The Ministry of Economy and Foreign Trade, confirmed this Friday that Guatemala and Peru will put into effect on July 1st a free trade agreement signed 15 years ago, a decision that seeks to expand bilateral exchange and provide preferential access to Guatemalan products in a market of more than 33 million Peruvian consumers. The entry into force will be made official in a ceremony between the Minister of Economy of Guatemala Gabriela García and the Minister of Foreign Trade and Tourism of Peru José Reyes Llanos.
Between 2020 and 2025, the accumulated trade exchange between both countries exceeded USD 1,216.6 million, and Guatemalan exports to Peru reached USD 450.9 million in that same period. In 2024 alone, bilateral trade set a record of USD 250 million, with Guatemalan sales of USD 98.3 million, an increase of 14.5% compared to the previous year.
The agreement had been signed on December 6, 2011, in Guatemala City, but it remained inactive for more than a decade. The reactivation began in 2024, when Guatemala expressed its interest in resuming the process.
Since then, technical teams from the Ministry of Economy of Guatemala and the Ministry of Foreign Trade and Tourism of Peru developed a joint agenda. That work allowed for the resolution of a pending dispute before the World Trade Organization and the signing of an Update Protocol to the treaty in April 2025. The Free Trade Agreement between Guatemala and Peru will enter into force on July 1, 2026, boosting market diversification and commercial opportunities for the country. (Ministry of Economy of Guatemala)
The 2025 protocol unlocked an agreement that had been inactive for more than a decade
That protocol was signed on April 23, 2025, in Lima, with the presence of the President of Peru, Dina Boluarte. The text incorporated changes in sanitary and phytosanitary measures, trade in services, specific rules of origin, public procurement, and intellectual property.
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The Peruvian ratification was formalized on May 26, 2026, through Supreme Decree No. 023-2026-RE, published in the official gazette El Peruano with the signature of President José María Balcázar and Foreign Minister Carlos Pareja Ríos. On June 1, Pareja Ríos delivered to the Guatemalan ambassador in Lima, Estuardo Meneses, the diplomatic note certifying the completion of Peruvian internal procedures.
According to the Peruvian government, the coordination between the Guatemalan Ministry of Foreign Affairs and the competent authorities of Peru was decisive in completing the process. That step was the final formal requirement before the treaty entered into force.
The activation of the agreement implies that Guatemalan products will have preferential access to the Peruvian market. According to projections by MINECO, the additional export potential for Guatemala exceeds USD 100 million.
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Bilateral trade already set a record in 2024 and sugar occupies a central place
In 2024, Guatemalan exports to Peru reached USD 98.3 million and were led by agricultural products and electrotechnical machinery. That same year, Peruvian imports from Guatemala reached USD 112 million and were driven mainly by sugar, which accounted for 60% of the total.
The treaty also opens favorable conditions for micro, small, and medium-sized enterprises in both countries, and expands the Guatemalan export offer in sectors such as sugar, coffee, textiles, and agro-industry. According to the source text, it will also strengthen regional value chains.
José Reyes Llanos stated, as reported by MINCETUR, that Peru reaffirms its “commitment to an open, modern trade policy oriented toward generating more opportunities for companies, attracting investments, and strengthening its presence in international markets.” Gabriela García maintained that the agreement “not only updates the bilateral legal framework but also consolidates a strategic alliance aimed at economic and sustainable growth for both peoples.”
Guatemala is Peru’s third-largest trading partner in Central America, after Panama and Costa Rica, and is also the main external supplier of sugar to the Peruvian market, with a 32% share of the total imported by that country. Peru, for its part, is Guatemala’s second-largest trading partner in South America.
The Andean country maintains 22 trade agreements in force with 58 nations, including China, the United States, the European Union, the United Kingdom, Canada, and Japan.
