Guatemala looking for long-term trade with Taiwan

Finance officials in Guatemala said they are looking for long-term trade and investment with Taiwan. The comments come as Guatemala is one of the few countries that still maintain formal diplomatic relations with the island.

On Monday, Guatemalan economy minister Janio Rosales told Reuters on the sidelines of an investment forum in Taiwan’s capital Taipei that Guatemala does not have a debt issue with the island nation but wanted a more balanced trade. Rosales is part of the country’s delegation accompanying Guatemalan President Alejandro Giammattei on a visit to Taiwan. Giammattei’s visit follows that of Taiwanese leader Tsai Ing-wen’s visit to Guatemala last month.

“We want to have a better-balanced trade, so what we are promoting is for more investment from companies from Taiwan to Guatemala and to extend cooperation between the two countries. It has been a great alliance,” said Rosales, who also touched on China’s criticism of their visit to Taiwan.

Rosales said they heard China’s opposition on the news, but they were more focused on finding “solutions” needed for Guatemala.

Guatemala central bank governor Alvaro Gonzalez Ricci told Reuters that the country was not seeking billions of dollars from the island nation, unlike Honduras.

“I think we can ask Taiwan but not free money,” said Ricci. “Maybe they can invest in some bonds of Guatemala for example and find projects that can last for 25, 30 years not just donations to certain projects in the short-run.”

China views Taiwan as its territory and has criticized every single interaction between the democratically governed island and foreign governments. Taiwan has repeatedly rejected Beijing’s assertions. China has also not ruled out the use of military force to bring the island under its control.

On Tuesday, Giammattei pledged his strong support for Taiwan in remarks during a welcoming ceremony in honor of his visit. Giammattei said Taiwan and Guatemala are “brotherly countries” and are important allies, referring to the island as the “Republic of Taiwan” rather than by its formal name, the Republic of China, Taiwan. Guatemala is one of the 13 countries that still maintain formal diplomatic ties with the island.

Giammattei continued referring to the island nation as such during his speech at the Taiwanese parliament and received a standing ovation from lawmakers.