Guatemala approves law to modernize ports and attract investment

Guatemala's Congress has approved a new law aimed at modernizing the country's port infrastructure and logistics, a move designed to accelerate foreign trade and attract investment. The legislation, which had been stalled for years, received backing from both the private sector and the United States.

Approved by 123 of the 160 deputies, the General Law of the National Port System creates the National Port Authority (APN). This new body will have a board composed of four public sector representatives and one from the private sector. The law requires the sanction of President Bernardo Arévalo de León and subsequent publication in the official gazette before it takes effect 30 days later.

Key private sector organizations, including the Coordinating Committee of Agricultural, Commercial, Industrial, and Financial Associations (CACIF), the Chamber of Industry, and the Association of Guatemalan Exporters (Agexport), collectively hailed the approval as a historic step. They believe it will provide legal certainty for investments and invigorate trade. The Chamber of Industry emphasized in a statement that ports are strategic infrastructure for national development, noting that approximately 75% of foreign trade moves by sea.

Both private sector groups and regulatory diagnostics indicate that Guatemala's main maritime terminals, Puerto Quetzal on the Pacific and Santo Tomás de Castilla on the Atlantic, are operating at their limit due to accumulated infrastructure neglect. Businesses report that this saturation causes delays of up to 90 days for unloading ships, leading to increased logistical costs that ultimately raise prices for consumers.

The U.S. Embassy in Guatemala described the law as a crucial tool for deepening bilateral trade relations and attracting foreign investment. This follows a plan agreed upon in May of the previous year between the Guatemalan and U.S. governments to modernize Puerto Quetzal, with an initial investment of $63.7 million allocated to the U.S. Army Corps of Engineers.