On April 6, 2022 the Consul General of the Consulate General of Guatemala in Los Angeles and the U.S. Commercial Service will present a webinar on the U.S. free trade agreement with Guatemala.
Guatemala and the USA entered into the Central American Free Trade Agreement- DR on July 1, 2006. U.S. Textile and Apparel Companies benefited by increased market opportunities for U.S. yarn, fabric, apparel and footwear manufacturers. The agreement has resulted in increased two-way trade. This provides economic growth opportunities among both countries. U.S. manufacturers supply yarns and fabrics for the assembly of apparel. The apparel enters the U.S. duty free. Qualifying U.S. yarns and fabrics enter Guatemala duty-free. This allows for increased export opportunities. In addition investment in the region continually grows increasing exports between both Guatemala and the U.S. Nearly all textile and apparel products that meet the rule of origin of the Agreement are duty free. Yarn-forward requires that the yarn spinning and all operations “forward” occur in either the United States, Guatemala or the other countries in the region who are signatories to the CAFTA-DR.
Report to Congress on Foreign Persons who have Knowingly Engaged in Actions that Undermine Democratic Processes or Institutions, Significant Corruption, or Obstruction of Such Corruption in El Salvador, Guatemala, and Honduras
Section 353(b) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2021 (Div. FF, P.L. 116-260)
Consistent with Section 353(b) of the United States – Northern Triangle Enhanced Engagement Act (Div. FF, P.L. 116-260), this report is being submitted to the House Foreign Affairs Committee, Senate Foreign Relations Committee, House Committee on the Judiciary, and the Senate Committee on the Judiciary.
Consistent with the requirements of Section 353(b), this report identifies the following persons in El Salvador, Guatemala, and Honduras: (1) foreign persons determined to have knowingly engaged in actions that undermine democratic processes or institutions; (2) foreign persons determined to have knowingly engaged in significant corruption; and (3) foreign persons determined to have knowingly engaged in obstruction of investigations into such acts of corruption, including the following: corruption related to government contracts; bribery and extortion; the facilitation or transfer of the proceeds of corruption, including through money laundering; and acts of violence, harassment, or intimidation directed at governmental and nongovernmental corruption investigators.
Consistent with the requirements of Section 353, foreign persons listed in this report are generally ineligible for visas and admission to the United States. Foreign persons listed in this report shall have their visas revoked immediately and any other valid visa or entry documentation will be cancelled, absent an exception or national security interest waiver.1 Consistent with Section 353(g), this report will be published in the Federal Register.
The report includes individuals for whom the Department is aware of credible information or allegations of the conduct at issue, from media reporting and other sources. The Department will continue to review the individuals listed in the report and consider all available tools to deter and disrupt corrupt, undemocratic activity in El Salvador, Guatemala, and Honduras. The Department also continues to actively review additional credible information and allegations concerning corruption and to utilize all applicable authorities, as appropriate, to ensure corrupt officials are denied safe haven in the United States.
El Salvador
Walter René Araujo Morales, former member and president of the Supreme Electoral Tribunal, undermined democratic processes or institutions by calling for insurrection against the Legislative Assembly and repeatedly threatening political candidates.
Pablo Salvador Anliker Infante, former Minister of Agriculture, engaged in significant corruption by misappropriating public funds for his personal benefit.
Conan Tonathiu Castro Ramírez, current Legal Advisor to the President, undermined democratic processes or institutions by assisting in the inappropriate removal of five Supreme Court Magistrates and the Attorney General.
Óscar Rolando Castro, Minister of Labor, obstructed investigations into corruption and undermined democratic processes or institutions in efforts to damage his political opponents.
Osiris Luna Meza, Vice Minister of Security and Director of Prisons, has engaged in significant corruption related to government contracts and bribery during his term in office.
José Luis Merino, former Vice Minister for Foreign Investment and Development Financing, engaged in significant corruption during his term in office through bribery. He also participated in a money laundering scheme.
Ezequiel Milla Guerra, former mayor of La Union, engaged in significant corruption by abusing his authority as mayor in the sale of Perico Island to agents of the People’s Republic of China in exchange for personal benefit.
José Aquiles Enrique Rais López engaged in significant corruption and undermined democratic processes or institutions by bribing public officials.
Martha Carolina Recinos de Bernal, current Chief of Cabinet, engaged in significant corruption by misusing public funds for personal benefit. She also participated in a significant money laundering scheme.
Carlos Armando Reyes Ramos, current member of the Legislative Assembly, obstructed investigations into corruption by inappropriately influencing the Supreme Court Magistrate selection process.
Othon Sigfrido Reyes Morales, former legislator from the FMLN party of El Salvador, engaged in significant corruption during his term in office through fraud and misuse of public funds.
Rogelio Eduardo Rivas Polanco, former Minister of Security and Justice, engaged in significant corruption by misappropriating public funds for personal benefit.
Adolfo Salume Artinano, engaged in significant corruption and undermined democratic processes and institutions by bribing a Supreme Court Magistrate to avoid paying a fine.
Luis Guillermo Wellman Carpio, current Magistrate of Supreme Electoral Tribunal, undermined democratic processes or institutions by causing serious and unnecessary delays in election preparations and results tabulation for his personal benefit and allowing Chinese malign influence during the Salvadoran elections.
Guatemala
Gustavo Adolfo Alejos Cambara, former Guatemalan Presidential Chief of Staff, engaged in significant corruption by facilitating payments to congressional representatives and judges on Guatemala’s Supreme Court of Justice (CSJ) in order to inappropriately influence the judicial selection process for magistrates to the CSJ and Court of Appeals and secure his future release from prison and the dismissal of corruption charges. He is designated under the Global Magnitsky sanctions program and Section 7031(c) for involvement in significant corruption.
Felipe Alejos Lorenzana, former first secretary of the Guatemalan Congress, has engaged in significant corruption. While acting in his official capacity, Mr. Alejos was involved in corrupt acts to enrich himself, while also seriously harming U.S. businesses’ international economic activity. He is designated under the Global Magnitsky sanctions program and Section 7031(c) for involvement in significant corruption.
Delia Bac Alvarado, former congressional representative, engaged in significant corruption through her misuse of public funds for personal benefit. She is designated under Section 7031(c) for involvement in significant corruption.
Florencio Carrascoza Gamez, current mayor of Joyabaj, undermined democratic processes or institutions by intimidating and unjustly imprisoning political opponents.
Alvaro Colom Caballeros, former president, engaged in significant corruption when he participated in fraud and embezzlement involving a new bus system in Guatemala City known as Transurbano.
Manuel Duarte Barrera, currently on the Supreme Court, has undermined democratic processes or institutions by abusing his authority to inappropriately influence and manipulate the appointment of judges to high court positions.
Boris Roberto Espana Caceres, current congressional representative in the Guatemalan Congress, engaged in significant corruption when he participated in influence peddling and bribery.
Mario Amilcar Estrada Orellana, former congressional representative, engaged in significant corruption and was sentenced by U.S. courts for seeking millions from Mexico’s Sinaloa Cartel to finance political campaigns.
Raul Amilcar Falla Ovalle, a lawyer for the NGO Fundacion Contra el Terrorismo (Foundation Against Terrorism – FCT), attempted to delay or obstruct criminal proceedings against former military officials who had committed acts of violence, harassment, or intimidation against governmental and nongovernmental corruption investigators.
Moises Eduardo Galindo Ruiz, an attorney with the NGO FCT, attempted to delay or obstruct criminal proceedings against former military officials who had committed acts of violence, harassment, or intimidation against governmental and nongovernmental corruption investigators, as well as the work of the Special Prosecutor’s Office Against Impunity (FECI).
Juan Carlos Godinez Rodriguez, lawyer and former member of a congressional commission in charge of selecting Supreme Court magistrates, undermined democratic processes or institutions by abusing his authority to inappropriately influence and manipulate the appointment of judges to high court positions.
Gustavo Adolfo Herrera Castillo, political operative and businessman, undermined democratic processes or institutions by abusing his authority to inappropriately influence and manipulate the appointment of judges to high court positions.
Ricardo Rafael Mendez Ruiz Valdez, the founder and legal representative of the NGO FCT, attempted to delay or obstruct criminal proceedings against former military officials who had committed acts of violence, harassment, or intimidation against governmental and nongovernmental corruption investigators.
Mynor Mauricio Moto Morataya, selected in January 2021 to fill a vacant seat on the country’s Constitutional Court, undermined processes or institutions and engaged in significant corruption when he obstructed justice and received bribes in return for a favorable legal decision.
Alejandro Jorge Sinbaldi Aparicio, former Minister of Communications, Infrastructure, and Housing, engaged in significant corruption when he participated in bribery and illegal electoral financing, and the laundering of the proceeds of corruption for personal gain. He is designated under Section 7031(c) for involvement in significant corruption.
Guillermo Estuardo de Jesus Sosa Rodriguez, former Vice Minister of Communications, engaged in significant corruption when he participated in bribery schemes, including involvement in a criminal structure that pressured, collected, and deposited bribes from state contractors in exchange for personal benefits.
Blanca Aida Stalling Davila, former Supreme Court Justice, engaged in significant corruption by participating in bribery schemes and inappropriately influencing the judicial branch. She is designated under Section 7031(c) for involvement in significant corruption.
Elder de Jesús Súchite Vargas, former Minister of Culture, engaged in significant corruption related to government contracts and influence peddling for personal gain.
Jorge Estuardo Vargas Morales, current congressional representative, engaged in significant corruption and undermined democratic processes or institutions when he engaged in bribery, coercion, and influence peddling.
Nester Mauricio Vasquez Pimentel, currently on the Supreme Court, has undermined democratic processes or institutions by abusing his authority to inappropriately influence and manipulate the appointment of judges to high court positions.
Honduras
Gustavo Alberto Perez, current congressional representative, has engaged in significant corruption. He was indicted in the Arca Abierta MACCIH-investigated corruption case for embezzling $800,000 from various government agencies.
Marco Antonio Bogran Corrales, former director of INVEST-H, engaged in significant corruption by misappropriating public funds during the COVID-19 pandemic.
Rosa Elena Bonilla de Lobo, former first lady, engaged in significant corruption through fraud and misappropriation of public funds.
Augusto Domingo Cruz Asensio, former member of congress, engaged in significant corruption by misappropriating funds from the public Generacion employment program to personal accounts.
Jose Celin Discua Elvir, current congressional representative, engaged in significant corruption when he misappropriated funds from the Secretariat of Agriculture to political campaigns.
Rodolfo Irias Navas, current congressional representative, engaged in significant corruption when he misappropriated funds from the Secretariat of Agriculture to political campaigns.
Eleazar Alexander Juarez Sarabia, former member of congress, engaged in significant corruption by misappropriating funds from a public pest control program in his home department of Valle to his personal accounts.
Jose Porfirio “Pepe” Lobo Sosa, former president of Honduras, engaged in significant corruption while president when he accepted bribes from the narco-trafficking organization Los Cachiros in exchange for political favors.
Gladys Aurora Lopez, member of the Honduran National Congress Executive Board, engaged in significant corruption. He was indicted in the Arca Abierta MACCIH-investigated corruption case for embezzling $800,000 from various government agencies.
Miguel Edgardo Martinez Pineda, current congressional representative engaged in significant corruption. He was indicted in the Pandora MACCIH corruption case in June 2018 for misappropriating $12.5 million in public funds from the Secretariat of Agriculture to political campaigns for personal gain.
Sara Ismela Medina Galo, member of congress, obstructed investigations into corruption in her role as Secretary of Congress.
Oscar Najera, current congressional representative, engaged in significant corruption related to the Cachiros narcotrafficking organization. He was designated under Section 7031(c) for involvement in significant corruption.
Hector Enrique Padilla Hernandez, former member of congress, engaged in significant corruption by misappropriating funds from the publicly funded Limpieza de Solares y Calles development project in his home department of Choluteca to his personal accounts.
Milton Jesus Puerto Oseguera, current congressional representative, engaged in significant corruption. He was indicted in the Arca Abierta MACCIH-investigated corruption case for embezzling $800,000 from various government agencies.
Audelia Rodriguez Rodrigo, current member of congress, engaged in significant corruption by misappropriating funds from the publicly funded Limpieza de Solares y Calles development project to her personal accounts.
Dennys Antonio Sanchez Fernandez, current member of congress, engaged in significant corruption by misappropriating funds from a public pest control program in his home department of Santa Barbara to his personal accounts.
Elvin Ernesto Santos Ordonez, current congressional representative, engaged in significant corruption when he misappropriated funds from the Secretariat of Agriculture to political campaigns.
Juan Carlos Valenzuela Molina, current congressional representative. He was indicted in the Arca Abierta MACCIH-investigated corruption case for embezzling $800,000 from various government agencies.
Elden Vasquez, current congressional representative, engaged in significant corruption through the misappropriation of $12.5 million from the Secretariat of Agriculture to political campaigns for his personal gain. He was indicted in the Pandora MACCIH-investigated corruption case in June 2018.
Welsy Milena Vasquez Lopez, current congressional representative, engaged in significant corruption including embezzlement and misappropriation of public funds for personal gain. He was indicted in the Arca Abierta MACCIH-investigated corruption case for embezzling $800,000 from various government agencies.
Roman Villeda Aguilar, member of congress, obstructed investigations into corruption, which resulted in the dismissal of an embezzlement case against several congressman who were under investigation for redirecting money to a fake NGO.
On October 28, 2020, U.S. Secretary of State Michael R. Pompeo announced the designation of First Secretary in the Congress of the Republic of Guatemala, Felipe Alejos Lorenzana, and former Deputy Delia Bac, due to their involvement in significant corruption. Mr. Alejos’ and Ms. Bac’s corruption has undermined the rule of law and the Guatemalan public’s faith in their government and their country’s democratic institutions and public processes. While acting in his official capacity as a deputy in the Guatemalan Congress, Mr. Alejos was involved in corrupt acts to enrich himself, while also seriously harming U.S. businesses’ international economic activity. In her official capacity as a deputy from 2008 to 2020, Ms. Bac was involved in corrupt acts including using her political influence for the personal enrichment and advancement of herself and her family.
These designations are made under Section 7031(c) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2020 (Div. G, P.L. 116-94). Under Section 7031(c), once the Secretary of State designates officials of foreign governments for their involvement, directly or indirectly, in significant corruption, those individuals and their immediate family members are ineligible for entry into the United States.
The law also requires the Secretary of State to either publicly or privately designate such officials and their immediate family members. In addition to Mr. Alejos, the Department is publicly designating his spouse, Maria Ximena Morales de Alejos, and his minor sons.
On January 26, 2015 the Office of the United States Trade Representative published in the Federal Register (80 FR 4027) CAFTA-DR Dispute Settlement Proceeding Regarding Guatemala's Failure To Effectively Enforce Its Labor Laws; request for comments.
SUMMARY: The Office of the United States Trade Representative (``USTR'') is providing notice that effective September 19, 2014, at the request of the United States, the arbitral panel reviewing the U.S. challenge to Guatemala's breach of its obligations under Article 16.2.1(a) of the Dominican Republic--Central America--United States Free Trade Agreement (``CAFTA-DR'') has begun its review.
DATES: Although USTR will accept any comments received during the course of the dispute settlement proceedings, comments should be submitted on or before February 20, 2015, to be assured of timely consideration by USTR.
On September 18, 2014, United States Trade Representative Michael Froman, joined by President Trumka of the AFL-CIO, Ranking Member Levin, Representatives Becerra and Price, and Deputy Secretary of Labor Chris Lu to announced that the Obama Administration was taking action on behalf of workers, both here and around the world, by proceeding with a labor enforcement case against Guatemala under the Dominican Republic-Central America Free Trade Agreement ("DR-CAFTA").
BACKGROUND. On April 23, 2008, the AFL-CIO and six Guatemalan unions filed a petition, the first of its kind, under the labor provisions of DR-CAFTA with the U.S. Department of Labor’s Office of Trade & Labor Affairs.
On August 25, 2014, United States Trade Representative Michael Froman announced that the dispute settlement process in the 2011 labor enforcement case brought against Guatemala under the Dominican Republic-Central America-United States Free Trade Agreement ("DR-CAFTA") will remain suspended for an additional four weeks as the United States reviews information provided by Guatemala concerning legal reforms and actions to strengthen labor law enforcement in Guatemala and whether the reforms are leading to concrete improvements in Guatemalan workers’ rights.
Guatemala City, Guatemala – As part of USTR’s efforts to ensure the full implementation of the labor provisions under the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), U.S. Trade Representative Michael Froman last week traveled to Guatemala to meet with government ministers and congressional, labor and business leaders after meeting with Guatemalan President Otto Pérez Molina in Washington, D.C. last week.
Ambassador Froman met with Guatemalan leaders to press their government to follow through on work that remains to effectively implement the Enforcement Plan signed by Guatemala last year and to effectively enforce Guatemalan labor laws. In his meetings, Ambassador Froman emphasized that respecting workers’ rights and the rule of law will help Guatemala attract the investment needed to create opportunity for the country’s growing workforce.
On April 26, 2013, the United States and Guatemala signed the 18-point Enforcement Plan outlining concrete actions to strengthen labor law enforcement in Guatemala, which Guatemala committed to implement within six months. Guatemala has adopted a number of reforms to improve worker rights in Guatemala, but work remains for Guatemala to fully implement its obligations under CAFTA.
Regarding his trip, Ambassador Froman made the following statement:
“We have been focused on addressing worker rights and rule of law issues in Guatemala for some time and are committed to fully enforcing the provisions in CAFTA.
“Recent developments further underscore the importance of this effort. As President Obama said last week, we need to work together to address the systematic factors driving the influx of young immigrants from Central American countries, including the lack of economic opportunity.
“Successfully resolving these issues will help position Guatemala as a leader in the region and send a positive signal to attract investment and create economic opportunities here in Guatemala.”
SCHEDULE
Thursday, July 31
Ambassador Froman had dinner with Aristedes Crespo, President of the Congress of the Republic of Guatemala.
Friday, August 1
Ambassador Froman met with Guatemalan Foreign Minister Fernando Carrera.
Ambassador Froman had breakfast with the following Opposition Bench Chiefs: Orlando Blanco, UNE Party Bench Chief Carlos Lopez, TODOS Party Bench Chief Jose Gandara Torrebiarte, CREO Party Deputy Bench Chief Roberto Villate Villatoro, LIDER Party Bench Chief Amilcar Pop, WINAQ Party Bench Chief
Ambassador Froman met with Guatemalan Labor Minister Carlos Contreras and Economy Minister Sergio de la Torre at the Ministry of Labor.
Ambassador Froman met with the following representatives of the Coordinating Committee of Agricultural, Commercial, Industrial, and Financial Associations (CACIF) at the offices the Chamber of Industry: Hermann Giron, President of CACIF Roberto Ardon, Executive Director of CACIF Jorge Britz, President of the Chamber of Commerce Feranado Lopez, President of the Chamber of Industry
Ambassador Froman had lunch with the following Solidarity Center and Worker Representatives: Stephen Wishart, Central American Field Representative William Bolainez, Project Assistant Walter Ignacio Rodriguez Gomez, Ternium/FESTRAS Carlos Mancilla, Secretary General of CUSG Victoriano Zacarias, Deputy Secretary General of CGTG
Ambassador Froman had coffee with International Labour Organization and United Nations Representative Sergio Paixio.
The United States Trade Representative Michael Froman has announced that the dispute settlement process in the 2011 labor enforcement case brought under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) will not be terminated and will remain suspended for an additional four months as the United States seeks further progress by Guatemala on its labor obligations under the CAFTA-DR.
On April 26, 2013, the United States and Guatemala signed an 18-point Enforcement Plan outlining concrete actions to strengthen labor law enforcement in Guatemala. Guatemala still needs to pass legislation providing for an expedited process to sanction employers that violate labor laws and to implement a mechanism to ensure payments to workers in cases where enterprises have closed, among other steps that remain to be taken. In addition, in the next four months, Guatemala will need to demonstrate that the legal reforms it has undertaken and still needs to undertake are being effectively implemented and leading to positive changes on the ground. The U.S. Government retains the right to reactivate the arbitral panel at any point during the next four months.
United States Trade Representative Michael Froman today expressed serious concerns about the enforcement of Guatemala's laws protecting worker rights, saying that significant work remains to ensure that an Enforcement Plan signed by the Guatemalan government earlier this year is effectively implemented. Ambassador Froman recognized important steps taken by Guatemala under the plan, but communicated to Guatemalan officials today that the United States expects solid progress in fully implementing the commitments over the next six months. If Guatemala fails to comply with the provisions of the Enforcement Plan, the U.S. Government retains the right to reactivate an arbitration panel established in the 2011 labor enforcement case brought under the Dominican Republic-Central America-United States Free Trade Agreement ("DR-CAFTA").
On April 26, 2013, the United States and Guatemala signed the 18-point Enforcement Plan outlining concrete actions to strengthen labor law enforcement in Guatemala, which Guatemala committed to implement within six months. Guatemala has adopted a number of reforms, consistent with applicable deadlines, but implementation of those reforms is key to improving worker rights in Guatemala. While the arbitration panel will not be reconvened at this time, Ambassador Froman stressed that much work remains to be done to ensure effective implementation.
More information is available on the USTR website HERE.
The Office of the United States Trade Representative ("U.S.T.R.") today announced that "The United States and Guatemala have agreed to an ambitious and comprehensive enforcement plan that includes significant, concrete actions that the Guatemalan government will implement within specified time frames to improve enforcement of labor laws." A list of key actions contained in the plan is available on the U.S.T.R. website at http://www.ustr.gov/about-us/press-office/fact-sheets/2013/april/guatemala-labor-enforcement
BACKGROUND
On April 23, 2008, the American Federation of Labor and Congress of Industrial Organizations ("AFL-CIO") and six Guatemalan unions filed a petition, the first of its kind, under the labor provisions of the United States-Dominican Republic-Central America Free Trade Agreement ("DR-CAFTA") with the U.S. Department of Labor’s Office of Trade & Labor Affairs. On July 30, 2010, the U.S. Labor Department announced the United States would request consultations with Guatemala’s government under the labor chapter of the DR-CAFTA. It was the first such action by any U.S. administration against a trading partner.
