The country’s export sector, brought together in AGEXPORT, represents more than 1,600 companies, the vast majority of which are small and medium-sized. After 10 days of blockades in Guatemala, the Guatemalan Association of Exporters -AGEXPORT- adds significant losses of Q.2,290 million in 10 days of blockades. This data is added to the shortage of supplies in the local market, given that there are + 800 containers of raw materials and inputs that have not been able to be transferred to companies for production, affecting MSME and SME businesses that participate in the export chain and that generate more than one and a half million jobs.
Guatemala’s export has grown over many decades of work by thousands of Guatemalans who decided, within the framework of AGEXPORT, to join forces to MAKE GUATEMALA AN EXPORT COUNTRY. It has been a national effort with public and private efforts over the last 40 years. Today that work is being severely hit, impacting producers, artisans, MSMEs and SMEs who not only work for export, but also for the local market.
“At this moment, the damage is for Guatemalans not only who depend on export work, but for all those who require basic supplies. For example, the pharmaceutical sector is 100% closed, unable to distribute to pharmacies. Pig farms have run out of concentrate. There is a high limitation on the distribution of eggs and some foods from the basic basket. It is urgent that a dialogue be carried out between the actors involved to solve the current crisis, in search of the common good, the prompt mobilization of cargo and supply of food, water, medicines and other different essential items,” said the General Director of AGEXPORT, Amador Carballido.
There is no sector more affected than another. They are all, Carballido assured. In the case of Services, Health Tourism had treatment cancellations for 100% of foreign patients and 60% of local patients. In Information Technology, ITO and Orange Economy cancellation of contracts withnational companies. And, in Laboratory Services: it reports losses due to lack of transportation to mobilize samples due to 40% of transport units stopped on roads.
“There are still companies that are working at 30% operation, but that will not be for long. Because currently there are factories that are closed. This is going to bankrupt small business owners, entrepreneurs, SMEs who will not tolerate this situation, mainly affecting families that depend on that work. Because additionally, these companies are making extraordinary expenses, for storage, delays, stays and electrical connection of containers. At this moment in this situation there are 636 CONTAINERS that add up to Q. 14,738,100,” said Gabriel Biguria, president of the Board of Directors of AGEXPORT.
According to Biguria, due to the 10 days of blockades within the country, several factors have been triggered: high uncertainty on the part of collaborators from different national companies, operations of closed organizations, detained containers, delayed product deliveries, economic losses, export non-compliance , lack of entry of raw materials for production, penalties for loss of space on ships, cancellation of tourist groups, lack of fuel for aircraft, among others.
“Agriculture is having a loss of Q570 million to date. There are 180 containers of fruits, vegetables and ornamental plants that are in the field, planted and in transit. Furthermore, for the +35,000 small producers and +75,000 families, they have a daily loss of Q4 million, that is, they are already reaching Q40 million in losses. This way I can detail product by product. For example, Cardamomo reported more than $200,000 in the last week; avocado estimates a loss of 8% of the harvest because it is still on trees and is already ripe. The producers are throwing away the work of 3 months of harvest, in reality, they are throwing away their families’ income for the next season,” summarized the General Director of AGEXPORT, Amador Carballido.
AGEXPORT’s main request is to prioritize negotiations at the dialogue table with the assistance of actors who have the capacity and power to make decisions, concluded the General Director of AGEXPORT.
Blockades and their impact on MANUFACTURING SECTOR
- 375 COMPANIES CLOSED (40%).
- 250 COMPANIES PARTIALLY OPERATING (60%).
- IMPACT: 045 MILLION.
