Peru and Guatemala celebrate free trade agreement's entry into force

Peru and Guatemala officially marked the start of their free trade agreement on Tuesday, a pact set to enhance commercial exchange and investment between the two nations starting July 1. Officials from both countries hailed the treaty as a catalyst for development and shared prosperity.

The agreement is expected to "strengthen commercial exchange, boost investment, promote greater utilization of commercial opportunities, and favor the development of regional value chains," according to Peru's Ministry of Foreign Trade and Tourism. The pact was celebrated in an official ceremony at Guatemala's Ministry of Economy, attended by Minister Gabriela García.

Bilateral trade between Peru and Guatemala totaled $1.216 billion from 2020 to 2025. In 2025 alone, trade reached approximately $206 million, making Guatemala Peru's third-largest trading partner in Central America. For Guatemala, the treaty opens new avenues for exporting products like medicines, confectionery, and paper. Peru anticipates strengthening its market presence with exports including grapes, blueberries, asparagus, and coffee, benefiting from preferential access.

"From the beginning of this administration, the entry into force of this treaty was a priority for the Ministry of Economy," stated García. "Today, this joint effort translates into a valuable opportunity for Guatemalan companies to expand their presence in South America." Peruvian Vice Minister of Foreign Trade, César Llona, added that the TLC seals "a commitment to development, shared prosperity, and fraternity," expecting it to consolidate exports and attract foreign direct investment.