Guatemala corruption claims will strain US relations

Significance

Guatemala’s government has rejected allegations of wrongdoing, but the claims compound pre-existing concerns about corruption and impunity. Such concerns will be exacerbated further by recent action against judges following a series of moves weakening the judiciary in 2021.

Impacts

• A new scandal in the construction sector may deter foreign companies from pursuing partnerships in the industry.
• Frequent scandals have the potential to spark renewed protests of the sort seen in July last year.
• The addition of more individuals to the US Corrupt Actors list would increase pressure on Guatemalan authorities.