Two largest importers of Guatemalan sugarcane? One I guessed

Every so often we read a story of Korean nationals being the victims of crime or owners of troubled businesses in Guatemala. I can't say that I ever thought too much about the subject but The Korea Times has an interesting story on its nationals' operations in Guatemala. Apparently, a large number of Koreans moved to Guatemala in the 1980s to participate in the "textile boom" and now over 8,000 Koreans currently reside there.

Guatemala has been viewed by Korean investors as one of the best countries to operate textile businesses due to its geographical proximity to the U.S. market and cheap labor.

Recently, however, some industry observers have voiced concern over a triple whammy facing Korean textile companies there, namely rising wages, the scrapping of tax benefits and a decrease of demand for garments in the United States.

Guatemalan Ambassador to Korea Gustavo Lopez said that his government is doing its utmost effort to  help them keep doing business there and attract more investment.

Some Korean textile businesses are considering a move to Haiti or Nicaragua where they consider business conditions somewhat superior where wages are lower and tax benefits are more favorable. Slowing demand in the US won't change but the "better" wage, tax, and security conditions are tempting.

And it is not just Korean investments in the Guatemalan textile sector. After China, Korea is the second largest importer of Guatemalan sugarcane. Korea also imports a good deal of Antigua coffee. There are hopes to increase Guatemalan exports of coffee, rum and beer as well as to increase the number of Koreans who visit Guatemala each year.