Guatemala: Day One

We arrived on Sunday and toured the city and took some time to get to know one another better. Our real mission would begin the next day as we began our meetings with the counselors and directors of the Guatemalan political, economic, and agricultural organizations.

Our first stop was the embassy briefing where we were introduced to the Deputy Chief of Mission, the director for the US Agency of International Development, the Political Counselor, and the Economic Counselor. We learned that Guatemala is very pro-American and views their biggest competitor as China. They stressed that the close proximity to the US should be viewed as an advantage as a trade partner over China.

They believe that CAFTA, the free trade agreement recently ratified by the US Congress, will greatly enhance the trade relationships between the US and Guatemala. Additionally, they look to the US as a model for democracy and appreciate our guidance as they work to better establish their own democratic society.

Our next stop was to meet with representatives from the American Chamber of Commerce. We talked to individuals from the agriculture department and the customs department about legal and tax issues. We learned about an organization called Agextront that was established in 1982 that promotes agri-trade for non-traditional products. They consider non-traditional products to be things like tropical fruits, flowers, handicrafts, and textiles. These non-traditional products account for 60% of the trade or exporting from Guatemala. The organization has 5 goals:

1. To improve their country's infrastructure by focusing on interest rates and labor laws.
2. To implement CAFTA.
3. To reduce poverty.
4. To participate in globalization (Wal-Mart now owns 60% of their grocery stores).
5. To increase food safety.

At lunch we met with the Guatemalan Association of Food Product Producers. We discussed the synergies between our two countries and industries we share. We then broke into small groups of 2 to 3 people and talked about very focused topics. I met with individuals who represented entrepreneurs who want to establish investments in Guatemala. We talked about the economic stability of the country and the opportunities available. I was surprised to learn that Guatemala provides 40% of the coffee used by Starbucks. Additionally, they provide the top selling drink in Japan, called Rainbow Mountain. Their tourism industry has grown significantly over the past several years mostly due to an increase of flights into the country. They now host 1.3 million tourists each year and this is continuing to grow.

Our final destination for the day was a Friends of Indiana reception at the Guatemalan Government Ambassador's residence. I ended the day thinking that Guatemala has a lot to accomplish, but they know exactly what they need to do to get there.