The following research report contains market research, analysis, statistics and business intelligence relating to research on Textile Fabrics In Guatemala.

Order the 2008 Edition of this report now by adding this item to your cart or for faster service call us at 212-398-5505 to speak to a customer service representative.

ABSTRACT
Guatemala is the northernmost country in Central America. It
borders 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 a good market for U.S.
products and can be an attractive place for investment.

With a population of 11.6 million, it is the largest country in
Central America. The capital, Guatemala City, has a population
of 2.7 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.
With a GDP of about $19 billion, Guatemala's economy is the
largest in Central America. It is one of the most important U.S.
trading partners in the Caribbean Basin region. 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 half of all Guatemala's imports come from the
United States.

Real GDP grew by 4.7 percent during 1998, an increase over 1997's
4.1 percent growth rate. Inflation remained relatively moderate. The 1998 inflation rate was 7.1 percent. There has been little
change in the value of the Guatemalan currency, the Quetzal. It
went from Q 6.55 to the dollar in 1998 to Q 7.00 in the third
quarter of 1999.

Guatemala's long history of prudent fiscal and monetary
policy-making has preserved the economy's resilience. Guatemala's government is relatively small. The public sector
accounts for less than ten percent of the GDP and the country's
tax burden is among the lightest in the hemisphere. Guatemala's
economy is dominated by the private sector which generated
about 94 percent of GDP in 1998. The private sector is fairly
dynamic and sensitive to changing market signals.

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. private sector 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 is working to overcome them. There are no
exchange controls and the currency 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.

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

A. MARKET HIGHLIGHTS AND BEST PRODUCTS

Market Profile

Market Demand

Guatemala ended its 36-year internal conflict with the signing of
the Peace Accords on December 29, 1996. In response, the
international community pledged $2 billion in funds over
the next 4 years for economic development and social integration.
This support together with the government's commitment to the
further opening of Guatemala's already liberalized economy, greater efficiency in government and better public security
proved beneficial for imports during 1998.
Since this is a growing market, demand for textile fabrics is
growing. Imports of textile fabrics increased from 22.7 million
in 1996 to $28.6 million in 1997. Imports from the United States
increased from $4.8 million in 1996 to $5.6 million during the
same time period. The U.S. share of the total import market was
17 percent in 1997. The total market is expected to grow 15
percent during the next several years.

During 1997, Guatemala exported $ 70.5 million compared to $64.1
million in 1996.
B. STATISTICAL DATA
(US DOLLARS MILLIONS)

(PERCENT GAIN/LOSS)
Est. Avg. Annual
Real Growth
Next Two Years

1996 1997 1998(e) %

Import Market 22.7 28.6 34.3 20%

Local Production 64.1 70.5 70.5 10%

Exports 39.9 31.4 26.7 -15%

Total Market 46.9 67.2 78.1 16%
Imports from U.S. 4.8 5.6 6.5 16%
(Average)

Exchange rates 6.1 6.2 6.3 X U.S.D.1

(e) estimated
Future Inflation Rate Assumed: 10.0 %

1998 Import Market Share
(Percent for USA and Major Third country suppliers):

Mexico 27.0 %; El Salvador 20.0 %; USA 17 %; Taiwan 8%.

Receptivity Score: (1 - 5 ) : 4

The above scoring system indicates the end-user receptivity of U.S. products/services in Guatemala based on the following scale:

5 = Extremely receptive
4 = Very receptive
3 = Fairly receptive
2 = Somewhat receptive
1 = Non receptive

The receptive score is based on selected importer's preferences
for U.S. made products. Their strong preference stems from the
wide availability of fast and reliable service from U.S.
suppliers, as well as the high quality of U.S. made products.

Proximity to the United States, which translates into faster and
cost effective delivery, is another significant factor. In
addition, many importers and end-users, use the services of
private postal services in Miami or Houston to receive their
orders more quickly.

Below is the list of best sales prospects for the next three
years. The Guatemalan tariff schedule does not contain the same
number of subdivisions found in the U.S. tariff schedule.

BEST SALES PROSPECTS DESCRIPTION

59021000 Fabrics manufactured for pneumatic nylon

55151100 Synthetic Fibers mixed with rayon

54075200 Other fabrics with textured Polyester dyes

59031000 Impregnated fabrics with Polyurethane

55132100 Other taffeta fabrics with discontinuous dyes made of polyester fibers
55161400 Fabrics with artificial fibers

52094200 Cotton Fabrics with 85% Denim

51121900 Other fine wool fabrics During 1997 Guatemala's largest imports were of the following
items:

59021000 Fabrics manufactured for pneumatic nylon $5.04 million

55151100 Synthetic Fabrics mixed with rayon $1.8 million

54075200 Other taffeta fabrics with discontinuous polyester
fibers $1.8 million
C. COMPETITIVE ANALYSIS

The Guatemalan market for imported textiles has expanded rapidly
since 1990. The textile fabrics import market increased 20
percent from $ 22.7 million to $ 28.6 million between 1996
and 1997.
The Guatemalan market is competitive. Guatemalan business people
are accustomed to doing business with U.S. firms. The four most
important factors affecting Guatemalan purchasing decisions are
price, quality, delivery time and service. "Made in USA"
usually confers a strong advantage to any product in the
Guatemalan market place. Textile importers travel frequently to
the United States and speak English. There are no markingor
labeling requirements for textiles.
Direct sales by U.S. exporters to end-users,
importers/wholesalers and retailers are usually most
successful when the product is well known within the market or
when a few (usually large) buyer's exist. Except for the
wholesalers, all importers pay in cash. The others work with
letters of credit.
The price mark-up ranges between 20 and 30 percent. 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

Guatemala imports textiles from all over the world, but mainly
from Mexico, El Salvador, the United States, Taiwan and South
Korea. Textiles in Guatemala are imported by the clothing
manufacturers and fabric stores. They use local press and the
local yellow pages to advertise their products; wholesalers distribute their products to small fabric stores. They usually
work with a group of salespersons and by-word-of-mouth and they
will sometimes advertise in the local press or in magazines that
are part of one of the local newspapers.

The leading major newspapers in Guatemala are the following:

1. Prensa Libre
13 Calle 9-31, zona 1
Edificio Prensa Libre
01001 Guatemala, C.A.
Tel: 502 230-5096
Fax: 502 251-8768

2. Diario El Grafico
14 avenida 4-33, zona 1
01001 Guatemala, C.A.
Tel: 502 230-5080
Fax: 502 251-0014 (advertising)
3. Siglo Veintiuno
7 avenida 11-63, zona 9
Edificio Galerias Espa"a, Nivel 6
01009 Guatemala, C.A.
Tel: 502 360-6704
Fax: 502 331-9145

4. El Peri#dico
15 avenida 24-51, zona 13
Tel: 502 332-1578
Fax:502 332-9761
E-mail address: periodic@gold.guate.net
Juan Luis Font, Director

5. Diario La Hora
9 Calle ™Aš 1-56, zona 1
01001 Guatemala, C.A.
Tel: 502 232-6866
Fax: 502 251-7084
Luis Marroqufn, General Manager
*Afternoon Papel.

6. Nuestro Diario
15 avenida 24-51, zona 13
Tel: 502361-6988 / 90
Fax: 502361-6988 ext 280
E-mail address: noticia@infovia.com.gt
Carlos Rodolfo Movil Heller, Director

7. Al Dia
Avenida La Reforma 6-64, zona 9
Plaza Corporativa, Torre II, Of. 203
Tel: 502 339-0870
Fax:502 339-1276
E-mail address: editorad@sigloxxi.com
Gerardo Jimenez Ard#n, Director

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: 502 335-3269
Fax: 502 335-32-68

Textile Stores will usually hold clearance sales for special
occasions such as Valentine's Day, Mothers' Day, Father's Day ,
etc. Wholesalers hold clearance sales when trying to sell fabric
remnants.

Domestic Production

In 1998, domestic production accounted for $ 70.5 million. In
1999 production is expected to remain steady at $70.5 million.

The textile industry in Guatemala is dominated by four companies:
Liztex, Texibe, Cantel, Textiles del Sur and Liztex is the
largest company with a 45 percent of market share. The three
other companies have market shares of 30 percent, 10 percent,
five percent respectively. The remaining 10 percent is divided
among several smaller companies.

El Salvador, Mexico y Honduras are the major textile importers
from Guatemala. El Salvador is the largest importer accounting
for 32 percent, followed by Mexico at the closure 24 percent and
Honduras at 17 percent. Statistics provided by the Bank of
Guatemala show that total exports decreased from $ 39.8 million
in 1996 to $ 31.4 million in 1998 and are expected to decrease
another five percent in 1999 due to the closure of drawback
factories in the area.

Total exports from Guatemala to the U.S. were as follows:

1996 $3.6million
1997 $3.4 million

Below is a list of some major textile importers:

DRAWBACK FACTORIES (MAQUILADORAS)

KORAMSA
37 avenida 2-73, zona 7. Colonia El Rodeo
01007 Guatemala, C.A.
Phone: 502 597-7417/ 597-7385
Fax: 502 597-7433
Contact: Pilar Charo
SHIN KWANG
Avenida Petapa 38-79, zona 12
01012 Guatemala, C.A.
Phone: 502476-9244/45
Fax: 5024760403
Contact: Esteban Nam

FABRICA LA ELEGANTE
18 calle 18-63, zona 10
01010 Guatemala, C.A.
Phone: 502 337-0524/333-6517
Fax: 502 333-4033
Contact: Daniel Malouf

PACIFIC MODAS
Avenida Las Americas 7-30, zona 13. Of.5B
01013 Guatemala, C.A.
Phone: 502332-1842
Fax: 502332-1843
Contact: Sam Lee

FABRICAS DE CAMISA NAVARRA
31 avenida 18-57, zona 7 carril auxiliar Villa Linda III
01007 Guatemala, C.A.
Phone: 502595-0003/05
Fax: 502594-9985
Contact: Carlos Bartolome Presa

CAMEXSA
48 avenida 1-68, zona 3 Mixco. Colonia El Rosario
01057 Guatemala, C.A.
Phone: 502 592-8154/56
Fax: 502 597-1487
Contact: Juan Carlos Palomo

CONFECCIONES UNIDAS (COUNSA)
18 avenida 8-12, zona 12
01012 Guatemala, C.A.
Phone: 502471-5026
502471-1157
Fax: 502471-8275
Contact: Youssef Nasser

FABRICA DE TEJIDOS SPORTEX
Calle Mariscal Cruz 10-69, zona 5
01005 Guatemala, C.A.
Phone: 502331-5454
Fax: 502334-7453
Contact: Juan Niemann

FABRICA DE TEJIDOS IMPERIAL
Calzada Roosevelt 34-21, zona 11
01011 Guatemala, C.A.
Phone: 502593-0270
502591-4107
Fax: 502591-1625
Contact: Roberto Zaid Zaid

AG FABRICACIONES (AGFA)
40 avenida lote 79, zona 11. Colonia Santa Rita
01011 Guatemala, C.A.
Phone: 502595-6914/15
Fax: 502594-0428
Contact: Hugo G#mez Klusman
FABRIC STORES

FORMATEX
8a. Calle 9-13, zona 1
01001 Guatemala, C.A.
Phone:502 232-4941
Fax: 502232-7238
Contact: Alejandro Aguilar

ALMACEN NEVA
8a. Calle 9-36, zona 1
01001 Guatemala, C.A.
Phone: 502238-3061
Fax: 502232-1659
Contact: Isaac Seleshnik

ALMACEN DISTRIBUIDORA LAS QUIANAS
6av. 2-07, zona 9, local 3. Plaza Sayet
01009 Guatemala, C.A.
Phone: 502331-5258
502362-8411
Fax: 502331-5258
Contact: Noemf de Rivas

ALMACEN LA ECONOMICA
8 Calle 10-53, zona 1.
01001 Guatemala, C.A.
Phone: 502 251-1734
502 251-2748 Fax: 502 220-4987
Contact: Joe Koplowitz

EL MUNDO DE LAS TELAS
No.1:5 Av.. 12-82, zona 1
01001 Guatemala, C.A.
Phone: 502 253-3723
Fax: 502 232-5325
No.2: 9 Calle 6-46, zona 1
Phone: 502251-9134
No.3:12 Calle y 9na. Av. esquina, zona 1
Phone: 502251-0636
No.4:8 Av. Y 8 Calle esquina, zona 1
Phone: 502 232-6719
Contact: Gustavo Lacayo

TOP COTTONS
20 Calle 25-85, zona 10.
01010 Guatemala, C.A.
Centro Comercial La Pradera. Local 211
Phone: 502 367-3497
502 367-3501
Fax: 502 232-0279
Contact: Carla de Vizcaino

PACIFICO
5 av. 16-57, zona 1
01001 Guatemala, C.A.
Phone: 502253-4542
Fax: 502232-3272
Contact: Edwin Yec

LA GLORIA
Address: 5a. Av. 17-06, zona 1
01001 Guatemala, C.A.
Phone: 502232-5986
Fax: 502232-3472
Contact: Abraham Kachler
DISTRIBUIDORA NOVATEX
Address: 5 Av. 9-62, zona 1
01001 Guatemala, C.A.
Phone: 502253-7717
502251-4174
Fax: 502232-5053
Contact: Lic. Antonio Cabarrus

CASA Y ESTILO
Address: 18 Calle 23-30, zona 10. 01010 Guatemala, C.A.
Plaza Decorisima
Phone: 502337-2472
502363-0877
Fax: 502366-3770
Contact: Carol de Cohen

ALMACEN TELILANDIA
Address: 8 Av. 8-39, zona 1
01001 Guatemala, C.A.
Phone: 502253-3308
502232-0921
502232-1659 Fax: 502232-2809
Contact: Aida Selechnik

ZEDAN
Address: 24 Calle 3-02, zona 1
01001 Guatemala, C.A.
Phone: 502230-2180
502230-4583
502232-2138
Fax: 502238-1296
Contact: RenQ Zed§n

CASA MARCONI
Address: 7a. Av. 13-01, zona 9
01009 Guatemala, C.A.
Phone: 502 332-5074
502 332-4638
502 238-3870
Fax: 502 232-5053
Contact: Antonio Cabarrus
ESPECIALES OCASIONES
Address: 13 Calle 5-10, zona 10. Local C
01010 Guatemala, C.A.
Phone:502363-4418
Fax: 502363-4118
Contact: Lucrecia de Castillo

LOCAL TEXTILE FACTORIES

LIZTEX
1ra. avenida La Brigada 13-30, Colonia San Ignacio, zona 7 Mixco.
01057 Guatemala, C.A.
Phone: 5025976757
Factory: 502633-5814
502633-5977
Fax: 502597-6743
Contact: Jose Habie

TEXZIBE
34 calle 7-42, zona 11
01011 Guatemala, C.A.
Phone: 502476-2484
502476-0124
Fax: 502476-2318
Contact: Roberto Antonio Malouf

CANTEL
8 avenida 11-45, zona 1
01001 Guatemala, C.A.
Phone: 502232-4046
Fax: 502251-0202
Contact: Carlos Ibarguen

TEXTILES DEL SUR
Km. 18.5 Carretera a Mayan Golf
Villa Nueva, Guatemala, C.A. Phone: 502 631-0040
502 631-0224
Fax: 502 631-0167
Contact: Guillermo Zimeri Massis
TEXTILES PERFECTA
1ra. avenida 33-26, zona 12. Colonia El Carmen.
01012 Guatemala, C.A.
Phone: 502476-9321
Fax: 502476-2218
Contact: Carlos Jimenez

TEXTILSA
Km.18.5 Carretera Mayan Golf
Villa Nueva, Guatemala, C.A. Phone: 502631-3377
Fax: 502631-3378
Contact: Stefan Meany
Third Country Imports

In 1997, Mexico was the largest third country supplier of textile
fabrics with a 27 percent share of the market, up 91 percent
from the previous year. El Salvador was second with a 20 percent
market share, up 60 percent from the previous year. Taiwan was
third with 8 percent market share, down 7 percent from the
previous year.
Mexico has an excellent textile fabrics manufacturing industry
with items at good prices and comparable quality as similar
products made in the United States. A lot of contraband textile
fabrics come into Guatemala from Mexico.

Guatemala also imports textile fabrics from thirty-four other
countries, including South Korea, Hong Kong and Panama. At
present, imports meet total market demand.
U.S. Market Position

In 1997 Guatemala imported $28.6 million of textile fabrics, a
25 percent increase out the previous year. Imports amounted to $ 22.7 million in 1996. It is expected that during 1998,
Guatemala will import $34.3 million. During 1997, the United
States was the third largest supplier of textile fabrics with a
17 percent market share. It is estimated that imports will grow
by 16 percent between 1997 and 1998 and that imports from the
United States will increase from $ 5.6 million to $ 6.5 million.
Fabrics made in the United States have a high level of
recognition and acceptance among consumers. This upward trend
will continue, since local firms tend to move slowly in updating designs and in offering fabrics at comparable or lower prices.

Guatemala has several wholesalers and many small textile stores. Fabric store owners purchase mainly in New York, Los Angeles and
Miami. Wholesalers and manufacturers (dmaquiladores) purchase in
New York or North Carolina. Fabrics imported from Panama are
usually made in either China, Taiwan or the United States.
C. END-USER ANALYSIS

Guatemalan consumers are price sensitive. The majority of the
population cannot afford expensive apparel. As long as U.S. prices remain low and U.S. suppliers continue to offer good
quality and up-to-date designs, the U.S. market share will
continue to grow. "Made in USA" usually confers a strong
advantage to any product in the Guatemalan market place.
D. MARKET ACCESS

There are no impediments to selling textile fabrics in Guatemala. U.S. exporters looking at Guatemala will find a relatively open
market. Imports are generally not subject to non-tariff
trade barriers, though there are occasional cases of arbitrary
customs valuation and excessive bureaucratic obstacles that can
create delays. All imports are subject to customs duties. There
is a value added tax of ten percent to be paid on the sum of ad
valorem duty and the CIF value of the import. This ten percent
tax can be credited against a firm's income tax liabilities. Guatemala uses both the metric and English systems of weights and
measures.

Customs valuation procedures can at times be non-transparentand
an impediment to trade in Guatemala. Established importers of
U.S. products complain that under-invoicing of imports and
contraband by other informal importers has had a damaging effect
on their relationship with U.S. exporters as well as their
ability to compete.

Imports have no quantitative restrictions imposed on them. Guatemala's trade policy continues to move toward an open economy
in which consumer preference plays a major role in import selection and demand levels.

The Government welcomes foreign investment. Foreign investors
are generally afforded national treatment and joint ventures are
encouraged, though most foreign firms operate as locally
incorporated subsidiaries.

Foreign companies most comply with some registration procedures
not required of Guatemalan firms. All firms wishing to operate
in Guatemala must formally incorporate here, publish their
intent to conduct business, and register with the Mercantile
Registry. Foreign firms must meet these same conditions plus
demonstrate solvency, deposit operating capital in an authorized
bank, supply financial statements, appoint a Guatemalan citizen
or foreign resident (with work permit) to conduct business
affairs and agree to Guatemalan legal jurisdiction. Foreign
companies can face some delays whereas local companies usually
receive provisional approval to begin operations within a few
weeks.
Foreign firms report difficulties and occasional lengthy delays
in obtaining visas, residence and work permits.

There are no restrictions on converting or transferring funds
associated with an investment into a freely usable currency (USD)
at a legal market clearing rate. US dollars are freely available
and easy to obtain within the Guatemalan banking system. There
are no legal constraints on the quantity allowed. There are no
legal constraints on the quantity for remittances or any other
capital flows. There have been no reports of unusual delays in
the remittance of investment returns. There are no restrictions
on the repatriation of capital or profits. This is both the
government's official policy and the actual experience of
American investors. Investors may remit through dollar
denominated government bonds, although these are limited. Some
banks also offer "pay through" dollar denominated accounts in
which the depositor makes deposits and withdrawals at a local
bank but the account is actually maintained on behalf of the
depositor in a US bank.

The Constitution guarantees prompt compensation for any
expropriation and specifically prohibits confiscatory taxation. The government has taken no expropriation actions since the
1950s and is unlikely to do so in the foreseeable future.

With few exceptions, investment incentives are specified by law
and available to both foreign and Guatemalan investors without
discrimination. The major Guatemalan incentive program
(The Drawback Industry Law) is aimed at "maquiladoras"
-manufacturing or assembly operations for which machinery,
supplies and components are imported and the completed
products are exported outside the Central American area. Incentives include suspension of all import duties and value
added taxes on imported machinery and production inputs. Investors are also granted a 10 year income tax holidays of
varying lengths depending on the type of investment.
The level of protection provided to intellectual property remains
inadequate. The criminal code contains ineffective penalties for
infringement of intellectual property rights and the judiciary is
slow to provide effective relief. A substantial amount of system
reform will be needed before technological take-off and
investment stimulation can be expected. Guatemala is committed
to this reform and pressure from outside Guatemala is
accelerating the reform. A bill is currently in Congress that
could significantly enhance Guatemala's IPR protection.

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

The industrial Property Registrar may be contacted at:

Registro de la Propiedad Industrial
5 Calle 4-33, Zona 1
Edificio Plaza Rabi, 7o Nivel
01001 Guatemala, C.A.
Phone: 502 230-1693, 230-1823

Distribution/ Business Practices

Guatemalans do a lot of 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 repect
local business practices.

Most firms selling into the Guatemalan market do so by means of a
Guatemalan agent or distributor. 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.

One of the most import 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 centers
will greatly enhance chances of capturing a large share of the
market.

Selection of the appropriate agent or distributor requires time
and effort. Guatemala has many qualified, competent people who
can serve in this capacity. The same high standards employed
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 over-emphasized as a
decision factor when selecting an agent or distributor. Reputation, product and industry knowledge, track record,
enthusiasm, and commitment should also 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 this
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
can do it well.

In deciding with whom to work, U.S. firms should take the time 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 will be
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
responsibility 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.
Financing

Capital markets in Guatemala have been developing rapidly in
recent years but remain fairly shallow. There are now 35 private
commercial banks. There are also 21 investment firms that
specialize in longer term credit, 12 bonded warehouses that issue
warrants against the goods they hold, and five exchange houses. A large number of cooperatives provide credit to a variety of
small and medium sized 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 regulation of the banks, investment firms, bonded warehouses and exchange houses. Credit is not rationed or otherwise directed by the goverment
with the minor exception of a small amount of lending subsidized by the government- principally for small business, small farms, or low-income housing.

Guatemala maintains an open, relatively undistorted exchange
regime. There are no legal constraints on the quantity for remittances or any other capital flows. The government sets only
one reference rate, which it applies only to its own transactions
and which is based on the commercial rate. Some banks offer "pay through" dollar-denominated accounts; the depositor makes deposits and withdrawals at a local bank on behalf of the
depositor, in a U.S. bank.

The three largest banks hold almost a third of all deposits,
account 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. Small and medium sized businesses report that it can be difficult to obtain credit. Foreign borrowers face no systematic discrimination in terms or access.

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 be careful when
extending credit. The pursuit of claims against Guatemalan firms
for lack of payment can be time-consuming and costly.

The Export-Import Bank (EXIMBANK) of the United States offers
credit guarantees and insurance for United States exports to Guatemala. United States firms should speak with their
bankers or contact the EXIMBANK at telephone: (800) 565-EXIM or
(202) 5653946.

When the United States exporter does not know an importer, it is advisable to order an International Company Profile (ICP) report through the nearest U.S. Department of Commerce Export Assistance Center.
Business Travel

Business Customs

Business is usually conducted in Guatemala based on personal
relationships. Guatemalan business executives 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 of key decision makers and 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
more receptive to educational promotions.

Travel Information and Visas

Entry requirements: To travel to Guatemala, U.S. citizens must
have a valid passport. U.S. citizens no longer need a visa or tourist card for stays of up to three months (the three month
period can be extended upon application). U.S. citizens must
carry identification with them at all times. For further information regarding entry requirements, contact the embassy of Guatemala at 2220 R Street, N.W., Washington, D.C. 20008, telephone (202) 745-4952/3/4, or the Guatemalan Consulate in Los Angeles, San Francisco, Miami, New Orleans, New York, Houston
or Chicago.

The Government of Guatemala requires all U.S. citizens to have a
valid passport to depart Guatemala. U.S. citizens whose passports are lost or stolen in Guatemala must obtain a new
passport and present it, together with a police report of the
loss or theft, to the main immigration office in Guatemala City to obtain permission to depart.

An exit tax must be paid upon departure from the Guatemala City
airport.

Holidays

Holidays in Guatemala are keyed to dates, not days of the month
or week (except for Holy Week) so they are the same ever year. The following are the 1998 (commercial) holidays.

New Year's Day January 1
Holy Week/Wednesday April 8, 1998
Holy Thursday April 9, 1998
Good Friday April 10, 1998
Holy Saturday April 11, 1998
Eastern Sunday April 12, 1998
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
Christmas Day December 25
New Year's Eve December 31

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

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 updated
exchange rate as of January was about Q6.95 to US$1.00. Generally, the exchange rate fluctuates minimally. Currency exchange facilities are available at the airport terminal. Most major hotels, restaurants and stores accept major credit cards.

Business hour: 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 hire only 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 about US$ 6.50 or Q40.00. Many major hotels also offer airport shuttle
services for guests.

Use of taxis within the city is strongly recommended as public
bus transportation is not up to par with 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. A number of new taxi companies have recently emerged offering taxi services, though it is not easy to hail taxis on 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-TELGUA) or directly (calling card or collect) via AT&T (dial 9999-190), MCI (dial 9999-189) and Sprint (dial 9999-195).

Guatemala City's international dialing code is 502 plus the
local seven digit number. There are no city codes.
Hotel Accommodations and Housing: Hotel accommodations 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:
Hotel Clarion Suites
14 Calle 3-08, zona 10
01010 Guatemala, C.A.
Phone: 502 363-3333
Fax: 502 363-5766

Hotel Westin Camino Real
14 Calle y Avenida La Reforma, Zona 10
01010 Guatemala, C.A.
Phone: 502 333-4633
Fax: 502337-4313

Hotel Guatemala City Marriott
7 Avenida 15-45, Zona 9
01009 Guatemala, C.A.
Phone: 502 331-7777
Fax: 502 332-1877

Hotel Princess Reforma
13 Calle 7-65, Zona 9
01009 Guatemala, C.A.
Phone: 502 334-4545
Fax: 502 334-1454

Hotel Melia Las Americas
Avenida Las Americas 9-08, Zona 13
01013 Guatemala, C.A.
Phone: 502 339-0676
Fax: 502 449-0690

Hotel Radisson Suites-Villa Magna
1 Avenida 12-36, zona 10
01010 Guatemala C.A.
Phone: 502332-9797
Fax: 502 332-9772

Hyatt Regency- Tikal Futura
Calzada Roosevelt 22-43, Zona 11
01011 Guatemala, C.A.
Phone: 502 440-1234
Fax: 502 440-4050

Holiday Inn Hotel
1 Avenida 13-22, zona 10
01010 Guatemala, C.A.
Phone: 502 332-2555
Fax: 502 332-2584

Hotel Quinta Real de Guatemala
Km. 9 Carretera a El Salvador, Zona 15
01015 Guatemala, C.A.
Phone: 502 369-7040
Fax: 502 369-7050

For those firms planning to locate staff on a more permanent
basis in Guatemala there are many real estate brokerage firms and independent agents that speak English. They employ 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 telephones service. Most
foreign government officials and business executives live in Zone 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) 639-3311.

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 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
minimarkets.

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 to not wear either 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.

Key Contacts:

Trade Associations

Camara de Comercio de Guatemala
(Chamber of Commerce of Guatemala)
10 Calle 3-80, Zona 1
01001 Guatemala, C.A.
Phone: 502238-2681/5
Fax: 502251-4197
E-mail address: camcom@guate.net
Contact: Mr. Cesar Estrada, President
Mr. Federico Pola, Manager
Maria del Carmen Roch, Director, International Trade.

Camara de Industria de Guatemala
(Chamber of Industry)
Edificio Camara de Industria
Ruta 6, 9-21, Zona 4, Nivel 12
01004 Guatemala, C.A.
Phone: 502 334-0849
Fax: 502 334-1090
E-mail address: cig@ns.comcyt.gob.gt
Contact: Mr. Jaime Botran, President
Mr. Luis Pedro Toledo, Manager

American Chamber of Commerce of Guatemala (AMCHAM)
6a. Avenida 14-77, Zona 10
01010 Guatemala, C.A.
Phone: 502 363-1774/366-4822
Fax: 502 363-1774
Contact: Frank Gal§n, President

AGEXPRONT (Asociaci#n de gremial de exportadores de productos no tradicionales)

15 avenida 14-72, zona 13
Phone: 502362-2002
Fax: 502362-1950
Contact: Luis Oscar Estrada, Manager of the apparel and textile
industry(VESTEX).

DISCLAIMER
Information in this report relies on sources including Government Publications, Opinions of industry experts and other public sources. Infomat can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. All prices subject to change without notice.

$3500 USD
For the 2008 Edition

Published: 2006 August
Market: Mens Womens Childrens
Region: Guatemala
Industry: Textiles
Pages: 45
Delivery: 7-12 Business Days
SKU: infre0000327