Guatemalan Economic Minister Sergio de la Torre visited Taiwan to promote investments with CATO's assistance

2013-05-17

Guatemalan Economic Minister Sergio de la Torre visited Taiwan on May 4-9 to invite Taiwanese enterprises to attend the “Guatemala Investment Summit 2013” to be held in Guatemala City on May 30-31. To help promote this event in Taiwan by introducing the investment incentives in Guatemala, a seminar of “Trade and Investment Opportunities in Guatemala” was held on May 7 at the Regent Hotel in Taipei. Said seminar was co-organized by the Ministry of Foreign Affairs (MOFA), the Ministry of Economic Affairs (MOEA), and the Chinese International Economic Cooperation Association (CIECA), while CATO played a dynamic role of collaborator by helping invite potential Taiwanese investors representing over 50 local enterprises who joined the meeting with an enthusiastic response.

The seminar started with the welcome remarks offered by Deputy Minister Simon Ko of Foreign Affairs, stressing that as Guatemala has signed the CAFTA-DR with the U.S. and its legislature body is about to ratify the EU-CAAA with the European Union, Guatemala provides various incentives for products exported from Guatemala to these markets. “Taiwanese businessmen are encouraged to invest in Guatemala to make use of this incentive,” said Ko, by commenting that since the signing of the bilateral FTA on July 1, 2006, the trade volume between Taiwan and Guatemala has witnessed a rapid growth. The main import items to Taiwan are sugar, coffee, etc. For instance, the coffee beans served at the 85°C Café, a globally-known Taiwanese-owned franchise chain, come from Guatemala. The Ministry of Foreign Affairs of the R.O.C. (Taiwan) aims to strengthen an economic diplomacy with the allied countries as well. Taiwanese enterprises are urged to invest and set up manufacturing factories in Guatemala, and MOFA provides various governmental subsidies based on the “The Regulations for Encouraging and Financing Business Entrepreneurs to Invest in Allied Countries.”

The next VIP guest to give remarks was the Deputy Minister Shih-Chao Cho of MOEA, who also shared his positive points of view regarding the potentiality for investments in Guatemala. “In addition to the steadfast diplomatic ties, Taiwan and Guatemala maintain a strong economic relationship,” stated Deputy Minister Cho. Up to March, 2013, there are 58 cases of Taiwanese investments achieved in Guatemala, and the total amount nearly comes up to US$ 381,200,000. The field of investments ranges from instant noodles producing to computer parts & auto parts manufacturing, among others, etc. “Taiwanese entrepreneurs should make a more aggressive move to invest in Guatemala,” thus encouraged the Deputy Minister.  “Along with the various preferential measures legislated by the Guatemalan Government, Taiwanese business partners may take Guatemala into consideration as a regional hub for the Latin American markets,” he added.

On the other hand, Minister de la Torre gave a comprehensive presentation focusing on Guatemala’s advantages by introducing its economy development, infrastructure facilities, human resources, investment opportunities and incentives, potential field of industries to invest in, among others. As indicated by Minister de la Torre, Guatemala constitutes a wholesome legal structure for foreign investments, and the FTAs with the U.S. and the European Union also lead to consolidate the investment package for Guatemala as a favorable platform to enter the said regional markets. In addition, much effort is being made to further develop the following industries in Guatemala: agriculture processing, textile & apparel, light manufacturing & assembly, call centers, tourism development, energy, mining, petroleum, etc. All foreign investments in the processing zones enjoy tax exemption for product exportation, which is a great advantage for the investors. “To attract more foreign investments, Guatemala will launch a global event on May 30-31 in Guatemala City—Guatemala Investment Summit 2013,” announced Minister de la Torre. Enterprises from all over the world are invited, and Taiwanese business partners are more than welcome to join this unique forum. “The Ministry of Economy of the Republic of Guatemala will provide full services for Taiwanese entrepreneurs interested in investing in the country,” concluded the Minister.

Finally, Amb. Carlos Liao, CATO’s Director, added that, in response to the economic revival in the U.S. this year, the timing is just right to plan for investments in Central America as demands from the U.S. market for importing labor-intensive products tend to be increasing. “It is advisable for Taiwanese businessmen to seize this opportunity to make investments in the Region,” said Amb. Liao. Then he continued to announce a CATO’s immediate action to organize an investigation study mission to Central America at the end of May, to cope with the Guatemala Investment Summit. In addition to Guatemala, 2 or 3 other Central American countries would be also visited. CATO will assist the qualified participants to apply for the subsidy to travel expense up to NT$ 50,000 per enterprise offered by the Ministry of Foreign Affairs for those Taiwanese businessmen who visit diplomatic allies for study on investment environments, as well as to apply for another subsidy with even larger amount up to NT$ 20,000,000 per case in favor of Taiwanese implemented investments in the allied countries, which covers any of the three categories: local employee salaries, rental of plant facilities, offices or land, or interests for loans. Interested Taiwanese business  partners are most welcome to contact CATO for further information, as CATO will also pursue them with an active approach and follow up on the matter.

CIECA Chairman Chong-Yu Wang (standing) hosted the seminar

MOFA Deputy Minister Simon Ko (standing) gave the welcome remarks for the seminar

MOEA Deputy Minister Shih-Chao Cho (standing) recommended Guatemala as a considerable hub to explore the Latin American markets for Taiwanese investors

Economic Minister de la Torre (standing) of Guatemala introduced its investment environment and welcomed Taiwanese investors to visit Guatemala

CATO's Director Amb. Carlos S.C. Liao (standing) invited the attendants at the seminar to join the Investment & Trade Mission to Central America organized by CATO

Over 50 companies attended the seminar of “Trade and Investment Opportunities in Guatemala”