Check Against Delivery
2
ndWTO Trade Policy Review of Guatemala
(February 4th and 6th, 2009)Statement by the Republic of Korea
Thank you, Mr. Chairman,
I would like to join all my previous speakers and extend a warm welcome to the delegation of Guatemala for their second trade policy review, and especially thank H.E. _____________ for his comprehensive presentation. Please allow me to also express my appreciations to Amb.
__________ for his insightful contribution, and to the Secretariat for its usual comprehensive report.
Mr. Chairman, Korea and Guatemala, despite the long distance that separates our two countries, have enjoyed excellent economic and social relations over the years, and in this context, Korea is very pleased to participate in this TPR.
Economically, the two countries’ bilateral relationship is highly robust. As of Dec. 2007, no less than 150 Korean companies have invested in the neighborhood of 170 million US dollars in Guatemala. These companies have especially concentrated their investment in the apparel industry, which is the top export sector of Guatemala. My records show that of the total exports by Guatemala in 2007, which stands at 6.9 billion US dollars, these firms accounted for roughly 12% of the total export figure, or 800 million US dollars. In so doing, these firms hired several thousand local employees, thereby contributing to the fight against poverty of the Guatemalan government.
Culturally and Socially, Korea and Guatemala have closely worked to nurture an environment of mutual trust and understanding, to exchange development experiences, and work towards ensuring better living conditions for its people.
Over the years Korea has established and successfully implemented numerous technical assistance programs for Guatemala’s government officials, as well as programs to upgrade Guatemala’s economic and social infrastructure through various ODA projects.
In particular, Korea is proud to have provided the necessary financial and technical assistance in IT-related projects such as the establishment of the ICT (Information-Communication- Technology) Training Center, the Web portal system for e-Government purposes, and funds to construct the “Guatemala Education IT Highway” project.
On this last item, my government hopes that it will indeed serve as the foundation for human resources development and serve to boost the national competitiveness of Guatemala.
1
Check Against Delivery
Mr. Chairman,
In reviewing the Government report and the Secretariat report on the economic progress of Guatemala, Korea notes and welcomes Guatemala’s sound economic growth over the past six years. Korea also notes that indeed Guatemala has steadfastly worked since the mid-1980s to integrate into its trade policy the elements of trade liberalization, and through it, increased competition thereby inducing productivity growth of its domestic industry.
Korea especially notes with great interest the aggressive promotion of preferential trade agreements by Guatemala since 1996. According to the Secretariat report, as a result of this policy, as of 2007, no less than 77.2% of Guatemala’s exports and 61.7% of Guatemala’s imports are now conducted under preferential agreements. In light of this situation, my delegation would like to inquire on what Guatemala perceives to be the right balance between multilateralism and bilateralism when it comes to trade liberalization.
Mr. Chairman, as I briefly mentioned earlier, the apparel industry has traditionally been one of the most important export sector for Guatemala. However, as the Secretariat Report describes in brief, the export amount has declined in both absolute and relative terms since the multilateral liberalization of the sector in 2005 and the consequent elimination of quotas.
In light of this situation, my delegation would like to learn about the efforts that Guatemala has exerted to counter (offset) the change in trading environment for this sector since 2005.
On this item, in particular, my delegation would appreciate a detailed explanation on the arrangements agreed on textiles & apparel in the DR-CAFTA with particular emphasis on the Rules of Origin arrangements, and how Guatemala sees the DR-CAFTA benefiting its apparel sector in the short to long-term.
Mr. Chairman,
Prior to the two week deadline, my delegation had submitted a couple of advanced written questions to Guatemala; including one concerning a request for confirmation on our understanding that the Guatemalan legislature was in the process of introducing a new tax on imported ‘new’ vehicles.
For the written answers provided today, Korea would like to express its appreciations. We shall review it carefully, and revert if necessary. [However, we do not see the answers to our question, hence, we would appreciate receiving them during the second day of the TPR.]
I would like to conclude my remarks by expressing my appreciations to the Guatemalan delegation for their hard work, and wish them much success in their second TPR.
Thank you.
***
2
