Mexico-Guatemala trade: challenges and opportunities to improve bilateral relations

Abstract

This article analyzes the dynamic and challenges of cross-border trade between Mexico and Guatemala. If offers a diagnosis of the dynamic of trade and investments between the two countries and sets out specific recommendations to promote the development of the border region through productive investment and trade. The elimination of tariffs on bilateral trade in the context of the free trade agreement has not proved sufficient to bring this about due to regulatory, bureaucratic and administrative barriers, together with institutional and infrastructural weaknesses. To optimize trade and investment between the two countries, national and state governments should prioritize the bilateral relationship in their foreign policy agendas, using economic, political and human resources.