WITH THE RIGHT INVESTMENT, THE REGION COULD BECOME A LOGISTICS HUB THAT BOOSTS GLOBAL ECONOMIC TRADE RELATIONS.
In the ongoing economic reactivation most of the world is experiencing, businesspeople and citizens alike are facing a new global challenge due to the logistics and supply crisis.
Transportation and foreign trade processes, which had been concentrated in a few ports and logistics operators for years, had to drastically reduce their operations due to the restrictions imposed to control the pandemic. Now, though the economic recovery is advancing by leaps and bounds in some regions, this sector has simply not recovered to a level where it can respond to the increased consumption of and demand for products.
This has reminded the world of the importance of diversification and trade openness to ensuring an expanded supply of goods and services, and more importantly, of the need for logistics and production centers outside Asia. Our region has a unique opportunity to position itself as a logistics and production center due to many factors, including its location in the middle of the two hemispheres, positioned between Europe and Asia; easy access to raw materials for production in multiple industries; a favorable business climate, based on legal security; its active participation in bilateral and regional trade agreements; and its supply of young, technically and professionally qualified workers. For these and other reasons, we can be a solution to this global problem.
By attracting foreign investment to develop port infrastructure and promoting new subsidiary operations for companies in the manufacturing and automotive industries, countries like Guatemala can become great intermediaries that make both the economies of scale and global distribution processes of large industries and multinational companies more efficient. This would not only help with the world’s economic development, but also create a favorable climate for growth opportunities in Guatemalan society, as well as in other countries in the region.
In Guatemala, factors such as macroeconomic stability, lower costs, and quick export times – especially due to its location – create an environment of opportunity that offers a competitive advantage for foreign companies. It also provides investment opportunities to develop activities in various economic sectors, including agriculture, food, chemicals, plastics and rubbers, clothing, and electronic equipment. Attracting foreign investment involves doing more of what we already know: Diversifying our current skills to enter new sectors and betting on developing more sophisticated sectors.
In conclusion, the world’s current difficult situation is an opportunity to promote business development in our country, one we cannot miss. If we seize this opportunity, it will allow a growing number of people in the region to succeed and grow. Thanks to its geographic location, Central America is an excellent place to consolidate an alternative global logistics and production hub, one that can prevent the world from facing a supply crisis like the one we are in now.
