 and 
1997.

Loans from international financial organizations have been promised and 
are expected to be made available soon.  

The U.S. has a 52 percent share of the import market.  The main foreign 
competitors for the U.S. are:  Japan with 16 percent; Germany with 9 
percent and Taiwan with 3 percent.

List of the most promising sub-sectors within this industry, along with 
estimated 1996 total market size of each sub-sector (USD millions) :

8713.9000  Invalid carriages, wheelchairs.                    3.0  
9018.1940  Electro-medical, electro-diagnostic equipment.     4.3
9018.3900  Catheters, drains, sondes, cannulae, parts
           and access.                                        2.9
9018.9000  Odontologic instruments and apparatus              2.8
9018.9060  Electro-surgical instruments, appliances and
           parts.                                             2.8
9022.1100  X-ray apparatus for medical, surgical and
   dental use.                                                2.9


Best Prospects for U.S. Exporters of Non-Agricultural Products
          (U.S. millions, unless otherwise noted)


A.  RANK OF SECTOR:  8 
B.  NAME OF SECTOR:  APPAREL
C.  ITA INDUSTRY CODE:  APP  

                               1994      1995      1996

D.  Total Market Size          33.7      35.5      34.2    
E.  Total Local Production     47.5      49.0      46.0
F.  Total Exports              34.5      35.0      34.0 
G.  Total Imports              20.7      21.5      22.2
H.  Total Imports from U.S.     5.5       6.4       7.3
I.  Exchange Rate:              5.77      5.74     N.A.
   
Comments:

For the above shown figures it should be noted that export figures are 
larger than total import figures, local production is almost exclusively 
destined for exports to the U.S. market and the rest to the Central 
American countries of El Salvador, Honduras and Nicaragua. Despite the 
decrease in the maquiladora operations, the U.S. is the second largest 
country supplier of apparel accounting for 26.5 percent of the total 
imports. El Salvador was the leading supplier (1994) with 31.4, percent 
followed by Panama with 10 percent. Other suppliers include Hong Kong 
and Taiwan. It is estimated that approximately 40.0 percent of the total 
imports of apparel from the U.S. are used clothing.  

List of the most promising subsectors within the industry, along
with estimated 1996 total market size of each subsector (USD
millions):
 
  HTS NO.                
  62034200  Women dresses            4.0
  61091000  Cotton T-Shirts          1.9
  62044900  Other women dresses      1.2
  62121000  Women innerwear          1.3
  61051000  Cotton shirts            1.1
  61034200  Cotton pants             0.8
  62042200  Cotton dresses           0.7
  62052000  Other cotton shirts      0.8
  62041200  Cotton suits             0.8
  62046200  Women cotton pants       0.6    
  62031900  Other suit and dresses   0.5
  61032200  Sleeping wear            0.5
  62053000  Synthetic fiber shirts   1.0
  65040000  Felt hats                0.4
  - - - -  Others                    5.2


B.  Best Prospects for U.S. Exporters of Agricultural Products
                            (US$ millions) 

The following best prospects list is ranked according to the anticipated 
two year growth between 1995 and 1996.  The only exception is U.S. beef 
exports which was ranked #8 because the market is so small. 

A. #1
B. Snack Foods
C. N/A
            1994  1995  1996
               ($ 1,000)
D. Total Market Size
E. Total Local Production  Information not available
F. Total Exports
G. Total Imports
H. Total Imports from U.S.  2,601  3,500  4,000


Comments:

U.S. exports of snack foods to Guatemala have increased dramatically 
over the past several years and while the rate of growth in exports is 
likely to decline some over the next few years, strong continued growth 
is forecast.  Potato chips, popcorn, nacho chips, nuts and other salted 
snack products are the leading sellers from the United States.  
Competition from neighboring countries, especially Mexico and El 
Salvador, is fairly strong.  The other CACM-4 countries have duty-free 
access to the Guatemalan market.  Mexican and Central American snack 
producers also have the infrastructure to manufacture and market product 
sold in small package sizes.  This allows them to dominate the low-end, 
high-volume portion of the market.


A. #2
B. Beer & Wine
C. N/A
  1994  1995  1996

    ($ 1,000)

D. Total Market Size
E. Total Local Production  Information not available
F. Total Exports
G. Total Imports
H. Total Imports from U.S.  482  550  750

Comments:

There is tremendous opportunity for increased U.S. beer and wine sales 
to Guatemala, but the key to success is establishing a solid exporter-
distributor relationship.  One major U.S. beer company has recently 
signed an agreement with the Guatemalan beer monopoly which should 
significantly expand its presence in Guatemala.  The locally produced 
brands cover 85 percent of the market.  Other than U.S. beer, German, 
Dutch, and Mexican beers have had limited success in Guatemala.  Exports 
of U.S. wines to Guatemala have also been limited in the past.  
Guatemalans perceive U.S. wines to be of inferior quality.  This 
resulted in Chile, France, Spain, and Italy becoming the main wine 
suppliers to Guatemala.   This trend should change as local distributors 
make greater efforts to promote U.S. wines.  


A. #3
B. Breakfast Cereals & Pancake mixes
C. N/A
  1994  1995  1996

    ($ 1,000)

D. Total Market Size
E. Total Local Production  Information not available
F. Total Exports
G. Total Imports
H. Total Imports from U.S.  2,180  2,100  2,400

Comments:

Guatemalan trade statistics are not available for breakfast cereals.  
U.S. trade data show significant growth in U.S. exports of breakfast 
cereals to Guatemala in the past two years. This is expected to continue 
over the next few years as disposable incomes rise.  Breakfast cereal 
targeted at children is expected to be the fastest growing sub-sector.  
Retailers of U.S. breakfast cereals enjoy free television advertising 
through cable channels from the United States.  There are no import 
restrictions and domestic production has not been able to keep up with 
total demand.  U.S. cereal exports are forecast to grow approximately 25 
percent over the next two years.  Competition from Mexico has increased 
in the past year.


A. #4
B. Fresh Fruit
C. 

  1994  1995  1996

D. Total Market Size
E. Total Local Production  Information not available
F. Total Exports
G. Total Imports
H. Total Imports from U.S.  4,594  5,000  5,500


Comments:

U.S. fresh exports to Guatemala have risen significantly over the past 
several years.  This trend is expected to continue as Guatemalan 
consumers are expected to increase their demand for imported deciduous 
fruits.  U.S. grape exports are the fastest growing sub-sector with 
apples second.  The majority of Guatemalan grape consumption comes 
during the Christmas holidays.  This coincides with U.S. supply 
availability and has enabled the U.S. to capture the largest share of 
the Guatemalan grape market.  Chilean grapes are priced very 
competitively but usually do not enter the market until January.  Future 
apple exports will depend on Guatemalan trade policy which must become 
WTO consistent.  In the past, apple imports were restricted to the first 
six months of the year and are controlled with import licenses.



A. #5
B. Cotton
C. 2631000
  1994  1995  1996

    (1,000 MT)

D. Total Market Size  30  32  35
E. Total Local Production   6   5   4
F. Total Exports   1   1   1
G. Total Imports  19  21  24
H. Total Imports from U.S.  18  21  24

Comments:

Guatemalan cotton production continues to fall as land historically 
dedicated to cotton continues to find more profitable alternatives.  
Guatemalan textile production for exports remains strong and is expected 
to increase if the proposed NAFTA parity is implemented.  There is 
virtually no significant competition from other cotton producing 
countries Under Guatemalan regulations, cotton produced west of the 
Mississippi must be fumigated at the point of origin.  Upon arrival in 
Guatemala, Guatemalan inspectors could order a second fumigation if it 
is deemed necessary.

A. #6
B. Wheat
C. 0410000
  1994  1995  1996

    (1,000 MT)

D. Total Market Size  330  345  360
E. Total Local Production   22   20   18
F. Total Exports    0    0    0
G. Total Imports  295  325  342
H. Total Imports from U.S.  240  300  320

Comments:

U.S. wheat historically has been the single most important U.S. 
agricultural export to Guatemala.  Over the next two-three years U.S. 
exports of wheat should remain strong with possible fluctuations due to 
market conditions.  European milling wheat entered the Guatemalan market 
in 1993/1994 because of relatively lower prices, but this has proven to 
be a short-term phenomenon. Guatemalan wheat millers prefer U.S. hard 
(high protein) wheats.  There is very little local production of wheat, 
but what is grown must be purchased by wheat millers by Guatemalan law.  































A. #7
B. Tallow
C. 4113200
  1994  1995  1996

    (1,000 MT)

D. Total Market Size  38  38  40
E. Total Local Production   3   3   3
F. Total Exports   0   0   0
G. Total Imports  35  35  37
H. Total Imports from U.S.  35  35  37


Comments:

U.S. tallow exports to Guatemala have been very steady and are expected 
to grow moderately over the next few years.  Guatemala produces a small 
quantity of low quality tallow.  Soap manufactures have become 
accustomed to the high quality U.S. tallow and are expected to increase 
imports moderately over the next several years.  There is no third-
country competition and there are no restrictions on inedible tallow 
imports.



A. #8
B. Beef
C. 
                           1994  1995  1996
                              (1,000 MT)
D. Total Market Size       40  40  42
E. Total Local Production  53  52  53
F. Total Exports           13   8  10
G. Total Imports           .5  .7   1
H. Total Imports from U.S. .3  .6  .8


Comments:

Guatemala is a net exporter of beef, but there is a rapidly growing 
market for quality beef imports.  As Guatemala's per capita income 
increases, more and more consumers are expected to demand higher-quality 
meat products.  The most popular U.S. beef export is frozen carcasses 
and half carcasses.  Guatemala also imports small quantities of beef 
from Nicaragua, Honduras and Mexico when prices are low enough.  This 
beef, however, does not significantly compete with U.S. beef exports.  
Consumers perceive U.S. meats to be of higher quality and are willing to 
pay more.



VI.  Trade Regulations and Standards


A.  Trade Barriers, Tariffs and Import Taxes  

Exporters to Guatemala enjoy an increasingly open trade regime.  Imports 
are not generally subject to non-tariff trade barriers, although 
possible arbitrary customs valuation and excessive bureaucracy can 
sometimes create delays and complications.  The Government of Guatemala 
applies the Common External Tariff schedule of the Central American 
Common Market (CACM) to almost all agricultural and industrial goods.  
These tariffs range from five to 20 percent.  A seven percent Value 
Added Tax (IVA) applies to most imported goods at the point of entry.  
The seven percent IVA will be increased to 10 percent no later than 
January 1, 1996.

While Guatemala has significantly liberalized its trade policies, it 
continues to impose restrictive policies on some products.  Guatemala 
uses a price bands mechanism on basic grains.  Guatemala successfully 
renegotiated higher tariff binding levels for many agricultural products 
in the Uruguay Round.  Depending on market conditions, tariffs for 
agricultural products competing with local production could increase, 
since Guatemala has now joined the World Trade Organization (WTO) and 
ratified the Uruguay Round Agreements.

B.  Customs Valuation  

Nontransparent customs valuation procedures are occasionally a barrier 
to trade in Guatemala.  Established importers of U.S. products complain 
that under-invoicing of imports and outright contraband is widespread, 
damaging their relationship with the U.S. exporter, as well as their 
ability to compete.

Guatemala employs an arbitrary product valuation system for poultry 
imports that results in a higher level of effective protection than 
would be implied by the nominal tariff rate.

C.  Import Licenses  

Guatemala allows the import of wheat flour by permit only.  The system 
is intended to protect local wheat producers as well as to compel price 
restraint by local flour mills.  No permits were issued in 1992 or 1993.  
There are no other significant import licensing issues.

D.  Export Controls 

Guatemala operates a one-stop window for the granting of export permits.  
The average exporter is able to receive authorization within four to 
five hours.

E.  Import/Export Documentation 

All commercial invoices and bills of lading must be legalized at the 
Guatemalan Embassy or one of its Consulates in the United States.

Pharmaceuticals, cosmetics and hygiene products must be included in the 
Sanitary Registry (Registro Sanitario) of the Ministry of Public Health 
and Social Assistance prior to being sold in Guatemala.  Firms 
interested in exporting such products to Guatemala are required to 
present a "Certificate of Free Sale" prepared by an appropriate U.S. 
state or federal agency.  For more information, firms should contact the 
Directorate General of Health Services at the following address and 
telephone number.

Direccion General de Servicios de Salud
Ministerio de Salud Publica y Asistencia Social
10 Ave. 14-00, Zona 1
01001 Guatemala, C.A.
Tel: (502-2) 2-73-03 (5 digits only)/50-01-08

F.  Temporary Entry

Guatemala's 1989 drawback and export promotion law allows duty and tax 
free entry of raw materials, intermediate products, packaging and labels 
used in the production or assembly of merchandise exported to markets 
outside Central America.

G.  Labeling/Marketing Requirements 

Importers must register any food product to be imported with the 
Department for the Registry and Control of Foodstuffs.  The registration 
is valid for one year.  In addition to the range of product information 
required for registration, Guatemalan law officially requires that 
foreign products contain Spanish-language labeling indicating the 
ingredients, registration number, and expiration date of the product.  
This legal requirement is frequently ignored and the shelves of modern 
stores and supermarkets are commonly full of food products labeled only 
in English.  Nevertheless, U.S. exporters of food products should 
provide Spanish-language labeling in accordance with the law to avoid 
problems.

H.  Prohibited Imports 

The Ministry of Defense's Department for the Control of Arms and 
Munitions (DECAM) enforces a law which virtually prohibits the import of 
offensive weapons, a category encompassing automatic type weapons, as 
well as a range of military weapons and hardware.

It should also be noted that the U.S. Government requires firms to 
obtain an export permit to export all arms, ammunition and related 
products to Guatemala.  For more information, U.S. exporters should 
contact the Bureau of Export Administration at the U.S. Department of 
Commerce, tel: (202) 482-5811.

I.  Standards 

The market has been largely self-regulating in packaged quantities and 
product quality.  The Ministry of Economy has proposed the establishment 
of a consumer protection office designed to verify measurements and 
quality, which has yet to be established.

J.  Free Trade Zones/Warehouses 

The "ZOLIC" free trade zone at Puerto Santo Tomas de Castilla, adjacent 
to Guatemala's principal port on the Atlantic coast, and the Grupo Zeta 
Free Zone located in the town of Palin near Guatemala City, offer 
exemption from payment of all duties and taxes (except employer social 
security contributions).  Legislation passed in 1989 allows the 
establishment of privately owned and operated free trade zones and 
provides export incentives for maquila (draw-back) and other export 
oriented industries whenever located. 

K.  Membership in Free Trade Arrangements

The Central Americans reestablished a uniform external tariff range 
(five to 20 percent) as of April 1, 1993, and are working to establish a 
common external tariff system.  Internally, they are striving to 
establish a true free trade zone, with duties eventually to be 
eliminated on all but four designated products.  A revised Protocol for 
economic integration, setting out broader goals such as financial market 
integration and macroeconomic coordination, was signed by six Central 
American countries (Belize is at present not included) in October, 1993.

The integration protocol allows the countries of Central America to 
advance at varying rates toward more open trade, and the "Northern 
Triangle" countries -- Guatemala, El Salvador and Honduras -- have moved 
most rapidly to eliminate trade barriers among themselves.  
  



  VII.  Investment Climate


A.  Openness to Foreign Investment

Guatemala can be an attractive place for foreign investors.  Close to 
the United States, Guatemala possesses a large labor pool and enjoys 
preferential access to the U.S. market through the CBI (Caribbean Basin 
Initiative) and GSP (Generalized System of Preferences).  Because of 
these programs, and good agricultural conditions, nontraditional exports 
have enjoyed very healthy growth over the last decade.

In addition to maintaining a stable macroeconomic environment, the De 
Leon Administration actively welcomes foreign investment.  Foreign 
investors are generally afforded national treatment and face very few 
formal constraints on investment.  Most of the restrictions, 
requirements and approval mechanisms typically found in such laws do not 
exist in Guatemala; e.g there is no general requirement for local equity 
participation.

Foreign companies must comply with significantly more protracted 
registration procedures than those faced by Guatemalan firms.  All firms 
wishing to operate in Guatemala must formally incorporate here, publish 
their intent to conduct business and register with the Ministry of 
Economy.  Foreign firms must meet these same conditions, demonstrate 
solvency, and solicit the approval of the Ministry of Government and the 
Attorney General's Office.  As a result, foreign companies can face a 
long delay whereas local companies usually receive provisional approval 
to begin operations within a few weeks.  Although these additional 
requirements present a significant delay, they are not used specifically 
to screen or discriminate against foreign companies.  The government is 
attempting to consolidate registration procedures in a one-stop-shop for 
investors and simplify and shorten registration procedures, but some 
legislative changes will be necessary before the registration of foreign 
companies can be measurably streamlined.

B.  Conversion and Transfer Policies:

There are no restrictions on converting or transferring funds associated 
with an investment into a freely usable currency (U.S. dollars) at a 
legal market clearing rate.  U.S. dollars are freely available and easy 
to obtain within the Guatemalan banking system.  There are no legal 
constraints on the quantity for remittances or any other capital flows.  
There are no restrictions on the repatriation of capital or profits.
 

C.  Expropriation and Compensation:

The Constitution guarantees prompt compensation for any expropriation 
and specifically prohibits confiscatory taxation.  The government has 
taken no expropriation actions since the 1950s and we do not foresee any 
expropriations in the future.

D.  Dispute Settlement:

The Government of Guatemala has not been a party to any major investment 
disputes in the recent past.  Under Guatemalan law, all investment or 
contract disputes with the government fall under the jurisdiction of an 
Administrative Dispute Court.  Guatemala has signed the New York 
Convention on the Enforcement of Foreign Arbitral Awards and the 
Interamerican Convention on Arbitration (the Panama Convention).  
Guatemala has not, however, enacted any special procedures for dealing 
with international arbitration clauses or awards under the New York 
Convention, or with international arbitration generally.  Guatemala does 
not belong to the World Bank International Center for the Settlement of 
Investment Disputes (ICSID).

The standard procedures for enforcing agreements are clumsy and poorly 
implemented.  Theoretically, Guatemalan procedures are not much 
different from those of the United States.  In practice, however, 
Guatemalan procedures are less transparent and more time-consuming.  The 
time required to complete these procedures can be significant and 
Guatemala does not allow the parties to proceed to arbitration or obtain 
a default award until those procedures are completed.  The government 
has committed to streamline these procedures and to make them consistent 
with the New York and Panama Conventions.

The procedures for enforcing foreign awards are even more cumbersome.  
The party against whom enforcement is sought can raise a number of 
procedural objections through the judicial process, in a manner that is 
inconsistent with the New York Convention.

E.  Political Violence:

While the 35-year old insurgency continues in Guatemala, mainly in rural 
areas and at a low level of violence, there has been very little 
political violence directed at foreign firms operating in Guatemala.  
The greatest security threat to anyone in Guatemala, citizen and 
foreigner, is crime.

F.  Performance Requirements/Incentives:

With few exceptions, investment incentives are specified in law and 
available to both foreign and Guatemalan investors without 
discrimination.

The major Guatemalan incentive programs are aimed at "maquiladora" 
operations - manufacturing or assembly operations for which machinery, 
supplies and components are imported and the completed products are 
exported.  Incentives include suspension of all import duties and value 
added taxes on imported machinery and inputs to production.  Investors 
are also granted a 10 year income tax holiday and real estate tax 
holidays of varying length depending on the type of investment.

Income taxes are not leveied for 10 years on industrial firms and five 
years for commercial firms operating in free trade zones.  Import duties 
and value added taxes are not applied to inputs used for export 
production in free trade zones.  Companies investing in free trade zones 
are granted a five year real estate tax holiday.

The government also provides incentives for forestry, mining, tourism 
and petroleum investments.

--  Property owners who engage in reforestation activities can qualify 
for a real estate tax exemption and can deduct the costs of these 
activities from their income taxes.

-- In petroleum, 100 percent of the exploration and drilling expenses 
are recoverable.  Petroleum investors are eligible for tax free imports 
of most inputs for five years and suspension of duties without bond on 
items to be re-exported.

-- Mining and renewable energy projects qualify for duty-free imports 
for goods that are not produced locally.  Capital goods used in hydro-
electric projects (but not thermoelectric) may be imported duty free.

-- Firms involved in developing projects in designated tourism zones are 
eligible for real estate tax exemptions.  They can also import goods 
duty free that are not manufactured anywhere in Central America. 

G.  Right to Private Ownership/Establishments:

The right to hold private property and engage in business activities is 
specifically recognized by the Constitution.  Both foreign and domestic 
private entities may establish and own business enterprises and other 
remunerative activities.  This includes the right to freely establish, 
acquire and dispose of virtually any type of business interest.  There 
are few cases in which competitive equality with public enterprises does 
not apply.

H.  Protection of Property Rights:

Guatemalan law permits foreigners to acquire, hold and dispose of real 
property and tangible personal property with few restrictions.  However, 
foreigners are prohibited from owning land adjacent to rivers and 
oceans.

The level of protection provided to intellectual property remains 
inadequate.  The criminal code contains ineffective penalties for 
infringement of intellectual property rights and a poorly trained 
judiciary is slow to provide effective relief.

Copyrights:  Copyrights are protected under a 1954 law that provides 
protection for literary and artistic works for 50 years after the 
authors death.  While the right to copy, publish and distribute is 
clearly protected, control over leasing or renting of protected works is 
not clear under Guatemalan law.  Despite Guatemalan membership in the 
Rome and Geneva Conventions, Guatemalan law does not generally protect 
sound recordings.  Nor do Guatemalan copyrights extend to databases, 
audiovisual works and software.  Legislation was enacted two years ago 
prohibiting the pirated use of satellite television transmissions for 
commercial use.  As a result, unauthorized retransmission of signals has 
declined markedly.

In a new law currently under consideration by the Guatemalan Congress, 
which is expected to be passed in late 1995 or early 1996, copyright 
protection would be extended to database and computer programs, and a 
procedure for copyright registration in a new Registry of Intellectual 
Property would be added.  In addition, penalties for copyright 
enforcement would be clarified and strengthened, with fines ranging from 
50,000.00 to 100,000.00 quetzales and prison terms of 4-6 years.  The 
Guatemalan Government has also requested that the Congress ratify the 
Berne Convention.

Patents and Trade Secrets:  Guatemala's patent law dates from 1985 and 
provides 15 year protection for the majority of patentable products, 
with only 10 year protection for food and beverage products and 
pharmaceuticals.  No coverage is provided for plant varieties, trade and 
commercial secrets or integrated circuits.  Patent rights do not extend 
to any action executed in the pursuit of education, research, 
experiments or investigation.  Patent rights do not prevent the 
importation of counterfeits unless the product is being produced in 
Guatemala.  There are compulsory licensing provisions and local 
exploitation requirements; protection lapses after six years from the 
date of the patent if the product is not being produced locally.

A new patent law currently in the Guatemalan Congress and expected to be 
approved in late 1995 or early 1996, would provide 20 year patent 
protection and coverage for plant varieties, trade and commercial 
secrets and integrated circuits.  The new law would also strengthen 
fines for patent infringement, stipulating penalties of 4-6 years in 
prison and fines of 50,000.00 to 100,000.00 quetzales.  The Guatemalan 
Government has also requested that the Congress ratify the Paris 
Convention. 

Trademarks:  The Central American Convention for the Protection of 
Industrial Property (CACPIP) forms the legal basis for the protection of 
trademarks in Guatemala.  Guatemalan law does not provide for sufficient 
protection against counterfeiters nor does it afford adequate protection 
for internationally famous trademarks.  The right to exclusive use of a 
trademark, for instance, is granted to whomever happens to file first to 
register the trademark.  There is no requirement for use nor any 
cancellation process for non-usage.  As a result, foreign firms whose 
trademark has been registered by another party in Guatemala have often 
had to pay royalties to that party.

The CACPIP was revised by the Central American Ministers of Economy to 
include protection for internationally-famous trademarks in November 
1994, but will not enter into effect in the region until at least two of 
the five Central American national legislatures ratifies the revision.  
Ratification by the Guatemalan Congress is expected in late 1995 or 
early 1996.

I.  Regulatory System:  

Bureaucratic hurdles are common for both domestic and foreign companies 
wishing to operate in Guatemala.  Not infrequently, companies are 
subject to ambiguous requirements, applied inconsistently by different 
government agencies.  Regulations - where they exist - often contain few 
explicit criteria for the government decision maker, creating 
uncertainty.  Public participation in the promulgation of regulations is 
rare and there is no consistent judicial review of administrative rule 
making.  Customs administration is particularly problematic, with 
inconsistent classification and valuation of imports, frequent delays at 
the border and widespread corruption.

Few restrictions remain on foreign investment.  As noted above, the 
Constitution provides the state telephone company, Guatel, with a 
monopoly on most telecommunication services.  The Constitution also 
designates all subsurface minerals, petroleum and other resources as 
property of the state.  Concessions are typically granted in the form of 
production-sharing contracts.  However, the solicitation and contracting 
process for energy concessions tends to be protracted and non-
transparent.  Some foreign oil companies also complain that the 
Guatemalan royalty scale is not competitive with that of many other 
countries.  

In addition, only Guatemalan citizens or corporations which are at least 
75 percent owned by Guatemalans can operate radio or television 
stations.  Foreigners can own no more than 30 percent of "small mining" 
or forestry companies.  Ground transportation is limited to companies 
with at least 60 percent Guatemalan ownership.  Licensing requirements 
for fishing operations are enforced in such a way as to ensure at least 
minority Guatemalan participation.  Only airlines with at least 51 
percent Guatemalan ownership can provide domestic service.

J.  Bilateral Investment Agreements

In October 1991, the United States and Guatemala signed a Framework 
Agreement on Trade and Investment, establishing a binational Trade and 
Investment Council.  The Council is designed to discuss general issues 
related to trade and investment.  Guatemala has also signed investment 
agreements with the Republic of Korea, Germany and Taiwan.  Guatemala is 
party to a number of other bilateral agreements that deal partially with 
investment issues.  The government is studying a draft bilateral 
investment treaty proposal by the United States.

K.  OPIC and Other Investment Insurance Programs:

The Overseas Private Investment Corporation (OPIC) is active in 
Guatemala, providing both insurance and investment financing.  Obtaining 
Foreign Government Approval (FGA) for OPIC applicants can be slow but 
the government hopes to speed the process by eventuallually 
incorporating it into a one-stop-shop for investors, which is still 
pending.  In the meantime, the government has been making an effort to 
speed up the process for the granting of FGA;  in one recent case, FGA 
was granted in 3 1/2 days for a high priority electric power project 
that was being undertaken by a U.S. company in collaboration with some 
minority local partners. Guatemala has also joined the Multilateral 
Investment Guarantee Agency.  For more information on OPIC programs, 
U.S. investors should contact OPIC headquarters in Washington, D.C. at 
tel: (202) 336-8502.

L.  Labor:

The minimum wage and maximum weekly working hours are established by law 
and are revised periodically.  The labor code provides the right to 
organize employee associations and labor unions.  Most labor unions are 
in the public sector, although private sector unionization has increased 
recently.  Unions remain relatively small, with less than 1 in 14 
workers belonging to a union.  By law, at least 90 percent of any 
company's work force must be Guatemalan and no company operating in 
Guatemala can spend more than 15 percent of its total wage bill on non-
Guatemalan employees.

The labor code also specifies employer responsibilities for working 
conditions, benefits, safety standards, severance pay and bonuses.  
Employers are required to pay a bonus equivalent to a month's salary in 
July ("Bono 14") and again in December ("Aguinaldo").  The law 
establishes a two month probation period.  If dismissed after more than 
two months employment, employees receive separation pay equal to one 
month's salary for each year worked.  Employers are required to make a 
contribution for social security.  In total, these required benefits 
raise the average wage bill by approximately 62 percent.

More than a third of the total work force has had no formal education.  
Another fifth has had only a primary school education.  Although the 
choice of inputs varies greatly by industry, the availability of a 
large, unskilled and inexpensive labor force has led many employers, 
such as construction and agricultural firms, to use labor intensive 
production methods.  In contrast, shortages of skilled manual workers, 
particularly in construction, and of management and information 
processing professionals occur occasionally.

M.  Foreign Trade Zones:

There are currently two free trade zones in operation in Guatemala, 
Grupo Zeta in Palin (a small city located 30 kilometers from Guatemala 
City) and Zolic in Puerto Santo Tomas de Castilla (a major port located 
on the Atlantic Coast approximately 300 kilometers from Guatemala City).  
Palin is privately owned and Puerto Santo Tomas de Castilla is 
government owned.

Legislation passed in 1989 allows establishment of privately owned and 
operated free trade zones in Guatemala.

N.  Capital Outflow Policy:

Capital can be exported from Guatemala to any other place without 
restrictions.  Guatemalan investors historically have not been investors 
in businesses outside of the country, except in perhaps other Central 
American countries. 

O.  Major Foreign Investors:  

Abbott Laboratories  AT&T
Colgate Palmolive  Upjohn Pharmaceuticals
IBM  Proctor and Gamble
Kellogs  United Airlines
American Airlines  Continental Airlines
Ralston Purina  ENRON Corporation
Texaco  ESSO
Sealand  American Express
TECO Power Services  Citibank
DHL  Pepsi
Coca-Cola  Gillette
Maersk


  VIII.  Trade and Project Financing

A.  Brief Description of Banking System  

Capital markets in Guatemala have been developing rapidly in recent 
years but remain fairly shallow.  There are now 31 private commercial 
banks, up from 21 just three years ago.  Citibank is the sole U.S. bank 
operating as a bank in Guatemala.  There are also 15 investment firms 
that specialize in somewhat longer term credit, 12 bonded warehouses 
that issue warrants against the goods they hold, and five new exchange 
houses.  A large number of cooperatives provide credit to a variety of 
small and medium businesses under the supervision of the Ministry of 
Economy.  Also a number of informal financial institutions operate 
independently of any government supervision.  These include parallel 
exchange houses, informal investment firms, and traditional rural 
moneylenders.

Government intervention in the financial sector is limited to 
implementation of monetary policy and to prudential regulation of the 
banks, investment firms, bonded warehouses and exchange houses.  Credit 
is not rationed or otherwise directed by the government with the minor 
exception of a small amount of lending subsidized by the government - 
principally for small businesses, small farms or low-income housing.

Two "stock" exchanges provide a limited alternative to the traditional 
financial sector.  The exchanges trade almost exclusively in government 
bonds and corporate paper, and are much smaller than the commercial 
banking sector.  Repurchase agreements dominate the markets, accounting 
for over three quarters of total volume.  To-date, there have been no 
equity issues.  Three government bonds (the CENIVACUS, CERTIBONO and 
CDP) are now traded on the exchanges.  Secondary trading of both 
government bonds and corporate paper is active, relative to the size of 
the market.  Trading in currency futures has also recently begun with 
the liberalization of the exchange market.

B.  Foreign Exchange Controls Affecting Trading

Guatemala maintains an open, relatively undistorted exchange regime.  
There are no legal constraints on the quantity for remittances or any 
other capital flows.  In early 1994, the Bank of Guatemala (BANGUAT) 
moved to a dirty float; although BANGUAT still intervenes occasionally, 
there are no longer any delays in acquiring foreign exchange.  The 
government sets only one reference rate, which it applies only to its 
own transactions and which is based on the commercial rate.  Remittances 
can take the form of dollar denominated government bonds, although the 
supply of these is rather limited.  A number of banks also offer "pay 
through" dollar-denominated accounts; the depositor makes deposits and 
withdrawals at a local bank but the account is actually maintained, by 
the local bank on behalf of the depositor, in a U.S. bank.

C.  General Financing Availability

The overwhelming bulk of credit is allocated by commercial banks on 
market terms.  The three largest banks hold almost a third of all 
deposits, accounted for over a quarter of all loans and own over a 
quarter of all assets.  Most lending takes the form of short term and/or 
signature loans.  However, small and medium sized businesses complain 
that it can be difficult to find operating capital: i.e. that commercial 
lending is concentrated among a relatively small group of the large 
borrowers.  Foreign borrowers face no systematic discrimination in terms 
or access.

Under its Financial Modernization Program (FMP) with the Inter-American 
Development Bank, the government is attempting to make credit more 
widely available, stretch out the term of most lending, and make 
interest rates more competitive.  The FMP also has tightened 
requirements for reclassifying non-performing assets, for information 
disclosure, and for avoiding lending to directors and owners.  
Accounting practices have also been made uniform and external audits are 
now required of financial institutions.  In general, the government is 
improving both prudential regulation and information disclosure.  
Another objective of the FMP is to increase the number of instruments 
available in Guatemalan financial markets and remove some of the 
restrictions on the types of services banks and other financial 
institutions offer.

D.  How to Finance Exports/Methods of Payments 

The most secure means of payment is cash in advance or an irrevocable 
letter of credit.  However, many Guatemalan imports are financed through 
short term (typically 60 day) lines of credit.  Generally, these are 
extended directly by the U.S. exporter to the Guatemalan importer.  This 
method of financing is usually only available to large importers and 
long-term clients.  The larger Guatemalan importers frequently have 
their own source of capital abroad which can be used to finance or to 
leverage financing for imports.  U.S. exporters should excercise caution 
when extending credit.  The pursuit of claims against Guatemalan firms 
for lack of payment can be time-consuming and costly.

E.  Types of Available Export Financing and Insurance 

The Export-Import Bank of the United States (EXIMBANK) is active in 
Guatemala and offers a number of programs to assist U.S. firms to export 
successfully to Guatemala and elsewhere.  EXIMBANK has published a 
booklet entitled "General Information: Central America" which provides 
information on all relevant programs available for exporters doing 
business in Guatemala and Central America.  U.S. exporters should 
contact EXIMBANK at tel: (202) 565-EXIM/(800) 565-EXIM and fax: (202) 
565-3931.

The U.S. Trade and Development Agency (TDA) has been involved in 
financing a few public and private pre-feasibility and feasibility 
studies and technical assistance programs for high priority development 
projects in Guatemala that have the potential to generate significant 
exports of U.S. products and services, most notably with the National 
Electrification Institute (INDE).  U.S. firms interested in learning 
more about TDA and its activities in Guatemala should contact the agency 
directly at tel: (703) 875-4009 and fax: (703) 875-4357.

F.  Project Financing Available

Since domestic credit tends to be expensive unless guaranteed by a 
government agency, many businesses look abroad for project financing, 
despite the exchange risk.  A large multinational recently sold bonds in 
Europe and the United States to partially finance an energy project.  
That project, and others have also been partially financed by the World 
Bank's IFC.  However, a number of recent projects, even those of larger 
foreign firms, have recently encountered some difficulty in locating 
international funding.  Smaller projects usually must be financed 
domestically, either out of a company's internal assets or from the 
formal financial system.

Both the U.S. Trade and Development Agency (TDA) and the U.S. Overseas 
Private Investment Corporation (OPIC) are operating in Guatemala and 
have been supportive of U.S. firms seeking to undertake projects in 
Guatemala that have the potential to generate substantial exports of 
U.S. products and services. 

G.  Banks with Correspondent U.S. Banking Arrangements

Given the importance of the United States as a trading partner, almost 
all of Guatemala's commercial banks maintain correspondent relations 
with U.S. banks.



IX.  Business Travel

A.  Business Customs

Most business is conducted in Guatemala based on personal relationships.  
Guatemalan business executives and government officials place great 
importance on personal contacts with suppliers.  U.S. suppliers should 
be prepared to have a local representative or distributor and to travel 
to Guatemala personally.  Travelers often are surprised at the 
accessibility to key decision makers and by the openness and frankness 
of local buyers.  

Promotional material should be in Spanish and emphasize U.S. origin.  
Though many private and public officials speak and read English, many 
technicians and engineers do not.  Guatemalans are extremely receptive 
to technical presentations that are educational rather than sales 
oriented.

B.  Travel Advisory and Visas

Entry requirements:  A passport is required for travel into Guatemala.  
A visa is required if an official or diplomatic passport is used.  If a 
tourist passport is used, a tourist card good for thirty days can be 
purchased at La Aurora International Airport upon arrival or at the port 
of embarkation in the U.S. for US$5.00 (U.S. currency only).  A visa is 
required for any stay over thirty days.  Visas are available from the 
Guatemalan Embassy at 2220 R Street N.W., Washington, D.C. 20008, tel: 
(202) 745-4952, or Guatemalan consulates in Los Angeles, San Francisco, 
Miami, New Orleans, New York, Houston or Chicago.  

There currently is a U.S. travel warning in effect for Guatemala, which 
excludes the normal business and tourist centers.  U.S. citizens 
travelling to Guatemala should contact the Department of State in 
Washington, D.C., tel: (202) 647-5225 for travel information and to find 
out if there is a Travel Warning in effect at the time of travel.

C.  Holidays

Holidays in Guatemala are keyed to dates, not days of the month or week 
(except for Holy Week) so they are the same every year.  The following 
are the (commercial) holidays. 

New Year's Day        January 1
Holy Week/Wednesday   April 3, 1996 (p.m.only)
Holy Thursday         April 4, 1996
Good Friday           April 5, 1996
Holy Saturday         April 6, 1996
Easter Sunday         April 7, 1996
Labor Day             May 1
Army Day              June 30
Feast of Assumption   August 15
Independence Day      September 15
Revolution Day        October 20
All Saints Day        November 1
Christmas Eve         December 24 (p.m.only)
Christmas Day         December 25
New Year's Eve        December 31 (p.m.only)    

In addition, the banking sector celebrates the following holidays:  
Bank Workers's Day  July 1
Columbus Day    October 12

Business travelers should avoid arriving in Guatemala on a holiday, if 
possible, because of the unpredictability of transportation and other 
services, especially during the Holy Week, when almost everything is 
closed and tourist facilities are crowded.

D.  Business Infrastructure
  
Language:  Spanish is the official language in Guatemala.  Many firms 
are accustomed to working in English.  However, correspondence should be 
in Spanish.  Catalogs and technical literature should be provided in 
careful translations.

Currency:  The official currency unit is the Quetzal.  The exchange rate 
as of July 1995 is approximately Q5.75 to US$1.00.  Generally, the 
exchange rate fluctuates minimally.  Currency exchange facilities are 
available at the airport terminal.  Major credit cards are accepted at 
most major hotels, restaurants and stores.  

Business hours:  Business hours for commercial and industrial firms are 
from 08:00 to 18:00, Monday through Friday.  It is not unusual for 
offices and businesses to be closed from 12:30 to 14:30 or 13:00 to 
15:00 for lunch.

Transportation:  Taxi service is available between the airport and 
hotels.  Travelers arriving at La Aurora International Airport should 
only hire vehicles marked clearly as taxis and bearing a registration 
number on the left and right side doors.  The taxi fare from the airport 
to most of the business hotels is approximately US$6.80 or Q40.00.

Use of taxis within the city is strongly recommended as public bus 
transportation is not up to U.S. standards.  Taxis are available at the 
hotels and if transportation is required from a company or restaurant to 
the hotel or other places, a taxi should be requested by phone.  Taxis 
are not commonly available in the streets.

Communications:  Basic telephone service is easily available at most 
hotels and offices in Guatemala City.  Generally, calls can be placed to 
the U.S. without any problem.  Calls can be placed through the hotel 
operator (via the Guatemalan Telecommunications Company-GUATEL) or 
directly (calling card or collect) via AT&T (dial 190), MCI (dial 189) 
and Sprint (dial 195).  

Hotel Accomodations and Housing:  Hotel accomodations are abundant in 
Guatemala City and in the major tourist areas, such as Antigua Guatemala 
and Panajachel.  Most U.S. business visitors to Guatemala City stay in 
the following hotels located in Zones 9, 10 and 13.  

Hotel Westin Camino Real
14 Calle y Avenida La Reforma, Zona 10
01010 Guatemala, C.A.
Tel: (502-2) 33-46-33

Hotel El Dorado (Marriott Guatemala City starting July 1996)
7 Avenida 15-45, Zona 9
01009 Guatemala, C.A.
Tel: (502-2) 31-77-77

Hotel Princess Reforma
13 Calle 7-65, Zona 9
01009 Guatemala, C.A.
Tel: (502-2) 34-45-45

Hotel Crowne Plaza Las Americas
Avenida Las Americas 9-08, Zona 13
01013 Guatemala, C.A.
Tel: (502-2) 39-06-76

Hotel Radisson Suites-Villa Magna
1a Avenida 12-46, Zona 10
01010 Guatemala, C.A.
Tel: (502-2) 32-97-97

For those firms planning to locate staff on a more permanent basis in 
Guatemala there are a number of real estate brokerage firms and 
independent agents that speak English and work with expatriate 
government officials and business people seeking apartments and houses.  
Rents are relatively expensive for housing that meets U.S. standards; it 
is not wise to rent an apartment or house that does not already have 
functioning telephone service.  Most foreign government officials and 
business executives live in Zones 10, 14, 15 and on the Carretera a El 
Salvador.  The Commercial Section of the Embassy can assist U.S. firms 
in obtaining names of residential real estate agents. 

Health:  A full range of basic medical care is available in Guatemala 
City, but medical care outside of the city is limited.  Care in private 
hospitals is generally adequate for common illnesses and injuries.  
Cholera is present in Guatemala and hepatitis A is endemic.   U.S. 
medical insurance is not always valid outside the United States.  
Travelers often find that supplementary medical insurance with specific 
overseas coverage is useful.  Additional health information may be 
obtained from the Centers for Disease Control's international travelers 
hotline at (404) 332-4559.

Food:  Guatemala has numerous excellent restaurants suitable for 
business meals and costs are reasonable by international standards.  
Business persons should eat their meals at their hotels or in one of the 
many modern clean restaurants.  Improperly washed or cooked foods are 
the principal cause of the simple diarrheas, food poisoning and 
bacillary and amoebic dysentery.  Only well-cooked foods served while 
hot are recommended, except for fruits and vegetables that can be 
peeled.  It is not advisable to eat fruits or raw vegetables with a 
broken skin and which have not been well washed and peeled or skinned.    

Beverages:  It is advisable to drink bottled drinking water or one of 
the well-known brands of carbonated drinks.  These can be obtained at 
the hotel, restaurants or in supermarkets and mini-markets.  

Climate:  Guatemala is at 5,000 feet and has a temperate climate; 
spring/fall weight clothing is most comfortable.

Crime:  The main security threat in Guatemala is street crime.  It is 
advisable not to wear valuable jewelry nor carry large amounts of cash.  
Leave valuables in the hotel's safe deposit box.  It is generally 
accepted advice not to resist a would-be thief or mugger.  If interested 
in visiting restaurants/nightspots in other zones of the city, it is 
convenient to do it with others and obtain taxis from the hotel front 
desk.  The loss or theft of a U.S. passport abroad should be reported 
immediately to the local police and the nearest U.S. embassy or 
consulate.  


  X.  Appendices



A.  Country Data
     
Population in 1993:  10.3 million.
Population growth rate:  2.9 percent per year.
Religions:  Roman Catholic, Protestant, Traditional Mayan.
Government System:  Constitutional Democratic Republic.
Languages:  Spanish, 23 Mayan languages (e.g Quiche, Cakchiquel and 
Kekchi).
Work Week:  8:00 AM to 6:00 PM, Monday thru Friday, with a lunch break 
that can begin between 12:30 PM and 1:30 PM and last 1 1/2 to 2 hours.


  B.  Domestic Economy  

                                   1994    1995    1996
GDP/1                             12,006  12,931    13,926
Real GDP growth (percent)            4.0     4.0       5.0
GDP per capita (dollars)           1,166   1,220     1,277
Govnt Spending (percent of GDP)     10.9    11.7      12.5
Inflation (percent)                 11.6     8.0       8.0
Unemployment Rate (percent)/2        5.5     4.6       3.6
Foreign Exchange Reserves            800     800       800
Average Exchange Rate (Q/$)/3       5.77    6.00      6.24
Debt Service Ratio (percent)       14.4     15.7      12.6
US Bilateral Aid (fiscal year, millions) 56.9    35.8      35.8



  C. Trade/5: 1994-1996

                            1994    1995     1996
Total Country Exports      1,503    N/A      N/A
Total Country Imports      2,780    3,030    3,310
U.S. Exports               1,354   1,490    1,639
U.S. Imports               1,282   1,411    1,552

Notes

All figures are based on Bank of Guatemala data and are in millions of 
dollars, unless otherwise noted.
/1 GDP in quetzales divided by average nominal exchange rate
/2 Projections of Guatemalan Planning Agency, SEGEPLAN (underemployment 
is estimated to exceed 50 percent)
/3 Based on BANGUAT projections of zero real appreciation in the 
quetzal.
/4 consolidated public sector foreign debt
/5 Based on Guatemalan Customs Data
/6 US Department of Commerce


  D. Foreign Direct Investment  

Cumulative U.S. investment in Guatemala is estimated to be at least 
$700.00 million spread out in more than 200 enterprises, U.S. companies 
account for the vast majority of foreign investment in Guatemala.  For 
the past five years, foreign direct investment (FDI), as a percentage of 
GDP, has remained about 0.9 percent.  During that time, FDI in Guatemala 
has fallen below the average for Latin America, as other countries in 
the region have benefited more from the recent boom in foreign 
investment throughout the hemisphere.  In 1994, FDI was estimated to be 
approximately $152.00 million.  In 1993, FDI was estimated at $99 
million.  An accurate breakdown of investment is not available in 
Guatemala.  When investors register, they are required only to list an 
initial investment of $5,000.  Most investors list only the minimum 
initial amount.  Subsequent investment flows, along with export 
earnings, are reflected only as net changes in dollar holdings by the 
banking system.



  E.  U.S. and Country Contacts

Country  Government Agencies

Contact names are omitted, since there will be a new Government 
installed on January 14, 1996. 

Please Note that Guatemalan local telephone numbers usually consist of 
only six digits, however, there are some telephone numbers with only 
five digits.

Ministerio de Economia
(Ministry of Economy)
8 Ave. 10-43, Zona 1
01001  Guatemala, C.A.
Tel:  (502-2) 51-86-06, 51-50-86, 53-09-03

Ministerio de Finanzas Publicas
(Ministry of Public Finances)
8 Ave. y 21 Calle Zona 1
01001  Guatemala, C.A.
Tel:  (502-2) 53-74-84, 53-32-84, 51-35-42

Registro Mercantil
(Mercantile Registry)
6 Calle 7-57, Zona 1
01001  Guatemala, C.A.
Tel:  (502-2) 2-07-19, 2-04-81, 2-01-51

Registro Propiedad Industrial
(Industrial Property Registry)
5 Calle 4-31, Zona 1
Edificio Plaza Rabi, 7o Nivel
01001  Guatemala, C.A.
Tel:  (502-2) 30-16-92/7, 30-18-22/5

Ventanilla Unica de Inversiones
(One-Stop Investment Office)
8 Ave. 10-43, Zona 1
01001  Guatemala, C.A.
Tel:  (502-2) 8-33-31, 8-33-32, 83-33-33, 83-33-34
*Not really functioning yet.

Aduana Central
(Central Customs)
10 Calle 13-92, Zona 1
01001  Guatemala, C.A.
Tel:  (502-2) 51-62-62, 51-30-24

Ministerio de Comunicaciones, Transporte y Obras Publicas
(Ministry of Communications, Transportation and Public Works)
Palacio Nacional, Zona 1
01001  Guatemala, C.A.
Tel:  (502-2) 51-27-69, 39-33-33, 8-29-75

Guatel - Empresa Guatemalteca de Telecomunicaciones
(Guatemalan Telecommunications Company)
7 Ave. 12-39, Zona 1
01001  Guatemala, C.A.
Tel:  (502-2) 8-33-80, 53-10-42, 53-23-98

Ministerio de Trabajo y Prevision Social
(Ministry of Labor and Social Welfare)
14 Calle 5-49, Zona 1
01001  Guatemala, C.A.
Tel:  (502-2) 8-25-22, 51-56-44, 30-13-66

Ministerio de Relaciones Exteriores
(Ministry of Foreign Relations)
Palacio Nacional, Zona 1
01001  Guatemala, C.A.
Tel:  (502-2) 2-67-48, 39-33-33, 51-65-09, 53-47-88

Ministerio de Energía y Minas
(Ministry of Energy and Mines)
Diagonal 17, 29-78, Zona 11
01011  Guatemala, C.A.
Tel:  (502-2) 76-24-59, 76-06-82, 76-20-44

INDE - Instituto Nacional de Electrificacion
(National Electrification Institute)
7 Ave. 2-29, Zona 9
01009  Guatemala, C.A.
Tel:  (502-2) 34-57-75, 34-57-76, 34-57-11

EEGSA - Empresa Electrica, S.A.
(Guatemalan Electric Company)
6 Ave. 8-14, Zona 1
01001  Guatemala, C.A.
Tel:  (502-2) 30-06-59, 30-06-71

Ministerio de Agricultura, Ganaderia y Alimentacion
(Ministry of Agriculture, Livestock and Nutrition)
Palacio Nacional, Zona 1
01001  Guatemala, C.A.
Tel:  (502-2) 39-33-33, 53-68-16, 51-75-60

Ministerio de Gobernacion
(Ministry of Government)
Palacio Nacional, Zona 1
01001  Guatemala, C.A.
Tel:  (502-2) 39-33-33

Ministerio de Salud Publica y Asistencia Social
(Ministry of Public Health and Social Assistance)
Palacio Nacional - 3er Nivel, Zona 1
01001 Guatemala, C.A.
Tel: (502-2) 39-33-33, 2-45-09, 8-02-58

INGUAT - Instituto Guatemalteco de Turismo
(Guatemalan Tourism Institute)
7 Ave. 1-17, Zona 4
01004  Guatemala, C.A.
Tel:  (502-2) 31-13-33, 31-13-42, 31-13-34

BANGUAT - Banco de Guatemala
(Bank of Guatemala)
7 Ave. 22-01, Zona 1
01001  Guatemala, C.A.
Tel:  (502-2) 8-16-33, 43-40-53, 53-40-53

Country Trade Associations and Chambers

Asociación de Gerentes de Guatemala - AGG
(Guatemalan Managers Association)
6 Ave. 1-36, Zona 14
01014  Guatemala, C.A.
Tel:  (502-2) 32-93-32 to 36 
Fax:  (502-2) 32-93-42
Lic. Roberto Tenenbaum, President
Lic. Jessica Rochmann, General Manager

Gremial de Exportadores de Productos No Tradicionales - GEXPRONT
(Association of Exporters of Non-Traditional Products)
Edif. Cámara de Industria
Ruta 6, 9-21, Zona 4
01004  Guatemala, C.A.
Tel:  (502-2) 34-68-72, 31-59-47
Fax:  (502-2) 32-35-90
Dr. Gabriel Biguria, President
Lic. Fanny de Estrada, Executive Director

Comite Coordinador de Asociaciones Agricolas, Comerciales, Industriales 
y Financieras - CACIF
(Coordinating Committee of Agricultural, Commercial, Industrial and 
Financial Associations)
Edificio Camara de Industria, 4o Nivel
Ruta 6, 9-21, Zona 4
01004 Guatemala, C.A.
Tel: (502-2) 31-06-51
Fax: (502-2) 34-70-25
Lic. Roberto Ardon, General Manager

Camara de Industria de Guatemala
(Guatemalan Chamber of Industry)
Edificio Camara de Industria, Nivel 12
Ruta 6, 9-21, Zona 4
01004 Guatemala, C.A.
Tel: (502-2) 34-08-49 to 58
Fax: (502-2) 34-10-90/31-85-94
Ing. Juan Jose Gutierrez, President
Lic. Eduardo Sperisen, Executive Director

Camara de Comercio de Guatemala
(Chamber of Commerce of Guatemala)
10 Calle 3-80, Zona 1
01001 Guatemala, C.A.
Tel: (502-2) 30-51-56/30-36-28
Fax: (502-2) 51-41-97
Lic. Jorge Briz, President
Sr. Federico Pola, Manager

Camara Empresarial de Guatemala - CAEM
(Entrepreneurial Chamber of Guatemala)
Edificio Camara de Industria, 8o Nivel
Ruta 6, 9-21, Zona 4
01004 Guatemala, C.A.
Tel: (502-2) 31-65-13
Fax: (502-2) 31-65-13
Lic. Carlos Bonifasi, President
Ing. Otto Ernesto Becker, General Manager

Camara Guatemalteca de la Construccion
(Guatemalan Construction Industry Chamber)
Ruta 4, 3-56, Zona 4
01004 Guatemala, C.A.
Tel: (502-2) 31-80-52
Fax: (502-2) 31-29-39
Ing. Luis Fernando Montenegro, President
Lic. Jorge Franco, Manager

Camara de Comercio Guatemalteco-Americana
(American Chamber of Commerce of Guatemala - AMCHAM)
6 Ave. 14-77, Zona 10
01010 Guatemala, C.A.
Tel: (502-2) 37-44-89
Fax: (502-2) 68-31-06
Lic. Emilio Wong, President
Mr. Charles Chambers, Executive Director
*Affiliated to the Chamber of Commerce of the United States through the 
Association of American Chambers of Commerce in Latin America (AACCLA).

Fundacion para el Desarrollo de Guatemala - FUNDESA
(Guatemalan Development Foundation)
Parque Gerencial Las Margaritas, Oficina 402
Diagonal 6, 10-64, Zona 10
01010 Guatemala, C.A.
Tel: (502-2) 32-79-52 to 57
Fax: (502-2) 32-79-58
Ing. Carmelo Torrebiarte, President
Lic. Paul Wever, Executive Director

Camara del Agro
(Agricultural Industry Chamber)
15 Calle "A" 7-65, Zona 9
01009 Guatemala, C.A.
Tel: (502-2) 31-78-28
Fax: (502-2) 31-78-28
Sr. Humberto Preti, President

Asociación Nacional del Cafe - ANACAFE
(National Coffee Association)
5 Calle 0-50, Zona 14
01014  Guatemala, C.A.
Tel:  (502-2) 37-00-75, 33-75-35

Asociación de Azucareros de Guatemala - ASAZGUA
(Sugar Growers Association)
Edif. Tívoli Plaza
6 Ave. 11-08, Zona 9
01009  Guatemala, C.A.
Tel:  (502-2) 318197, 313087, 340628


Country Market Research Firms

NB:  There are no firms that really are dedicated exclusively to market 
research.  The following firms provide a wide range of business 
consulting services.

Arevalo Pérez, Aranky y Asociados
(Arthur Andersen)
Centro Generencial Las Margaritas, Nivel 5
Diagonal 6, 10-65, Zona 10
01010  Guatemala, C.A.
Tel:  (502-2) 32-79-39
Fax:  (502-2) 31-69-14

Tulischth Diaz y Asociados
(Coopers & Lybrand)
Edificio El Triángulo, Nivel 17
7 Ave. 6-53, Zona 4
01004  Guatemala, C.A.
Tel:  (502-2) 32-18-67
Fax:  (502-2) 34-70-59

Tuncho Granados y Asociados
(BDO-Binder)
Edificio Plaza del Sol, Of. 413
12 Calle 2-04, Zona 9
01009  Guatemala, C.A.
Tel:  (502-2) 31-97-44
Fax:  (502-2) 31-42-17

Lizarralde, Ayestas, Asturias y Ramos
(Ernst & Young International)
Edificio Santa Clara II, Oficina 204
13 Calle 1-51, Zona 10
01010  Guatemala, C.A.
Tel:  (502-2) 31-56-62
Fax:  (502-2) 31-56-87

Aldana, Salazar, Garcia y Asociados
(KPMG)
Edificio Centro Financiero, Zona 4
Torre I, Nivel 16
7 Ave. 5-10, Zona 4
01004  Guatemala, C.A.
Tel:  (502-2) 31-12-29
Fax:  (502-2) 31-54-77

Cordon, Parra y Cia.
(Price Waterhouse)
Edificio Tívoli Plaza, Nivel 4
6 Calle 6-38, Zona 9
01009  Guatemala, C.A.
Tel:  (502-2) 34-50-80
Fax:  (502-2) 31-28-19

Lara & Coyoy
(Deloitte & Touche)
Edificio Casa, Nivel 4
7 Ave. 7-11, Zona 9
01009 Guatemala, C.A.
Tel: (502-2) 32-37-40
Fax: (502-2) 32-65-95

Bocanegra Cruz y Asociados
(Horwath International)
Edificio El Reformador, Nivel 4
Avenida La Reforma 1-50, Zona 9
01009  Guatemala, C.A.
Tel:  (502-2) 345345, 351738
Fax:  (502-2) 345362, 352333


Country Commercial Banks

BANCO AGRICOLA MERCANTIL (BAM)
7a. Avenida 9-11, Zona 1
01001  Guatemala, C.A.
Tels.:  (502-2) 2-16-01 to 5 (five digits)
Fax:    (502-2) 51-07-80
Contact:  Eduardo Castillo, General Manager

BANCO AMERICANO, S.A.
11 Calle 7-44, Zona 9
01009  Guatemala, C.A.
Tels.:  (502-2) 32-40-20/32-43-30
Fax:    (502-2) 32-43-20
Contact:  Rolando Porras, General Manager

BANCO CONTINENTAL, S.A.
6a. Avenida 9-08, Zona 9
01009  Guatemala, C.A.
Tel.:  (502-2) 38-20-01
Fax:   (502-2) 39-20-84
Contact:  César García, General Manager

BANCO DE COMERCIO, S.A. (BANCOMER)
6a. Avenida 8-00, Zona 9
01009  Guatemala, C.A.
Tels.:  (502-2) 39-05-04 to 08
Fax:    (502-2) 39-05-55
Contact:  Héctor Ramírez, General Manager

BANCO DE EXPORTACION, S.A. (BANEX)
Avenida de la Reforma 11-49, Zona 10
01010  Guatemala, C.A.
Tel.:  (502-2) 31-98-61
Fax:   (502-2) 32-28-79
Contact:  Rafael Viejo, General Manager

BANCO DE LA CONSTRUCCION, S.A. (CONSTRUBANCO)
12 Calle 4-17, Zona 1
01001  Guatemala, C.A.
Tels.:  (502-2) 30-47-02/30-64-62
Fax:    (502-2) 53-60-42
Contact:  Lionel Toriello, General Manager

BANCO DEL AGRO, S.A.
7a. Avenida 9-20, Zona 9
01009  Guatemala, C.A.
Tel.:  (502-2) 32-91-60
Fax:   (502-2) 32-45-66
Contact:  Héctor Pivaral, General Manager

BANCO DE LA REPUBLICA, S.A.
3a. Avenida 10-06, Zona 1
01001  Guatemala, C.A.
Tels.:  (502-2) 51-43-17/2-99-71 (five digits)
Fax:    (502-2) 53-98-21
Contact:  Luis Alfredo Aguilar, General Manager

BANCO DEL CAFE, S.A. (BANCAFE)
Avenida de la Reforma 9-00, Zona 9
01009  Guatemala, C.A.
Tel.:  (502-2) 31-13-11
Fax:   (502-2) 31-14-18
Contact:  Eduardo González, General Manager

BANCO DEL EJERCITO, S.A.
5a. Avenida 6-06, Zona 1
01001  Guatemala, C.A.
Tels.:  (502-2) 30-59-66/30-08-56
Fax:    (502-2) 51-91-05
Contact:  Cnel. José Ramiro Martínez, General Manager

BANCO DEL NOR-ORIENTE, S.A. (BANORO)
Plaza Corporativa Reforma
Avenida de la Reforma 6-64, Zona 9
01009  Guatemala, C.A.
Tel.:  (502-2) 39-08-51
Fax:   (502-2) 39-08-49
Contact:  Carlos Humberto Gonzlez

BANCO DE LOS TRABAJADORES
8a. Avenida 10-67, Zona 1
01001  Guatemala, C.A.
Tels.:  (502-2) 2-46-51/2-46-58 (five digits)
Fax:    (502-2) 2-08-64
Contact:  Oscar H. Andrade, General Manager

BANCO DEL QUETZAL, S.A.
Plaza El Roble
7a. Avenida 6-26, Zona 9
01009  Guatemala, C.A.
Tel.:  (502-2) 31-88-33
Fax:   (502-2) 32-69-37
Contact:  Alfonso Villa, General Manager

BANCO DE OCCIDENTE, S.A.
7a. Avenida 11-15, Zona 1
01001  Guatemala, C.A.
Tel.:  (502-2) 30-58-94
Fax:   (502-2) 2-14-82 (five digits)
Contact:  José Roberto Ortega, General Manager

BANCO EL CREDITO HIPOTECARIO NACIONAL DE GUATEMALA
7a. Avenida 22-77, Zona 1
01001  Guatemala, C.A.
Tels.:  (502-2) 30-65-42/30-65-62
Fax:    (502-2) 30-22-74
Contact:  Abraham Toledo, General Manager

BANCO EMPRESARIAL, S.A.
10a. Calle 6-66, Zona 1
01001  Guatemala, C.A.
Tels.:  (502-2) 53-35-41/53-35-39/53-05-22
Fax:    (502-2) 51-98-07
Contact:  Ramón Canel, General Manager

BANCO GRANAI & TOWNSON, S.A.
7a. Avenida 1-86, Zona 4
01004  Guatemala, C.A.
Tel.:  (502-2) 31-23-33
Fax:   (502-2) 32-35-32
Contact:  Gerardo Townson, General Manager

BANCO INDUSTRIAL, S.A.
Edificio Centro Financiero
7a. Avenida 5-10, Zona 4
01004  Guatemala, C.A.
Tel.:  (502-2) 34-51-11
Fax:   (502-2) 31-94-37
Contact:  Rodolfo Castellanos, General Manager

BANCO INMOBILIARIO, S.A.
8a. Avenida 10-57, Zona 1
01001  Guatemala, C.A.
Tels.:  (502-2) 30-57-48/30-57-50/30-57-52
Fax:    (502-2) 8-48-42 (five digits)
Contact:  Roberto Cofiño, General Manager

BANCO INTERNACIONAL, S.A.
7a. Avenida 11-20, Zona 1
01001  Guatemala, C.A.
Tels.:  (502-2) 30-52-90/30-52-92/30-52-94
Fax:    (502-2) 51-24-44
Contact:  Julio Vielman, General Manager

BANCO METROPOLITANO, S.A.
6a. Avenida 8-24, Zona 1
01001  Guatemala, C.A.
Tels.:  (502-2) 2-53-61 to 63 (five digits)
Fax:    (502-2) 8-40-73 (five digits)
Contact:  Eberto Siguenza, Sub-Manager

BANCO NACIONAL DE DESARROLLO AGRICOLA
9a. Calle 9-47, Zona 1
01001  Guatemala, C.A.
Tels.:  (502-2) 2-26-41 to 49 (five digits)
Fax:    (502-2) 53-79-27
Contact:  José Figueroa, General Manager

BANCO PRIVADO PARA EL DESARROLLO, S.A. (BANCASOL)
7a. Avenida 8-46, zona 9
01009  Guatemala, C.A.
Tels.:  (502-2) 61-77-77/61-75-47
Fax:    (502-2) 61-72-17
Contact:  Fernando Figueroa, General Manager

BANCO PROMOTOR, S.A. (PROMOBANCO)
10a. Calle 6-47, Zona 1
01001  Guatemala, C.A.
Tel.:  (502-2) 30-53-50
Fax:   (502-2) 2-71-68 (five digits)
Contact:  José Luis Urízar, General Manager

BANCO REFORMADOR, S.A. (BANCOR)
8a. Calle 7-86, Zona 9
01009  Guatemala, C.A.
Tels.:  (502-2) 34-12-70/51-91-22
Fax:    (502-2) 32-24-31
Contact:  Mario Mejía, General Manager

BANCO UNO, S.A.
11 Calle 5-07, Zona 1
01001  Guatemala, C.A.
Tel.:  (502-2) 30-52-50
Fax:   (502-2) 53-42-26/30-06-52
Int'l Department :  (502-2) 30-33-36/30-62-44
Contact:  Michael R. Suárez, General Manager

CITIBANK, N.A., SUCURSAL GUATEMALA
Avenida de La Reforma 15-45, Zona 10
01010  Guatemala, C.A.
Tel.:  (502-2) 33-65-74
Fax:   (502-2) 33-68-60
Contact:  Antonio Uribe, General Manager

CORPORACION FINANCIERA NACIONAL
11 Avenida 3-14, Zona 1
01001  Guatemala, C.A.
Tels.:  (502-2) 53-45-50/8-36-71 (five digits)
Fax:    (502-2) 

LLOYDS BANK PLC, SUCURSAL GUATEMALA
Edificio Gran Vía
6a. Avenida 9-51, Zona 9
01009  Guatemala, C.A.
Tels.:  (502-2) 32-75-80 to 90
Fax:    (502-2) 32-76-41
Contact:  Philip Coggins, Principal Manager

MULTIBANCO, S.A.
7a. Avenida 6-17, Zona 9
01009  Guatemala, C.A.
Tel.:  (502-2) 32-74-74
Fax:   (502-2) 32-74-73
Contact:  Carlos González-Campo, General Manager

PRIMER BANCO DE AHORRO Y PRESTAMO PARA
   LA VIVIENDA, S.A. (VIVIBANCO, S.A.)
6a. Avenida 12-98, Zona 9
01009  Guatemala, C.A.
Tel.:  (502-2) 32-68-18
Fax:   (502-2) 39-43-21
Contact:  Carlos Pineda, General Manager


U.S. Embassy Trade Personnel

Brian Brisson
Commercial Attaché

Grant Pettrie
Agriculture Attaché

Richard T. Drennan
Assistant Agriculture Attaché

Jeffrey Cunningham
Economic Counselor

Washington-Based USG Country Contacts

U.S. Department of Commerce
International Trade Administration
Office of Latin America and the Caribbean
14th Street & Constitution Avenue, N.W., Room H-3024
Washington, D.C. 20230
Tel: 202-482-0057
Fax: 202-482-2218
Contact: Matt Gaisford, Guatemala Desk Officer

U.S. Department of Commerce
International Trade Administration
Multilateral Development Bank Office
14th Street & Constitution Avenue, N.W., Room H-1107
Washington, D.C. 20230
Tel: 202-482-3399
Fax: 202-482-5179
Contact: Brenda Ebeling, Director

Trade Policy Coordinating Committee Trade Information Center
Tel: 1-800-USA-TRADE

U.S. Department of Agriculture
Foreign Agricultural Service
Trade Assistance Promotion Office
Ag. Box 1052
Washington, D.C. 20250-1052
Tel: (202) 690-0159
Fax: (202) 690-4374
Contact: Leanne Hogie

U.S. Department of State 
Office of Central American Affairs
2301 C Street, N.W., Room No. 915 Main State
Washington, D.C. 20520
Tel: 202-647-3559
Fax: 202-647-2597
Contact: Mary Grandfield, Guatemala Desk Officer

Export-Import Bank of the United States (EXIMBANK)
International Business Development
811 Vermont Avenue, N.W.
Washington, D.C. 20571
Tel: (202) 565-3921
Fax: (202) 565-3380
Contact: Paula Swain Priestley
         Loan Officer for Mexico, Central America and Panama

U.S. Trade and Development Agency (TDA)
1621 N. Kent Street, Room 309
Rosslyn, VA 22209
Tel: (703) 875-4357
Fax: (703) 875-4009
Contact: John D. Herman, Country Manager for Central America

U.S. Overseas Private Investment Corporation (OPIC)
1100 New York Avenue, N.W.
Washington, D.C. 20527
Tels: OPIC Information Officer: (202) 336-8799
      OPIC Documents AutoFax Line: (202) 336-8700
      OPIC Fax Line (for written inquiries): (202) 408-9859
Contact:  Varies by OPIC program.
          Contact the OPIC Information Officer.


U.S.-Based Multipliers Relevant for Country

Guatemalan Business Center - FUNDESA
299 Alhambra Circle, Suite 510
Coral Gables, FL  33134
Tel:  (305) 444-0600/(800) 741-6133
Fax:  (305) 448-4237
Contact: Ms. Amalia Echeverria


  F.  Market Research

Industry Sector Analyses:

    The following is a list of recently completed and tentatively 
planned ISAs.  All ISAs are available through the NTDB or can be ordered 
from the Commercial Office of the Embassy.

    Fast Food Franchising  March 1995

    Refrigeration Equipment & Parts  May 1995

    Telecommunications Equipment  July 1995

    Electric Power Generation Eqt.  August 1995

    Textile Machinery  August 1995

    Yarns & Threads for the Textile
    and Apparel Industries  August 1995

    Travel & Tourism Services      September 1995

    Medical Equipment & Supplies  September 1995

    Plastics Production Machinery  September 1995

    Computers and Peripherals  November 1995

    Agricultural Machinery and Eqt  February 1996

    Food Processing and Packaging Eqt  March 1996

    Automotive Parts/Service Eqt  April 1996

    Apparel  May 1996

    
Scheduled USDA/FAS Annual Commodity and Special Reports:

    Macadamia Nuts  February 1

    Oilseeds  March 1

    Sugar  April 18

    Tobacco  May 1

    Coffee  May 15

    Poultry  June 20

    Annual Marketing Plan  July 15

    Livestock  August 1

    Agricultural Situation & Outlook  September 30

    Sugar (Semi-Annual)  October 1

    Coffee (Semi-Annual)  November 15



  G. Trade Event Schedule 1995-1996

Trade events schedules may change.  Firms should consult the Export 
Promotion Calendar on the National Trade Data Bank (NTDB) or contact the 
Commercial Office of the U.S. Embassy in Guatemala for the latest 
information (tel: 011-502-2-31-15-41, ext. 259; fax: 011-502-2-31-73-
73).

INTERFER '95 - "USA Pavilion," October 31-November 12, 1995:

--  Event is an international trade fair held in Guatemala City every 
odd year.  A similar international trade fair is held every even year in 
San Salvador, El Salvador.

--  USA Pavilion Organized by Commercial Office, U.S. Embassy
Information: Commercial Attache, tel: 011-502-2-31-15-41 ext. 259

VI TRADE SHOW DE TURISMO, July 29-31, 1995

--  Event is organized every year by the Guatemalan "Visit USA" 
Committee with the support of the Commercial Section of the U.S. Embassy 
and the U.S. Travel and Tourism Administration (USTTA).  The event 
promotes business and pleasure travel to the United States.

--  Interested U.S. firms should contact, Ms. Ana Maria de Solares, 
Trade Specialist, U.S. Embassy Commercial Office, tel: 011-502-2-31-15-
41 ext. 310 and fax: 011-502-2-31-73-73.

XV CONVENCION DE INFORMATICA, August 1996

--  Event is a conference on informatics and an exhibition of products 
and services related to the informatics industry.

--  Co-sponsored by the Guatemalan Managers Association and the 
Guatemalan Informatics Association.  For more information, interested 
firms should contact the Guatemalan Managers Association (Asociacion de 
Gerentes de Guatemala-AGG) at tel: 011-502-2-32-93-32 to 36 and fax: 
011-502-2-32-93-42.
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