Sudden! Guatemala coffee may be banned from being imported, Ministry of Foreign Affairs responds

On May 24, Foreign Ministry spokesman Wang Wenbin responded to questions about the import of Guatemalan coffee at a regular press conference. At the meeting, a reporter quoted news from the Guatemalan exporters' Union that China had banned coffee and Hawaiian fruits from Guatemala from entering China. Wang Wenbin responded to the above news at the press conference.

Wang Wenbin said that China and Guatemala do not have diplomatic relations and do not yet know the situation mentioned by the Chamber of Commerce. He said: there is only one China in the world, the government of the people's Republic of China is the sole legitimate government representing the whole of China, and Taiwan is an inalienable part of Chinese territory. The one-China principle is a recognized norm for international relations and the general consensus of the international community, and is the fundamental prerequisite for China's cooperation with all countries, including Guatemala.

Wang Wenbin said that he did not directly confirm the claim that trading had been banned, but at the same time, he did not deny the news.

China does not have diplomatic relations with Guatemala, but there are bilateral economic and trade relations. According to statistics, the trade volume between China and Guatemala has exceeded 5.6 billion US dollars. China mainly exports petrochemicals, textiles, machinery and equipment, and metal products. It mainly imports Guatemalan fruit, sugar, coffee beans, metals and timber, with an export value of 8200 US dollars. According to the National Coffee Association of Guatemala (Anacaf é), the export of raw coffee beans to China officially began on January 1, 2022.

Agreement on the Export of Coffee to China by the Guatemala Coffee Association

Wang Wenbin's further response seems to convey more background information. Recently, Guatemalan President Arevalo held a video meeting with Taiwan leaders, while Wei Foreign Minister Martinez went to Taiwan to attend related activities. The Ministry of Foreign Affairs said that these actions seriously trampled on the one-China principle and condemned it. Due to the above reasons, the relevant trade activities of Guatemala and China will be affected to a certain extent.

At present, there are many coffee traders and roasters in China who import Guatemalan coffee beans. For most coffee makers, although they have never used Guatemalan coffee beans as the main raw material, inventory will not have much impact in the short term. However, if China and Thailand fail to agree on some issues within 4-6 months, then the import of Guatemalan coffee beans will inevitably be affected in the future.

Coffee accounts for 8% of Guatemala's agro-industrial exports and is the country's most important export, but exports have also begun to decline due to slightly lower export production in recent years. According to Guatemala's coffee export report, the United States remains the largest importer, importing nearly 1.2 million bags of coffee beans in fiscal year 2022, but down 17% compared with the previous fiscal year, affected by the global economic situation and geopolitical factors. in addition, the amount of Guatemalan coffee imported by major importing countries is also decreasing.

China currently ranks eighth in Guatemala's top 10 coffee exports, importing 98605 bags (60kg/ bags) of coffee beans in 2021 and 60317 bags in 2022.

Earlier, the relevant Guatemalan coffee reported that coffee farmers in Guatemala currently face the challenges of high fertilizer costs, labour shortages and lack of coffee processing infrastructure. If the current Sino-dangerous relationship continues to develop, Guatemalan coffee beans may lose the Chinese coffee market and thus reduce foreign exchange earnings, which is not conducive to the future development of the Guatemalan coffee industry, while traders and roasters selling Guatemalan producing areas will inevitably be affected.