This report describes the political structure and government in Guatemala and the presidency of Jimmy Morales and his anti-corruption efforts as well as socioeconomic conditions in Guatemala, Relations between the U.S. and Guatemala are also discussed.

As part of its overall trade strategy, the Bush Administration over the last year began negotiating bilateral free trade area (FTA) agreements with four regional blocs or countries. Negotiations on a U.S.-Central American Free Trade Agreement (CAFTA) involving Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua began in late January 2003 and are currently scheduled to conclude this December. While negotiators have reportedly made progress in a number of areas, efforts to formulate a framework for handling agricultural trade have been slow.