On October 15, Under Secretary for Economic Growth, Energy, and the Environment Jose W. Fernandez and the Guatemalan Minister of Public Finance Jonathan Menkos co-chaired the High-Level Economic Dialogue (HLED) mid-year review to assess progress since March 18, outlined below.
The HLED convened senior U.S. representatives from the Office of the Vice President, U.S. Department of Agriculture, Inter-American Foundation, U.S. Agency for International Development (USAID), and U.S. Trade and Development Agency with senior Guatemalan representatives from the Guatemalan Embassy in Washington, DC, Ministry of Finance, and Ministry of Foreign Affairs. U.S. Ambassador to Guatemala Tobin Bradley and Guatemalan Ambassador to the United States Hugo Beteta attended the review.
During the meeting, the United States and Guatemala renewed their commitment to advancing the HLED's five lines of effort and agreed to reconvene in 2025 in Washington, DC. The lines of effort support the Guatemalan people and their government to expand inclusive, equitable economic prosperity through good governance; increase investment, competition, and infrastructure; improve food security; boost resilience in the energy sector; and leverage remittances for development.
Good Governance
Strengthening Coordinated Border Management: USAID and U.S. Customs and Border Protection (CBP) partnered to support an Integrated Customs and Border Management Certificate Program at the Secretariat for Central American Economic Integration (SIECA), headquartered in Guatemala City. The May 6-31 inaugural cohort of the Certificate Program marked a significant milestone by providing customs officials from Guatemala, El Salvador, and Honduras with critical skills and knowledge for effective customs and border management. The program will enhance trade enforcement and facilitation to improve northern Central American security and trade efficiency.
Investment Promotion: Competition, Infrastructure, and Supply Chains
Metro System Technical Assistance: A team of experts from the Department of Transportation's Federal Transit Administration will visit Guatemala this October to advise on the development of the Guatemala City North-South metro system. Additional technical assistance support for the metro system's development is being provided by the State Department's Transaction Advisory Fund (TAF).
Business-Enabling Environment: Enabling businesses to thrive through a dynamic environment empowers firms and individuals to flourish, harnessing Guatemalan potential through their own initiative, creativity, and resourcefulness. USAID and the U.S. Department of Commerce Commercial Law Development Program (CLDP) provided analysis, consulting, and advisory services over a range of legislative matters, such as infrastructure, competition, and public-private partnerships.
Climate-Resilient Infrastructure: USAID launched a three-year, $5 million project to encourage inclusive economic growth through infrastructure development. The project seeks to improve the regulatory environment for climate-resilient infrastructure development, create eco-industrial parks, and promote foreign direct investment needed to fuel the next generation of economic growth in Guatemala.
Funding Pre-Investment Studies: USAID convened prominent private sector actors to create a revolving fund for infrastructure project pre-investment studies. The $7.5 million fund will finance the range of pre-investment work required to unlock development of critical infrastructure.
Antitrust Legislation: To further realize the full economic potential of the Guatemalan people and their businesses, USAID provided technical assistance to the Ministry of Economy's development of an antitrust law - also known as the Competition Law. Local consultants and experts from the Federal Trade Commission engaged to apply international best practices, recommend legal language, and analyze constitutional issues.
Energy Security
Universal Electrification: USAID is working with the National Rural Electric Cooperative Association (NRECA), the U.S. Energy Association (USEA), and Arizona State University (ASU) to provide technical assistance to the Ministry of Energy and Mines (MEM) and the National Institute of Electrification (INDE) to increase energy access in rural Guatemala.
Technical Assistance for Planning and Procurement: USAID and the Department of Energy's National Renewable Energy Laboratory are working with the MEM and the National Commission of Electrical Energy (CNEE) to analyze and identify the energy reserves needed, and the amount of renewable energy that can be safely incorporated onto Guatemala's power grid, under the PEG-5 energy procurement.
Electricity Reliability: Department of State Bureau of Energy Resources Power Sector Program is working with CNEE to conduct a technical study on high-voltage transmission lines to enable Guatemala to improve grid reliability on interconnected lines, especially as the country integrates more renewable energy.
Empowering Communities for Climate Resilience: The Inter-American Foundation (IAF) anticipates leveraging $1 million in additional private-sector and foundation funds to enhance its existing Partnership for Disaster Response and Resilience. These new contributions will provide grant funding to community-led organizations in Guatemala, supporting medium- to long-term climate resilience efforts, including sustainable agriculture and natural resource management.
Coalition for Climate Entrepreneurship (CCE) Hub in Guatemala City: The CCE Hubs in Latin America began recruitment for their ideation and incubation programs. The Latin American Hubs received 273 applications. Ten startups were selected for Guatemala and are now in an intensive bootcamp which will conclude with a competition in Guatemala in October. The hubs aim to have 90 percent of participating startups launch products or secure funding within one year and abate at least 50,000 tons of CO2 per year across the program, driving sustainable economic growth in Central and South America. The hubs also anticipate engaging at least 450 students to drive academic commitment to a cleaner future and emphasize representation of previously underserved climate entrepreneurship communities, including women and Indigenous peoples.
Agriculture and Food Security
Empowering Communities for Agricultural Growth and Resilience: The IAF committed $2.5 million, matched by grantee co-investments totaling $5 million, to development projects with grassroots organizations that promote sustainable, regionally adapted agricultural practices; strengthen agricultural value chains; and improve their ability to do business with U.S. companies. One notable project is the Flor de Mora Cooperative, which is facilitating Indigenous blackberry producers' access to export markets. The IAF is investing $300,000 in improving cooperative infrastructure to protect blackberry production from changing weather conditions and to equip it with technology to maintain inventory and improve exporting to Miami-based companies Fruveg Marketing Inc., Consolidated Farms, and Harvest Sensations. The IAF also plans to leverage $1 million in added private-sector and foundation funds to expand its Partnership for Disaster Response and Resilience (PDRR). The PDRR funds grants to community-led organizations in Guatemala, supporting medium- to long-term resilience efforts, sustainable agriculture, and natural resource management.
Deepening Food Security: On the margins of the UN General Assembly's High-Level Week, U.S. Under Secretary Fernandez announced $5 million in food security assistance to advance the Vision for Adapted Crops and Soils (VACS) in Guatemala. This funding will expand such programs as Feed the Future, increasing farmers' access to innovative agricultural practices and technologies that foster climate resilience. The activity trains farmers on nutrient-management practices that strengthen soil health and fertility in local production, increasing crop diversity with nutritious and sustainable options.
Support for Farmers and Agriculture: USAID Guatemala launched a new $20 million five-year project, Feed the Future Connecting Value Chains in the Verapaces, with Guatemalan organization FEDECOVERA (Federation of Cooperatives in the Verapaces). This activity will reach 20,000 farmers with technical assistance to increase their yields and improve access to markets and climate-smart practices - improving their incomes, nutritional status, and strengthening forest and watershed restoration. The project builds on the successes of the Feed the Future Initiative's work with Centers for Modern Agriculture for Prosperity and Opportunity (CAMPO) in Huehuetenango and Quiché.
Recognizing the vital importance of maize to Guatemalan food security and culture, USAID is supporting a local NGO, Semilla Nueva, with a $4.5 million grant to expand farmer production of biofortified maize. This project plans to work with 40,000 farmers and enable commercial production of nutrient-rich maize with higher protein, zinc, and iron to reach 1.3 million Guatemala consumers.
The U.S. Department of Agriculture (USDA) is committed to helping Guatemala's children through the McGovern-Dole International Food for Education and Child Nutrition Program. On September 30, USDA announced a new $28 million five-year McGovern-Dole program in the Quiché Department of Guatemala. These initiatives advance USDA's strategy to tackle hunger, poverty, and the climate crisis.
Alliance for Healthy Homes: Household dirt floors in Guatemala exacerbate high rates of infections, malnutrition, and stunting in vulnerable communities, affecting up to one-third of Guatemalans. Constructing permanent floors dramatically reduces parasitic infestations, diarrhea, and anemia to protect cognitive development and improve quality of life. USAID, private sector alliance HogaRES, and the Guatemalan government's Mano a Mano (Hand in Hand) initiative launched an ambitious campaign to install permanent floors in hundreds of thousands of homes, along with stoves, water filters, and latrines. Scaling up this collaborative effort through additional contributions, including from individuals and foundations, will make a lasting impact - creating healthier living conditions for generations to come.
Remittances for Development
Rural Financial Inclusion: USAID launched a $13 million project to boost Guatemala's economic growth by expanding financial services in rural areas and maximizing the impact of remittances. Working alongside Guatemalan governmental and private sector partners, this initiative aims to increase access to affordable financial services for underserved communities, focusing on Indigenous groups, women, youth, and remittance recipients. The project will develop customized financial products, enhance financial literacy, and promote productive use of remittances in smallholder farming and local businesses. By aligning with national strategies and fostering partnerships, we aim to create lasting financial education networks that empowers rural communities and sustainable economic development. Over five years, this project plans to help 100,000 people in rural areas access formal financial services, mobilize $20 million in credit for smallholder farmers, channel $100 million of remittances into savings accounts and other financial services, and direct $35 million of remittances toward investing in the agricultural sector.
