Guatemala bans imports of forced‑labour goods to avert US tariff threats

Guatemala issued Ministerial Agreement 377‑2026, establishing a legal framework that bars the import of any goods produced wholly or partially with forced or compulsory labour. The measure adopts the definition from ILO Convention 29 and creates an official list of foreign companies linked to such practices; products from listed firms may be prohibited.

The ban fulfills a binding commitment made in January 2026 under the Guatemala‑United States Reciprocal Trade Agreement and is intended to prevent the United States Trade Representative (USTR) from imposing additional Section 301 tariffs of 10‑12.5 % on Guatemalan imports. Guatemala has submitted its position to the USTR, will participate in a public hearing on 7 July 2026 in Washington, D.C., and the prohibition takes effect 30 business days after its publication in the official Gazette.

Analysts note the step is a rapid response to a USTR investigation that placed Guatemala among 60 economies under review for importing forced‑labour goods, threatening a 12.5 % extra duty on exports to the United States.