Peru · Trade
A long-awaited trade bridge between South America and Central America is finally open. For Peruvian exporters, it is a direct channel into one of the region’s most dynamic food-import markets.
What the deal covers
The treaty creates a free trade area between Peru and Guatemala, progressively eliminating tariffs and non-tariff barriers for originating goods. It also modernizes rules on customs procedures, intellectual property, services, investment and government procurement.
A Protocol signed in 2025 updated the rules of origin to reflect Harmonized System amendments from 2007 to 2022. The agreement includes dispute settlement mechanisms and specific exceptions for sensitive sectors such as agriculture, textiles and used goods.
Products that benefit most
Peruvian agro-exports are the biggest winners. Fresh grapes, blueberries, mandarins, mangoes, asparagus, purple corn and giant Cusco corn all gain preferential access to the Guatemalan market.
Coffee and cocoa products also feature prominently, including cocoa butter, paste and derivatives. Processed foods such as jams, frozen strawberries, biscuits and wines will enjoy reduced or zero tariffs.
Beyond agriculture, the deal covers seafood like anchovy, tuna, shrimp and hake, as well as textiles, garments, zinc manufactures, plastics, metals and machinery. A detailed Peruvian schedule identifies 112 tariff lines of interest, with 45 receiving immediate duty-free status.
The US$2 billion opportunity
Guatemala’s total import market in the sectors covered by the FTA exceeds US$2 billion, according to Peru’s Ministry of Foreign Trade and Tourism. Before the deal, Peruvian export potential to Guatemala was estimated at around US$104 million, leaving enormous room to grow.
The 45 tariff lines granted immediate elimination represent nearly US$468 million of Guatemala’s current imports from other suppliers. That creates concrete substitution opportunities for Peruvian firms in segments where they were previously uncompetitive.
How it fits Peru’s trade strategy
The Guatemala FTA fills a gap in Peru’s network of commercial agreements across the Americas. It gives Peruvian exporters a preferential foothold in Central America, a region linked to Caribbean and North American supply chains.
Two-way trade between the countries was modest before the deal, totaling about US$206 million in 2025. Peruvian exports accounted for roughly US$132 million of that, led by grapes, palm oil, mandarins, chemicals, plastics and zinc.
Guatemala’s main export to Peru is sugar, along with chemical inputs, veterinary medicines and varnishes, which also gain preferential treatment under the reciprocal agreement.
Tariff treatment and timing
The FTA’s tariff schedules divide products into categories. Category A goods saw tariffs eliminated entirely on 1 July 2026, the date of entry into force. Category B2 items will have tariffs removed in two equal annual stages, becoming duty-free from 1 January of year two.
More than 75 percent of Peruvian exports will enter Guatemala duty-free within five years. The phased approach gives sensitive industries time to adjust while delivering immediate wins for flagship export sectors.
Frequently Asked Questions
When did the Peru–Guatemala FTA take effect?
The agreement entered into force on 1 July 2026, after both countries exchanged notifications confirming completion of their internal legal procedures.
Which Peruvian products get immediate duty-free access?
Forty-five tariff lines received immediate tariff elimination, covering goods Guatemala previously imported from third countries worth about US$468 million. These include key agro-industrial and manufactured products.
How big is the Guatemalan market for Peruvian exporters?
Guatemala’s import market in the sectors covered by the FTA is estimated at over US$2 billion, with particularly strong demand for food and beverages.
Does the agreement cover more than just tariffs?
Yes. It includes modernized rules on customs procedures, rules of origin, intellectual property, services, investment, government procurement and dispute settlement, providing legal certainty for bilateral trade.