The agreement was signed by United States Trade Representative Jamieson Greer and Guatemala’s Minister of Economy Adriana Gabriela Garcia.
Greer said: “President Trump’s leadership is forging a new direction for trade that promotes partnership and prosperity in Latin America, further strengthening the American economy, supporting American workers, and protecting our national security interests.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“Today’s signing of another Agreement on Reciprocal Trade in the Western Hemisphere addresses trade barriers facing American workers and producers, expands and solidifies markets for US exports, and strengthens strategic economic ties in the Western Hemisphere. I want to recognise Guatemala for its strong commitment to reciprocal trade with the United States. This Agreement builds on our long-standing trade relationship and shared interest in reinforcing regional supply chains.”
The signing was subsequently welcomed by the National Council of Textile Organizations (NCTO) as support for regional textile and apparel supply chains under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR).
The Washington, D.C.-based NCTO, which represents the US textile supply chain from fibre and yarn to fabrics and finished sewn products, said the agreement removes reciprocal tariffs and provides preferential treatment to qualifying textile and apparel products from Guatemala.
NCTO president and CEO Kim Glas commented: “The reciprocal trade agreement with Guatemala marks an important step toward strengthening the US textile supply chain. We commend the administration for taking decisive action to remove reciprocal tariffs and provide preferential treatment to qualifying textile and apparel products from Guatemala under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR).”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataShe added: “NCTO and the broader US textile industry are grateful to President Trump, US Trade Representative Ambassador Jamieson Greer, and the administration for concluding this agreement with Guatemala, following on the heels of the recently announced agreement with El Salvador.”
According to NCTO, Guatemala is a key CAFTA-DR partner, with $2bn in two-way textile and apparel trade. The wider regional production network generated $11.3bn in two-way trade in 2024 and supported more than 470,000 American jobs in the domestic textile industry alone.
Glas said: “The US–Western Hemisphere textile and apparel supply chain remains a critical strategic alternative to China and other Asian producers. We look forward to continued collaboration with the Trump administration to further solidify this vital regional partnership and appreciate this important announcement.”
The terms of the agreement include:
- Breaking down the non-tariff barriers for US industrial exports
- Breaking down non-tariff barriers for US agriculture exports
- Advancing trade facilitation and good regulatory practices
- Protecting and enforcing Intellectual Property (IP)
- Preventing barriers for digital trade
- Improving labour standards
- Strengthening environmental protections
- Strengthening economic security alignment
- Restricting government procurement
- Confronting state-owned enterprises and subsidies
