Investment Climate Statements for 2016 - Guatemala

Executive Summary

Guatemala has the largest economy in Central America, with a USD 63.9 billion gross domestic product (GDP) in 2015, and an estimated 4.1 percent growth rate in 2015. Remittances, mostly from the United States, increased by 13.4 percent in 2015 and were equivalent to 9.8 percent of GDP. The United States is Guatemala’s most important economic partner. The Guatemalan government (GoG) continues to enhance competitiveness, promote investment opportunities, and work on legislative reforms aimed at supporting economic growth. More than 200 U.S. and other foreign firms have active investments in Guatemala, benefitting from the U.S. Dominican Republic-Central America Free Trade Agreement (CAFTA-DR). Foreign direct investment (FDI) stock was USD 13.184 billion in 2015, a 10 percent increase in relation to 2014. Some of the activities that attracted most of the FDI flows in the last three years were electricity, agriculture, mining, commerce, and manufacturing.

Despite positive steps to improve Guatemala’s investment climate, international companies choosing to invest in Guatemala face significant challenges. Complex and confusing laws and regulations, inconsistent judicial decisions, bureaucratic impediments, and corruption continue to constitute practical barriers to investment. Under CAFTA-DR obligations, the United States has raised concerns with the GoG regarding its enforcement of both its labor and environmental laws.

Since 2006, the UN-sponsored International Commission against Impunity in Guatemala (CICIG) has undertaken numerous high-profile official corruption investigations, leading to significant indictments. CICIG has gained private sector praise and the endorsement of the private sector for a rash of high-profile investigations uncovering official corruption in 2015, particularly a case revealing a customs corruption scheme, which led to the resignations of the president and vice president.

Guatemala held national elections in 2015 amid 19 weeks of anti-corruption protests that culminated in the establishment of an interim government in September. President Jimmy Morales (National Convergence Front, FCN) took office January 14, 2016, along with a new Congress of mostly freshman members and locally elected officials. These newly elected officials enter a changed geopolitical landscape in Guatemala, with a lower tolerance for corruption and lingering citizen demands for widespread government reform and improved efficiency. The presidents of El Salvador, Guatemala, and Honduras, and the Vice President of the United States, Joe Biden agreed to specific commitments in a joint statement to the support of the Alliance for Prosperity on February 24, 2016, including measures to ensure more accountable, transparent, and effective public institutions.

Table 1

Measure	Year	Index or Rank	Website Address
TI Corruption Perceptions index	2015	123 of 168	http://www.transparency.org/cpi2015#results-table
World Bank’s Doing Business Report “Ease of Doing Business”	2016	81 of 189	doingbusiness.org/rankings
Global Innovation Index	2015	101 of 141	globalinnovationindex.org/content/page/data-analysis
U.S. FDI in partner country ($M USD, stock positions)	2014	USD 1,158	http://bea.gov/international/direct_investment_ multinational_companies_comprehensive_data.htm
World Bank GNI per capita	2014	USD 3,430	data.worldbank.org/indicator/NY.GNP.PCAP.CD

Millennium Challenge Corporation Country Scorecard

The Millennium Challenge Corporation, a U.S. Government entity charged with delivering development grants to countries that have demonstrated a commitment to reform, produced scorecards for countries with a per capita gross national income (GNI) of $4,125 or less. A list of countries/economies with MCC scorecards and links to those scorecards is available here: http://www.mcc.gov/pages/selection/scorecards. Details on each of the MCC’s indicators and a guide to reading the scorecards are available here: http://www.mcc.gov/pages/docs/doc/report-guide-to-the-indicators-and-the-selection-process-fy-2015.

1. Openness To, and Restrictions Upon, Foreign Investment

Attitude toward Foreign Direct Investment

The GoG continues to promote investment opportunities and work on reforms to enhance competitiveness and the business environment. The 2016 Heritage Economic Freedom Index gave Guatemala a score of 61.8 out of 100, up 1.4 points from 2015, reflecting improvements in trade freedom, monetary freedom, and business freedom. Property rights, corruption, and labor freedom were noted as areas of concern in the 2016 Economic Freedom Index. Guatemala scored 28 points out of 100 on Transparency International’s 2015 Corruption Perception Index, ranking it 123 out of 168 countries. The World Bank’s Doing Business 2016 ranked Guatemala 81 out of 189 countries, same position observed in the 2015 report. The two areas where the country improved the most were: paying taxes and trading across borders. Areas where challenges remain and where reforms are most needed are protecting minority investors, enforcing contracts, and resolving insolvency. Guatemala remained in the same spot in the 2015-2016 World Economic Forum’s Global Competitiveness Index (78 out of 140). Guatemala made the most improvements in financial market development, business sophistication, and goods market efficiency, but ranked 138 in organized crime and business costs associated with crime and violence.

Other Investment Policy Reviews

Guatemala has been a World Trade Organization (WTO) member since 1995. The GoG had their last WTO trade policy review (TRP) in 2009. In 2011, the United Nations Conference on Trade and Development (UNCTAD) conducted an investment policy review (IPR) on Guatemala. The WTO TPR noted that Guatemala lacked a general competition law and that increasing the level of competition was one of the most important pending tasks for the country's government policy. The UNCTAD IPR recommended to strengthen the public sector's institutional capacity and also highlighted that adopting a competition law and policy should be a priority of Guatemala's development agenda. Guatemala has not approved a competition law as of March 2016, but the GoG agreed to approve a competition law by November 2016 as part of its commitments under the Association Agreement with the European Union. Other important recommendations from the UNCTAD IPR were to further explore alternative dispute resolution mechanisms and the establishment of commercial and land courts.

Laws/Regulations on Foreign Direct Investment

More than 200 U.S. and hundreds of other foreign firms have active investments in Guatemala. The U.S. Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) established a more secure and predictable legal framework for U.S. investors operating in Guatemala. Under CAFTA-DR, all forms of investment are protected, including enterprises, debt, concessions, contracts, and intellectual property. U.S. investors enjoy, in almost all circumstances, the right to establish, acquire, and operate investments in Guatemala on an equal footing with local investors. The U.S. Embassy in Guatemala places a high priority on improving the investment climate for U.S. investors. Guatemala passed a foreign investment law in 1998 to streamline and facilitate foreign investment. The GoG continues to work on legislative reforms aimed at supporting economic growth and closing regulatory loopholes that become barriers to investment. As part of the CAFTA-DR implementation process, the Guatemalan Congress approved in May 2006 a law that strengthened existing legislation on intellectual property rights (IPR) protection, government procurement, trade, insurance, arbitration, and telecommunications, as well as the penal code, to ensure compliance with CAFTA-DR. An e-commerce law was approved by Congress in August 2008, which provides legal recognition to communications and contracts that are executed electronically; permits electronic communications to be accepted as evidence in all administrative, legal, and private actions; and, allows for the use of electronic signatures.

The United States raised concerns with the GoG’s adherence to its CAFTA-DR obligations with respect to the effective enforcement of both its labor and environmental laws. Regarding the labor law case, an arbitral panel was established, pursuant to CAFTA-DR procedures, to consider whether Guatemala is conforming to its obligations to effectively enforce its labor laws. A hearing was held in June 2015 and a decision is expected in July 2016. Regarding the environmental case, the CAFTA-DR Secretariat for Environmental Matters was required to suspend its investigation in 2012 when the GoG provided evidence that the relevant facts of the case were under consideration by Guatemala’s Constitutional Court. The court dismissed the case on procedural grounds in 2013.

Complex and confusing laws and regulations, inconsistent judicial decisions, bureaucratic impediments and corruption continue to constitute practical barriers to investment. According to the World Bank’s Doing Business Report for 2015 and 2016, Guatemala has made paying taxes easier and less costly by improving the electronic filing and paying system (Declaraguate) and by lowering the corporate income tax rate. The GoG has developed one website that is useful to help navigate the laws, procedures and registration requirements for foreign investors: http://asisehace.gt/, which provides detailed information on laws and regulations and administrative procedures applicable to investment.

Business Registration

The GoG has a business registration website https://minegocio.gt/, which facilitates on-line registration procedures for two types of new businesses. Foreign companies that are incorporated locally are able to use the online business registration, but the system is not yet available to other foreign companies. According to an assessment from the Global Enterprise Registration (GER) on the GoG’s business registration website, more than 50% of the mandatory registrations can be requested online simultaneously and at least one fee can be paid online. A company is required to register at a minimum with the business registry, the tax administration authority, the social security institute, and the labor ministry.

Guatemala’s investment promotion agency Invest in Guatemala provides support to potential foreign investors by offering information, assessment and personalized assistance, including coordination of country visits and contact referrals. Services are available to all investors without discrimination.

According to Guatemala’s National Institute of Statistics, 260,800 companies from the micro, small and medium-size sector (MSME) were active in Guatemala as of January 2016. The GoG defines MSMEs based on number of employees and annual sales. Micro enterprises are defined as production units carrying out transformation, services, or commercial activities with a maximum of 10 employees and annual sales equivalent to a maximum of 190 monthly minimum salaries (about USD 62,016). Small enterprises are defined as those businesses with a maximum of 80 employees and annual sales equivalent to up to 3,700 monthly minimum wages (about USD 1.2 million) and medium sized-enterprises are those businesses with up to 200 employees and annual sales equivalent to up to 15,420 monthly minimum wages (approximately USD 5.03 million). The Vice ministry of Economy for the Development of MSMEs has programs to facilitate access to financing and entrepreneurial development services intended to increase productivity and competitiveness of the sector.

Industrial Promotion

Guatemala’s main incentive programs are provided to the apparel and textile sector and to business process outsourcing (BPO) operations through the Law for the Development of Export Activities and Drawback and the Free Trade Zones Law, and their amendments approved through the Law for Conservation of Employment. Guatemala’s investment promotion agency Invest in Guatemala promotes sectors such as BPO, light manufacturing, forestry, apparel and textile, food, infrastructure, mining, energy and petroleum, and tourism. Information for those programs is disseminated through business chambers, Guatemala’s Foreign Ministry, and Guatemalan embassies abroad, which provide general information to potential investors and refer them to Invest in Guatemala for additional information and support.

Mining has historically been a sensitive social conflict issue in Guatemala, and operations in Guatemala have been subject to protests. Sub-surface minerals and petroleum are the property of the State, and the Ministry of Energy and Mines (MEM) is in charge of approving mining licenses. An initial exploration license is issued for three years, which can be extended for two additional two-year periods, if needed. After completing the exploration phase, a company may then apply for a separate exploitation license. Mining exploitation licenses are granted for twenty-five years and can be extended for an additional twenty-five years. Petroleum contracts are granted through a public tender process. One contract is awarded covering both exploration and exploitation. This contract is granted for a period of twenty-five years and can be extended for an additional fifteen years. Contracts for petroleum extraction are typically granted through production-sharing agreements. Over the past several years, a number of U.S. companies have had significant investments in the mining and petroleum sectors put at risk, which required the approval of contracts or exploitation licenses by GoG regulatory bodies, in order to begin operations or to realize a return on their investments. Examples include a contract for one petroleum company that was signed in November 2014 after 28 revisions and 17 months of delays. Another investor received its approved license in April 2013, after more than a year of delays by MEM. A contract for another such company was approved in August 2013, after about two years of delays, despite having satisfied all legal requirements to move forward. The future of these investments is not guaranteed.

Limits on Foreign Control and Right to Private Ownership and Establishment

The right to hold private property and to engage in business activity is recognized in the Guatemalan Constitution. Foreign private entities can establish, acquire, and dispose freely of virtually any type of business interest, with the exception of some professional services as noted in this section. The Foreign Investment Law specifically notes that foreign investors enjoy the same rights of use, benefits, and ownership of property as afforded Guatemalans. Foreigners are prohibited, however, from owning land immediately adjacent to rivers, oceans, and international borders.

There are no impediments to the formation of joint ventures or the purchase of local companies by foreign investors. The absence of a developed, liquid, and efficient capital market, in which shares of publicly-owned firms are traded, makes equity acquisitions in the open market difficult. Most foreign firms, therefore, operate through locally incorporated subsidiaries.

There are no restrictions on foreign investment in the telecommunications, electrical power generation, airline, or ground-transportation sectors. The Foreign Investment Law removed limitations to foreign ownership in domestic airlines and ground-transport companies in January 2004.

Foreign banks may open branches or subsidiaries in Guatemala subject to Guatemalan financial controls and regulations. These include a rule requiring local subsidiaries of foreign banks and financial institutions operating in Guatemala to meet Guatemalan capital and lending requirements as if they were stand-alone operations.

Some professional services may only be supplied by professionals with locally-recognized academic credentials. Public notaries must be Guatemalan nationals. Foreign enterprises may provide licensed, professional services in Guatemala through a contract or other relationship with a Guatemalan company. In July 2010, the Guatemalan Congress approved a new insurance law, which allows foreign insurance companies to open branches in Guatemala, a requirement under CAFTA-DR. This law requires foreign insurance companies to fully capitalize in Guatemala.

Privatization Program

The GoG privatized a number of state-owned assets in industries and utilities in the late 1990s including power distribution, telephone services, and grain storage. Guatemala does not currently have a privatization program.

Screening of FDI

All firms are subject to certain basic requirements; foreign firms are subject to additional requirements. Domestic and foreign firms must publish their intent to conduct business, agree to Guatemalan legal jurisdiction and register with the Ministry of Economy (MINECO) in order to incorporate formally in Guatemala. In addition to this, foreign firms are required to demonstrate solvency, deposit operating capital of GTQ 5,000 (about USD 654) in a local bank, establish a bond in favor of third parties for an amount of not less than USD 50,000, provide legalized financial statements, appoint a local representative, and contractually agree to fulfill any pending legal obligation before permanently closing operations in Guatemala.

Competition Law

There is no law regulating monopolistic or anti-competitive practices, but the GoG agreed to approve a competition law by November 2016 as part of its commitments under the Association Agreement with the European Union.

2. Conversion and Transfer Policies

Foreign Exchange

Guatemala’s Foreign Investment Law and CAFTA-DR commitments protect the investor’s right to remit profits and repatriate capital. There are no restrictions on converting or transferring funds associated with an investment into a freely usable currency at a market-clearing rate. U.S. dollars are freely available and easy to obtain within the Guatemalan banking system. In October 2010, monetary authorities approved a regulation to establish limits for cash transactions of foreign currency to reduce the risks of money laundering and terrorism financing. This regulation establishes that monthly deposits over USD 3,000 will be subject to additional requirements, including a sworn statement by the depositor stating that the money comes from legitimate activities. There are no legal constraints on the quantity of remittances or any other capital flows, and there have been no reports of unusual delays in the remittance of investment returns.

The Law of Free Negotiation of Currencies allows Guatemalan banks to offer different types of foreign-currency-denominated accounts. In practice, the U.S. dollar is used most frequently. Some banks offer "pay through" dollar-denominated accounts in which depositors make deposits and withdrawals at a local bank while the actual account is maintained on behalf of depositors in an offshore bank.

Capital can be transferred from Guatemala to any other jurisdiction without restriction. The exchange rate moves in response to market conditions. The government sets one exchange rate as reference, which it applies only to its own transactions and which is based on the commercial rate. The Central Bank intervenes in the foreign exchange market only to prevent sharp movements.

Remittance Policies

There are no time limitations on remitting different types of investment returns. Guatemala became a member of the Financial Action Task Force of Latin America (GAFILAT), in July 2013. It became a member of the Caribbean Financial Action Task Force (CFATF) in 2002.

3. Expropriation and Compensation

Guatemala’s Constitution prohibits expropriation, except in cases of eminent domain, national interest, or social benefit. The Foreign Investment Law requires proper compensation in cases of expropriation. Investor rights are protected under CAFTA-DR by an impartial procedure for dispute settlement that is fully transparent and open to the public. Submissions to dispute panels and dispute panel hearings are open to the public, and interested parties have the opportunity to submit their views.

The GoG maintains the right to terminate a contract at any time during the life of the contract, if it determines the contract is contrary to the public welfare. It has rarely exercised this right and can only do so after providing the guarantees of due process.

In June 2007, a U.S. company operating in Guatemala filed a claim under the investment chapter of CAFTA-DR against the GoG with the International Centre for Settlement of Investment Disputes (ICSID Convention). The claimant alleged the GoG indirectly expropriated the company’s assets through a breach of contract. The U.S. company requested USD 65 million in compensation and damages from the GoG. The ICSID court issued its ruling on this case in June 2012 and stated that the GoG had in fact breached the minimum standard of treatment under Article 10.5 of CAFTA-DR and required the GoG to pay an award of USD 14.6 million. The GoG paid this award in November 2013.

4. Dispute Settlement

Legal System, Specialized Courts, Judicial Independence, Judgments of Foreign Courts

Guatemala follows the civil law system. Codified Judicial Branch Law stipulates that jurisprudence or case law is also a source of law. The right to own private property is recognized within the Guatemalan Constitution. The law requires that all real property transactions must have their deeds registered in the local property registry to make them enforceable. Guatemala has a written and consistently applied Commercial Code. Contracts in Guatemala are legally enforced when the owner of a property right that has been infringed upon files a lawsuit to enforce recognition of the infringed right or to receive compensation for the damage caused. The civil law system, allows for civil cases to be brought before, after, or concurrently with criminal claims. Guatemala does not have specialized courts to hear intellectual property rights (IPR) claims, but it does have a dedicated IPR prosecutor and specialized courts to hear labor cases.

Bankruptcy

Guatemala does not have an independent bankruptcy law, but the Code on Civil and Mercantile Legal Proceedings contains a specific chapter on bankruptcy proceedings. Under the code, creditors can request to be included in the list of creditors, request an insolvency proceeding when a debtor has suspended payments of liabilities to creditors, and constitute a general board of creditors to be informed of the proceedings against the debtor. According to the World Bank’s 2016 Doing Business Report, one of the areas where reforms are most needed is the area of resolving insolvency where Guatemala ranked 153 out of 189 countries.

Investment Disputes

Over the past nine years, two investment disputes in 2007 and 2010 involving U.S. businesses were filed under the investment chapter of CAFTA-DR against the GoG with the ICSID. The status of both cases is described under section 4.4 of this report (International Arbitration).

International Arbitration

CAFTA-DR incorporated dispute resolution mechanisms for investors. The first claim under the agreement was filed in June 2007. In October 2010, a U.S. company operating in Guatemala filed the second claim against the GoG with the ICSID. The second claim seeks to resolve a dispute against the GoG regarding the regulation of electricity rates. In 2013, ICSID’s arbitral tribunal issued its judgment and awarded the U.S. company over USD 21 million in damages and USD 7.5 million to cover legal expenses. In 2014, the GoG filed an appeal to have the 2013 award annulled. On the same date, the U.S company also filed for a partial annulment of the award. The ICSID ad-hoc committee held a hearing on annulment in October 2015. The ruling from the ad-hoc committee on both annulment proceedings remains pending as of March 2016.

Guatemala’s Foreign Investment Law also allows alternative dispute mechanisms, if agreed to by the parties. Guatemala’s Arbitration Law of 1995 uses the U.N. Commission on International Trade Law (UNCITRAL) Model Law as the bases for their rules on international arbitration. The subsequent enforcement of arbitral awards is recognized under the convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention), of which Guatemala is a signatory.

ICSID Convention and New York Convention

Guatemala is a signatory to convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention), the Inter-American Convention on International Commercial Arbitration (Panama Convention), and a member state to the International Center for Settlement of Investment Disputes (ICSID Convention).

Duration of Dispute Resolution – Local Courts

Resolution of business and investment disputes through Guatemala’s judicial system is time-consuming, and can take years to resolve. Alleged corruption, intimidation, and ineffectiveness in the judiciary have contributed to inefficiency and frequent delays. U.S. companies, however, face the same conditions as local companies and are not subject to any pattern of discrimination in the legal system.

5. Performance Requirements and Investment Incentives

WTO/TRIMS

Guatemala’s 1998 Foreign Investment Law eliminated trade-related investment restrictions and ensured Guatemala was compliant with World Trade Organization (WTO) obligations under the Agreement on Trade Related Investment Measures (TRIMS). In 1999, Guatemala notified the WTO that it was TRIMS compliant.

Investment Incentives

Investment incentives are specified in law and are available, with few exceptions, to both foreign and Guatemalan investors without discrimination. There are three main programs, two focused on exports and the other on reforestation.

The major Guatemalan incentive program, the Law for the Promotion and Development of Export Activities and Maquilas, is aimed mainly at the apparel and textile sector and at exporters of services such as call centers and BPO companies. Investors in these two sectors are granted a 10-year exemption from both income taxes and the Solidarity Tax, Guatemala’s alternative minimum tax. Additional incentives include an exemption from duties and value-added taxes (VAT) on imported machinery and a one-year suspension (extendable to a second year) of the same duties and taxes on imports of production inputs and packing material. Taxes are waived when the goods are re-exported. The Free Trade Zone Law provides similar incentives to those provided by the incentive program described above. The Guatemalan Congress approved the Law for Conservation of Employment (Decree 19-2016) in February 2016, amending Guatemala’s two major incentive programs to replace tax incentives related to exports that Guatemala dismantled on December 31, 2015, per WTO requirements. The income tax exemption will apply exclusively to apparel and textile companies as well as to exporters of services, such as call centers and BPO companies.

Property owners who engage in reforestation activities may qualify for government incentives through the National Institute of Forests (INAB). This incentive program (PINFOR) is scheduled to run through 2016 and a new incentive program (Probosque) was approved by Congress to start activities in 2017.

Research and Development

Information not available.

Performance Requirements

Guatemala does not impose performance, purchase, or export requirements, other than those normally associated with free trade zones and duty drawback programs. The Labor Code requires that at least 90 percent of employees must be Guatemalan, but the requirement does not apply to high-level positions such as managers and directors. Companies are not required to include local content in production.

Data Storage

Guatemalan companies do not require foreign IT providers to turn over source code and/or provide access to surveillance. Some industries, such as the banking and financial sector, can request that their institution or a source code facilities management company has a copy of the source code in case of potential problems with the IT provider. This requirement is usually specified on the software license contract.

6. Protection of Property Rights

Real Property

Guatemala follows the real property registry system. Defects in the titles and ownership gaps in the public record can lead to conflicting claims of land ownership. The government has stepped up efforts to enforce property rights by helping to provide a clear property title. Nevertheless, when rightful ownership is in dispute, it can be difficult to obtain and subsequently enforce eviction notices.

Mortgages are available to finance homes and businesses, and about half of the banks offer mortgage loans with terms as long as 15-20 years for residential real estate. Mortgages and liens are recorded at the real estate property registry. According to the 2016 World Bank’s Doing Business Report, registering property in Guatemala takes 24 days, and it costs 3.7 percent of the property value. In 2016, Guatemala ranked 75 out of 189 countries in the category of Registering Property.

The legal system is readily accessible to foreigners. Foreign investors are advised to seek reliable local counsel early in the investment process.

Intellectual Property Rights

Guatemala belongs to the WTO since 1995 and to the World Intellectual Property Organization (WIPO) since 1983. It is also a signatory to the Paris Convention, Berne Convention, Rome Convention, Phonograms Convention, and the Nairobi Treaty. Guatemala has ratified the WIPO Copyright Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT). In June 2006, as part of CAFTA-DR implementation, Guatemala ratified the Patent Cooperation Treaty and the Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure. Also in June 2006, the Guatemalan Congress approved the International Convention for the Protection of New Varieties of Plants (UPOV Convention); however, implementing legislation that would allow Guatemala to become a party to the convention remains pending. The Guatemalan Congress approved the Trademark Law Treaty in February 2016.

Guatemala has a registry for intellectual property. Trademarks, copyrights, patents rights, industrial designs, and other forms of intellectual property must be registered in Guatemala to obtain protection in the country.

Guatemala has a sound IPR legal framework. The Guatemalan Congress passed an industrial property law in August 2000, bringing the country's intellectual property rights laws into compliance with the WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement. This legislation was modified in 2003 to provide pharmaceutical test data protection consistent with international practice, and, in 2005, the law was again amended to comply with IPR protection requirements in CAFTA-DR. CAFTA-DR provides for improved standards for the protection and enforcement of a broad range of IPR, which are consistent with U.S. standards of protection and enforcement as well as emerging international standards. A law to prohibit the production and sale of counterfeit medicine was approved by Congress in November 2011. It approved amendments to the Industrial Property Law in June 2013 to allow the registration of geographical indications (GI), as required under the Association Agreement with the European Union. Guatemalan administrative authorities issued rulings on applications to register GIs that appear sound and well-reasoned for compound GI names, but U.S. exporters are concerned that 2014 rulings on single-name GIs will effectively prohibit new U.S. exporters to the Guatemalan market from using what appear to be generic or common names when identifying their goods in Guatemala’s market.

Enforcement of IPR laws has been inconsistent. A number of raids, cases, and prosecutions have been pursued; however, resource constraints and lack of coordinated government action impede efficient enforcement efforts. Piracy of works protected by copyright and infringement of other forms of intellectual property, such as trademarks, including those of some major U.S. food and pharmaceutical brands, remains problematic in Guatemala.

Guatemala has been included on the Watch List in USTR’s Special 301 Report for more than ten years. The 2015 Special 301 Report noted ineffective enforcement activities due to lack of resources for IPR prosecution, trademark squatting, and the GoG’s use of unlicensed software as significant areas of concern. The IPR prosecutor’s office tracks seizures of counterfeit goods as part of its prosecution work and reports to the judge in charge of a case the type and amounts of goods that have been seized. Guatemalan customs officers do not have ex-officio authority to seize and destroy counterfeit goods. Right holders or their representatives are required to confirm the authenticity of goods before seizures and to draft a declaration. Counterfeit goods seized during working hours are sent to judicial storage spaces paid by the government, but counterfeit goods seized outside of working hours are sent to a private storage spaces paid by the right holders.

For additional information about treaty obligations and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/.

Resources for Rights Holders

Contact at Mission:

Natasha Basley Economic Officer
(502) 2326-4636
BasleyNM@state.gov

Country Resources:

Contact information for the American Chamber of Commerce in Guatemala can be found at: http://amchamguate.com/amcham-staff/.

For information about a public list of local lawyers please see the U.S. Embassy website at: http://guatemala.usembassy.gov/acs_legal_information.html.

7. Transparency of the Regulatory System

Tax, labor, environment, health, and safety laws do not directly impede investment in Guatemala. Bureaucratic hurdles are common for both domestic and foreign companies, including lengthy processes to obtain permits and licenses and receive shipments. The legal and regulatory systems are confusing and not transparent. Regulations often contain few explicit criteria for government administrators, resulting in ambiguous requirements that are applied inconsistently by different government agencies and the courts. While there is no apparent systematic discrimination against foreign companies in these processes, these inconsistencies can favor local firms that are more familiar with these challenges.

Public participation in the promulgation of regulations is rare. In some cases, companies and individuals are able to submit comments to the issuing government office, but with limited effect. There is no consistent legislative oversight of administrative rule-making.

The Guatemalan Congress publishes all draft bills on its official website, but these are not made available for public comment. Last-minute amendments often are not publicly disclosed before congressional decisions. Final versions of laws, once signed by the President, must be published in the official gazette before taking effect.

Guatemala is a member of UNCTAD's international network of transparent investment procedures, http://asisehace.gt/. Foreign and national investors can find detailed information on administrative procedures applicable to investment and income generating operations, including the number of steps, name, and contact details of the entities and persons in charge of procedures, required documents and conditions, costs, processing time and legal grounds justifying the procedures.

8. Efficient Capital Markets and Portfolio Investment

Guatemala’s capital markets are weak and inefficient because they lack a securities regulator. The local stock exchange (Bolsa Nacional de Valores) deals almost exclusively in commercial paper, repurchase agreements (repos), and government bonds. A new capital markets law has been drafted by Banguat and the Superintendence of Banks (SIB). Notwithstanding the lack of a modern capital markets law, the government debt market has continued to develop. Domestic treasury bonds now represent 52.3 percent of total public debt.

Guatemala lacks a market for publicly-traded equities, the absence of which raises the cost of capital and complicates mergers and acquisitions. As of December 2015, borrowers faced a weighted average annual interest rate of 16 percent, with some banks charging over 30 percent on consumer or micro-credit loans. Foreigners rarely rely on the local credit market to finance investments.

Money and Banking System, Hostile Takeovers

Overall, the banking system remains stable. According to information from the SIB, Guatemala’s 17 commercial banks had an estimated USD 34.6 billion in assets among them in 2015. The five largest banks control about 82 percent of total assets. In addition, there are 14 non-bank financial institutions, which perform primarily investment banking and medium- and long-term lending, and three exchange houses.

In April 2002, the Guatemalan Congress passed a package of financial sector regulatory reforms that increased the regulatory and supervisory authority of the SIB, which is responsible for regulating the financial services industry. These reforms brought local practices more in line with international standards and spurred a round of bank consolidations and restructurings. The 2002 reforms required that non-performing assets held offshore be included in loan-loss-provision and capital-adequacy ratios. This forced a number of smaller banks to seek new capital, buyers, or mergers with stronger banks. As a result, the number of banks was reduced from 27 in 2005 to 17 in 2015.

Guatemalan banking and supervisory authorities and the Guatemalan Congress have been actively working on new laws in the business and financial sectors. In August 2012, the Guatemalan Congress approved reforms to the Banking and Financial Groups Law and to the Central Bank Organic Law that strengthen supervision and prudential regulation of the financial sector and resolution mechanisms for failed or failing banks. In July 2010, the Guatemalan Congress approved a new insurance law, which strengthens supervision of the insurance sector and allows foreign insurance companies to open branches in Guatemala. Groups of affiliated credit card, insurance, financial, commercial banking, leasing, and related companies must issue consolidated financial statements prepared in accordance with uniform, generally accepted, accounting practices. The groups are audited and supervised on a consolidated basis.

9. Competition from State-Owned Enterprises

With the exception of the National Electricity Institute (INDE) and two state-owned ports, Guatemala does not have significant SOEs in other industries. INDE is a state-owned electricity company responsible for expanding the provision of electricity to rural communities. INDE generates about 19 percent of total power produced in Guatemala, and it participates in the wholesale market under the same rules as its competitors. It also provides a subsidy for the first 100 kilowatt-hours (kWh) to consumers of less than 300 kWh per month. Its board of directors comprises representatives from the government, municipalities, business associations, and labor unions. The general manager is appointed by the board of directors. The GoG currently owns 16 percent of the shares of Rural Development Bank (BanRural), the second largest bank in Guatemala, and it is allotted 3 out of 10 seats on its board of directors. BanRural is a mixed capital company and operates under the same laws and regulations as other commercial banks. The GoG also appoints the manager of GUATEL, the former state-owned telephone company dedicated to providing rural and government services that were split off from the fixed-line telephone company during its privatization in 1998. GUATEL’s operations are small, and it continuously fails to generate sufficient revenue to cover expenses. The GUATEL director reports to the Guatemalan president and to the board of directors. GUATEL is required by law to publish annual reports. Guatemala is not a party to the WTO Agreement on Government Procurement.

OECD Guidelines on Corporate Governance of SOEs

Guatemala has signed on to the OECD guidelines, but they have not taken the necessary steps to adhere to the guidelines regarding Corporate Governance of State Owned Enterprises (SOEs). The Government does not have a centralized ownership entity that exercises ownership rights for each of the SOEs.

Sovereign Wealth Funds

Information not available

10. Responsible Business Conduct

There is a general awareness of expectations of or standards for responsible business conduct (RBC) on the part of producers and service providers, as well as Guatemalan business chambers. A local organization called the Center for Socially Responsible Business Action (CentraRSE) promotes, advocates, and monitors RBC in Guatemala. They operate freely with multiple partner organizations, ranging from private sector to United Nations entities. CentraRSE currently has over 100 affiliated companies from 20 different sectors that represent about 30% of GDP and provide employment to over 150,000 families. CentraRSE defines RBC as a business culture based on ethical principles, strong law enforcement, and respect for individuals, families, communities, and the environment, which contributes to businesses competitiveness, general welfare, and sustainable development. The GoG does not have a definition of RBC at the moment, but is currently working with CentraRSE to develop a national RBC action plan. Guatemala submitted its formal request to join the Extractive Industries Transparency Initiative (EITI) in February 2011 and was designated EITI compliant in March 2014.

In January 2014, a U.S.-based company was recognized as one of twelve finalists for the Secretary of State’s 2013 Award for Corporate Excellence for its contributions to sustainable development in Guatemala. U.S. companies such as McDonald’s, Starbucks, and Denimatrix have been recognized by the State Department for their CSR programs that aim to foster a safe and productive workplace as well as provide health and education programs to aid workers, families and communities. Many international companies have found that CSR programs targeted to the local communities they serve help to build trust. These practices are generally expected by communities with low levels of government funding to health, education, and infrastructure.

OECD Guidelines for Multinational Enterprises

Guatemala is a non-adhering country to the OECD Guidelines for Multinational Enterprises, but multinational enterprises from adhering countries operate in the country.

11. Political Violence

Guatemala has one of the highest violent crime rates in Latin America. According to the National Forensic Institute (INACIF), the murder rate in 2015 was 35 per 100,000, making Guatemala one of the most dangerous countries in the world. Rule of law is lacking and the judicial system is weak, overworked, and inefficient. The police are understaffed and sometimes corrupt.

Given the weak rule of law, violent common crime is a major problem in Guatemala. Gangs are a constant concern in urban areas and gang members are often well-armed. Widespread narcotics and alien smuggling activities make some remote areas dangerous, especially along Guatemala’s border with Mexico. Security, therefore, remains a widespread concern; however, foreigners are not usually singled out as targets of crime.

There have been recent examples of violence that resulted in extrajudicial killings, illegal detentions, and property damage as a result of investment projects. The main source of tension among indigenous communities, Guatemalan authorities, and private companies had been the lack of prior consultation and alleged environmental damage. The UN’s Office of the High Commissioner for Human Rights (OHCHR) reported an increase in conflicts over the exploitation of natural resources in indigenous areas between 2012 and 2014. In more than a dozen incidents between 2012 and 2014, the government’s response has been the declaration of a state of emergency, limiting certain constitutional rights in the conflicted areas.

12. Corruption

Bribery is illegal under Guatemala’s Penal Code; however, corruption remains a serious problem that companies may encounter at many levels. Guatemala scored 28 out of 100 points on Transparency International’s 2015 Corruption Perception Index, ranking it 123 out of 168 countries, a decline from the 2014 score of 32 points, ranking it 22nd out of 26 countries in the region.

Investors have historically found corruption especially pervasive in customs transactions, particularly at ports and borders away from the capital. The Superintendence of Tax Administration (SAT) launched a customs modernization program in November 2006, which implemented an advanced electronic manifest system and removed many corrupt customs officials. However, reports of corruption at major customs locations such as ports and border points remain prevalent. Since 2006, the UN-sponsored International Commission against Impunity in Guatemala (CICIG) has undertaken numerous high-profile official corruption investigations, leading to significant indictments. CICIG has gained private sector praise and the endorsement of the private sector for a rash of high-profile investigations uncovering official corruption in 2015, particularly a case revealing a customs corruption scheme, which led to the resignations of the president and vice president. In that continuing case, a current and former SAT Superintendent and at least 19 others were arrested. In a separate SAT corruption case, two high ranking SAT officials, together with 11 other SAT employees and private sector representatives were arrested in February 2016 on bribery and illicit association charges linked to a tax audit and fraudulent value added tax refunds.

In 2015, the people of Guatemala mobilized peacefully for 19 straight weeks against corruption, spurring government reforms and making corruption the defining issue of the 2015 national elections. Riding a groundswell of anti-establishment sentiment, actor Jimmy Morales won Guatemala’s October 25, 2015 presidential runoff election. Since his January 14 inauguration, Morales has reiterated anti-corruption and accountability themes, prioritizing health, education, and food security funding, improvements very much aligned with regional Alliance for Prosperity (A4P) and U.S. Strategy for Engagement in Central America. Public demands spurred the establishment of congressional working groups that drafted overdue reforms of the civil service, justice sector, government procurement, and electoral laws. Early in 2016, the new Congress passed legislation to strengthen the Attorney General’s Office, create a customs union protocol with Honduras, and provide incentives to Guatemala’s garment industry. Perhaps most significant to the public, Congress changed its own rules to become more transparent and restrict nepotism.

Guatemala’s Government Procurement Law requires most government purchases over USD 117,570 to be submitted for public competitive bidding. Since March 2004, GoG entities are ostensibly required to use Guatecompras, an Internet-based electronic procurement system to track GoG procurement processes. GoG entities must also comply with GoG procurement commitments under CAFTA-DR. There has also been a growing number of complaints from U.S. stakeholders and companies over government entities undertaking major procurements through unusual special-purpose mechanisms, such as on an emergency basis, enabling the procuring entity to make a direct purchase from a pre-selected supplier and avoid competitive bidding through the public tender process, or structuring the requirements of the tender in such a way so as to favor a particular foreign company. In August 2009, the Guatemalan Congress approved reforms to the Government Procurement Law, which simplified bidding procedures, eliminated the fee previously charged to receive bidding documents, and provided an additional opportunity for suppliers to raise objections over the bidding process. Despite these reforms, large government procurements are often subject to appeals and injunctions based on claims of irregularities in the bidding process (e.g., documentation issues and lack of transparency). In November 2015, the Guatemalan Congress approved additional amendments to the Government Procurement Law, which will help to improve transparency of procurement processes by barring government contracts for financers of political campaigns/parties, members of Congress, other elected officials, government workers and their family members. It also will expand the scope of procurement oversight to include public trust funds and all institutions (including NGOs) executing public funds. The U.S. government continues to advocate for the use of open, fair, and transparent tenders in government procurement and in accordance with CAFTA-DR obligations, which would allow open participation by U.S. companies.

The presidents of El Salvador, Guatemala, and Honduras, and the Vice President of the United States, Joe Biden agreed to specific commitments in a joint statement to the support of the Alliance for Prosperity on February 24, 2016. The countries agreed to measures that will ensure more accountable, transparent, and effective public institutions; invest in human capital; provide greater opportunities to all citizens; and guarantee a safe and secure environment for their people, with a particular focus on the underlying conditions driving migration to the United States. The statement follows progress on commitments agreed to by the same countries in March, 2015 and the approval of the initial A4P plan by the governments of Guatemala, Honduras, and El Salvador in September 2014 to address the underlying drivers of migration.

UN Anticorruption Convention, OECD Convention on Combatting Bribery

Guatemala ratified the U.N. Convention against Corruption in November 2006, and the Inter-American Convention against Corruption in July 2001. In October 2012, the Guatemalan Congress approved an anti-corruption law that increases penalties for existing crimes and adds new crimes such as illicit enrichment, trafficking in influence, and illegal charging of commissions. Guatemala is not a party to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.

Resources to Report Corruption

Public Ministry
Address: 23 Calle 0-22 Zona 1, Ciudad de Guatemala
Phone: (502) 2251-4105; (502) 2251-4219; (502) 2251-5327Email address: fiscaliacontracorrupcion@mp.gob.gt

Comptroller General’s Office
Address: 7a Avenida 7-32 Zona 13
Phone: (502) 2417-8700

Contact at “watchdog” organization

Name: Accion Ciudadana (Guatemalan Chapter of Transparency International) Address: Avenida Reforma 12-01 Zona 10, Edificio Reforma Montufar, Nivel 17, Oficina 1701
Phone: (502) 2388- 3400
Toll free to submit corruption complaints: 1-801-8111-011
Email address: alac@accionciudadana.org.gt; accionciudadana@accionciudadana.org

13. Bilateral Investment Agreements

Bilateral Taxation Treaties

In 2004, the United States, the Dominican Republic, Guatemala, Costa Rica, El Salvador, Honduras and Nicaragua signed the Central America Free Trade Agreement (CAFTA-DR). The agreement entered into force in Guatemala on July 1, 2006. CAFTA-DR contains a chapter on investments.

Guatemala has bilateral investment agreements with Argentina, Austria, Belgium, Cuba, Chile, Finland, France, Germany, Israel, Italy, South Korea, Spain, Sweden, Switzerland, Taiwan, the Czech Republic, and The Netherlands. It has also signed bilateral investment agreements with Trinidad and Tobago, Turkey, and Russia, which are not in force as of March 2016..

In addition to CAFTA-DR, Guatemala has signed bilateral or regional free trade agreements with Chile, the European Union, Peru, Mexico, Colombia, Taiwan, Panama, and the European Free Trade Association (EFTA) countries. Guatemala has also signed partial-scope agreements with Belize, Cuba, Ecuador, and Venezuela, which cover a reduced number of products and do not include chapters beyond trade.

The United States and Guatemala do not have a bilateral taxation agreement.

14. OPIC and Other Investment Insurance Programs

Guatemala ratified the Multilateral Investment Guarantee Agency (MIGA) Convention in 1996. The Overseas Private Investment Corporation (OPIC) is active in Guatemala, providing both insurance and investment financing. OPIC applicants have generally been able to quickly obtain foreign government approval (FGA). For more information, U.S. investors should contact OPIC headquarters in Washington, D.C., at (202) 336-8799, or go to www.opic.gov.

According to Banguat, the reference exchange rate of Quetzals (GTQ) to the U.S. dollar (USD) remained relatively stable during 2015, with a high of 7.77 and a low of 7.59.

15. Labor

An estimated 2.1 million individuals in the formal sector employed workforce are augmented by about 4.03 million more who work in the informal sector, including some who are too young for formal sector employment. In rural areas, in particular, child labor remains a serious problem in certain industries, according to the 2014 Survey on Employment and Income. About 31 percent of the total labor force is engaged in agricultural work. The availability of a large, unskilled, and inexpensive labor force has led many employers, such as construction and agricultural firms, to use labor-intensive production methods. About 17 percent of the employed workforce is illiterate. In developed urban areas, however, education levels are much higher, and a workforce with the skills necessary to staff a growing service sector has emerged. Even so, highly capable technical and managerial workers remain in short supply, with secondary and tertiary education focused on social science careers.

No special laws or exemptions from regular labor laws are provided for the export processing zones. In December 2015, then-President Alejandro Maldonado issued an executive order establishing a lower minimum wage for workers employed by light manufacturing export companies in four of 340 municipalities of the country, with the intention of attracting foreign investment and creating jobs in those areas. A temporary injunction was filed against the order, which never took effect. The Morales Administration revoked the executive order in February 2016, although it has since indicated a willingness to revisit the initiative. The Labor Code requires that at least 90 percent of employees be Guatemalan, but the requirement does not apply to high-level positions, such as managers of Guatemalan companies who must be either Guatemalan citizens or resident aliens with work permits. Employer responsibilities regarding working conditions, especially health and safety standards, benefits, severance pay, premium pay for overtime work, minimum wages, and bonuses are specified in the Labor Code. Mandatory benefits, bonuses, and employer contributions to the social security system can add up to about 55 percent of an employee's base pay. Many workers, however, especially in the agricultural sector, do not receive the full compensation package mandated in the labor law. All employees are subject to a two-month trial period during which time they may resign or may be discharged without any obligation on the part of the employer or employee. An employer may dismiss an employee at any time, for any reason (except pregnancy) and without giving the employee any notice. For any dismissal after the two-month trial period, the employer must pay unpaid wages for work already performed, proportional bonuses, and proportional vacation time. If the employee is dismissed without just cause, the employer must also pay severance equal to one month’s regular pay for each full year of employment.

The Constitution guarantees the right of workers to unionize and to strike, with an exception (to the right to strike) for security force members and workers employed in hospitals, telecommunications, and other public services considered essential to public safety in order to avoid suspension of these services. The Constitution also commits the state to support and protect collective bargaining, as well as to respect international labor conventions. Labor unions operate independently of the government and employers, both by law and in practice, in most cases. The law prohibits anti-union discrimination and employer interference in union activities and requires employers to reinstate workers dismissed for organizing union activities. A combination of inadequate allocation of budget resources to the Ministry of Labor (MINTRAB) and other relevant state institutions, and inefficient administrative and justice sector processes, act as significant impediments for more effective enforcement of labor laws to protect these workers’ rights. As a result, investigating, prosecuting, and punishing employers who violate these guarantees remain a challenge. The rate of unionization in Guatemala is very low.

Both the United States and the International Labor Organization (ILO) have filed complaints against the GoG for allegedly failing to adequately enforce its labor laws and protect the rights of workers. In 2010, a U.S. interagency delegation engaged in formal consultations, under Chapter 16 of CAFTA-DR, with the GoG regarding its apparent systematic failure to investigate alleged labor law violations, take enforcement action once labor law violations have been identified, and enforce labor court orders in cases of labor violations. An arbitral panel was established to consider whether Guatemala is conforming to its CAFTA-DR obligations to enforce effectively its labor laws. In April 2013, after lengthy negotiations, the United States and Guatemala agreed to an ambitious and comprehensive labor Enforcement Plan that includes significant, concrete actions that the GoG agreed to implement within specified time frames to improve enforcement of labor laws. Arbitration was suspended during the Enforcement Plan’s implementation period. The U.S. Government asked to reconvene the arbitral panel in September 2014 due to alleged lack of promised progress, and the panel held a hearing in June 2015. Its decision remains pending as of March 2016, but is expected in July 2016. Separately, the GoG agreed to a roadmap with social partners in an attempt to avoid the establishment of an ILO Commission of Inquiry in 2013 in response to a complaint filed by workers in 2012 alleging that the government had failed to comply with ILO Convention 87 on Freedom of Association. The government took some steps to implement its roadmap, including setting up a hotline to enable labor activists to report cases of violence, and continuing to convene the Trade Union Committee of the Public Prosecutor’s Office to discuss progress on investigations of cases of violence. Nevertheless, the ILO noted several areas where additional and urgent action was needed, including investigation and prosecution of perpetrators of trade union violence, the adoption of protection measures for union officials and members, legislative reforms, and raising awareness on freedom of association and collective bargaining. The ILO decision on the Commission of Inquiry remains pending as of March 2016.

16. Foreign Trade Zones/Free Ports/Trade Facilitation

Decree 65-89, Guatemala’s Free Trade Zones Law and its amendments approved through Decree 19-2016, Law for Conservation of Employment, permits the establishment of free trade zones (FTZs) in any region of the country. Developers of private FTZs must obtain authorization from the MINECO to install and manage a FTZ. Businesses operating within authorized FTZs also require authorization from the MINECO. Investment incentives are specified in law and are available to both foreign and Guatemalan investors, without discrimination. As of December 2015, 17 of 25 authorized FTZs were operational. Commercial activities and apparel assembly operations are the main beneficiaries of Guatemala’s Free Trade Zones Law.

17. Foreign Direct Investment and Foreign Portfolio Investment Statistics

Guatemala has the largest economy in Central America, reaching a USD 63.9 billion gross domestic product (GDP) in 2015, with an estimated 4.1 percent growth rate in 2015. Remittances, mostly from the United States, increased by 13.4 percent in 2015 and were equivalent to 9.8 percent of GDP. The United States is Guatemala’s most important economic partner. According to preliminary Banguat data, FDI stock was USD 13.18 billion in 2015, a 10 percent increase in relation to 2014. Estimated foreign portfolio investment totaled USD 2.95 billion in 2015, with about 62 percent invested in government bonds. There is no official data available on sources of stock of FDI or foreign portfolio investment.

Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy

	Host Country Statistical source*		USG or international statistical source		USG or International Source of Data: BEA; IMF; Eurostat; UNCTAD, Other
Economic Data	Year	Amount	Year	Amount
Host Country Gross Domestic Product (GDP) ($M USD)	2015	$63,963	2014	$58,827	www.worldbank.org/en/country
Foreign Direct Investment	Host Country Statistical source*		USG or international statistical source		USG or international Source of data: BEA; IMF; Eurostat; UNCTAD, Other
U.S. FDI in partner country ($M USD, stock positions)	N/A	N/A	2014	$1,158	http://bea.gov/international/direct_investment_ multinational_companies_comprehensive_data.htm
Host country’s FDI in the United States ($M USD, stock positions)	N/A	N/A	2014	-$41	http://bea.gov/international/direct_investment_ multinational_companies_comprehensive_data.htm
Total inbound stock of FDI as % host GDP	2015	20.6	N/A	N/A	N/A

*Bank of Guatemala http://www.banguat.gob.gt. Estimated GDP yearend data was published in November 2015 and preliminary FDI yearend data was published in March 31.

Table 3: Sources and Destination of FDI

According to data from the Coordinated Investment Survey for 2014 published by the IMF, about one fifth of FDI in Guatemala comes from the United States. Other important sources of FDI are Mexico, Canada, and Colombia (please see Table 3 on sources and destinations of FDI below). Preliminary data from Banguat also shows that the flow of FDI totaled USD 1.2 billion in 2015 (1.89 percent of GDP), a 12.9 percent decline compared to USD 1.38 billion (2.4 percent of GDP) received in 2014 Some of the activities that attracted most of the FDI flows in the last three years were electricity, agriculture, mining, commerce, and manufacturing.

Direct Investment from/in Counterpart Economy Data
From Top Five Sources/To Top Five Destinations (US Dollars, Millions)
Inward Direct Investment			Outward Direct Investment
Total Inward	12,102	100%	Total Outward	503	100%
United States	2,805	23%	Panama	122	24%
Mexico	1,469	12%	Bahamas, The	111	22%
Canada	1,269	10%	Barbados	108	22%
Colombia	1,195	10%	El Salvador	67	13%
United Kingdom	668	6%	Puerto Rico	31	6%
"0" reflects amounts rounded to +/- USD 500,000.

Table 4: Sources of Portfolio Investment

Portfolio investment data are not available for Guatemala.

18. Contact for More Information

U.S. Embassy Guatemala
Economic Section
(502) 2326-4202
GuatemalaPOL-ECON@state.gov

ecoi.net description:: Annual report on investment climate, incl. information on legal and regulatory system, political violence, corruption, labour and economic issues, etc. (as of March 2016)

Country:: Guatemala
Source:: USDOS – US Department of State (Author)
Published:: 5 July 2016
Original link:: http://www.state.gov/e/eb/rls/othr/ics/2016/wha/254533.htm
Document type:: Periodical Report
Language:: English
Document ID:: 1334951 (former ID 332560)