ABSTRACT
This chapter analyzes the dynamics and challenges of Mexico-Guatemala transborder trade. It offers a diagnosis regarding the dynamics of trade and investment between both countries and offers specific recommendations to encourage development of the border region through productive investment and trade.
Even though trade no longer faces tariffs, this sector has not managed to get off the ground because of regulatory, bureaucratic, and administrative barriers, in addition to institutional and infrastructure shortcomings.
We suggest that to optimize trade and investment between the two countries, both national and state governments will have to assign a higher priority to the bilateral relationship on their foreign policy agenda, which will have to materialize with economic, political, and human resources.
