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The New Zealand Ambassador resident in Mexico City has been cross-accredited to Guatemala since 1999. The first New Zealand Honorary Consul to Guatemala, Mr Emmanuel Seidner, was appointed in December 2001. The Guatemalan Ambassador resident in Tokyo presented credentials to the NZ Governor General in March 2007 – this is the first time Guatemala has had an Ambassador accredited to New Zealand.
In January 2002 the New Zealand Minister of Foreign Affairs and Trade, Hon Phil Goff, visited Guatemala. The visit was historic as the first (and only) Ministerial-level bilateral visit between New Zealand and Guatemala. During his visit, Minister Goff opened the NZ Consulate, in addition to meeting with the Guatemalan Foreign Minister, Gabriel Orellana, Acting Economy Minister, Marco Antonio Ventura and Chief Justice, Carlos Alavez-Lobos. Discussions with Guatemalan Ministers underlined the like-mindedness of NZ and Guatemala on most international issues, including our common membership of the Cairns Group.
New Zealand's trading relationship with Guatemala has been dominated by exports of dairy products, mainly milk powder. Fonterra, then the New Zealand Dairy Board, established a joint venture in Guatemala in 1989, consisting of a 50% shareholding in Codisa SA, a dairy importing company with retailing connections. In the year to June 2006, NZ exports to Guatemala totaled NZ$37,106,678, of which NZ$35,997,652 was for dairy exports. New Zealand imported NZ$2,863,830 of goods from Guatemala during the same period, of which coffee imports comprised NZ$1,525,189.
Following a review of New Zealand’s Official Development Assistance to Latin America, the New Zealand Government recently approved a new strategy to guide its Latin America Development Programme (LADP) until 2009. The LADP is managed by the New Zealand Agency for International Development (NZAID) based in Wellington. NZAID supported the attendance of Rodrigo Rodas, from the Guatemalan Unidad de Planificacion e Informacion, Departamento de Sistemas de Informacion, Estadisticas Forestales, to an international statistical conference on small and indigenous populations in Wellington, New Zealand in April 2005. NZ contributed to World Food Programmes in Guatemala in addition to making a contribution to the international relief effort in Guatemala following Tropical Storm Stan
In addition to the LADP, NZAID assistance is given to Guatemala via two mechanisms, both managed from the Embassy in Mexico City. The first mechanism is the provision of up to two scholarships per year to Guatemalan postgraduate students to study in New Zealand. In addition, a modest fund is available to assist small non-government organisation and community group development projects in Guatemala.top of page
Guatemala is a member of the United Nations and the World Trade Organisation. The closest working relationship between New Zealand and Guatemala has developed over shared membership of the Cairns Group of countries dedicated to the cause of agricultural trade liberalisation.
New Zealand supported Guatemala’s bid for a non-permanent seat on the United Nations Security Council. Venezuela and Guatemala were competing for the seat. Although Guatemala led by a clear margin through the rounds of voting, Venezuela had enough votes to block Guatemala and eventually both countries withdrew in favour of a compromise candidate Panama..top of page
Official Name - Republic of Guatemala
Land Area - 108,889 sq. km
Population - 13 million (2006 official estimate)
Capital City - Guatemala City
Religion - Roman Catholic, Evangelical Protestants
Language - Spanish, 21 Mayan indigenous languages
Currency - Quetzal
Political system - Democratic, universal adult suffrage
National government - Cabinet, headed and appointed by President
National legislature - Unicameral Congress of 113 members
Last election - November 2003 (presidential, congressional, municipal), Presidential second round December 2003
Next election due - November 2007
Head of State - President Oscar Berger Perdomo
Head of Government - President Oscar Berger Perdomo
Main political parties - Gran Alianza Nacional (GANA);
Frente Republicano Guatemalteco (FRG);
Unidad Nacional de la Esperanza (UNE);
Partido de Avanzada Nacional (PAN)
GDP Q$ 196.4 billion (2003)
GDP breakdown - Goods 35.3 %; Services 48.4 %
GDP per capita US$2,012
Real GDP growth 3.2%
Exports (fob) US$ 5,381 million
Imports (cif) US$ 10,493 million
Main exports - Coffee 8%;
Sugar 4%;
Bananas 4%;
Oil 4%
Current account -US$ 1,438.2 million
Consumer Price Inflation 9.1%
Gross external debt US$ 5,679 million
Source: Economic Intelligence Unit (2005)
NZ Exports (FOB) NZ$ 37.1 million (to year ended June 2006)
Main Exports - Milk and cream 55%;
Cheese and curd 30%;
NZ Imports (CIF) NZ$ 2.8 million (year ended June 2006)
Main Imports - Coffee 53%;
Vegetables 29%;
Plants 5%;
Oil seeds and oleaginous fruits 4%
Source: NZ Statisticstop of page
Guatemala occupies an area that was once the heart of the Mayan civilisation. After the conquest of Mexico, Central America was brought under Spanish control by an expedition led by Pedro de Alvarado in 1523-25 and governed from Guatemala. Guatemala gained independence from Spain in 1821, and until 1944 was governed by dictatorial regimes, interrupted by brief periods of constitutional rule or chaos.
From 1944 to 1954 progressive governments, headed by Juan José Arévalo and Jacobo Arbenz implemented social and agrarian reforms in an effort to modernise and democratise the country. However their efforts encountered strong opposition from large landowners, including a US multinational company, United Fruit, and the US Administration. In 1954 the elected government was overthrown by a military coup. Guatemala was then ruled by a succession of right wing civilian and military governments. The Communist Party, traditionally a strong influence, was outlawed, and most left wing or centre political parties and trade unions were suppressed by the military. The exclusion of these elements from the political process fostered the emergence of a left wing insurgent movement after 1960.
Throughout the 1960s and 1970s leading military officers abused state power to accumulate personal wealth. This was followed by a coup led by junior officers in 1982, formally ending constitutional rule and bringing General Efraín Ríos Montt to power. In the same year, the left wing insurgency movement formed the Unidad Revolucionaria Nacional Guatemalteca (URNG), which at times during the year threatened to overwhelm the army. A counter-insurgency campaign launched in response combined repression with support to Indian villages in what was known as the fusiles y frijoles (guns and beans) campaign. Many Indians were forcibly organised into civil defence patrols (PACs), and the URNG suffered serious setbacks.
Ríos Montt was overthrown in 1983, and his successor stuck to a commitment to restore democracy. Elections were held in December 1985. Vinicio Cerezo took office in January 1986 under the terms of a recently redrafted constitution. The government of Cerezo, a moderate Christian Democrat, disappointed many who had hoped for a reduction of the role of the military in the political life of Guatemala. President Cerezo was unable to assert civilian authority or curtail human rights abuses. In 1990 meetings between the Government and the URNG raised hopes of a mediated political solution to Guatemala's civil war. Since guerrilla action began in 1963 an estimated 75-100,000 lives have been lost in fighting.
Jorge Serrano Elías of the Movimiento de Acción Solidaria (MAS) won a surprise victory in the January 1991 presidential elections, in the first peaceful transfer of power since the 1950s. In May 1993 Serrano dissolved Congress and the Supreme Court, and assumed near dictatorial powers, but domestic and international opposition forced him to step down. Ramiro de León Carpio was elected to serve out the remainder of Serrano’s term.
In January 1996 Alvaro Arzú of the PAN gained the presidency. With backing of the business community, Arzú began an ambitious programme of economic modernisation. His administration also successfully concluded peace negotiations with the URNG, bringing an end to 36 years of armed conflict. The peace process was negotiated between the Guatemalan government and the URNG under the auspices of the UN and concluded in December 1996. It sets out a comprehensive blueprint for political, social and economic reform
The first repatriation of refugees from Mexico took place, after numerous delays, on 20 January 1993, under the auspices of an agreement signed by the Government and the United Nations High Commissioner for Refugees (UNHCR) on 8 October 1992. 2,500 Guatemalans, under UNHCR supervision, returned to their country. Others followed over the next few years. The most famous of these refugees is now Rigoberta Menchu, a Guatemalan Indian, who was awarded the Nobel peace prize in October 1992 for her work on behalf of indigenous people. She lived in exile in Mexico for ten years after several members of her family were killed by security forces.
The 1999 Presidential elections resulted in victory for Alfonso Portillo Carbrera of the Frente Republicano Guatemalteco (FRG). However a power struggle developed between Portillo and ex-dictator Ríos Montt, now the Leader of the Congress. From the start the Portillo administration was dogged by internal divisions. A series of corruption scandals, the failure to improve the socio-economic conditions and continued human rights abuses brought the government into continual confrontation with opposition parties and civil society.
In the second run-off of the presidential election in December 2003, Oscar Berger Perdomo of the centre-right Gran Alianza Nacional (GANA), and alliance of two small centre-right parties, won the presidency and assumed office in January 2004 for a four-year term.top of page
Berger’s government does not have a majority in the unicameral legislature; out of a total of 158 seats, GANA controls 44, the FRG 31, the UNE 28, and the PAN 14. Given his government’s lack of majority, Berger’s term in office has been characterised by negotiations with all parties, including the FRG, to secure passage for his legislative initiatives. Berger has strong backing from the local business community and has called for the end to the confrontations between the government and the private sector. Berger has also promised transparency and a commitment to eliminate corruption. With the strong backing of the US, public institutions linked to the Portillo administration have been purged amid allegations of corruption and evidence linking them to accounts in Panama used for illegal transactions.
Early in his term, Berger made progress on implementing his orthodox and pro-business economic programme. Despite the fractured legislative politics, Berger managed to impose fiscal discipline, settle judicial nominations and implement new measures to deal with rising crime and insecurity. Berger has also undertaken to breathe new life into the 1996 peace accords, which have not been implemented fully. Berger has made good progress in scaling back the size of the military and reducing their role in national life, notwithstanding the complications caused by his predecessor’s promise to pay a pension to those who had fought with paramilitary groups against the guerrillas. Despite this good start, however, Berger faces formidable challenges, including weak institutional capacity, fragile public finances and powerful vested interests. While the election campaign for the November 2007 presidential, congressional and municipal elections does not officially begin until May 2007, political jockeying is well under way. High levels of public concern about violent crime and confrontations with disaffected social groups will also continue to test the government for the remainder of its term.top of page
Since 1980 the profile of Guatemala’s economy has shifted from an agricultural economy, centred on coffee production to a largely service-based economy focusing on commerce and financial services. Commerce is now the largest section in the economy, accounting for 25% in 2005 – or 30% of GDP if banking services are included. It is closely followed by agriculture, which accounts for 23%of GDP. Industrial manufacturing contributes 13%. Maquila (offshore assembly for re-export), mining, energy, financial services and transport and communications have enjoyed the fastest growth over the past decade. Guatemala is making a concerted effort to strengthen its competitive position, including as a logistics centre for Central America, and has shown interest in New Zealand’s reform experience.
Tourism receipts accounted for US$1 billion in 2006, with visitor arrivals of 1.5 million (an increase of 14.2% from 2005).
Guatemala participates in the Plan Puebla Panama (PPP) – a cooperative approach to investment in infrastructure that promotes regional integration and development. The PPP, championed by former President of Mexico Vicente Fox, includes nine of Mexico’s southern states and all of Central America.
As a result of relatively cautious government policies during the 1960s and 1970s and the orthodox policies of the 1990s, Guatemala’s debt burden has remained relatively small when compared to many of the other Central American Republics.
On 1 January 1993 a free trade agreement (FTA) between the so-called "Northern Triangle" countries of Guatemala, El Salvador and Honduras came into effect, with the intention of accelerating the Central American integration process and preparing the region for possible future links with NAFTA. During 2000, this process intensified with the negotiation of a FTA with Mexico. The US/Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) came into effect in Guatemala in mid-2006, making permanent preferential access to the US market to Guatemalan exports previously enjoyed under the Caribbean Basin Initiative.
Guatemala has one of the most unequal income distributions in Latin America, and in fact, the world.top of page
Guatemala’s most important relations are with its Central American neighbours and the US. Relations with the US are improving, given Berger’s determination to address money laundering and drug trafficking. The DR-CAFTA with the US will boost trade opportunities. Berger is also supportive of efforts to negotiate a Central American customs union. Regional relationships will benefit from cooperation in other areas, such as combating rising gang crime. A Guatemala-Taiwan FTA came into force in July 2006. This should benefit consumers and the agro-export industry.
The Guatemalan government has also re-stated its claim to roughly half the territory of neighbouring Belize. This dispute date back to the 19th century when Guatemala and Belize (then British Honduras) were colonies of Spain and Britain respectively. There have been numerous attempts at mediation, especially through the Organisation of American States, but Guatemala was not able to accept a mediated solution proposed several years ago. Settlements of Guatemalans in Belize territory have complicated the situation, but there is increasing cooperation on the ground between the two governments and Guatemalan public opinion seems to be losing interest in the issue.
The Safetravel website provides a travel advisory for travellers to Guatemala [external link].
