Taipei- Guatemala and Taiwan on Wednesday agreed to strengthen bilateral ties by expanding trade and increasing exchange visits.

President Alvaro Colom of Guatemala on his four-day visit to Taiwan was expected to discuss bilateral relations with President Ma Ying-jeou and attend Taiwan's National Day celebrations.

"Cooperation from various countries is needed to solve global issues like energy crisis, environmental protection and climate change," Colom said in his speech at a welcome ceremony.

"In this tough situation, Guatemala feels honoured to have a friend like the Republic of China (Taiwan's formal title). I believe that through our cooperation, we call to solve all problems and meet all challenges," he added.

President Ma Ying-jeou promised to strengthen ties by expanding trade and exchanging of visits.

During his visit, Colom was to hold talks with Ma and receive an honorary degree from the Chinese Culture University.

Coinciding with Colom's visit, a Guatemalan trade delegation was also visiting Taiwan to promote Guatemalan products, including coffee, and to attract Taiwanese investment in the Central American nation.

Guatemala is one of the few countries in the world that recognizes Taiwan instead of China.

After Costa Rica ended a 60-year relationship with Taipei by recognizing Beijing in June 2007, Taiwan has been guarding its ties with small Latin American and Caribbean nations.

President Ma has also called for a "diplomatic truce" with China to stop competing for allies and promote economic cooperation instead. (dpa)