Guatemala - Country Brief
EMBASSY OF INDIA
GUATEMALA
Country Note of Guatemala
Official Name of the Country: Republic of Guatemala
Capital: Guatemala City (about 2 million inhabitants within the city limits and more than 5 million within the metropolitan area). Other important towns are Antigua and Quetzaltenango.
Geography: The largest and most populous country in Central America, it has the Pacific Ocean on the west, Honduras and El Salvador in south, Mexico in north, and the Caribbean Sea and Belize on the east. Large parts are mountainous. Climate is tropical, hot and humid in lowlands, and cooler in highlands.
Area: 108,890 sq km
Population: 14 million (mid-2009 estimate)
Currency: Quetzal (GTQ) (1 US Dollar = 7.70 GTQ)
Language: Spanish
Time Zone: UTC (-) 6 hours
Brief History: Mayan civilization flourished in Guatemala and surrounding regions during the first millennium A.D. After almost three centuries as a Spanish colony since 1524, Guatemala became the centre of the United Provinces of Central America when Spanish rule was overthrown in 1821. Guatemala became independent in 1838 following the dissolution of the United Provinces. The country was raged for prolonged periods by authoritarian rules, army dictatorships, and guerilla struggles. In 1996 the United Nations brokered an agreement which ended the 36-year long civil war.
Administrative Structure: Guatemala
is divided into 22 administrative units called Departments, with further
divisions of municipalities (Municipios).
Administration is largely centralized.
Polity: The current Constitution was adopted in 1985 and
revised in 1994, providing for a multiparty Presidential system, directly
electing the President who serves a single four-year term. A 158-member unicameral legislature, Congress
– Congreso de la Republica – is also elected for a four-year term; legislative
power is vested in both the government and the Congress. The judiciary is independent. Guatemalan
Presidential elections were held in November’ 2011 and Otto Perez Molina of Patriotic
Party took over as the President of Guatemala on 14 January 2012.
Head of State/Government: President – Mr.
Otto Perez Molina
Foreign Minister: Mr. Harold
Caballeros
Official website links:
· President´s office: www.guatemala.gob.gt
· Ministry of Foreign Affairs: www.minex.gob.gt
· Ministry of Economy: www.mineco.gob.gt
Central Bank: Banco de Guatemala (commonly called ‘Banguat’) –
President: Licda. Maria Antonieta del Cid Navas de Bonilla
Foreign Policy: Guatemala’s major diplomatic interests are regional security and development, and economic integration with the countries of the Americas and the Caribbean. The foreign policy is officially based on four pillars: i) solidarity – human loyalty, ii) governance – civic loyalty, iii) productivity – economic fairness, and iv) regionalization-loyalty to Central American neighbors. A main goal is to deepen relations with Central American countries. Other professed priorities include addressing the situation of migrants, finding a definitive solution to territorial dispute with Belize, commitment to promotion of democracy, and respect for human rights. Guatemala is the seat of the Central American Parliament (PARLACEN). Guatemala has resident representation only in 37 countries out of 143 with which it has diplomatic relations.
International Membership: UN system, WTO, OAS, Rio Group, SICA, CACM.
Economy: The largest economy in Central
America (35% of the region’s total (GDP), it is an upper
middle-income country with a GDP (PPP) of about US$ 68.02 billion in 2008. The private sector generates about 85% of
GDP. Agriculture accounts for about
one-tenth of GDP, two-fifths of exports, and half of the labor force. Coffee, sugar, and bananas are the main
products, with sugar exports benefiting from increased global demand for
ethanol. There is some manufacturing,
primarily of refined sugar, textiles and clothing for the U.S. market,
furniture, and chemicals. Zinc and lead
concentrates are mined, and there are nickel and petroleum deposits in the
north, and extensive jade deposits in central Guatemala. Income distribution remains iniquitous, with
more than half the population below the national poverty line. Government´s economic priorities drug
trafficking and rampant crime, low levels of education, inadequate
infrastructure, and underdeveloped capital market.
Trade: While the US remains the biggest exporter of goods and accounted for nearly 40% of Guatemala’s exports in 2008, El Salvador accounted for 12.6%, followed by Honduras at 9.5%, Mexico at 6.6%, Nicaragua at 4.2% and Costa Rica at 4.1%. Major export commodities are coffee, banana, cardamom and sugar.
Guatemala’s main import partners are the United States (37.1%), Mexico (9.1%), China (5.8%) and El Salvador (4.8%). Guatemala imports intermediate and capital goods, including fuels, machinery and transport equipment, construction materials, grain, fertilizers.
In 1998, Guatemala joined its Central American neighbors in signing a Trade and Investment Framework Agreement (TIFA). In 2000 it joined Honduras and El Salvador in signing a free trade agreement with Mexico. The Central American Free Trade Agreement (CAFTA) entered into forced in July 2006, and has since spurred increased investment in the export sector.
Imports: $15.42
billion (2008)
Export: $8.028
billion (2008)
Investent: Guatemala
has potential as an attractive FDI destination, on account of its size in the
region, strategic location with access to both Atlantic and Pacific Oceans,
FTAs with the largest world markets including US and Mexico, non-discriminatory legal
framework with freedom to move the capital and to repatriate dividends. In 2008 it attracted FDI of US$0.8
billion. (www.investinguatemala.org)
Major Universities/Scientific Institutions:
· Universidad de San Carlos de Guatemala, country´s largest public university,
founded in 1676 (www.usac.edu.gt)
· Universidad del Valle de Guatemala www.uvg.edu.gt
· Universidad Francisco Marroquin www.ufm.edu
· Universidad Rafael Landivar www.url.edu.gt
· Universidad Mariano Galvet www.umg.edu.gt
· Universidad del Istmo www.unis.edu.gt
· Universidad Panamericana de Guatemala (www.upana.edu.gt)
Important think-tanks of foreign policy and related subjects:
· Universidad de San Carlos de Guatemala (www.usac.edu.gt)
· Centro de Estudios de Guatemala (www.ceg.org.gt)
· Centros de Estudios Económico-Sociables (www.cees.org.gt)
Tourism: Guatemala has a varied topography – lush tropical rainforest in the north, undulating mountains in the west and Sandy beaches along the Caribbean coast. The capital is home to many museums and colonial architecture. Close to it is the city of Antigua, a beautiful old colonial town surrounded by active volcanoes. In the lowlands of Petén in northern Guatemala, there are vast rainforests and numerous Mayan archeological sites. The colonial city and ancient Mayan capital Flores, and the nearby world-famous ruined city of Tikal are popular tourist attractions.
Major art forms/cultural traditions/venues/museums:
Guatemala´s ancient Mayan culture, coupled with the conquista Spanish culture,
produced a rich flavor and tradition.
Semana Santa and Christmas are major religious festivals. Ministry of Culture and Sports (www.mcd.gob.gt) plays an important role in
promoting cultural and sporting activities.
Important museums are: Museo Popol Vuh and Museo Nacional de Arqueologia
y Etnologia, which have rich collections dating back to the Mayan civilization
of Guatemala.
Major Newspapers:
1. Prensa Libre www.prensalibre.com
2. Siglo Veintiuno www.sigloveintiuno.com.gt
3. La Hora www.lahora.com.gt
4. Al Dia www.aldia.com.gt
5. El Periodico www.elperiodico.com.gt
Magazines:
1. Revista Guatemala www.gtcit.com
2. Revue (English) www.revuemag.com
TV Networks:
1. Noti 7-Televisiete www.noti7.com.gt
2. Telediario-Channel 3 www.telediario.com.gt
3. Guatevision www.guatevision.com
4. Telecentro Trece-Channel 13 www.telecentro.com.gt
5. Teleonce-Channel 11 www.canalonce.com.gt
Radio Stations:
1. Emisoras Unidas -89.7 FM www.emisorasunidas.com
2.Sonora – 96.9 FM www.sonora.com.gt
3. Radio Punto 90.5 FM www.radiopunto.com
INDIA-GUATEMALA RELATIONS
Political: India-Guatemala relations have been cordial and friendly over the years. They established diplomatic relations in the late 1970s, and both countries decided to open resident diplomatic missions in each other’s country.
The visit of Shri. Anand Sharma, then Minister of State for External Affairs, in June 2007, was the first ever ministerial visit from India to Guatemala. After the visit of Shri. Anand Sharma, Minister of State for External Affairs of India to Guatemala in 2007, both countries have decided to open their Embassies in respective countries. Shri E. Ahamed, Minister of State for External Affairs visited Guatemala from April 29 to May 1, 2011. He formally inaugurated the Embassy on April 29, 2011 in the presence of H.E. Mr. Alvaro Colom Caballeros, President of Guatemala and other invited dignitaries and guests.
India-SICA (Central American Integration System) Foreign Ministers´ meeting is an important forum for India´s bilateral interaction with Guatemala, among others. The 2nd India-SICA Foreign Ministers´ meeting was held in Delhi in June 2008. Within its context, India has extended to each of the 8 SICA countries, including Guatemala, credit lines of US$10 millions each for development projects. EXIM Bank of India has also extended a US$ 10 millions commercial LOC to the Central American Bank for Economic Integration (CABEI), to finance regional project. India has further offered to assist SICA countries in priority areas such as agriculture, SMEs, pharmaceuticals, tourism, IT-related activities, renewable energy, disaster management, distant education and supply of satellite imagery for development purposes.
Bilateral agreements: Agreement on Trade and Economic Cooperation, signed in 1981.
Bilateral Visits:
From India: Shri Anand Sharma, Minister of State for External Affairs, in June 2007. Shri E. Ahamed, Minister of State for External Affairs visited Guatemala from April 29 to May 1, 2011. He formally inaugurated the Embassy on April 29, 2011 in the presence of H.E. Mr. Alvaro Colom Caballeros, President of Guatemala and other invited dignitaries and guests.
From Guatemala: Mr. Jorge Britz, then Minister of External Relations, in Mayb 2005; Mr. Gert Rosenthal, Foreign Minister in August 2007; Mr. Haroldo Rodas Melgar, Foreign Minister in June 2008, to attend the India-SICA meeting.
Trade: Indo-Guatemala Trade (in million US $)
|
Year |
Imports from Guatemala |
Exports to Guatemala |
Total trade |
% share in total Indian trade |
|
2007-2008 |
3.58 |
74.86 |
78.44 |
0.02 |
|
2008-2009 |
2.94 |
81.40 |
84.34 |
0.02 |
|
2009-2010 |
5.74 |
87.15 |
92.89 |
0.02 |
|
2010-2011 |
40.18 |
111.02 |
151.20 |
0.02 |
Source: Ministry of Commerce, Govt. of India
Major items of export: Articles of Iron & Steel, cotton, Machinery & Mechanical Appliances and Parts thereof, Organic chemicals, Pharmaceutical products, Rubber & articles thereof, Vehicles and its parts & accessories. Electrical Machinery and equipment and parts thereof, Miscellaneous edible preparations,
Major items of import: Wood & articles thereof, wood charcoal, Sugar and Sugar confectionery, Coffee, Cardamom and Aluminium & articles thereof.
Praj Industries Limited, noted Indian company in the field of alternative fuels, is supplying equipment for ethanol production plants. B Fouress (P) Limited a well known Indian company in hydro-eletric field has opened its office in Guatemala. For the first time, India participated in the INTERFER Trade Exhibition in October 2005. PLEXCONCIL delegation visited Guatemala in March 2007. Delegations from The Cofee Board of India and The Spices Board of India visited Guatemala in 2010. A 10-member EEPC delegation visited Guatemala from March 10-13, 2011.
ITEC and Other Cooperation: Guatemala is an ITEC partner country since 1997-98. The number of ITEC slots for Guatemala is 10.
Government of India, in an effort to contribute to capacity building in Guatemala, set up an IT Training Center in San Carlos University in August 2006. Tata Communications Services (TCS) ran this IT Center till July 2008, training about 1,500 Guatemalans, before in was handed over to the Guatemalans.
An Indian donation of US$50,000 worth of medicines was given following Hurricane Stan in October 2005. India donated 36 Bajaj three-wheelers in October 2005, and recently, in November 2009, responding to Guatemala Government´s food insecurity declaration, India has provided assistance of US$250,000.
Cultural Exchanges: Cultural cooperation so far has been limited to Indian cultural troupes visiting from India to Guatemala. Academic and other linkages are being encouraged and visits by Indian academicians have been well received. At an initiative of the Indian community, a plan to install a statue of Mahatma Gandhi at a prominent location in the capital is under consideration.
Guatemala Visa: With effect from June 6, 2011 for Indian nationals who are holders of ordinary passports, visa will not be required to enter Guatemala if they have valid visas of United States of America, Canada or Schengen. All other Indian nationals not having these visas will be required to obtain prior visa to enter Guatemala.
Air Links/Travel: There are no direct flights between Guatemala and India. Convenient connections are available via United States, Mexico and Europe.
Indian community: The Indian community in Guatemala is small and consist of about 30 families and 70 individuals in all, working in the Indian Call Centers like ‘24/7 Customer-Guatemala’ and ‘Genpeck’, in cardamom export trade, in auto parts business, or in cottage industries. Most of them came to Guatemala during the last two decades. Also a Guatemala-India Chamber of Commerce and Industry was set up in 2004. There is an India association called Asociasion de Amigos de la India ‘Bharat Bandhu’.
Besides there are about 450-500 people of India origin who came to this region as indentured laborers during the 19th and early 20 centuries and settled in the coastal Guatemala on Atlantic and a small township of Livingstone. They live in villages, own land, and are involved in fishing, agriculture and tourism sectors. They are mostly 4th-5th generation Indians, and by now well integrated into the local community.
January, 2012