Overview
Guatemala is the largest economy in Central America, with more than 40% of its population identifying as indigenous and over half under the age of 20. Over the past three decades, it has maintained more stable economic growth than its neighbours, with consistently low public debt and fiscal deficits.
Our partnership
The EU remains one of Guatemala’s main partners for cooperation and development, complementing political dialogue and trade relations under the EU–Central America Association Agreement.
Guatemala and the EU collaborate to promote sustainable growth, social cohesion and regional integration, in line with the EU’s Global Gateway strategy.
Priorities include advancing the green transition through sustainable infrastructure and climate action; fostering innovation, digitalisation and job creation; and strengthening institutions to enhance social cohesion across regions and generations.
Team Europe brings together the EU, Member States (Spain, Germany, Sweden) and European financial institutions such as the European Investment Bank (EIB), working jointly on initiatives that promote inclusive growth, greener development and good governance.
The EU has allocated €193 million in bilateral grant funding towards the cooperation with Guatemala for 2021-2027, complemented by thematic and regional programmes and blended finance under Global Gateway.
EU-Guatemala partnership documents can be found in the 'Related documents' section below.
Our key initiatives
- Green transition
The EU partners with Guatemala to foster a green transition, focusing on sustainable forest management, climate-resilient agriculture and livestock, sustainable tourism, improved waste and sewage systems, and stronger local institutions. Key actions include:
- Promoting the sustainable use and conservation of forests and biodiverse areas, supporting community forestry and protecting the Mesoamerican region’s key forest landscapes.
- Enhancing climate resilience and sustainability in agriculture and livestock to increase productivity while preserving natural resources.
- Supporting the preservation and sustainable development of the Petén Itzá Lake basin and its surrounding areas through sustainable tourism initiatives.
- Improving solid waste management and expanding sewage networks and wastewater treatment to protect local ecosystems and communities.
- Strengthening the capacities of local institutions and communities to manage natural resources sustainably and foster inclusive local development.
- Motagua river basin
Guatemala and the EU cooperate to restore the Motagua river basin and its surrounding ecosystems. Our common efforts focus on solid waste management, circular economy, biodiversity and improved water and sanitation services:
- Supporting feasibility studies and final design for improved solid waste management systems in Guatemala City and nearby areas.
- Promoting circular economy approaches and the prevention of plastic waste in the Central America and Caribbean region, while rehabilitating vital biological corridors connected to the Motagua river.
- Strengthening water security by protecting drinking water sources for Guatemala City and surrounding municipalities, including studies and measures for better water and sanitation management in the river basin and its tributaries.
- Encouraging public-private investment and local cooperation to ensure sustainable management of waste and water resources across the basin.
- Jobs, innovation and digitalisation
The EU also works with Guatemala to support inclusive economic development and job creation through innovation, digitalisation, improved connectivity and sustainable business practices. Key initiatives include:
- Promoting responsible business conduct and due diligence in the private sector to foster sustainable economic growth.
- Strengthening the institutional capacity of the Ministry of Economy and other public bodies to create a more investment-friendly and digitalised business environment.
- Improving the competitiveness of MSMEs, cooperatives and rural financial services, supporting their green and digital transitions and access to markets.
- Expanding access to finance, skills and green digital inclusion for small businesses, microenterprises and rural entrepreneurs, with a focus on sustainable growth and job creation.
- Supporting digitalisation and traceability in the private sector to advance sustainable, deforestation-free and transparent value chains in key agricultural sectors.
- Enhancing last-kilometre digital connectivity to reach remote communities and businesses, complemented by regional actions such as the BELLA cable, digital accelerator, CONDOSAT and Copernicus Academy initiatives under the EU–LAC Digital Alliance.
- Decent employment
Another of the EU’s priorities is to support Guatemala in creating more decent jobs, especially for young people and women, through capacity development, technical education and vocational training, and by strengthening social dialogue in line with the country’s commitments on freedom of association and collective bargaining.
- Gender equality, human rights and civil society
The EU works with Guatemala to strengthen democratic institutions, modernise public administration, advance gender equality and human rights, foster civil society participation, and promote binational dialogue and regional security cooperation. Key actions include:
- Supporting e-governance and digitalisation in public administration and financial management to enhance efficiency, transparency and accountability in the use of public resources.
- Strengthening domestic revenue mobilisation by improving tax administration, compliance and transparency.
- Promoting women’s participation in politics and decision-making.
- Supporting binational dialogue, security and justice cooperation, including strengthening the justice system and defending democratic governance.
- Promoting and protecting human rights through civil society organisations that defend environmental rights, indigenous rights, women’s rights and business and human rights, and supporting CSOs to engage in decision-making.
- Enhancing Guatemala’s participation in EU research and higher education programmes such as Erasmus+ and Horizon Europe.
- Food and nutrition security
Guatemala and the EU also cooperate to fight chronic malnutrition, strengthen food security and build community resilience to food insecurity and climate shocks, working closely with UN partners and specialised agencies. Key actions include:
- Reducing chronic malnutrition through integrated support for primary healthcare and community-based nutrition programmes.
- Improving resilience in vulnerable communities to better cope with food insecurity and droughts.
- Supporting recovery and livelihoods in rural areas most affected by COVID-19.
- Strengthening national information systems on nutrition for better planning and monitoring.
- Enhancing public spending efficiency in food and nutrition security and coordinating actions with national and regional partners.
Related documents
