Guatemala seeks long term trade, not 'free money' from Taiwan, officials say 

Guatemala is not seeking “free money” from its ties with Taiwan, instead, it is looking for long-term investment and trade opportunities with the island, senior financial officials said on Monday. 

Last month, Honduras announced that it was cutting diplomatic ties with Taiwan and recognizing China instead, asking for almost $2.5 billion in aid from Beijing in exchange.

China and Taiwan have been fighting over influence in Latin America since 1949, with China claiming that Taiwan is part of its territory. Beijing does not allow a country to maintain relationships with both Taiwan and China at the same time, making countries choose to support only one of them. 

Guatemalan Economy Minister Janio Rosales told Reuters that, unlike Honduras, Guatemala does not have a debt problem and does not need to be bailed out by another country. However, Guatemala does have a trade deficit with Taipei and is seeking a more balanced trade with the island. 

"We want to have a better-balanced trade, so what we are promoting is more investment from enterprises from Taiwan to Guatemala and to extend cooperation between the two countries. It has been a great alliance," he said.

Echoing Rosales, Guatemala’s central bank chief Alvaro Gonzalez Ricci confirmed that Guatemala is not seeking dollars from Taiwan, like some of its neighboring countries. 

"I think we can ask Taiwan (for things) but not free money. 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," he said.

Earlier this month, Taiwan President Tsai Ing-Wen visited Guatemala to reaffirm the ties between the Asian and Central American countries. Similarly, Guatemalan President Alejandro Giammatei is expected to visit Taiwan from April 24 to 26. Economy Minister Rosales will accompany the president on his visit to the island. 

During their visit, the Guatemalan delegation will seek to pitch the Central American country as a destination for investment and will visit companies, hoping to replicate their business models, the Guatemalan presidency said in a statement. 

Giammattei will also speak at Taiwan’s parliament, hold a joining conference with President Tsai, and meet with Vice President William Lai. 

Guatemala is one of the only 13 countries that maintain diplomatic relations with Taipei, after many of the countries in the region switched their recognition to China, including El Salvador, Nicaragua, Costa Rica, and Panama.