Includes typical use of agents and distributors and how to find a good partner, e.g., whether use of an agent or distributor is legally required.

One of the most important decisions a U.S. company will make in Guatemala will be the selection of a qualified and competent sales representative and/or distributor.  A distributor with well-positioned sales outlets in important commercial locations will greatly enhance chances of capturing a major share of the end-user market.

Firms with valuable intellectual property should take the legal steps necessary to ensure that it is protected.  Firms should never delegate the job of registering intellectual property, such as trademarks and trade names, to a local agent, distributor or business partner. This should be done directly by the U.S. firm, with the assistance of a Guatemalan attorney.  Careful attention to Intellectual Property Rights (IPR) issues initially will prevent problems later.

Selection of the appropriate agent or distributor requires time and effort. The same high standards used when selecting a representative in the United States should, to the greatest extent possible, be used in Guatemala. English language capability, while important, should not be over-emphasized as a decision factor when selecting an agent or distributor.  Reputation, product and industry knowledge, track record, and commitment should be weighed heavily.

Exclusivity will be requested by most potential agents and distributors, not only for Guatemala, but also in some cases, for part or all Central America.  U.S. exporters should scrutinize the request closely. The trend among U.S. and other foreign firms seeking representation in Guatemala is toward non-exclusivity and well-defined, renewable periods for representation. Guatemala can be a great place from which to enter the larger Central American market, but not all potential agents and distributors will be able to do this appropriately.

When deciding with whom to work, U.S. firms should take the time to get to know the people they are considering, both in business and social settings.

While finalizing an agency or distribution arrangement, U.S. exporters should make sure the agent or distributor understands clearly the terms of the relationship.  The written agreement is important, however, both parties must understand the terms completely to avoid future problems.  Exclusivity is understood unless the agreement specifically states otherwise.

Formal agency or distribution agreements should be reviewed by a Guatemalan attorney hired by the U.S. exporter. The attorney should be independent of the Guatemalan party with which the agreement is being established. The Guatemalan legal system can be slow and the law, under certain conditions, offers local agents and distributors a great deal of protection.

 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.